On-Grid Combined Heat and Power Market Size (2024 - 2029)

The on-grid combined heat and power market is anticipated to experience substantial growth, driven by factors such as favorable natural gas supply and pricing, enhanced energy efficiency, and environmental regulatory pressures. These systems, which offer both thermal energy and electricity, are increasingly being adopted despite challenges like grid interconnection and high initial capital costs. Biomass-based systems are projected to grow rapidly, and small-to-medium sized industrial facilities stand to gain from their flexibility and cost-effectiveness. North America, particularly the United States and Canada, currently leads in market demand, presenting significant opportunities for system providers and plant developers.

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Market Size of On-Grid Combined Heat and Power Industry

On-Grid Combined Heat and Power Market - Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
CAGR 6.00 %
Fastest Growing Market Middle East and Africa
Largest Market Asia Pacific
Market Concentration Low

Major Players

On-Grid Combined Heat and Power Market Major Players

*Disclaimer: Major Players sorted in no particular order

On-Grid Combined Heat & Power Market Analysis

The global on-grid combined heat and power market is expected to grow at a CAGR of more than 6% over the period of 2020-2025. 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, amongst others, are expected to drive the number of installations of combined heat and power plants across the world. Moreover, on-grid combined heat and power systems provide both thermal energy and electricity for the host site, generate electricity and provide other grid services to the electric power system when needed, and interact with the grid in a fully automated manner. Although many efforts have been made over the years to remove technical and regulatory barriers and to promote wider adoption of on-grid combined heat and power plants, factors such as grid interconnection, significant initial capital investment, amongst various others, has remained as a significant challenge for the on-grid combined heat and power market.

  • Biomass based combined heat and power is expected to witness the fastest growth during the forecast period.
  • Small-to-medium size industrial facilities could benefit from flexible and cost-effective combined heat and power systems. Such systems have the benefits of 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 in the near future.
  • North America has dominated the on-grid combined heat and power market, with the majority of the demand coming from the United States and Canada.

On-Grid Combined Heat & Power Industry Segmentation

The on-grid combined heat and power market report include:

Application
Utilities
Commercial and Industrial
Residential
Fuel Type
Natural Gas
Coal
Oil
Biomass
Other Fuel Types
Geography
North America
Europe
Asia-Pacific
South America
Middle East & Africa
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On-Grid Combined Heat and Power Market Size Summary

The on-grid combined heat and power (CHP) market is poised for significant growth, driven by factors such as favorable natural gas supply conditions, enhanced energy efficiency, and increasing environmental regulations. These systems, which provide both thermal energy and electricity, are becoming essential for industrial and power plant operations, offering automated grid interaction and additional grid services. Despite challenges like grid interconnection and high initial capital costs, the market is expected to expand, with biomass-based CHP systems anticipated to grow rapidly. This growth is particularly beneficial for small-to-medium industrial facilities, which can leverage the flexibility and cost-effectiveness of these systems to support the electricity grid.

North America currently leads the on-grid CHP market, with substantial demand from the United States and Canada. The region's focus on biomass energy, supported by abundant resources and favorable policies, is driving expansion, especially in Northern Europe and countries like Brazil. The integration of renewable energy sources into the grid is creating a need for stable and secure power systems, which CHP technologies can help address. These systems are crucial for reducing energy costs and emissions while providing reliable power and thermal energy. The market remains fragmented, with key players including General Electric Company, Kawasaki Heavy Industries Ltd, Bosch Thermotechnology GmbH, Viessmann Werke, and Siemens AG, all contributing to the ongoing development and adoption of CHP technologies.

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On-Grid Combined Heat and Power Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Overview on Integrated Microgrids

    3. 1.3 Combined Heat and Power Market Size and Demand Forecast in GW, till 2025

    4. 1.4 On-grid Combined Heat and Power Market Size and Demand Forecast in GW, till 2025

    5. 1.5 Recent Trends and Developments

    6. 1.6 Government Policies and Regulations

    7. 1.7 Market Dynamics

      1. 1.7.1 Drivers

      2. 1.7.2 Restraints

    8. 1.8 Supply Chain Analysis

    9. 1.9 Porter's Five Forces Analysis

      1. 1.9.1 Bargaining Power of Suppliers

      2. 1.9.2 Bargaining Power of Consumers

      3. 1.9.3 Threat of New Entrants

      4. 1.9.4 Threat of Substitutes Products and Services

      5. 1.9.5 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 North America

      2. 2.3.2 Europe

      3. 2.3.3 Asia-Pacific

      4. 2.3.4 South America

      5. 2.3.5 Middle East & Africa

On-Grid Combined Heat and Power Market Size FAQs

The On-Grid Combined Heat and Power Market is projected to register a CAGR of greater than 6% during the forecast period (2024-2029)

General Electric Company, Kawasaki Heavy Industries Ltd, Bosch Thermotechnology GmbH, Viessmann Werke and Siemens AG are the major companies operating in the On-Grid Combined Heat and Power Market.

On-Grid Combined Heat and Power Report Snapshots

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