Market Size of Combined Heat and Power Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 7.50 % |
| Fastest Growing Market | North America |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Combined Heat and Power Market Analysis
The combined heat and power market is expected to register a CAGR of more than 7.5% during the forecast period, 2022-2027. The COVID-19 pandemic caused a decline in demand for combined heat and power systems due to lower demand for electricity as lockdowns were instituted to contain the virus, which resulted in the closure of commercial and industrial facilities. The pandemic caused a decline in discretionary spending which further affected the market. Factors such as the positive outlook for natural gas supply and price, increased energy efficiency, and environmental regulatory pressures on power plants and industrial boilers, amongst others, are expected to drive the number of installations of combined heat and power plants across the world. Although many efforts have been made over the years to remove technical and regulatory barriers and to promote wider adoption of combined heat and power, factors such as grid interconnection and significant initial capital investment, amongst various others, remain a significant challenge for the combined heat and power market in the United Kingdom during the forecast period.
- Natural gas-based fuel type is expected to grow significantly in the global combined heat and power market during the forecast period.
- Small-to-medium size industrial facilities could benefit from flexible and cost-effective combined heat and power systems. Such systems have the benefit of conventional combined heat and power but could also provide support to the electricity grid in the form of electricity supply, frequency regulation, and reserve capacity. This, in turn, is expected to create significant opportunities for the combined heat and power system providers and plant developers in the near future.
- North America has dominated the combined heat and power market, with the majority of the demand coming from the United States and Canada.
