Market Size of US Combined Heat and Power (CHP) Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 7.00 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US Combined Heat and Power (CHP) Market Analysis
The United States combined heat and power market is expected to grow at a CAGR of more than 7% during the forecast period 2020-2025. The increasing demand for energy efficiency in industries, government incentives, and programs to promote CHP are driving the CHP market in the United States. Moreover, rapid investments toward renewable technologies to curb carbon emissions will drive the industry. Although many efforts have been made over the years to remove technical and regulatory barriers, and to promote wider adoption of CHP, factors, such as grid interconnection, high initial capital investment, amongst various others, remain a significant challenge for the CHP market.
- Natural Gas Based CHP is expected to dominate in the market during the forecast period.
- Small-to-medium size industrial facilities could benefit from flexible and cost-effective CHP systems. Such systems have the benefits of conventional CHP 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 CHP system providers and plant developers in the near future.
