Combined Heat and Power Market Size to Hit USD 23.83 Billion by 2029 | Exhibit a CAGR of 6.4%
Fortune Business Insights
7 min read
Fortune Business Insights
Drift Toward Sustainable Energy Development to Mitigate Rising GHG Emissions to Aid Market Global Combined Heat and Power Growth
Pune, India, July 26, 2022 (GLOBE NEWSWIRE) -- The global combined heat and power market size hit USD 14.98 billion in 2021. The market value is slated to rise from USD 15.42 billion in 2022 to USD 23.83 billion in 2029, exhibiting a CAGR of 6.4% during the forecast period. Combined heat and power is a productive and environment-friendly method of producing electric and thermal power from a single fuel source, says Fortune Business InsightsTM in its report titled, “Combined Heat and Power Market, 2022-2029”.
Key Industry Development-
The Combined Heat and Power (CHP) plant supplied by Wärtsilä to Kraftwerke Mainz-Wiesbaden (KMW) in Germany was officially handed over for commercial operation. The handover occurred on December 23, 2020, allowing municipal energy provider KMW to consistently provide 100 MW of electrical power. The CHP plant feeds the surplus heat generated during power generation into the Mainz district heating network. Mainz customers are now supplied heat to heat approximately 40,000 modern single-family homes.
By Fuel Type (Natural Gas, Coal, Biomass, and Others), By Technology (Combined Cycle, Steam Turbine, Gas Turbine, Reciprocating Engine, and Others), By Application (Utilities, Residential, and Commercial & Industrial), and Regional
Growth Drivers
Increasing GHG Emissions are Expected to Drive the Market Toward Sustainable Energy Development
ABB is Focusing on Acquiring New Contracts through its Branches to Fortify its Position
Drivers & Restraints-
Increasing GHG Emissions are Expected to Drive the Market Toward Sustainable Energy Development
Massive carbon emissions have a negative impact on the overall ecology, causing a rise in sea level and temperature. Several governments and private companies are working hard to reduce rising carbon emissions by implementing highly efficient, clean, and sustainable energy technology, which is expected to boost the combined heat and power market growth. In terms of overall performance, CHP units are extremely efficient. It can achieve over 85% efficiency to meet the rising demand for space heating, cooling, and hot water while providing electricity to supplement the grid. For example, the U.K. Department of Business, Energy, and Industrial Strategy updated in February 2018 that using cogeneration systems can reduce carbon emissions by up to 30% compared to other conventional technologies.
COVID-19 Impact -
Lockdown to Take a Toll On the Global Economy as a Result of Travel Bans
The COVID-19 pandemic has disturbed the global economy as a result of lockdown measures and severe travel restrictions imposed to prevent its spread. Many workers in various sectors have lost their jobs, and multiple countries have significantly decreased the total workforce in various sectors. As a result, the global industry has been significantly impacted, as various nations have suffered significant labor force losses across multiple business verticals. Several industry participants have reported that various scale CHP projects have fallen behind schedule due to the COVID-19 crisis.
The research report provides a detailed examination of the industry. It also includes information on the deployment of CHP systems in various regions. Trends, drivers, opportunities, threats, and market restraints can help stakeholders gain valuable market insights. The report provides a detailed competitive landscape by presenting data on key market players and their strategies.
Segmentation-
By Fuel, Natural Gas-Powered CHP Units Dominate the Market
The market can be divided into natural gas, coal, biomass, and others based on fuel.
The natural gas segment is expected to be the most valuable during the forecast period. Programs aimed at lowering overall installation and operational costs and ongoing funding from government and private entities for developing natural gas power plant projects are key features that encourage its adoption.
By Technology, Combined Cycle Segment Size Will Support Significant Growth
Based on technology, the market can be divided into the combined cycle, steam turbine, gas turbine, reciprocating engine, and others.
In 2021, combined-cycle CHP systems were expected to lead the global CHP market. Combined cycle systems reduce energy losses in power plants by utilizing waste heat accumulated in exhaust gasses to generate additional electricity. The plant's overall efficiency increases by more than 50% with these systems compared to approximately 40% for traditional steam turbine plants and 35% for gas turbine plants.
By Application, Increasing Grid-Expansion Plans Support Commercial & Industrial Segments
The four major segments present in this market by application are utilities, residential, and commercial & industrial. Encouragement of directives to surge combined heat and power installation across solar power units and expand the retail sector supported by industrialization benefit the commercial & industrial segment size.
Regional Insights
In terms of value, the Europe's combined heat and power market share was estimated to be worth USD 7.12 billion in 2021. Expanding demand for district energy (heating) and cooling systems under changing climatic conditions and continuous mechanical developments resulting from fuel adaptability are significant factors supplementing the CHP market's territorial perspective.
Furthermore, cost-effective funding programs and rebates, promising research and development initiatives, and thorough CHP installation guidelines are among the significant parameters that supplement the North American market.
ABB is Focusing on Acquiring New Contracts through its Branches to Fortify its Position
The market is moderately consolidated. Manufacturers focus on crucial agreements and partnerships for collaborative, innovative endeavors to launch technically advanced products in the market. Furthermore, the industry has seen the implementation of new strategies by major global and regional participants and many small and medium-sized system integrators.
A List of Key Manufacturers Operating in the Global Market:
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