Market Size of US Combined Heat and Power (CHP) Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 7.00 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
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 |
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.
US Combined Heat and Power (CHP) Market Size - Table of Contents
-
1. MARKET OVERVIEW
-
1.1 Introduction
-
1.2 Market Size and Demand Forecast in USD billion, till 2025
-
1.3 Recent Trends and Developments
-
1.4 Government Policies and Regulations
-
-
2. MARKET SEGMENTATION & ANALYSIS
-
2.1 Applicaton
-
2.1.1 Commercial
-
2.1.2 Industrial
-
-
2.2 Fuel Type
-
2.2.1 Natural Gas
-
2.2.2 Renewable
-
2.2.3 Coal
-
2.2.4 Other Fuel Types
-
-
US Combined Heat and Power (CHP) Market Size FAQs
What is the current US Combined Heat and Power (CHP) Market size?
The US Combined Heat and Power (CHP) Market is projected to register a CAGR of greater than 7% during the forecast period (2024-2029)
Who are the key players in US Combined Heat and Power (CHP) Market?
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.
