Major players in the combined heat and power market are General Electric Company, Siemens AG, Veolia Environnement S A, Wärtsilä Oyj Abp, 2G Energy AG, Capstone Green Energy, Caterpillar Inc., Dalkia Aegis EDF Group LLC, Bosch Industriekessel GmbH, Centrica PLC., Cummins Inc., Kawasaki Heavy Industries Ltd., The Viessmann Group, Clarke Energy, Elite Energy Systems LLC, MAN Energy Solutions SE, Centrax Gas Turbines, ABB Group and Tecogen Inc.
The global combined heat and power market is expected to grow from $25.82 billion in 2022 to $27.73 billion in 2023 at a compound annual growth rate (CAGR) of 7.38%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The combined heat and power market is expected to reach $34.52 billion in 2027 at a CAGR of 5.63%.
The combined heat and power (CHP) market consists of sales of fuel cells, microturbines, sterling engines, and combined cycle power plants.Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers.
The value of goods in this market includes related services sold by the creators of the goods.
Combined heat and power (CHP) refers to the power generation method that uses the cogeneration technique for the simultaneous production of useful thermal energy (heating and/or cooling) and mechanical power or electricity from a single source of energy.
Asia-Pacific was the largest region in the combined heat and power market in 2022.Asia-Pacific is expected to be the fastest-growing region in the forecast period.
The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The main types of fuel produced in combined heat and power are natural gas, coal, biomass, and other using various technologies such as combined cycle, steam turbine, gas turbine, reciprocating engine, and others.Natural gas refers to the fossil energy source that is formed deep beneath the earth’s surface and contains different compounds such as methane, a molecule consisting of one carbon atom, four hydrogen atoms, and one oxygen atom.
Natural gas in combined heat and power systems is used as fuel for process heating in the industrial sector.It has a capacity of up to 10 mw, 10-150 mw, 151-300 mw, and above 300 mw.
The combined heat and power are used in commercial, industrial, residential, utilities, and other end-uses.
The growing adoption of biomass power is driving the growth of the combined heat and power market.Biomass power refers to the energy generated or produced by living or once-living organisms such as plants, in which energy from these organisms can be burned to create heat or converted into electricity.
Biomass is used in combined heat and power (CHP) systems to produce energy through the biomass gasification process, as well as in the development of micro-CHPs and hydrogen energy systems by combining biomass gasification to use biomass feedstock to produce fuel cells.For instance, in 2021, according to the US Energy Information Administration (EIA), a US-based federal agency for collecting, analyzing, and disseminating energy information, nearly 5 quadrillion British thermal units (Btu) and 5% of all primary energy used in the United States were provided by biomass in 2021.
Additionally, in March 2021, according to the Ministry of New and Renewable Energy, an India-based government agency for new and renewable energy sources, more than 70% of the population of India relies on biomass for its energy needs and accounts for about 32% of the nation’s primary energy use. Therefore, the growing adoption of biomass power is expected to propel the growth of the combined heat and power market in the coming years.
Technological advancement is the key trend that is gaining popularity in the combined heat and power market. Major companies operating in the market are focused on research and development for product innovations such as a 4.2 kW combined heat and power unit that uses a solid oxide fuel cell (SOFC). An energy conversion device known as a solid oxide fuel cell (SOFC) uses an electrochemical reaction between fuel and an oxidant across an ionic conducting oxide electrolyte to generate electricity. For instance, in June 2019, Miura Co. Ltd., a Japan-based company operating in energy conservation and environmental preservation partnered with Ceres Power, a UK-based company operating in clean energy, and launched a 4.2 kW combined heat and power product using Ceres Power’s SteelCell technology, a solid oxide fuel cell (SOFC) technology to target commercial building sector in Japan. 4.2 kW combined heat and power (CHP) unit can provide clean energy and hot water to a commercial building with low carbon emission using a gas supply, which aids business continuity even during power outrage.
In March 2022, MPC Energy Solutions (MPCES), a Netherlands-based company operating in sustainable energy and primarily focusing on low-carbon energy infrastructure, acquired the Neol CHP plant for an undisclosed amount.Through this acquisition, MPC Energy Solutions (MPCES) aims to strengthen its market presence in combined heat and power.
Neol CHP plant is a Puerto Rico-based 3.4 MW combined heat and power (CHP) plant.
The countries covered in the combined heat and power market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The combined heat and power market research report is one of a series of new reports that provides combined heat and power market statistics, including combined heat and power industry global market size, regional shares, competitors with a combined heat and power market share, detailed combined heat and power market segments, market trends and opportunities, and any further data you may need to thrive in the combined heat and power industry. This combined heat and power market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.