Combined Heat And Power (CHP) Market is estimated to be valued at USD 289.0 Mn in 2025 and is expected to reach USD 479.5 Mn by 2032, growing at a compound annual growth rate (CAGR) of 7.5% from 2025 to 2032.
Report Coverage
Report Details
Base Year:
2024
Market Size in 2025:
USD 289.0 Mn
Historical Data for:
2020 To 2024
Forecast Period:
2025 To 2032
Forecast Period 2025 to 2032 CAGR:
7.50%
2032 Value Projection:
USD 479.5 Mn
Combined heat and power (CHP) is a highly efficient method of generating electricity and heat, simultaneously from a single fuel source. CHP is also known as cogeneration are the systems that are designed to capture and utilize the waste heat produced during electricity generation, thereby maximizing energy efficiency and reducing greenhouse gas emissions. This technology has gained significant traction after 2020 due to its ability to provide reliable and sustainable energy solutions for various industries and applications.
The combined heat and power (CHP) market is witnessing substantial growth, driven by the increasing demand for energy efficiency, rising concerns about climate change, and the need to reduce dependence on fossil fuels. Combined heat and power (CHP) systems offer numerous advantages, including reduced energy costs, improved energy security, and lower carbon emissions. These factors have led to the widespread adoption of CHP systems across industries such as manufacturing, healthcare, residential, and commercial buildings.
This report provides a comprehensive analysis of the combined heat and power (CHP) market, including market size, growth rate, and revenue opportunities. It also highlights key market drivers, restraints, and opportunities, along with new product launches, market trends, and competitive strategies adopted by key players. The insights from this report will enable stakeholders to make informed decisions regarding product launches, market expansion, and marketing tactics in the combined heat and power (CHP) market. Overall, the combined heat and power (CHP) market presents lucrative opportunities for investors, suppliers, manufacturers, distributors, and new entrants in the energy sector.
Market Dynamics:
The combined heat and power CHP market is driven by several factors that contribute to its growth and adoption. The key drivers are the increasing demand for energy efficiency and sustainability. Combined heat and power (CHP) systems offer a highly efficient method of generating electricity and heat, with energy conversion rates of up to 90%. This not only reduces energy costs but also helps in reducing greenhouse gas emissions, thus making it an attractive option for industries and commercial buildings.
Another driver for the combined heat and power (CHP) market is the rising concerns about climate change and the need to reduce dependence on fossil fuels. Combined heat and power (CHP) systems utilize a variety of fuel sources, including natural gas, biomass, and waste heat, thereby reducing the reliance on traditional energy sources. This not only helps in reducing carbon emissions but also enhances energy security by diversifying the energy mix.
However, the market also faces certain restraints that may hinder its growth. The major challenge is the high initial investment required for installing CHP systems. While these systems offer long-term cost savings, the upfront capital expenditure can be a barrier for some organizations. The complex regulatory environment and lack of awareness about the benefits of combined heat and power (CHP) systems in certain regions may also impede market growth.
Despite these challenges, the combined heat and power (CHP) market presents significant opportunities for growth. Increasing focus on sustainable development and the transition towards a low-carbon economy are expected to drive the demand for combined heat and power (CHP) systems. Moreover, advancements in technology, such as the integration of renewable energy sources and the development of micro-CHP systems, are expected to further propel market growth.
Overall, the combined heat and power (CHP) market is expected to witness substantial growth, driven by the need for energy efficiency, sustainability, and reduced carbon emissions. With the support of favorable government policies and increasing awareness about the benefits of combined heat and power (CHP) systems, the market is expected to witness significant expansion in the near future.
Key features of the study:
This report provides in-depth analysis of the combined heat and power (CHP)market, and provides market size (US$ Mn) and compound annual growth rate (CAGR %) for the forecast period 2025-2032, considering 2024 as the base year
It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, market trends, regional outlook, and competitive strategies adopted by key players
It profiles key players in the combined heat and power (CHP) market based on the following parameters - company highlights, products portfolio, key highlights, financial performance, and strategies
Key companies covered as a part of this study include Wartsila, Siemens, GE, 2G Energy, Aegis Energy Services, Bosch Thermotechnology, Kawasaki Heavy Industries, Viessmann Werke, FuelCell Energy, Veolia, Clarke Energy, CAPSTONE TURBINE, Caterpillar, Yanmar, ABB, Edina, Wolf GmbH, Atlas Copco, Tecogen Inc. and Innovate Steam Technologies Insights from this report would allow marketers and the management authorities of the companies to make informed decisions regarding their future product launches, type up-gradation, market expansion, and marketing tactics
The combined heat and power (CHP) market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts
Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the combined heat and power (CHP) market
Combined Heat and Power (CHP) Market Detailed Segmentation:
By Fuel Type:
Natural Gas
Coal
Biomass
Others
By Capacity:
Up to 10 MW
11 MW - 100 MW
101 MW - 250 MW
Above 250 MW
By Technology:
Combustion Turbine
Steam Turbine
Microturbine
Reciprocating Engine
Fuel Cell
Others
By Application:
Commercial
Residential
Industrial
Utilities
By Region:
North America
Latin America
Europe
Asia Pacific
Middle East
Africa
Company Profiles
Wartsila
Siemens
GE
2G Energy
Aegis Energy Services
Bosch Thermotechnology
Kawasaki Heavy Industries
Viessmann Werke
FuelCell Energy
Veolia
Clarke Energy
CAPSTONE TURBINE
Caterpillar
Yanmar
ABB
Edina
Wolf GmbH
Atlas Copco
Tecogen Inc.
Innovate Steam Technologies
Table of Contents
1. Research Objectives and Assumptions
Research Objectives
Assumptions
Abbreviations
2. Market Purview
Report Description
Market Definition and Scope
Executive Summary
Combined Heat and Power (CHP)Market, By Fuel Type
Combined Heat and Power (CHP)Market , By Capacity
Combined Heat and Power (CHP)Market , By Technology
Combined Heat and Power (CHP)Market , By Application
Combined Heat and Power (CHP)Market , By Region
Coherent Opportunity Map (COM)
3. Market Dynamics, Regulations, and Trends Analysis
Market Dynamics
Drivers
Increasing energy efficiency and cost savings
Restraints
High initial costs
Opportunities
Waste heat recovery applications
Key Highlights
Regulatory Scenario
Recent Trends
Product Launches/Approvals
PEST Analysis
PORTER's Analysis
Mergers, Acquisitions, and Collaborations
4. Combined Heat and Power (CHP) Market - Impact of Coronavirus (COVID-19) Pandemic
COVID-19 Epidemiology
Supply Side and Demand Side Analysis
Economic Impact
5. Combined Heat and Power (CHP) Market, By Fuel Type, 2020-2032, (US$ Mn)
Introduction
Market Share Analysis, 2025 and 2032 (%)
Y-o-Y Growth Analysis, 2021 - 2032
Segment Trends
Natural Gas
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Mn)
Coal
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Mn)
Biomass
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Mn)
Others
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Mn)
6. Combined Heat and Power (CHP) Market, By Capacity, 2020-2032, (US$ Mn)
Introduction
Market Share Analysis, 2023and 2032 (%)
Y-o-Y Growth Analysis, 2021- 2032
Segment Trends
Up to 10 MW
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Mn)
11 MW - 100 MW
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Mn)
101 MW - 250 MW
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Mn)
Above 250 MW
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Mn)
7. Combined Heat and Power (CHP) Market, By Technology, 2020-2032, (US$ Mn)
Introduction
Market Share Analysis, 2023and 2032 (%)
Y-o-Y Growth Analysis, 2021- 2032
Segment Trends
Combustion Turbine
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Mn)
Steam Turbine
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Mn)
Microturbine
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Mn)
Reciprocating Engine
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Mn)
Fuel Cell
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Mn)
Others
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Mn)
8. Combined Heat and Power (CHP) Market, By Application, 2020-2032, (US$ Mn)
Introduction
Market Share Analysis, 2023and 2032 (%)
Y-o-Y Growth Analysis, 2021- 2032
Segment Trends
Commercial
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Mn)
Residential
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Mn)
Industrial
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Mn)
Utilities
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Mn)
9. Combined Heat and Power (CHP) Market, By Region, 2020-2032, (US$ Mn)
Introduction
Market Share Analysis, By Sub-region, 2023and 2032 (%)
Y-o-Y Growth Analysis, For Sub-region, 2021-2032
Country Trends
North America
Introduction
Market Size and Forecast, and Y-o-Y Growth, By Fuel Type, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Capacity, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Technology, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Application, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Country, 2020-2032,(US$ Mn)
U.S.
Canada
Europe
Introduction
Market Size and Forecast, and Y-o-Y Growth, By Fuel Type, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Capacity, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Technology, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Application, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Country, 2020-2032,(US$ Mn)
Germany
U.K.
France
Italy
Russia
Spain
Mexico
Rest of Europe
Asia Pacific
Introduction
Market Size and Forecast, and Y-o-Y Growth, By Fuel Type, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Capacity, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Technology, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Application, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Country, 2020-2032,(US$ Mn)
China
India
Japan
Australia
South Korea
ASEAN
Rest of Asia Pacific
Latin America
Introduction
Market Size and Forecast, and Y-o-Y Growth, By Fuel Type, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Capacity, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Technology, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Application, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Country, 2020-2032,(US$ Mn)
Argentina
Brazil
Mexico
Rest of Latin America
Middle East & Africa
Introduction
Market Size and Forecast, and Y-o-Y Growth, By Fuel Type, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Capacity, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Technology, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Application, 2020-2032,(US$ Mn)
Market Size and Forecast, and Y-o-Y Growth, By Country, 2020-2032,(US$ Mn)