UK Combined Heat And Power (CHP) Market Size (2024 - 2029)

The market size of the Combined Heat and Power (CHP) sector in the UK is projected to experience growth over the forecast period, driven by a focus on energy-efficient technologies and increased investments in CHP-based power projects. Despite challenges posed by geopolitical tensions and rising natural gas prices, which may hinder growth, the demand for distributed power generation and space heating, along with technological advancements, are expected to offer significant opportunities for market expansion. The market has recovered to pre-pandemic levels, indicating resilience and potential for further development.

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Market Size of UK Combined Heat And Power (CHP) Industry

UK Combined Heat And Power (CHP) Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Market Size (2024) USD 74.08 Million
Market Size (2029) USD 99.74 Million
CAGR (2024 - 2029) 6.13 %

Major Players

UK Combined Heat And Power (CHP) Market Major Players

*Disclaimer: Major Players sorted in no particular order

UK Combined Heat and Power (CHP) Market Analysis

The UK Combined Heat And Power Market size is estimated at USD 74.08 million in 2024, and is expected to reach USD 99.74 million by 2029, growing at a CAGR of 6.13% during the forecast period (2024-2029).

The market was negatively impacted by COVID-19 in 2020. Presently the market has now reached pre-pandemic levels.

  • Over the medium term, growing emphasis on energy-efficient technology that generates electricity and increasing investments in CHP-based power projects are also expected to drive the growth of the market studied.
  • On the other hand, geopolitical tensions and increasing natural gas prices are expected to impose challenges on the combined heat and power market in the United Kingdom and may negatively impact the market's growth and are one of the major restraints for the market.
  • Nevertheless, increasing demand for distributed power generation and space heating coupled with technological advancements are expected to drive and create significant amount of opportunities for the market players.

UK Combined Heat and Power (CHP) Industry Segmentation

Combined heat and power is a technology that generates heat and electricity simultaneously, from the same energy source, in individual homes or buildings.

The United Kingdom combined heat and power market is segmented by type and end-user. By type, the market is segmented into gas turbine, steam turbine, and other types (reciprocating engine and organic rankine cycle CHP). By end-User, the market is segmented into the industrial sector, commercial and transportation sector, and other end users (agriculture, community heating, leisure, etc). For each segment, the market sizing and forecasts have been done based on revenue (USD).

End User
Industrial Sector
Commercial and Transportation Sector
Other End Users (Agriculture, Community Heating, Leisure, etc.)
Type
Gas Turbine
Steam Turbine
Other Types (Reciprocating Engine and Organic Rankine Cycle CHP)
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UK Combined Heat And Power (CHP) Market Size Summary

The UK combined heat and power (CHP) market is poised for growth, driven by a rising emphasis on energy-efficient technologies and increased investments in CHP-based power projects. The market has rebounded to pre-pandemic levels after the setbacks caused by COVID-19. However, challenges such as geopolitical tensions and fluctuating natural gas prices pose potential restraints. Despite these challenges, the demand for distributed power generation and advancements in technology are expected to create significant opportunities for market players. The commercial sector, including hotels, supermarkets, and hospitals, is anticipated to see notable adoption of CHP systems, particularly with the growing interest in fuel cell technology and hydrogen-based solutions.

Natural gas remains a crucial energy source for the UK CHP market, aligning with the country's goals to reduce greenhouse gas emissions. However, rising global natural gas prices, influenced by factors such as increased demand in Asia and South America and reduced supply from Russia, have impacted consumers and businesses relying on CHP units. The market is semi-consolidated, with key players like General Electric Company, Siemens Energy AG, and Centrica PLC actively participating. Recent developments, such as the launch of the Kemsley CHP plant and the introduction of hydrogen-powered CHP engines, highlight ongoing efforts to integrate low-carbon solutions into the energy mix. These initiatives are part of a broader strategy to address the challenges posed by rising energy costs and to support the transition towards a more sustainable energy future in the United Kingdom.

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UK Combined Heat And Power (CHP) Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in USD, till 2028

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

        1. 1.5.1.1 Increasing Investments in the CHP-Based Power Projects

        2. 1.5.1.2 Supportive Government Policies And Incentives To Develop And Operate CHP Plants

      2. 1.5.2 Restraints

        1. 1.5.2.1 Increasing Natural Gas Prices in the United Kingdom

    6. 1.6 Supply Chain Analysis

    7. 1.7 PESTLE Analysis

    8. 1.8 CHP Power Plant Statistics, 2014-2022 (by Number and Capacity)

    9. 1.9 CHP Power Plant Fuel Used Statistics (by Fuel Type and Sector)

  2. 2. MARKET SEGMENTATION

    1. 2.1 End User

      1. 2.1.1 Industrial Sector

      2. 2.1.2 Commercial and Transportation Sector

      3. 2.1.3 Other End Users (Agriculture, Community Heating, Leisure, etc.)

    2. 2.2 Type

      1. 2.2.1 Gas Turbine

      2. 2.2.2 Steam Turbine

      3. 2.2.3 Other Types (Reciprocating Engine and Organic Rankine Cycle CHP)

UK Combined Heat And Power (CHP) Market Size FAQs

The UK Combined Heat And Power (CHP) Market size is expected to reach USD 74.08 million in 2024 and grow at a CAGR of 6.13% to reach USD 99.74 million by 2029.

In 2024, the UK Combined Heat And Power (CHP) Market size is expected to reach USD 74.08 million.

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