Combined Heat & Power Market by Product (Large Scale, Small & Micro Scale), Technology (Fuel Cells, Gas Turbine, Micro CHP), Fuel, Range, Utility, Application - Global Forecast 2024-2030

[183 Pages Report] The Combined Heat & Power Market size was estimated at USD 27.65 billion in 2023 and expected to reach USD 29.28 billion in 2024, at a CAGR 5.96% to reach USD 41.50 billion by 2030.

The combined heat & power (CHP) systems produce electricity and useful thermal energy in an integrated process. CHP installations provide more efficient fuel by capturing and utilizing heat typically wasted during electricity generation, turning it into thermal energy for heating or cooling applications. These systems substantially improve overall efficiency and reduce greenhouse gas emissions by capturing excess heat generated during power production and utilizing it for heating. Micro CHP boilers create heat for spaces and hot water and produce electricity for residential use. Modern CHP systems can utilize a variety of fuels, including natural gas, biomass, biogas, coal, oil, and even solar or geothermal energy. Moreover, there is an increasing demand for energy efficiency, a rising emphasis on reducing greenhouse gas emissions, and supportive government policies that enhance the adoption of CHP systems. However, high initial capital investment costs and lengthy payback periods due to fluctuating fuel prices significantly impede the adoption of combined heat & power systems. In addition, the growing trend toward distributed energy generation has opened up opportunities for smaller-scale CHP installations in commercial buildings, hospitals, universities, and residential complexes across the United States. Technological advancements in CHP system components have improved performance and reduced installation costs, making them more attractive to potential end-users.

In the Americas region, the combined heat and power (CHP) market has grown steadily over the past few decades owing to the increasing demand for energy-efficiency power system production and growing American policymakers, which enhance the adoption of CHP systems. The United States Department of Energy (DOE) actively supports CHP deployment through various policies, incentives, and research programs to improve system efficiency and reduce emissions in multiple states, including California, Texas, Florida, and Ohio. In January 2023, the Canada Renewable Energy Association announced that Canada has an installed capacity of more than 19 gigawatts (GW) of utility-scale wind and solar power, adding more than 1.8 GW of new generation capacity in 2022. Moreover, the Environmental Protection Agency (EPA) promotes using combined heat and power systems more effectively to achieve cost-effective emissions reductions by increasing the region's energy supply efficiency. Distributed generation systems, primarily combined heat and power generators to provide electricity during power outages, quickly gained acceptance in the South American market. Several countries, including Argentina, Chile, and Brazil, are adopting new regulations to allow small generators to attach directly to the distribution grid and sell their surplus power back into the grid. In Argentina, federal law 27424 established a national framework for promoting distributed renewable energy generation connected to the grid. This law aims to set the policies and establish the legal and contractual conditions for generating electric power from renewable sources. In Brazil, the installed capacity of distributed systems has surged to 1.2 GW through 101,761 projects in 2019 and is expected to reach 12 GW by 2027. The regional market players, including General Electric Company, Caterpillar Inc., Cummins Inc., and FuelCell Energy, Inc., focus on acquisition and collaboration activities to provide customers with low greenhouse gas emissions products and technology. The emergence of novel combined heat and power technologies to produce thermal and electric energies to meet the growing energy demand is anticipated to foster the combined heat and power market in the Americas region.

The market dynamics represent an ever-changing landscape of the Combined Heat & Power Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

• Market Drivers
  • Increasing demand for the production of energy efficiency power system
  • Growing American policymaker support for CHP systems
• Market Restraints
  • High initial investment and maintenance cost
• Market Opportunities
  • Innovative solutions for increased CHP deployment and grid interconnection in Americas
  • Rapid growth in utility sectors’ partnerships to advance CHP systems
• Market Challenges
  • Complex Integration in Distributed Generation System

• Product: Increasing use of large-scale systems due to their higher capacity and efficiency levels

  Large Scale CHP systems are designed to meet the needs of larger facilities such as industrial plants, large hospitals, and campuses, and are able to generate electricity and thermal energy in a single, integrated system, significantly improving energy efficiency and reducing greenhouse gas emissions compared to separate heat and power generation. Large Scale CHP systems typically have capacities above 5 MW. Small & micro scale CHP systems are suited for smaller applications such as residential buildings, small businesses, and community housing projects. These systems often have capacities below 5 MW, with micro-scale installations falling below 50 kW.

• Application: Widening applications in the industrial sector due to high energy demands

  Commercial establishments such as hotels, hospitals, data centers, and large office buildings are increasingly integrating CHP systems due to a keen interest in sustainable energy practices and a commitment to minimizing carbon footprints. CHP systems deliver critical heating, cooling, and reliable electricity. The industrial sector, characterized by its substantial energy requirements, is adopting CHP solutions across manufacturing facilities' chemical and food processing plants. In the industrial sector, the systems accentuate energy efficiency, support machinery operation, and trim down environmental impact, echoing the industrial focus on sustainability and waste reduction. Smaller-scale CHP systems are becoming preferable for homes and residential complexes, offering a dual benefit of heat and power from a single fuel source, lowering utility expenses and reducing emissions compared to traditional systems due to advancements in CHP technology, making it an attractive option for homeowners and developers alike.

The porter's five forces analysis offers a simple and powerful tool for understanding, identifying, and analyzing the position, situation, and power of the businesses in the Combined Heat & Power Market. This model is helpful for companies to understand the strength of their current competitive position and the position they are considering repositioning into. With a clear understanding of where power lies, businesses can take advantage of a situation of strength, improve weaknesses, and avoid taking wrong steps. The tool identifies whether new products, services, or companies have the potential to be profitable. In addition, it can be very informative when used to understand the balance of power in exceptional use cases.

The value chain of the Combined Heat & Power Market encompasses all intermediate value addition activities, including raw materials used, product inception, and final delivery, aiding in identifying competitive advantages and improvement areas. Critical path analysis of theCombined Heat & Power Market identifies task sequences crucial for timely project completion, aiding resource allocation and bottleneck identification. Value chain and critical path analysis methods optimize efficiency, improve quality, enhance competitiveness, and increase profitability. Value chain analysis targets production inefficiencies, and critical path analysis ensures project timeliness. These analyses facilitate businesses in making informed decisions, responding to market demands swiftly, and achieving sustainable growth by optimizing operations and maximizing resource utilization.

The regulatory framework analysis for the Combined Heat & Power Market is essential for ensuring legal compliance, managing risks, shaping business strategies, fostering innovation, protecting consumers, accessing markets, maintaining reputation, and managing stakeholder relations. Regulatory frameworks shape business strategies and expansion initiatives, guiding informed decision-making processes. Furthermore, this analysis uncovers avenues for innovation within existing regulations or by advocating for regulatory changes to foster innovation.

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Combined Heat & Power Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Combined Heat & Power Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

• Heidelberg Materials North America and MHI Are Working Toward First Full-Scale Carbon Capture, Utilization and Storage Solution for Cement Industry

  Heidelberg Materials, in collaboration with the Government of Canada and the Government of Alberta, has implemented a pilot CO2 capture system at its Edmonton cement plant to establish a full-scale carbon capture, utilization, and storage solution. The pilot CO2 capture system was inaugurated on-site by Alberta's Minister of Environment and Protected Areas, Rebecca Schulz. This project aligns with Heidelberg Materials' vision of decarbonizing the cement industry and its commitment to having its targets endorsed by the Science Based Targets Initiative (SBTi). The pilot project employs MHI's proprietary Advanced KM CDR Process and KS-21 solvent to explore different fuel sources and varying plant operating modes. [Published On: August 17, 2023]

• SPG Awarded Significant Contract to Provide Energy-Efficient CHP Solution for Union Beverage Packers

  Signal Power Group (SPG) secured a significant combined heat and power (CHP) contract valued at USD 10,000,000 with Union Beverage Packers, LLC. Under this agreement, SPG supplies a 3.5 MW CHP system powered by its state-of-the-art 4-turbine engine, operating under a license from Honeywell International Inc. The CHP system is scheduled to be commissioned and fully operational by mid-2024. Additionally, SPG provides a comprehensive 10-year long-term service agreement to ensure optimal performance and reliability throughout the system's lifespan. [Published On: August 03, 2023]

• Bloom Energy Launches Advanced CHP Solution for Net Zero Heating and Cooling

  Bloom Energy launched its Bloom Energy Server as a combined heat and power (CHP) solution, utilizing a high-temperature (>350°C) exhaust stream for steam production and absorption chilling. This CHP solution can replace older systems, significantly reducing operating costs and carbon emissions without additional fuel input. Additionally, Bloom's offering provides an alternative to using electricity for cooling, eliminating hydrofluorocarbons (HFCs). [Published On: August 01, 2023]

The report delves into recent significant developments in the Combined Heat & Power Market, highlighting leading vendors and their innovative profiles. These include Curtis Power Solutions, LLC by Indel Power Group Company, Cummins Inc., Wärtsilä Corporation, Yanmar Holdings Co., Ltd., Robert Bosch GmbH, BDR Thermea Group B.V., FuelCell Energy, Inc., Axiom Energy Group, LLC, Cain Industries, Viessmann Werke GmbH & Co. KG, Capstone Green Energy Corporation, MAN Energy Solutions SE, Caterpillar Inc., Mitsubishi Heavy Industries, Ltd., Veolia Environnement SA, ATCO Ltd., Schneider Electric SE, 2G Energy AG, Ricardo PLC, Siemens AG, Rolls-Royce PLC, ABB Ltd., Centrica PLC, Tecogen, Inc., Alfa Laval AB, Clarke Energy Limited by Kohler Co., General Electric Company, and Enexor Energy LLC.

This research report categorizes the Combined Heat & Power Market to forecast the revenues and analyze trends in each of the following sub-markets:

• Product
  • Large Scale
  • Small & Micro Scale
• Technology
  • Fuel Cells
  • Gas Turbine
  • Micro CHP
  • Spark Ignition Reciprocating Engine
  • Steam Turbine
• Fuel
  • Biomass
  • Coal
  • Gasoline
  • Natural Gas
• Range
  • 100-200kw
  • 20-100kW
  • 200-500kw
  • <20kW
  • >500kw
• Utility
  • On-demand
  • Permanent
• Application
  • Commercial
  • Industries
  • Residential

• Region
  • Americas
    • Argentina
    • Brazil
    • Canada
    • Mexico
    • United States
      • California
      • Florida
      • Illinois
      • New York
      • Ohio
      • Pennsylvania
      • Texas
  • Asia-Pacific
    • Australia
    • China
    • India
    • Indonesia
    • Japan
    • Malaysia
    • Philippines
    • Singapore
    • South Korea
    • Taiwan
    • Thailand
    • Vietnam
  • Europe, Middle East & Africa
    • Denmark
    • Egypt
    • Finland
    • France
    • Germany
    • Israel
    • Italy
    • Netherlands
    • Nigeria
    • Norway
    • Poland
    • Qatar
    • Russia
    • Saudi Arabia
    • South Africa
    • Spain
    • Sweden
    • Switzerland
    • Turkey
    • United Arab Emirates
    • United Kingdom

1. Market Penetration: This section thoroughly overviews the current market landscape, incorporating detailed data from key industry players.
2. Market Development: The report examines potential growth prospects in emerging markets and assesses expansion opportunities in mature segments.
3. Market Diversification: This includes detailed information on recent product launches, untapped geographic regions, recent industry developments, and strategic investments.
4. Competitive Assessment & Intelligence: An in-depth analysis of the competitive landscape is conducted, covering market share, strategic approaches, product range, certifications, regulatory approvals, patent analysis, technology developments, and advancements in the manufacturing capabilities of leading market players.
5. Product Development & Innovation: This section offers insights into upcoming technologies, research and development efforts, and notable advancements in product innovation.

1. What is the current market size and projected growth?
2. Which products, segments, applications, and regions offer promising investment opportunities?
3. What are the prevailing technology trends and regulatory frameworks?
4. What is the market share and positioning of the leading vendors?
5. What revenue sources and strategic opportunities do vendors in the market consider when deciding to enter or exit?