Combined Heat & Power
Combined Heat & Power Market by Product (Large Scale, Small & Micro Scale), Technology (Fuel Cells, Gas Turbine, Micro CHP), Fuel, Range, Utility, Application - Global Forecast 2024-2030
360iResearch Analyst
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[193 Pages Report] The Combined Heat & Power Market size was estimated at USD 27.65 billion in 2023 and expected to reach USD 29.28 billion in 2024, at a CAGR 5.96% to reach USD 41.50 billion by 2030.

The combined heat & power (CHP) systems produce electricity and useful thermal energy in an integrated process. CHP installations provide more efficient fuel by capturing and utilizing heat typically wasted during electricity generation, turning it into thermal energy for heating or cooling applications. These systems substantially improve overall efficiency and reduce greenhouse gas emissions by capturing excess heat generated during power production and utilizing it for heating. Micro CHP boilers create heat for spaces and hot water and produce electricity for residential use. Modern CHP systems can utilize a variety of fuels, including natural gas, biomass, biogas, coal, oil, and even solar or geothermal energy. Moreover, there is an increasing demand for energy efficiency, a rising emphasis on reducing greenhouse gas emissions, and supportive government policies that enhance the adoption of CHP systems. However, high initial capital investment costs and lengthy payback periods due to fluctuating fuel prices significantly impede the adoption of combined heat & power systems. In addition, the growing trend toward distributed energy generation has opened up opportunities for smaller-scale CHP installations in commercial buildings, hospitals, universities, and residential complexes across the United States. Technological advancements in CHP system components have improved performance and reduced installation costs, making them more attractive to potential end-users.

Regional Insights

In the Americas region, the combined heat and power (CHP) market has grown steadily over the past few decades owing to the increasing demand for energy-efficiency power system production and growing American policymakers, which enhance the adoption of CHP systems. The United States Department of Energy (DOE) actively supports CHP deployment through various policies, incentives, and research programs to improve system efficiency and reduce emissions in multiple states, including California, Texas, Florida, and Ohio. In January 2023, the Canada Renewable Energy Association announced that Canada has an installed capacity of more than 19 gigawatts (GW) of utility-scale wind and solar power, adding more than 1.8 GW of new generation capacity in 2022. Moreover, the Environmental Protection Agency (EPA) promotes using combined heat and power systems more effectively to achieve cost-effective emissions reductions by increasing the region's energy supply efficiency. Distributed generation systems, primarily combined heat and power generators to provide electricity during power outages, quickly gained acceptance in the South American market. Several countries, including Argentina, Chile, and Brazil, are adopting new regulations to allow small generators to attach directly to the distribution grid and sell their surplus power back into the grid. In Argentina, federal law 27424 established a national framework for promoting distributed renewable energy generation connected to the grid. This law aims to set the policies and establish the legal and contractual conditions for generating electric power from renewable sources. In Brazil, the installed capacity of distributed systems has surged to 1.2 GW through 101,761 projects in 2019 and is expected to reach 12 GW by 2027. The regional market players, including General Electric Company, Caterpillar Inc., Cummins Inc., and FuelCell Energy, Inc., focus on acquisition and collaboration activities to provide customers with low greenhouse gas emissions products and technology. The emergence of novel combined heat and power technologies to produce thermal and electric energies to meet the growing energy demand is anticipated to foster the combined heat and power market in the Americas region.

Combined Heat & Power Market
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Market Dynamics

The market dynamics represent an ever-changing landscape of the Combined Heat & Power Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

  • Market Drivers
    • Increasing demand for the production of energy efficiency power system
    • Growing American policymaker support for CHP systems
  • Market Restraints
    • High initial investment and maintenance cost
  • Market Opportunities
    • Innovative solutions for increased CHP deployment and grid interconnection in Americas
    • Rapid growth in utility sectors’ partnerships to advance CHP systems
  • Market Challenges
    • Complex Integration in Distributed Generation System
Market Segmentation Analysis
  • Product: Increasing use of large-scale systems due to their higher capacity and efficiency levels

    Large Scale CHP systems are designed to meet the needs of larger facilities such as industrial plants, large hospitals, and campuses, and are able to generate electricity and thermal energy in a single, integrated system, significantly improving energy efficiency and reducing greenhouse gas emissions compared to separate heat and power generation. Large Scale CHP systems typically have capacities above 5 MW. Small & micro scale CHP systems are suited for smaller applications such as residential buildings, small businesses, and community housing projects. These systems often have capacities below 5 MW, with micro-scale installations falling below 50 kW.

  • Application: Widening applications in the industrial sector due to high energy demands

    Commercial establishments such as hotels, hospitals, data centers, and large office buildings are increasingly integrating CHP systems due to a keen interest in sustainable energy practices and a commitment to minimizing carbon footprints. CHP systems deliver critical heating, cooling, and reliable electricity. The industrial sector, characterized by its substantial energy requirements, is adopting CHP solutions across manufacturing facilities' chemical and food processing plants. In the industrial sector, the systems accentuate energy efficiency, support machinery operation, and trim down environmental impact, echoing the industrial focus on sustainability and waste reduction. Smaller-scale CHP systems are becoming preferable for homes and residential complexes, offering a dual benefit of heat and power from a single fuel source, lowering utility expenses and reducing emissions compared to traditional systems due to advancements in CHP technology, making it an attractive option for homeowners and developers alike.

Market Disruption Analysis

The market disruption analysis delves into the core elements associated with market-influencing changes, including breakthrough technological advancements that introduce novel features, integration capabilities, regulatory shifts that could drive or restrain market growth, and the emergence of innovative market players challenging traditional paradigms. This analysis facilitates a competitive advantage by preparing players in the Combined Heat & Power Market to pre-emptively adapt to these market-influencing changes, enhances risk management by early identification of threats, informs calculated investment decisions, and drives innovation toward areas with the highest demand in the Combined Heat & Power Market.

Porter’s Five Forces Analysis

The porter's five forces analysis offers a simple and powerful tool for understanding, identifying, and analyzing the position, situation, and power of the businesses in the Combined Heat & Power Market. This model is helpful for companies to understand the strength of their current competitive position and the position they are considering repositioning into. With a clear understanding of where power lies, businesses can take advantage of a situation of strength, improve weaknesses, and avoid taking wrong steps. The tool identifies whether new products, services, or companies have the potential to be profitable. In addition, it can be very informative when used to understand the balance of power in exceptional use cases.

Value Chain & Critical Path Analysis

The value chain of the Combined Heat & Power Market encompasses all intermediate value addition activities, including raw materials used, product inception, and final delivery, aiding in identifying competitive advantages and improvement areas. Critical path analysis of the <> market identifies task sequences crucial for timely project completion, aiding resource allocation and bottleneck identification. Value chain and critical path analysis methods optimize efficiency, improve quality, enhance competitiveness, and increase profitability. Value chain analysis targets production inefficiencies, and critical path analysis ensures project timeliness. These analyses facilitate businesses in making informed decisions, responding to market demands swiftly, and achieving sustainable growth by optimizing operations and maximizing resource utilization.

Pricing Analysis

The pricing analysis comprehensively evaluates how a product or service is priced within the Combined Heat & Power Market. This evaluation encompasses various factors that impact the price of a product, including production costs, competition, demand, customer value perception, and changing margins. An essential aspect of this analysis is understanding price elasticity, which measures how sensitive the market for a product is to its price change. It provides insight into competitive pricing strategies, enabling businesses to position their products advantageously in the Combined Heat & Power Market.

Technology Analysis

The technology analysis involves evaluating the current and emerging technologies relevant to a specific industry or market. This analysis includes breakthrough trends across the value chain that directly define the future course of long-term profitability and overall advancement in the Combined Heat & Power Market.

Patent Analysis

The patent analysis involves evaluating patent filing trends, assessing patent ownership, analyzing the legal status and compliance, and collecting competitive intelligence from patents within the Combined Heat & Power Market and its parent industry. Analyzing the ownership of patents, assessing their legal status, and interpreting the patents to gather insights into competitors' technology strategies assist businesses in strategizing and optimizing product positioning and investment decisions.

Trade Analysis

The trade analysis of the Combined Heat & Power Market explores the complex interplay of import and export activities, emphasizing the critical role played by key trading nations. This analysis identifies geographical discrepancies in trade flows, offering a deep insight into regional disparities to identify geographic areas suitable for market expansion. A detailed analysis of the regulatory landscape focuses on tariffs, taxes, and customs procedures that significantly determine international trade flows. This analysis is crucial for understanding the overarching legal framework that businesses must navigate.

Regulatory Framework Analysis

The regulatory framework analysis for the Combined Heat & Power Market is essential for ensuring legal compliance, managing risks, shaping business strategies, fostering innovation, protecting consumers, accessing markets, maintaining reputation, and managing stakeholder relations. Regulatory frameworks shape business strategies and expansion initiatives, guiding informed decision-making processes. Furthermore, this analysis uncovers avenues for innovation within existing regulations or by advocating for regulatory changes to foster innovation.

We faced significant challenges meeting the growing demand for energy-efficient power systems. The Combined Heat & Power Market Research Report by 360iResearch provided invaluable insights and actionable strategies that transformed our approach. The report's findings directly led to a 20% improvement in operational efficiency. Overall, the report profoundly impacted our operations.
Curtis Power Solutions, LLC by Indel Power Group Company
FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Combined Heat & Power Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Combined Heat & Power Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments
  • Heidelberg Materials North America and MHI Are Working Toward First Full-Scale Carbon Capture, Utilization and Storage Solution for Cement Industry

    Heidelberg Materials, in collaboration with the Government of Canada and the Government of Alberta, has implemented a pilot CO2 capture system at its Edmonton cement plant to establish a full-scale carbon capture, utilization, and storage solution. The pilot CO2 capture system was inaugurated on-site by Alberta's Minister of Environment and Protected Areas, Rebecca Schulz. This project aligns with Heidelberg Materials' vision of decarbonizing the cement industry and its commitment to having its targets endorsed by the Science Based Targets Initiative (SBTi). The pilot project employs MHI's proprietary Advanced KM CDR Process and KS-21 solvent to explore different fuel sources and varying plant operating modes. [Published On: 2023-08-17]

  • SPG Awarded Significant Contract to Provide Energy-Efficient CHP Solution for Union Beverage Packers

    Signal Power Group (SPG) secured a significant combined heat and power (CHP) contract valued at USD 10,000,000 with Union Beverage Packers, LLC. Under this agreement, SPG supplies a 3.5 MW CHP system powered by its state-of-the-art 4-turbine engine, operating under a license from Honeywell International Inc. The CHP system is scheduled to be commissioned and fully operational by mid-2024. Additionally, SPG provides a comprehensive 10-year long-term service agreement to ensure optimal performance and reliability throughout the system's lifespan. [Published On: 2023-08-03]

  • Bloom Energy Launches Advanced CHP Solution for Net Zero Heating and Cooling

    Bloom Energy launched its Bloom Energy Server as a combined heat and power (CHP) solution, utilizing a high-temperature (>350°C) exhaust stream for steam production and absorption chilling. This CHP solution can replace older systems, significantly reducing operating costs and carbon emissions without additional fuel input. Additionally, Bloom's offering provides an alternative to using electricity for cooling, eliminating hydrofluorocarbons (HFCs). [Published On: 2023-08-01]

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Combined Heat & Power Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Before utilizing the Combined Heat & Power Market Research Report by 360iResearch, we faced significant challenges in scaling our CHP deployment and navigating grid interconnections in the Americas. The report offered invaluable insights and actionable strategies that transformed our approach. With these findings, we successfully boosted our operational efficiency and market reach. The report's in-depth analysis provided clear pathways that directly impacted our strategic decisions. We are immensely satisfied with the positive changes and growth facilitated by this comprehensive guide.
Cummins Inc.
Key Company Profiles

The report delves into recent significant developments in the Combined Heat & Power Market, highlighting leading vendors and their innovative profiles. These include Curtis Power Solutions, LLC by Indel Power Group Company, Cummins Inc., Wärtsilä Corporation, Yanmar Holdings Co., Ltd., Robert Bosch GmbH, BDR Thermea Group B.V., FuelCell Energy, Inc., Axiom Energy Group, LLC, Cain Industries, Viessmann Werke GmbH & Co. KG, Capstone Green Energy Corporation, MAN Energy Solutions SE, Caterpillar Inc., Mitsubishi Heavy Industries, Ltd., Veolia Environnement SA, ATCO Ltd., Schneider Electric SE, 2G Energy AG, Ricardo PLC, Siemens AG, Rolls-Royce PLC, ABB Ltd., Centrica PLC, Tecogen, Inc., Alfa Laval AB, Clarke Energy Limited by Kohler Co., General Electric Company, and Enexor Energy LLC.

Combined Heat & Power Market - Global Forecast 2024-2030
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Market Segmentation & Coverage

This research report categorizes the Combined Heat & Power Market to forecast the revenues and analyze trends in each of the following sub-markets:

  • Product
    • Large Scale
    • Small & Micro Scale
  • Technology
    • Fuel Cells
    • Gas Turbine
    • Micro CHP
    • Spark Ignition Reciprocating Engine
    • Steam Turbine
  • Fuel
    • Biomass
    • Coal
    • Gasoline
    • Natural Gas
  • Range
    • 100-200kw
    • 20-100kW
    • 200-500kw
    • <20kW
    • >500kw
  • Utility
    • On-demand
    • Permanent
  • Application
    • Commercial
    • Industries
    • Residential

  • Region
    • Americas
      • Argentina
      • Brazil
      • Canada
      • Mexico
      • United States
        • California
        • Florida
        • Illinois
        • New York
        • Ohio
        • Pennsylvania
        • Texas
    • Asia-Pacific
      • Australia
      • China
      • India
      • Indonesia
      • Japan
      • Malaysia
      • Philippines
      • Singapore
      • South Korea
      • Taiwan
      • Thailand
      • Vietnam
    • Europe, Middle East & Africa
      • Denmark
      • Egypt
      • Finland
      • France
      • Germany
      • Israel
      • Italy
      • Netherlands
      • Nigeria
      • Norway
      • Poland
      • Qatar
      • Russia
      • Saudi Arabia
      • South Africa
      • Spain
      • Sweden
      • Switzerland
      • Turkey
      • United Arab Emirates
      • United Kingdom

Before utilizing the Combined Heat & Power Market Research Report from 360iResearch, Wärtsilä Corporation faced significant challenges in identifying potential growth opportunities and strategic partnerships within the utility sector. The insights and actionable strategies detailed in the report were pivotal in guiding our approach, revealing key trends and market dynamics that we were previously unaware of. By leveraging this invaluable information, we successfully formed strategic partnerships that advanced our CHP systems, resulting in considerable operational efficiency and market expansion. Our satisfaction with the report is immense, as it has profoundly influenced our business strategy and operations.
Wärtsilä Corporation
This research report offers invaluable insights into various crucial aspects of the Combined Heat & Power Market:

  1. Market Penetration: This section thoroughly overviews the current market landscape, incorporating detailed data from key industry players.
  2. Market Development: The report examines potential growth prospects in emerging markets and assesses expansion opportunities in mature segments.
  3. Market Diversification: This includes detailed information on recent product launches, untapped geographic regions, recent industry developments, and strategic investments.
  4. Competitive Assessment & Intelligence: An in-depth analysis of the competitive landscape is conducted, covering market share, strategic approaches, product range, certifications, regulatory approvals, patent analysis, technology developments, and advancements in the manufacturing capabilities of leading market players.
  5. Product Development & Innovation: This section offers insights into upcoming technologies, research and development efforts, and notable advancements in product innovation.

Additionally, the report addresses key questions to assist stakeholders in making informed decisions:

  1. What is the current market size and projected growth?
  2. Which products, segments, applications, and regions offer promising investment opportunities?
  3. What are the prevailing technology trends and regulatory frameworks?
  4. What is the market share and positioning of the leading vendors?
  5. What revenue sources and strategic opportunities do vendors in the market consider when deciding to enter or exit?

Table of Contents
  1. Preface
  2. Research Methodology
  3. Executive Summary
  4. Market Overview
  5. Market Insights
  6. Combined Heat & Power Market, by Product
  7. Combined Heat & Power Market, by Technology
  8. Combined Heat & Power Market, by Fuel
  9. Combined Heat & Power Market, by Range
  10. Combined Heat & Power Market, by Utility
  11. Combined Heat & Power Market, by Application
  12. Americas Combined Heat & Power Market
  13. Asia-Pacific Combined Heat & Power Market
  14. Europe, Middle East & Africa Combined Heat & Power Market
  15. Competitive Landscape
  16. Competitive Portfolio
  17. List of Figures [Total: 28]
  18. List of Tables [Total: 562]
  19. List of Companies Mentioned [Total: 28]
Dynamic Due: Ushering in a Green Era with Combined Heat & Power
June 11, 2024
Dynamic Due: Ushering in a Green Era with Combined Heat & Power
Imagine harassing the power of teamwork for energy generation, where one fuel source produces both electricity and thermal energy. This fantasy has been turned into a reality by the hands of combined heat and power.

Combined heat and power, as is apparent from the name, produce electricity and useful thermal energy, i.e., heat at a higher efficiency than could be attained by producing them independently. In short, combined heat and power, or CHP, is an energy-efficient single-fuel method of power generation. Many sectors, be it industrial, commercial, or institutional, have reaped the benefits of this novel technology. District heating power plants, industrial manufacturing, residential spaces(especially multifamily buildings), colleges and universities, hospitals, prisons, military bases, and municipal wastewater treatment plants- the application areas for CHP are simply endless!

For instance, in May 2024, Peregrine Turbine Technologies (PTT), the KMW Energy Group (KMW), and Our Katahdin (OK) announced their intent to collaborate on the location, installation, and operation of PTT’s carbon dioxide (sCO2) energy conversion system, integrated with KMW’s biomass gasification & combustion system, to provide CHP to buildings on Our Katahdin’s Innovation Hub campus. To put the cherry on top, this combined system also aims to produce biochar for agricultural and other high-value applications.

Facilities employing CHP enjoy a world of benefits. CHP systems boost energy efficiency by capturing and then reusing heat from waste. And voila, the world can now enjoy lower utility bills and a reduced carbon footprint! CHP can even keep the lights on and the heat running during power outages, dutifully fulfilling its role as a backup power system.

In a world where sustainability reigns supreme, CHP is taking center stage. As businesses and communities seek smarter, greener energy technologies, CHP is set to become the most sought-after go-to solution for powering critical operations.

Harnessing the Benefits of Combined Heat & Power Systems for Enhanced Energy Efficiency
December 18, 2023
Harnessing the Benefits of Combined Heat & Power Systems for Enhanced Energy Efficiency
The past decades have seen a steady growth in the demand for energy-efficient power systems. More industries are turning towards Combined Heat & Power (CHP) systems with an increasing focus on reducing carbon emissions. CHP systems, also known as cogeneration systems, provide an efficient way of generating heat and electricity simultaneously. The system utilizes the waste heat generated during electricity generation to create heat for steam, hot water, or other industrial processes.

Enhanced Energy Efficiency:

One of the primary advantages of CHP systems is their high efficiency. Unlike traditional power systems that release as much as 60% of their heat energy into the atmosphere, CHP systems reuse it to create heat for other purposes. This means that CHP systems can reach an efficiency level of up to 90%. Increased energy efficiency leads to lower fuel consumption, which results in cost savings and reduced environmental impact.

Improved Reliability:

CHP systems are not only more energy-efficient, but they also provide greater reliability. Since the system combines heat and electricity generation, businesses can ensure uninterrupted power supply even during grid outages. CHP systems can operate independently, providing a reliable power source for critical equipment and processes.

Reduced Environmental Impact:

Climate change is a crucial global issue, and businesses are under increasing pressure to reduce their carbon footprint. Businesses can significantly decrease their greenhouse gas emissions by adopting CHP systems, contributing to a healthier environment. CHP systems are also more sustainable as they increase the utilization of available energy resources.

Cost Savings:

The efficiency of CHP systems translates into significant cost savings. The system recovers waste heat generated during electricity generation, reducing the need for additional fuel sources. This reduces operational costs and boosts profitability for businesses. Additionally, since CHP systems provide a reliable power supply, businesses can save money on energy bills and costs associated with power outages.

Improved Energy Resilience:

CHP systems offer improved energy resilience, specifically to critical infrastructures and processes. Since the system is self-sufficient, it can operate without outside supply sources or grid connectivity. This means businesses adopting CHP systems can function optimally even during natural disasters or other power disruptions.

Combined Heat and power systems offer many benefits to businesses looking to enhance their energy efficiency. The systems are reliable, reduce environmental impact, and provide cost savings. With increasing demand for energy-efficient power systems, CHP systems are becoming popular. By adopting CHP systems, businesses can take advantage of these benefits, remain competitive, and harness the power of tomorrow's energy systems today.

Frequently Asked Questions
  1. How big is the Combined Heat & Power Market?
    Ans. The Global Combined Heat & Power Market size was estimated at USD 27.65 billion in 2023 and expected to reach USD 29.28 billion in 2024.
  2. What is the Combined Heat & Power Market growth?
    Ans. The Global Combined Heat & Power Market to grow USD 41.50 billion by 2030, at a CAGR of 5.96%
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