by Combined heat and power (CHP) systems capture heat that would otherwise be wasted from an electricity generation source such as gas turbines, microturbines, and reciprocating engines. CHP systems provide on-site electricity generation and capture waste heat to meet thermal energy needs like space heating and hot water. The global Combined Heat And Power (CHP) Market is estimated to be valued at US$ 31.09 Bn in 2024 and is expected to exhibit a CAGR of 12.% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Technological advancements in CHP systems have contributed significantly to their increased adoption across different end-use industries. Manufacturers are focusing on developing advanced CHP systems with improved energy efficiency and reduced emissions. For instance, the emergence of fuel cell-based CHP systems provides high electrical efficiency and very low emissions. Wider adoption of such innovative CHP technologies will support the market growth over the forecast period.
SWOT Analysis
Strength: CHP provides efficient and reliable on-site power generation along with thermal energy production which reduces carbon footprint. It utilizes waste heat from power generation which enhances overall efficiency.
Weakness: High initial investment costs for setting up a CHP system acts as a barrier for small and medium enterprises. Stringent emission norms also increases compliance costs.
Opportunity: Growing initiatives towards decentralized combined heat and power generation especially in industrial and commercial sectors provides growth opportunities. Increasing focus on reducing carbon emissions also supports the adoption of CHP systems.
Threats: Intermittent renewable sources of energy like solar and wind poses competition threat in long term. Fluctuations in fuel prices also increases operating costs unpredictability.
Key Takeaways
The global Combined Heat And Power (CHP) Market analysis is expected to witness high growth.
Regional analysis
comprises the North America region dominates the global CHP market currently due to strong government support policies for efficient energy systems. Stringent carbon emission reduction targets in countries like U.S. and Canada fosters CHP deployment. Asia Pacific region is expected to grow at fastest pace during the forecast period due to rapid industrialization and increasing electricity demand in countries like China and India.
Key players
operating in the Combined Heat And Power (CHP) market are Lonza Group Ltd., Thermo Fisher Scientific Inc., Merck KGaA. These players are focusing on new product launches, partnerships, and expansions to gain leading position in the market. For instance, in 2020, Lonza Group Ltd partnered with SGH to set up vaccine manufacturing facilities in Singapore to cater to the demand from Southeast Asian countries
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
