US Combined Heat and Power (CHP) Market Size (2024 - 2029)

The United States combined heat and power market is anticipated to experience substantial growth, driven by the increasing demand for energy efficiency in industries and supportive government incentives. The market's expansion is further fueled by rapid investments in renewable technologies aimed at reducing carbon emissions. Despite progress in overcoming technical and regulatory challenges, issues such as grid interconnection and high initial capital costs continue to pose significant obstacles. Natural gas-based systems are expected to lead the market, with small-to-medium-sized industrial facilities poised to benefit from flexible and cost-effective solutions that also support the electricity grid. This scenario presents considerable opportunities for CHP system providers and plant developers.

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Market Size of US Combined Heat and Power (CHP) Industry

United States Combined Heat and Power Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 7.00 %

Major Players

United States Combined Heat and Power Market Major Players

*Disclaimer: Major Players sorted in no particular order

US Combined Heat and Power (CHP) Market Analysis

The United States combined heat and power market is expected to grow at a CAGR of more than 7% during the forecast period 2020-2025. The increasing demand for energy efficiency in industries, government incentives, and programs to promote CHP are driving the CHP market in the United States. Moreover, rapid investments toward renewable technologies to curb carbon emissions will drive the industry. Although many efforts have been made over the years to remove technical and regulatory barriers, and to promote wider adoption of CHP, factors, such as grid interconnection, high initial capital investment, amongst various others, remain a significant challenge for the CHP market.

  • Natural Gas Based CHP is expected to dominate in the market during the forecast period.
  • Small-to-medium size industrial facilities could benefit from flexible and cost-effective CHP systems. Such systems have the benefits of conventional CHP 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 CHP system providers and plant developers in the near future.

US Combined Heat and Power (CHP) Industry Segmentation

United States combined heat and power market report include:

Applicaton
Commercial
Industrial
Fuel Type
Natural Gas
Renewable
Coal
Other Fuel Types
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US Combined Heat and Power (CHP) Market Size Summary

The United States combined heat and power (CHP) market is poised for significant growth, driven by increasing energy efficiency demands, government incentives, and investments in renewable technologies. Despite challenges such as grid interconnection and high initial capital costs, the market is expected to expand, with natural gas-based CHP systems leading the way. These systems offer flexible and cost-effective solutions, particularly for small-to-medium-sized industrial facilities, and provide additional benefits like electricity supply support and frequency regulation. The CHP market's growth is further supported by its potential to enhance energy efficiency, reduce greenhouse gas emissions, and improve economic competitiveness and energy resiliency.

CHP systems, which generate electricity and useful thermal energy from a single energy source, are predominantly fueled by natural gas, accounting for a significant portion of the United States' natural gas demand. The majority of CHP capacity is utilized in industrial applications, with a smaller portion serving commercial and institutional needs. Policymakers at both federal and state levels are increasingly acknowledging the advantages of CHP, including its higher efficiency and reduced emissions. The market is moderately fragmented, with key players such as 2G Energy Inc., General Electric Company, Aegis Energy Services Inc., Caterpillar Inc., and Curtis Engine & Equipment Co. Inc. contributing to its development.

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US 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 billion, till 2025

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

  2. 2. MARKET SEGMENTATION & ANALYSIS

    1. 2.1 Applicaton

      1. 2.1.1 Commercial

      2. 2.1.2 Industrial

    2. 2.2 Fuel Type

      1. 2.2.1 Natural Gas

      2. 2.2.2 Renewable

      3. 2.2.3 Coal

      4. 2.2.4 Other Fuel Types

US Combined Heat and Power (CHP) Market Size FAQs

The US Combined Heat and Power (CHP) Market is projected to register a CAGR of greater than 7% during the forecast period (2024-2029)

2G Energy Inc., General Electric Company , Aegis Energy Services Inc, Caterpillar Inc. and Curtis Engine & Equipment Co. Inc. are the major companies operating in the US Combined Heat and Power (CHP) Market.

US CHP Market Report Snapshots

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