Combined Heat & Power Installation Market Growth & Trends
The global combined heat and power installation market size is expected to reach USD 12.0 billion by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 3.1% over the forecast period. Modification in preferences towards replacing conventional sources of energy systems on account of uninterrupted power supply and operational cost is expected to drive the market. Growing energy demand from industrial applications, such as paper, pulp, chemical, cement, pharmaceuticals, refining, and sugar is also expected to have a positive impact on market growth. Rising demand for lighting and space heating applications in retail malls, offices, hospitals, and universities has also encouraged CHP installation for commercial applications.
Natural gas-based fuel systems dominated the market and accounted for over 65.0% of the total capacity in 2019. A recent decline in natural gas prices on account of the discovery of unconventional natural gas reserves is expected to drive this segment over the forecast period. Coal-based systems are expected to witness moderate growth rates with an estimated CAGR of 2.3% from 2020 to 2027. Government regulations to curb Greenhouse Gases (GHG) into the atmosphere are expected to drive CHP system installations in various sectors such as industrial, residential, commercial, and institutional sectors which include hospitals and schools. CHP systems require less fuel to generate the same energy as SHIP systems, and therefore, can reduce GHGs and air pollutants such as nitrogen oxides and sulfur dioxide to enter into the atmosphere.
Request a free sample copy or view report summary:
Combined Heat & Power Installation Market Report
Combined Heat & Power Installation Market Report Highlights
- The large-scale type segment share was valued at over USD 7.5 billion in 2019
- Asia Pacific is projected to grow at a substantial rate throughout the forecast period. Japan is expected to account for the maximum share in the Asia Pacific region
- Natural gas fuel type segment dominates the industry, accounting for 65.0% of total market volume in 2019
- In North America, the market is likely to display a moderate growth rate during the projected period