NEW YORK, May 9, 2024 /PRNewswire/ — The global combined heat and power market size is estimated to grow by USD 9.35 billion from 2024 to 2028, according to Technavio. This growth is expected to occur at a Compound Annual Growth Rate (CAGR) of 6.29% during the forecast period.
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Technavio has announced its latest market research report titled Global Combined Heat and Power Market 2024-2028
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Report Attribute |
Details |
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Base Year |
2023 |
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Forecast period |
2024-2028 |
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Historic Data for |
2018 – 2022 |
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Segments Covered |
Product (Natural gas, Coal, and Others) and End-user (Industrial, Commercial, and Residential)
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Key Companies Covered |
ABB Ltd., Ameresco Inc., Capstone Green Energy Corp., Caterpillar Inc., Cummins Inc., FuelCell Energy Inc., General Electric Co., Helec Ltd., HoSt Holding B.V., Kawasaki Heavy Industries Ltd., Kraft Power Corp., Mitsubishi Heavy Industries Ltd., MTT bv, Robert Bosch GmbH, Rolls Royce Holdings Plc, Siemens Energy AG, Traton SE, Veolia Environnement SA, Wartsila Corp., and 2G Energy AG |
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Regions Covered |
APAC, Europe, North America, South America, and Middle East and Africa |
Key Trends Fueling Growth
Advancements in combined heat and power system technologies:
Advancements in combined heat and power (CHP) systems have significantly shaped the global market. Notable improvements include enhanced efficiency through advanced turbines and engines, integrating renewable sources like solar and wind, and better utilization of waste heat. Micro-CH systems have expanded CHP to residential and small commercial users, offering energy independence and cost savings.
Intelligent control systems optimize CHP operation, while hybrid systems combine various energy sources for flexibility. These innovations have boosted market growth, fostering higher efficiencies, increased renewable integration, and widespread adoption of micro-CH systems. Further developments in CHP technology are expected to drive market expansion globally.
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Major Challenges:
High cost associated with combined heat and power units
Many countries utilize combined heat and power (CHP) systems for their eco-friendly advantages. However, their widespread adoption faces challenges due to high upfront expenses. For instance, ENE-FARM, a PEMFC-based CHP system, incurs an operating cost 116% higher than traditional power systems. Fuel cells, integral to CHP, are costly despite declining prices.
Although fuel cells date back to the 1960s, commercial development began in the 1990s. While natural gas abundance in the US and ongoing R&D efforts lowered fuel cell costs, they remain pricier than alternatives like engines. Consequently, subsidies are crucial for fuel cell competitiveness.
Initially aiding adoption, subsidies diminish over time, requiring increased investments for sustained affordability. Such factors hinder global CHP market growth, particularly in developing nations.
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Segmentation Overview
Product
1.1 Natural gas
1.2 Coal
1.3 Others
End-user
2.1 Industrial
2.2 Commercial
2.3 Residential
Geography
3.1 APAC
3.2 Europe
3.3 North America
3.4 South America
3.5 Middle East and Africa
1.1 Natural gas- The natural gas sector is set to grow notably in the coming years. Combined heat and power technology, or cogeneration, lets us make electricity and useful heat at once from one fuel. Natural gas is chosen for this because it burns cleanly, is efficient, and easy to find. It’s good for the environment too, emitting fewer greenhouse gases and air pollutants than other fossil fuels.
This makes it a sustainable choice. The market’s seen big growth lately, with natural gas playing a big part in that. Lots of industries, like manufacturing, healthcare, and residential buildings, are turning to natural gas for their energy needs. These systems provide steady electricity and heat for things like heating spaces and water, as well as for industry. All these reasons are driving the growth of this sector, pushing the market forward.
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Analyst Review
The Combined Heat and Power (CHP) market encompasses various sectors such as biogas, gas turbines, reciprocating engines, solar panels, wind turbines, and hydrogen. With a focus on utilities, industrial applications, hospitals, nursing homes, laundries, hotels, universities, schools, prisons, private and sporting facilities, the market addresses emissions reduction and energy efficiency goals.
In response to environmental regulatory pressures, CHP systems offer a reliable solution, particularly for commercial and industrial facilities. They optimize energy costs and reduce greenhouse gas emissions by utilizing natural gas supply efficiently. This technology benefits from the resilience and reliability of electric power generation, especially in times of increased demand or lockdowns.
By integrating conventional and renewable energy sources, CHP systems contribute to the electricity grid’s stability and provide reserve capacity. They are widely adopted by small-to-medium-sized industrial facilities, power plants, and commercial buildings to enhance energy sustainability while meeting operational needs.
Overall, CHP systems play a crucial role in the global energy landscape, balancing the requirements of various sectors while minimizing emissions and maximizing energy efficiency.
Market Overview
Gas pretreatment is vital for reducing GHG emissions in industrial operations, especially in industries reliant on natural gas-based fuel types like Combined Heat and Power (CHP) systems. With lockdowns affecting discretionary spending, industries seek cost-effective solutions like CHP to optimize energy usage. CHP integrates industrial boilers to efficiently produce heat and power, minimizing waste.
The market for CHP systems benefits from this demand, offering sustainable energy solutions amidst economic constraints. Gas pretreatment ensures the smooth operation of industrial boilers within CHP setups, contributing to lower emissions and cost savings. As industries prioritize sustainability and cost efficiency, CHP emerges as a practical solution, supported by effective gas pretreatment methods and a focus on reducing GHG emissions.
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Key Topics Covered:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
Product
Natural Gas
Coal
Others
End-user
Industrial
Commercial
Residential
Geography
APAC
Europe
North America
South America
Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
About TechnavioTechnavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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SOURCE Technavio