Mexico Combined Heat and Power Market Size (2024 - 2029)

Mexico Combined Heat and Power Market Size Summary

The combined heat and power (CHP) market in Mexico is poised for growth, driven by increasing electricity demand and supportive government policies. Despite economic challenges such as sluggish growth and low productivity, the industrial and utilities sectors are expected to see significant demand for CHP systems. The industrial sector, a major consumer of electricity, presents substantial opportunities for CHP development, particularly in industries like sugar, chemicals, and paper. Governmental energy reforms aimed at diversifying the energy portfolio and enhancing energy security are further propelling the market. These reforms have opened up competition in the energy sector, previously dominated by state-owned entities, and have led to increased interest in cogeneration systems due to the lower cost of natural gas and its classification as clean energy.

The Mexican CHP market is characterized by a moderate level of fragmentation, with key players such as General Electric Company, Siemens AG, and Capstone Turbine Corporation actively participating. The industrial sector, especially oil and gas, chemical, and food industries, dominates the market, with significant installations of CHP units. Ongoing projects, such as those by Capstone Turbine Corp. and SENER, highlight the sector's potential to drive market growth. The market's expansion is supported by the country's energy reforms, which encourage private investment and aim to increase natural gas production, positioning natural gas as a preferred energy source for new generating facilities. These developments indicate a promising outlook for the CHP market in Mexico over the forecast period.