Combined Heat and Power (CHP) Market Size, By Fuel (Natural Gas, Coal, Biomass), By End-use (Residential [Space Heating/Cooling, Water Heating, Cooking, Lighting & Others], Commercial [Educational Institution, District Energy, Office Building, Government/

Combined Heat and Power (CHP) Market Size, By Fuel (Natural Gas, Coal, Biomass), By End-use (Residential [Space Heating/Cooling, Water Heating, Cooking, Lighting & Others], Commercial [Educational Institution, District Energy, Office Building, Government/Military], Industrial [Chemical, Petroleum Refining, Food, Paper, Primary Metals]), By Capacity (1 kW - 0.5 MW, 0.5 MW - 5 MW, Above 5 MW), By Technology (Combined Cycle, Steam Turbine, Gas Turbine, Reciprocating Engine), COVID-19 Impact Analysis, Regional Outlook, Competitive Market Share & Forecast, 2022 - 2028

The combined heat and power (CHP) market is expected to exhibit exponential development by 2028 on account of widespread urbanization and industrialization across key regions. In addition, stringent government regulations aimed to reduce harmful emissions are likely to further support industry expansion over the forecast period.

Combined heat and power systems offer guaranteed benefits in terms of lower emissions, greater savings on total energy costs, and increased fuel use efficiency, among several other environmental benefits. Escalating demand for district heating systems around the world has augmented combined heat and power (CHP) market adoption over the past few years.

Notably, to monetize emerging trends in the market, industry participants have been implementing gainful strategies, thereby enhancing the overall business scenario. For instance, in November 2020, MAN Emergy Solutions SE, a Germany-based provider of large-bore diesel engines and turbomachinery for stationary and marine applications, announced the expansion of its CHP-plant in Schwäbisch Hall, southern Germany. The addition of the MAN 12V35/44G TS gas engine to the existing CHP plant is intended to substantially increase the output and the efficiency of the plant.

The combined heat and power (CHP) market has been segmented on the basis of technology, fuel, capacity, end-use, and region. With respect to fuel, the combined heat and power market has further been divided into biomass, natural gas, and coal. The natural gas sub-segment is speculated to witness robust expansion through the estimated timeline owing to ongoing revamping and retrofitting of existing power generation plants. Moreover, notable price reductions due to increasing hydrocarbon production are likely to bolster segmental growth in the coming time period.

From the technology point of view, the combined heat and power market has been classified into reciprocating engine, combined cycle, gas turbine, steam turbine, and others. The combined cycle sub-segment is projected to develop at a significant CAGR over the review period to reach a sizable valuation by the end of 2028. The combined cycle technology offers easy configuration, effective design, and high efficiency, which is likely to boost product demand over the forthcoming years.

The reciprocating engine sub-segment is expected to showcase a solid growth trajectory over the assessment timeline to garner a substantial revenue by 2028. Reciprocating engines provide high thermal efficiency as well as low exhaust emissions, which is expected to drive segmental growth over 2022-2028.

From the regional spectrum, apart from Europe, Asia Pacific, and North America, the Rest of the World (ROW) combined heat and power market is poised to garner sturdy gains by 2028, progressing at a notable CAGR over the forecast timeframe. Declining natural gas prices and growing inclination towards energy efficiency are set to propel the adoption of CHP technologies across Latin America.