South Korea Combined Heat and Power Market Size (2024 - 2029)

The South Korean combined heat and power market is anticipated to experience growth driven by environmental concerns and the demand for reliable power supply, despite challenges such as high initial costs and competition from other renewable technologies. The market's expansion is supported by advancements in technology and a trend towards distributed power generation, particularly with natural gas-based fuels. However, the increasing adoption of renewable technologies and ambitious targets may pose challenges to the market's growth trajectory.

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Market Size of South Korea Combined Heat and Power Industry

South Korea Combined Heat and Power Market - Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 3.50 %
Market Concentration Low

Major Players

South Korea Combined Heat and Power Market Major Players

*Disclaimer: Major Players sorted in no particular order

South Korea Combined Heat and Power Market Analysis

The South Korean combined heat and power market is expected to register a CAGR of more than 3.5% during the forecast period of 2022-2027. During the COVID-19 pandemic, the combined heat and power (CHP) market in South Korea has not witnessed any significant impact. However, due to the imposed travel restrictions, companies faced challenges in the transportation of power generation equipment for the CHP project, owing to the reduced availability and mobilization of resources. Factors such as the rising environmental concerns and a need for a reliable and uninterrupted power supply are likely to drive the CHP market in South Korea. On the other hand, factors such as the high initial cost and the increasing focus on other renewable technologies are likely to hinder the market growth during the forecast period.

  • Natural gas-based fuel type is expected to witness significant demand during the forecast period.
  • Technology advancements in CHP systems and an increasing trend of distributed power generation for the clean fuel-based CHP market are expected to create huge opportunities for the market players in South Korea.
  • Increasing adoption of renewable technologies and ambitious targets may slow down the market growth during the forecast period.

South Korea Combined Heat and Power Industry Segmentation

The South Korean combined heat and power market report includes:

Application
Residential
Commercial and Industrial (C&I)
Utilities
Fuel Type
Natural Gas
Coal
Oil
Other Fuel Types
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South Korea Combined Heat and Power Market Size Summary

The South Korean combined heat and power (CHP) market is poised for growth, driven by increasing environmental concerns and the need for a reliable power supply. Despite challenges during the COVID-19 pandemic, such as transportation issues for power generation equipment, the market has shown resilience. The focus on natural gas as a primary fuel type is expected to continue, supported by technological advancements and the trend towards distributed power generation. However, the high initial costs and the growing emphasis on renewable energy technologies may pose challenges to market expansion. The government's commitment to achieving net-zero emissions by 2050 is likely to further bolster the natural gas-based CHP sector, as seen in initiatives like SK Chemicals' conversion to LNG-powered facilities.

The South Korean energy landscape is undergoing a significant transformation, with a notable shift towards renewable energy sources. The government's ambitious targets to increase renewable electricity share are driving the development of large-scale solar and wind projects, which could potentially slow the growth of the CHP market. Initiatives such as the "Solar City Seoul" project and the construction of a massive offshore wind facility highlight the country's commitment to reducing reliance on fossil fuels. Despite these challenges, the CHP market remains fragmented with key players like General Electric, Siemens Energy, and Mitsubishi Heavy Industries actively participating. The introduction of innovative projects, such as Bloom Energy's utility-scale solid oxide fuel cell CHP initiative, underscores the ongoing evolution and potential of the CHP market in South Korea.

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South Korea Combined Heat and Power Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast, in USD million, 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 PESTLE Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 Application

      1. 2.1.1 Residential

      2. 2.1.2 Commercial and Industrial (C&I)

      3. 2.1.3 Utilities

    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 Other Fuel Types

South Korea Combined Heat and Power Market Size FAQs

The South Korea Combined Heat and Power Market is projected to register a CAGR of greater than 3.5% during the forecast period (2024-2029)

General Electric Company, Siemens Energy AG, KEPCO Engineering & Construction Co., Inc., Mitsubishi Heavy Industries, Ltd. and GS E&R Corp. are the major companies operating in the South Korea Combined Heat and Power Market.

South Korea Combined Heat & Power Market Report Snapshots

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