Combined Heat and Power Market (By Type: Large Scale, Small Scale; By Fuel: Coal, Natural Gas, Biomass, Others; By Technology: Gas Turbine, Steam Turbine, Reciprocating Engine, Fuel Cell, Microturbine, Others (stirling engine and combined cyle power plants); By Capacity; By End user)- Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022-2030

The global combined heat and power market size was valued at USD 28.6 billion in 2021 and is expected to surpass around USD 46.3 billion by 2030, poised to grow at a compound annual growth rate (CAGR) of 5.5% from 2022 to 2030.

Combined Heat and Power Market Size 2022 To 2030

Key Takeaways:

  • By type, the large scale segment accounted 81% market share in 2021.
  • The small scale segment has contributed 19% of deals in 2021 and is expected to grow at a CAGR of 5.7% from 2022 to 2030.
  • By technology, CHP frameworks contributed 56% of market share in 2021.
  • By application, flammable gas segment represented 67% of market share in 2021.
  • In 2021, Europe had the most noteworthy income share 52%.
  • The Asia Pacific region represented more than 28% of all out income in 2021 and is anticipated to ascend at an impressive speed of over 4.7%from 2022 to 2030.

During the projection time frame, the Combined Heat and Power (CHP) market is being driven by unofficial laws and motivations, as well as an ascent in the utilization of flammable gas for power age. Cogeneration is one more term for consolidated intensity and power. This approach creates both intensity and power simultaneously. A framework recuperates lost energy by using waste intensity to give intensity to the power plant or structures connected to the power plant through a steam pipe organization. A portion of the essential drivers driving the development of the CHP market incorporate the expanded organization of CHP innovations, the interest for energy productivity, and the rising use of government impetuses to support cogeneration.

CHP is an energy-proficient innovation that is preferred over conventional techniques for power age since it utilizes less fuel to make energy. Moreover, CHP frameworks eliminate transmission and dispersion (T&D) misfortunes, lessen network blockage during top influence interest, and wipe out the requirement for T&D foundation development. Accordingly, the power-age offices of CHP, as well as extensive monetary and ecological advantages, are probably going to fuel market development all through the projection period.

Report Scope of the Combined Heat and Power Market

Report Coverage Details
Market Size in 2022 USD 30.17 Billion
Market Size by 2030

USD 46.3 Billion

Growth Rate from 2022 to 2030 CAGR of 5.5%
Base Year 2021
Forecast Period 2022 to 2030
Segments Covered Type, Fuel, Technology, Capacity, End user, Geography
Companies Mentioned Wartsila, Doosan Fuel Cell America, Inc., Caterpillar, Cummins Inc., Aegis Energy Services Inc., General Electric, Siemens, E.ON SE, Tecogen Inc., Elite Energy Systems, LLC, Capstone Turbine Corporation, Clarke Energy

Growth factors

Expanding power constancy and cost investment funds are driving business sector development. The advantages of joined intensity and power (CHP) incorporate lower modern cycle costs because of less unnecessary energy use. Energy might be resourced by utilizing waste assets. The overall joined intensity and power industry is being driven by the sending of consolidated intensity and power (CHP) innovation, the expanded utilization of government motivators to advance cogeneration, and the interest for energy proficiency. Legislatures in different regions are pushing joined intensity and power (CHP) innovation through an assortment of ideal long haul strategies and monetary motivating forces, which are supposed to drive consolidated intensity and power (CHP) market development over the evaluation period.

Moreover, the presence of countless associations that gives CHP establishment administrations are speeding market extension. By 2030, the petroleum gas fuel classification in the CHP market is assessed to arrive at USD 11.5 billion. Flammable gas is the most frequently involved fuel in CHP innovation. Its cost is supposed to ascend in contrast with different choices in light of the fact that to its extraordinary proficiency, extended worldwide assembling, and much lower fossil fuel by products. Legislatures all through the world are endeavouring to support how much cleaner energizes in their energy blend, which will drive petroleum gas interest before long .Besides, thorough administrative regulations and fossil fuel by product targets would force policymakers to embrace cleaner energizes, including petroleum gas, driving the portion of the overall industry of flammable gas as a fuel.

Lower discharge rates, as well as cost seriousness with its rivals, will energize utilization of this innovation. The quick reception of gas innovation all through created countries because of developing stresses over the fast consumption of conventional assets will help industry income. Moreover, developing overall energy request will urge specialists to increment flammable gas yield, which will drive CHP market improvement all through the projection period.

Combined Heat and Power Market Share, By Type, 2021 (%)

Type Revenue Share in 2021 (%)
Large Scale 81%
Small Scale 19%

Type Insights

In 2021, the large scope type area represented highest share. This item is generally utilized in the business and modern areas. In 2020, the worldwide huge scope joined intensity and power establishment framework drove the general interest for enormous scope CHP establishment. Developing requirement for energy from huge scope areas like substance, concrete, mash and paper, materials, refining, drugs, glass, and sugar is anticipated to fuel interest for enormous scope based frameworks. They are utilized in the previously mentioned areas because of their size and high temperature and tension necessities.

The small scale classification is anticipated to ascend at an extensive speed from 2022 to 2030. The developing interest for clean energy from the private area is probably going to fuel the market for CHP establishments. Expanding information on the advantages of executing cogeneration frameworks is basic for the CHP establishment area, since they are progressively liked over conventional procedures. Nations with enormous business sectors incorporate the United States, Germany, and Japan. These frameworks are generally utilized for wastewater treatment in private applications. These frameworks are additionally utilized in business applications like places of business, clinics, club, air terminals, and military locales. They are best in structures with "heat sinks," like pools.

Technology Insights

In 2021, CHP frameworks represented largest revenue share. With a market worth of more than $6.7 billion, the joined cycle framework was the top innovation in 2021. These frameworks are utilized generally in modern areas with huge energy prerequisites, like refining, synthetic substances, concrete, paper, mash, sugar, and drugs. When contrasted with different advancements, the essential advantages incorporate non-fuel activity, modest establishment and support costs, heat yield, fire up time, fuel accessibility, low contamination, and energy productivity. This innovation moves energy starting with one turbine then onto the next, making it more effective in creating low-and high-pressure steam in light of the site's necessities. These frameworks are planned as per the requirements of the client. This component will prompt the predominance of consolidated cycle power innovation before long.

The consolidated intensity and power portion of the overall industry from business end-use is supposed to grow, attributable to proceeded with monetary inflows by various legislatures for the development of different business offices like workplaces, instructive foundations, medical clinics, and others. Locale warming or cooling is additionally acquiring prominence in created countries, attributable to rising space warming/cooling interest as well as the innovation's fantastic energy productivity, constancy, and diminished absolute expenses, which supplements CHP innovation reception. Besides, expanding consumptions in green structures because of serious structure emanation prerequisites will drive business fragment advancement later on years.

Steam turbine-based innovation represented more than 26% of complete volume in 2021 and is anticipated to increase at an unassuming rate all through the projection period. Consolidated cycle-based innovation was worth more than USD 4.9 billion of every 2021 and is probably going to create at a quicker rate, with a CAGR of 3.1% projected from 2022 to 2030. Other CHP establishment strategies incorporate ignition/gas turbine, squander heat recuperation, power device, and microturbine. Microturbines, power devices, and waste intensity recuperation are a portion of the other CHP innovations. Microturbines are small energy makers with limits going from 30 to 250 KW. It is feasible to utilize various energizes, including harsh gas, flammable gas, and other fluid fills. These frameworks are utilized in both home and business settings.

Fuel Insights

In 2021, flammable gas controlled CHP frameworks are assessed to represent 67% of the market regarding income. Flammable gas is an alluring fuel for CHP frameworks because of its plentiful accessibility and reasonable expense. Moreover, gaseous petrol is viewed as a spotless type of energy that guides in the decrease of fossil fuel byproducts.

Coal-terminated consolidated intensity and power frameworks represented more than 18.8% of complete volume in 2021 and are supposed to grow at a slower than normal speed all through the conjecture period. Expanding coal use is anticipated to animate interest for CHP frameworks because of its high calorific worth and minimal expense. Its high dealing with expenses and outflows of dangerous gases into as far as possible its utilization in plans.

Biomass includes practical and naturally helpful biofuels got from vegetable oils and creature fats. Biomass is for the most part used as a fuel for limited scope CHP frameworks and is supposed to increment quickly since it adds to the decrease of unsafe natural gases and the accomplishment of government goals for the utilization of environmentally friendly power sources. Wood, handled trash, and oil are instances of elective powers. Wood squander is used to drive limited scope CHP frameworks and is along these lines utilized in both private and business applications. Squander heat from modern tasks is dealt with and utilized in CHP frameworks to make power and nuclear power.CHP frameworks driven by oil are easy to introduce and energy productive.

End user Insights

The commercial and industrial area overwhelms the market. The extending limited scope modern area, along with expanded power interest, will well affect organization development. The expanded requirement for trustworthy also, savvy innovation, as well as carbon impression decrease endeavors, will support the business CHP industry. CHP is acquiring huge support from legislatures from one side of the planet to the other as beneficial regulation and motivations. States all through the globe are empowering cogeneration innovation through various long haul approaches and monetary impetuses that will drive the business before long. Notwithstanding, the costly starting speculation will be a vital obstacle to the joined intensity and power market's development later on years.

Combined Heat and Power Market Share, By Region, 2021 (%)

Regions Revenue Share in 2021 (%)
North America 12%
Asia Pacific 28%
Europe 52%
Latin America 5%
MEA 3%

Geography Insights

In 2021, Europe region accounted largest market share. The region is probably going to keep up with its income share control during the anticipated period. Government necessities to decrease contamination levels in countries like as Germany, the United Kingdom, and France are projected to animate interest for CHP framework establishment in Europe. CHP establishment interest in North America was 110.6 GW in 2019 and is anticipated to reach 142.8 GW by 2027, extending at a CAGR of 3.4% somewhere in the range of 2020 and 2027. Ecological regulations forced by administrative organizations like the United States Environmental Protection Agency (EPA) to lessen fossil fuel byproducts into the air are projected to fuel the district's interest for CHP establishment.

The Asia Pacific region is expected to grow at a remarkable CAGR from 2022 to 2030. The presence of enormous scope makers in Asia Pacific countries like India, China, South Korea, and Japan is projected to animate interest around here. Nations, for example, India and China have focused on expanding their piece of the environmentally friendly power blend to decrease outflows. Moreover, the state run administrations of a few Asia Pacific countries are empowering joined intensity and power establishments through various strategies and innovative work exercises. These elements will add to the future development of the Pacific Region market for joined intensity and power establishments.

Key market developments

  • The recently built joined intensity and power (CHP) plant in ToplanaZenica is scheduled to start activities in 2021 in March 2020. This task will supplant coal-terminated region warming with squander gases from the ArcelorMittalZenica steel processing plant. The power result of the CHP plant will be 14.45 MW, with an intensity limit of 112.5 MW.
  • In September 2018, a biomass-based joined intensity and power plant with a creating limit of 27 MW was dispatched in Southwest England. The plant's ability is adequate to control 50,000 families while moderating in excess of 100,000 metric lots of CO2 every year.

Key market players

  • Wartsila
  • Doosan Fuel Cell America, Inc.
  • Caterpillar
  • Cummins Inc.
  • Aegis Energy Services Inc.
  • General Electric
  • Siemens
  • E.ON SE
  • Tecogen Inc.
  • Elite Energy Systems, LLC
  • Capstone Turbine Corporation     
  • Clarke Energy

Segments covered in the report

(Note*: We offer report based on sub segments as well. Kindly, let us know if you are interested)

By Type

  • Large Scale
  • Small Scale

By Fuel

  • Coal
  • Natural Gas
  • Biomass
  • Others

By Technology

  • Gas Turbine
  • Steam Turbine
  • Reciprocating Engine
  • Fuel Cell
  • Microturbine
  • Others (stirling engine and combined cyle power plants)

By Capacity

  • Up to 10 MW
  • 10-150 MW
  • 151-300 MW
  • Above 300 MW

By End user

  • Residential
    • Space Heating/Cooling
    • Water Heating
    • Cooking
    • Lighting & Others
  • Commercial
    • Educational Institution
    • District Energy
    • Office Buildings
    • Government/Military
    • Others
  • Industrial
    • Chemicals
    • Petroleum Refining
    • Food
    • Paper
    • Primary Metals
    • Others

 By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Malaysia
    • Philippines
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • North Africa
    • South Africa
    • Rest of the Middle East & Africa

Frequently Asked Questions

What is the current size of combined heat and power market?
The global combined heat and power market size was accounted at USD 28.6 billion in 2021 and it is expected to reach around USD 46.3 billion by 2030.
The global combined heat and power market is poised to grow at a CAGR of 5.5% from 2022 to 2030.
The major players operating in the combined heat and power market are Wartsila, Doosan Fuel Cell America, Inc., Caterpillar, Cummins Inc., Aegis Energy Services Inc., General Electric Siemens, E.ON SE, Tecogen Inc., Elite Energy Systems, LLC, Capstone Turbine Corporation, Clarke Energy
Great state motivations, strength measures, approaches, and CHP-accommodating ecological regulations are among the essential drivers driving business sector extension.
Europe region will lead the global combined heat and power market during the forecast period 2022 to 2030.
  • Report Code:1892
  • Category:Energy and Power
  • No. of Pages:
  • Format:PDF/PPT/Excel
  • Status:Published


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