Asia-Pacific Combined Heat and Power Market Size (2024 - 2029)

The Asia-Pacific combined heat and power market is poised for growth, driven by factors such as a positive outlook for natural gas supply, increased energy efficiency, and environmental regulatory pressures. Despite challenges like weak grid interconnections and high capital investment, the market's expansion is supported by the demand for biomass-based systems and flexible, cost-effective solutions for small-to-medium industrial facilities. These systems offer additional benefits like electricity supply and frequency regulation, creating opportunities for providers and developers. China leads the market, primarily due to industrial applications.

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Market Size of Asia-Pacific Combined Heat and Power Industry

Asia-Pacific Combined Heat and Power Market
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 5.90 %
Market Concentration Medium

Major Players

Asia-Pacific Combined Heat and Power Market Major Players

*Disclaimer: Major Players sorted in no particular order

APAC Combined Heat & Power Market Analysis

The Asia-Pacific combined heat and power (CHP) market is expected to register a CAGR of more than 5.9% during 2022 to 2027. The outbreak of COVID-19 in Q1 of 2020 has negatively impacted the market's growth. Governments in the region were forced to implement lockdowns during the first half of 2020, and all non-essential operations remain halted. This adversely impacted the CHP market due to end users' suspension of activities. In addition, production and disruption in the supply chain have slowed down the construction activities, which posed a challenge to the CHP market in the region. For Instance, in November 2020, Bert Energy GmbH announced that its Bert Mobil Gas demo plant scheduled to be commissioned at Sri City in Andhra Pradesh (India) was delayed by over six months due to disruptions caused by COVID-19. Factors such as the positive outlook for natural gas supply and price, increased energy efficiency, and environmental regulatory pressures on power plants and industrial boilers are expected to drive the number of installations of combined heat and power plants across the region. However, factors such as weak grid interconnections and high capital investment remain a significant challenge for Asia-Pacific's combined heat and power market.

  • Biomass-based combined heat and power are expected to witness the fastest growth during the forecast period.
  • Small-to-medium industrial facilities could benefit from flexible and cost-effective combined heat and power systems. Such systems benefit from conventional combined heat and power but could also provide support to the electricity grid in the form of electricity supply, frequency regulation, and reserve capacity. This, in turn, is expected to create significant opportunities for the combined heat and power system providers and plant developers shortly.
  • China has dominated the combined heat and power market, with the majority of the demand coming from the industrial application of CHP.

APAC Combined Heat & Power Industry Segmentation

The Asia-Pacific combined heat and power market report includes:

Application
Utilities
Commercial and Industrial
Residential
Fuel Type
Natural Gas
Coal
Oil
Biomass
Other Fuel Types
Geography
China
Japan
India
Rest of Asia-Pacific
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Asia-Pacific Combined Heat and Power Market Size Summary

The Asia-Pacific combined heat and power (CHP) market is poised for significant growth, driven by factors such as the positive outlook for natural gas supply, increased energy efficiency, and environmental regulatory pressures. Despite the initial setbacks caused by the COVID-19 pandemic, which disrupted supply chains and construction activities, the market is expected to recover and expand. The region's focus on biomass-based CHP systems is particularly noteworthy, as these systems offer flexible and cost-effective solutions for small-to-medium industrial facilities. The dominance of China in the CHP market is evident, with the country leading in industrial applications and bioenergy capacity. China's commitment to reducing coal-fired power plants and enhancing grid stability through CHP technologies further underscores the market's growth potential.

The Asia-Pacific CHP market is moderately fragmented, with key players like General Electric Company, Siemens Energy AG, Mitsubishi Electric Asia Pte Ltd, MAN Energy Solutions SE, and Caterpillar Inc. actively participating in the region. Recent developments, such as the commissioning of the Junliangcheng CHP plant by General Electric and Siemens Energy's agreement with Guangdong Energy Group, highlight the ongoing investments and advancements in the sector. The market's growth is also supported by favorable policies and abundant biomass resources in countries like China, Japan, and India, which are expected to drive the sector's expansion during the forecast period.

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Asia-Pacific Combined Heat and Power Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand in USD billion, till 2027

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 Porter's Five Forces Analysis

      1. 1.7.1 Bargaining Power of Suppliers

      2. 1.7.2 Bargaining Power of Consumers

      3. 1.7.3 Threat of New Entrants

      4. 1.7.4 Threat of Substitute Products and Services

      5. 1.7.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Application

      1. 2.1.1 Utilities

      2. 2.1.2 Commercial and Industrial

      3. 2.1.3 Residential

    2. 2.2 Fuel Type

      1. 2.2.1 Natural Gas

      2. 2.2.2 Coal

      3. 2.2.3 Oil

      4. 2.2.4 Biomass

      5. 2.2.5 Other Fuel Types

    3. 2.3 Geography

      1. 2.3.1 China

      2. 2.3.2 Japan

      3. 2.3.3 India

      4. 2.3.4 Rest of Asia-Pacific

Asia-Pacific Combined Heat and Power Market Size FAQs

The Asia-Pacific Combined Heat and Power Market is projected to register a CAGR of greater than 5.90% during the forecast period (2024-2029)

Mitsubishi Electric Asia Pte Ltd, MAN Energy Solutions SE, General Electric Company, Siemens Energy AG and Caterpillar Inc. are the major companies operating in the Asia-Pacific Combined Heat and Power Market.

Asia-Pacific Combined Heat and Power Report Snapshots

Asia-Pacific Combined Heat and Power Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)