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The global combined heat power market was valued at $24.26 billion in 2022, and is predicted to reach $48.24 billion by 2030, increasing at a CAGR of 8.2% from 2023 to 2030. Government policies that encourage the adoption of CHP technology to cut down on greenhouse gas emissions, and rising awareness of the benefits of such policies, are the primary forces propelling the combined heat and power market forward.
CHP is an efficient and environmentally friendly method of generating both electrical and thermal power from a single fuel source. The goal of combined heat and power (CHP) is to generate electricity at or near the end user's location so that the waste heat from electricity generation can be used to satisfy the user's heating requirements, and the electricity itself can meet all or part of the location's electricity needs. CHP adoption is a good financial priority for applications with steady electrical and thermal energy demands. Most of the current CHP capacity is devoted to industrial applications because of how lucrative they are. This is especially true for industries that deal with consistent handling and have high steam requirements. Hospitals, nursing homes, laundromats, and hotels all have high demands for hot water, making them ideal candidates for combined heat and electricity systems. The potential for CHP in institutional settings, such as schools, prisons, and private and sporting organizations, is enormous.
In addition, the monetary and ecological advantages of the systems, as well as the reusability of the biproducts, are anticipated to boost demand for CHP systems, hence increasing the installation market for these technologies. Demand for CHP installations is expected to rise as a result of government restrictions and huge financial incentives for CHP systems. The rising demand for combined heat and power is expected to be aided by the rising acceptance of natural gas as an economical and ecologically suitable substitute for oil and coal.
One of the impediments to the development of the combined heat power industry is lack of understanding about the site clearances necessary to build these systems. The fact that these systems should only be installed in businesses that need both electricity and hot water limits their potential customer base. In addition, the set-up costs for these combined heat and power systems are quite high, making them unaffordable for businesses of smaller scale.
The key factors driving the global combined heat power market are the rise in natural gas use for power generation and the rising demand for energy efficiency in industries. Furthermore, rising concerns over GHG emissions have prompted numerous governments to actively support CHP, further fueling the industry's expansion. The market should benefit from the proliferation of cutting-edge technologies and the growth of decentralized power plants. Cogeneration systems, for instance, can reduce carbon emissions by up to 30 percent compared to traditional technologies, as reported in a February 2018 update from the UK Government's Department of Business, Energy, & Industrial Strategy.
In OECD countries including the United States, the United Kingdom, Germany, Japan, and others, government programs and incentives are likely to be the primary drivers of the CHP industry. The United States enacted new legislation in 2012 to encourage combined heat and power (CHP) systems as a means of improving energy efficiency. This legislation was accompanied by an executive order by the country's previous president. By 2020, combined heat and power is expected to account for 20% of all U.S. electricity output, up from 8% in 2012. Governments at both the federal and state levels in the United States offer financial incentives to encourage the use of CHP systems. To encourage state investments in energy efficiency in industry, the order mandates coordination between the US Departments of Energy, Commerce, Agriculture, and the Environmental Protection Agency (EPA). The United States Congress extended a tax credit of 10% for businesses who use CHP to improve energy efficiency in their facilities in February of 2018.
One of the major difficulties of establishing a CHP plant is the high initial capital cost necessary for installation. Heat exchangers, absorption chillers, boilers, and other equipment are needed in CHP plants in addition to the power producing equipment such the prime mover and generator systems. A major challenge for the CHP business is the fact that the price of a typical CHP plant can be over 240% higher than the price of a power generation plant with the same capacity and prime mover. Complex assembly of CHP systems, including prime mover, heat recovery system, and heat and steam pipes, results in significant maintenance costs. In order to keep the CHP running at peak performance, it is necessary to do routine maintenance on all of its parts.
Report Coverage
Global CHP research report categorizes the market for global based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. Global CHP report analyses the key growth drivers, opportunities, and challenges influencing the global market. Recent market developments and CHP competitive strategies such as expansion, product launch and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key CHP market players and analyses their core competencies in each global market sub-segments.
Key Points Covered in the Report
Competitive Environment:
The research provides an accurate study of the major organisations and companies operating in the global CHP market, along with a comparative evaluation based on their product portfolios, corporate summaries, geographic reach, business plans, CHP market shares in specific segments, and SWOT analyses. A detailed analysis of the firms' recent news and developments, such as product development, inventions, joint ventures, partnerships, mergers and acquisitions, strategic alliances, and other activities, is also included in the study. This makes it possible to assess the level of market competition as a whole.
List of Major Market Participants
General Electric (USA), Veolia (USA), E.ON SE (USA), Caterpillar Inc. (USA), ABB Group (USA), Siemens AG (USA), Capstone Turbine Corporation (USA), Centrica plc (USA), Engie North America (USA), Mitsubishi Power Americas, Inc. (USA), Exelon Corporation (USA), Johnson Controls (Canada), NRG Energy (USA), FuelCell Energy (USA), DTE Energy (USA), Clearway Energy Group (Canada), Constellation (USA), Turbomach (Canada), Bloom Energy (USA), Ener-G Cogen International (USA), Solar Turbines (USA), Echogen Power Systems (USA), Ameresco (USA and Canada), 2G Energy, Inc. (USA), Tecogen Inc. (USA).
Primary Target Market
Market Segment:
This study forecasts global, regional, and country revenue from 2019 to 2030. INFINITIVE DATA EXPERT has segmented the global CHP market based on the below-mentioned segments:
Global CHP Market, By Fuel Type
Natural Gas
Coal
Biomass
Others
Global CHP market, By Application
Commercial
Residential
Industrial
Utility
Global CHP Market, By Technology
Combined Cycle
Steam Turbine
Gas Turbine
Reciprocating Engine
Others
Global CHP market, Regional Analysis
CHP is an efficient and environmentally friendly method of generating both electrical and thermal power from a single fuel source. The goal of combined heat and power (CHP) is to generate electricity at or near the end user's location so that the waste heat from electricity generation can be used to satisfy the user's heating requirements, and the electricity itself can meet all or part of the location's electricity needs. CHP adoption is a good financial priority for applications with steady electrical and thermal energy demands. Most of the current CHP capacity is devoted to industrial applications because of how lucrative they are. This is especially true for industries that deal with consistent handling and have high steam requirements. Hospitals, nursing homes, laundromats, and hotels all have high demands for hot water, making them ideal candidates for combined heat and electricity systems. The potential for CHP in institutional settings, such as schools, prisons, and private and sporting organizations, is enormous.
In addition, the monetary and ecological advantages of the systems, as well as the reusability of the biproducts, are anticipated to boost demand for CHP systems, hence increasing the installation market for these technologies. Demand for CHP installations is expected to rise as a result of government restrictions and huge financial incentives for CHP systems. The rising demand for combined heat and power is expected to be aided by the rising acceptance of natural gas as an economical and ecologically suitable substitute for oil and coal.
One of the impediments to the development of the combined heat power industry is lack of understanding about the site clearances necessary to build these systems. The fact that these systems should only be installed in businesses that need both electricity and hot water limits their potential customer base. In addition, the set-up costs for these combined heat and power systems are quite high, making them unaffordable for businesses of smaller scale.
The key factors driving the global combined heat power market are the rise in natural gas use for power generation and the rising demand for energy efficiency in industries. Furthermore, rising concerns over GHG emissions have prompted numerous governments to actively support CHP, further fueling the industry's expansion. The market should benefit from the proliferation of cutting-edge technologies and the growth of decentralized power plants. Cogeneration systems, for instance, can reduce carbon emissions by up to 30 percent compared to traditional technologies, as reported in a February 2018 update from the UK Government's Department of Business, Energy, & Industrial Strategy.
In OECD countries including the United States, the United Kingdom, Germany, Japan, and others, government programs and incentives are likely to be the primary drivers of the CHP industry. The United States enacted new legislation in 2012 to encourage combined heat and power (CHP) systems as a means of improving energy efficiency. This legislation was accompanied by an executive order by the country's previous president. By 2020, combined heat and power is expected to account for 20% of all U.S. electricity output, up from 8% in 2012. Governments at both the federal and state levels in the United States offer financial incentives to encourage the use of CHP systems. To encourage state investments in energy efficiency in industry, the order mandates coordination between the US Departments of Energy, Commerce, Agriculture, and the Environmental Protection Agency (EPA). The United States Congress extended a tax credit of 10% for businesses who use CHP to improve energy efficiency in their facilities in February of 2018.
One of the major difficulties of establishing a CHP plant is the high initial capital cost necessary for installation. Heat exchangers, absorption chillers, boilers, and other equipment are needed in CHP plants in addition to the power producing equipment such the prime mover and generator systems. A major challenge for the CHP business is the fact that the price of a typical CHP plant can be over 240% higher than the price of a power generation plant with the same capacity and prime mover. Complex assembly of CHP systems, including prime mover, heat recovery system, and heat and steam pipes, results in significant maintenance costs. In order to keep the CHP running at peak performance, it is necessary to do routine maintenance on all of its parts.
Report Coverage
Global CHP research report categorizes the market for global based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. Global CHP report analyses the key growth drivers, opportunities, and challenges influencing the global market. Recent market developments and CHP competitive strategies such as expansion, product launch and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key CHP market players and analyses their core competencies in each global market sub-segments.
| REPORT ATTRIBUTES | DETAILS |
|---|---|
| Study Period | 2017-2030 |
| Base Year | 2022 |
| Forecast Period | 2022-2030 |
| Historical Period | 2017-2021 |
| Unit | Value (USD Billion) |
| Key Companies Profiled | General Electric (USA), Veolia (USA), E.ON SE (USA), Caterpillar Inc. (USA), ABB Group (USA), Siemens AG (USA), Capstone Turbine Corporation (USA), Centrica plc (USA), Engie North America (USA), Mitsubishi Power Americas, Inc. (USA), Exelon Corporation (USA), Johnson Controls (Canada), NRG Energy (USA), FuelCell Energy (USA), DTE Energy (USA), Clearway Energy Group (Canada), Constellation (USA), Turbomach (Canada), Bloom Energy (USA), Ener-G Cogen International (USA), Solar Turbines (USA), Echogen Power Systems (USA), Ameresco (USA and Canada), 2G Energy, Inc. (USA), Tecogen Inc. (USA). |
| Segments Covered | • By Product |
| Customization Scope | Free report customization (equivalent to up to 3 analyst working days) with purchase. Addition or alteration to country, regional & segment scope |
Key Points Covered in the Report
- Market Revenue of CHP Market from 2021 to 2030.
- Market Forecast for CHP Market from 2021 to 2030.
- Regional Market Share and Revenue from 2021 to 2030.
- Country Market share within region from 2021 to 2030.
- Key Type and Application Revenue and forecast.
- Company Market Share Analysis, CHP competitive scenario, ranking, and detailed company
profiles. - Market driver, restraints, and detailed COVID-19 impact on CHP
Market
Competitive Environment:
The research provides an accurate study of the major organisations and companies operating in the global CHP market, along with a comparative evaluation based on their product portfolios, corporate summaries, geographic reach, business plans, CHP market shares in specific segments, and SWOT analyses. A detailed analysis of the firms' recent news and developments, such as product development, inventions, joint ventures, partnerships, mergers and acquisitions, strategic alliances, and other activities, is also included in the study. This makes it possible to assess the level of market competition as a whole.
List of Major Market Participants
General Electric (USA), Veolia (USA), E.ON SE (USA), Caterpillar Inc. (USA), ABB Group (USA), Siemens AG (USA), Capstone Turbine Corporation (USA), Centrica plc (USA), Engie North America (USA), Mitsubishi Power Americas, Inc. (USA), Exelon Corporation (USA), Johnson Controls (Canada), NRG Energy (USA), FuelCell Energy (USA), DTE Energy (USA), Clearway Energy Group (Canada), Constellation (USA), Turbomach (Canada), Bloom Energy (USA), Ener-G Cogen International (USA), Solar Turbines (USA), Echogen Power Systems (USA), Ameresco (USA and Canada), 2G Energy, Inc. (USA), Tecogen Inc. (USA).
Primary Target Market
- Market Players of CHP
- Investors
- End-users
- Government Authorities
- Consulting And Research Firm
- Venture capitalists
- Third-party knowledge providers
- Value-Added Resellers (VARs)
Market Segment:
This study forecasts global, regional, and country revenue from 2019 to 2030. INFINITIVE DATA EXPERT has segmented the global CHP market based on the below-mentioned segments:
Global CHP Market, By Fuel Type
Natural Gas
Coal
Biomass
Others
Global CHP market, By Application
Commercial
Residential
Industrial
Utility
Global CHP Market, By Technology
Combined Cycle
Steam Turbine
Gas Turbine
Reciprocating Engine
Others
Global CHP market, Regional Analysis
- Europe: Germany, Uk, France, Italy, Spain, Russia, Rest of Europe
- The Asia Pacific: China,Japan,India,South Korea,Australia,Rest of Asia Pacific
- South America: Brazil, Argentina, Rest of South America
- Middle East & Africa: UAE, Saudi Arabia, Qatar, South Africa, Rest of Middle East & Africa
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