Combined Heat and Power Global Market Report 2024

The global combined heat and power market has grown strongly in recent years. It will grow from $27.44 billion in 2023 to $29.23 billion in 2024 at a compound annual growth rate (CAGR) of 6.5%. The growth in the historic period can be attributed to energy efficiency goals, industrial cogeneration, environmental regulations, increased adoption of Combined Cooling, Heating, and Power (CCHP) applications, district heating and cooling projects, waste heat recovery, decentralization of energy generation, and increased awareness of the benefits of CHP.

The global combined heat and power market is expected to see strong growth in the next few years. It will grow to $38.07 billion in 2028 at a compound annual growth rate (CAGR) of 6.8%. The growth in the forecast period can be attributed to the transition to low-carbon energy systems, smart grid integration, resilience planning in critical infrastructure, urbanization and district energy networks, biogas and biomass CHP projects, support for micro-CHP in residential settings. Major trends in the forecast period include energy-as-a-service (EaaS) models, market consolidation and partnerships, remote monitoring and control, technological advancements, grid resilience and reliability, collaboration between utilities and CHP providers, and advancements in fuel cell CHP systems.

The growth of the combined heat and power market is being propelled by the increasing adoption of biomass power. Biomass power involves harnessing energy from living or once-living organisms, such as plants, either by burning them to generate heat or by converting them into electricity. Biomass is integral to combined heat and power (CHP) systems, where it contributes to energy production through processes like biomass gasification. This versatile energy source is also utilized in the development of micro-CHPs and hydrogen energy systems, combining biomass gasification with fuel cell technology. Notably, in the United States, nearly 5 quadrillion British thermal units (Btu) and 5% of primary energy were sourced from biomass in 2021. In India, over 70% of the population relies on biomass for energy needs, constituting around 32% of the nation's primary energy use, as reported by the Ministry of New and Renewable Energy in March 2021. The increasing adoption of biomass power is poised to drive the growth of the combined heat and power market.

The combined heat and power market is set to experience growth due to the emphasis on energy efficiency. Energy efficiency involves optimizing the use of energy resources to achieve specific tasks or desired outcomes while minimizing waste. Combined Heat and Power (CHP), also known as cogeneration, stands out as an energy-efficient process, generating electricity while capturing waste heat to provide both electrical and thermal energy. CHP systems demonstrate significantly higher efficiency compared to traditional power generation methods. According to the International Energy Agency's November 2021 report, the stock of energy-efficient, digitally-enabled automation devices is expected to increase by an average of 33%, reaching 9 billion in 2021. This emphasis on energy efficiency is a key driver for the growth of the combined heat and power market.

Innovative technological solutions, exemplified by the Bloom Energy Server, are playing a crucial role in the profitability and advancement of major companies in the combined heat and power market. Bloom Energy, a US-based green energy company, launched the Bloom Energy Server in February 2023. This cutting-edge fuel cell power generation system is designed to efficiently generate electricity to meet diverse energy demands while maintaining a compact modular footprint. The Bloom Energy Server is recognized for delivering clean, reliable, and cost-effective energy solutions on-site, offering dependable and consistent power. Its flexibility allows it to adapt to the energy requirements of various applications and sectors, utilizing a variety of fuels such as natural gas, mixed hydrogen, biogas, and hydrogen. Operating on Solid Oxide technology and at high temperatures, the Bloom Energy Server represents a significant technological advancement in the combined heat and power market.

Major companies in the combined heat and power market are driving innovation through the development of new technological products, such as heat exchangers, to enhance their profitability. A heat exchanger is a device designed to transfer thermal energy between two fluids, facilitating efficient heat transfer processes. For instance, in March 2023, Alfa Laval AB, a Sweden-based provider of specialized products for heat transfer introduced the AlfaNova GL50, an asymmetric gas-to-liquid plate heat exchanger. This compact and asymmetric device, constructed entirely of stainless steel, is designed for fuel cell applications within the combined heat and power (CHP) sector. With a maximum gas flow rate of 250 m3/h and an incoming gas temperature of 750°C, the AlfaNova GL50 aims to minimize energy losses and enhance fuel cell system efficiency. This innovative solution enables fuel cell producers to maximize the utilization of their fuel cell stacks.

In March 2022, MPC Energy Solutions (MPCES), a Netherlands-based company specializing in sustainable energy and focusing on low-carbon energy infrastructure, made a strategic acquisition. MPCES acquired the Neol combined heat and power (CHP) plant located in Puerto Rico for an undisclosed amount. Through this acquisition, MPC Energy Solutions aims to consolidate its position in the combined heat and power market. The Neol CHP plant, with a capacity of 3.4 MW, represents a significant asset in MPCES's portfolio, contributing to the company's commitment to sustainable and low-carbon energy infrastructure.

Major companies operating in the combined heat and power market report are General Electric Company, Siemens AG, Veolia Environnement S.A., Wärtsilä Oyj Abp, 2G Energy AG, Capstone Green Energy Corporation, Caterpillar Inc., Dalkia Aegis EDF Group LLC, Bosch Industriekessel GmbH, Centrica PLC, Cummins Inc., Kawasaki Heavy Industries Ltd., The Viessmann Group, Kohler Co., Elite Energy Systems LLC, MAN Energy Solutions SE, Centrax Gas Turbines, ABB Limited, Tecogen Inc., Aegis Energy Services Inc., Curtis Engine & Equipment Co. Inc., Rolls-Royce Power Systems AG, Mitsubishi Heavy Industries Ltd., Doosan Fuel Cell America Inc., FuelCell Energy Inc., Bloom Energy Corporation, ClearEdge Power Inc., Ceres Power Holdings PLC, Ceramic Fuel Cells Limited, Ballard Power Systems Inc., Plug Power Inc., Hydrogenics Corporation, ITM Power PLC, and AFC Energy plc.

Asia-Pacific was the largest region in the combined heat and power market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global combined heat and power (CHP) market share during the forecast period. The regions covered in the combined heat and power market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. 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, Canada, Italy, Spain.

The main types of fuel used in combined heat and power are natural gas, coal, biomass, and others, employing various technologies such as combined cycle, steam turbine, gas turbine, reciprocating engine, among others. Natural gas, a fossil energy source formed deep beneath the Earth's surface, consists of various compounds, including methane, a molecule composed of one carbon atom, four hydrogen atoms, and one oxygen atom. In combined heat and power systems, natural gas serves as fuel for process heating in the industrial sector. The capacity of these systems can range from up to 10 MW, 10-150 MW, 151-300 MW, and above 300 MW. Combined heat and power applications are employed in commercial, industrial, residential, utilities, and other end-uses.

This report 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, combined heat and power 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.

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.

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.


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