Combined Heat And Power (CHP) MarketSize and Trends

The combined heat and power (CHP) market size is estimated to be valued at US$ 250 Mn in 2022 and is expected to surpass around US$ 445.6 Mn by 2030, expected to exhibit a compound annual growth rate (CAGR) of 7.5% from 2023 to 2030. CHP which is also known as cogeneration, is the simultaneous production of electricity and heat from a single fuel source such as natural gas, biomass, biogas, coal, waste heat, or oil. The technology can result in substantial energy savings by utilizing the waste heat that is normally rejected to the atmosphere in conventional power generation systems. CHP systems are highly efficient and make use of these captured heat energy streams for heating or cooling purposes in residential, commercial, and industrial applications. The combined heat and power market is segmented into fuel type, capacity, technology, application, and region. By fuel type, the natural gas segment held the largest market share in 2022. Natural gas-fired CHP systems are widely adopted due to their low emissions, high efficiency, ease of availability, and low cost.

Combined Heat And Power (CHP) Market Trends:

Hybrid CHP systems: Growing trend of utilizing hybrid CHP technology that combines two or more energy generation methods into one integrated system, provides higher efficiency and flexibility.
Smart CHP systems: Integration of digital technology such as artificial intelligence, Internet of Things, big data analytics, and others into CHP systems to develop smart and connected CHP systems that provide better monitoring, control, and optimization.
Growing distributed generation: The shift towards distributed power generation models is driving the adoption of CHP systems by commercial and industrial establishments to meet their local energy needs.
Biomass-based CHP: Using biomass and waste materials as a fuel for CHP systems is gaining increased focus as it provides clean and renewable energy generation.