According to a new report by Vantage Market Research, the Combined Heat and Power Market are expected to reach USD 104.1 Billion by 2028, growing at a CAGR of 6.89% between 2021 and 2028. Combined heat and power lower the direct energy costs by helping to avoid environmental compliance costs. In addition to this, it is a great avenue to achieve energy efficiency, emissions reduction and promote resiliency. The waste heat from electricity generation is used for productive use.
- The Natural Gas segment is projected to grow at a CAGR of over 4.45% over the forecast period. Natural gas is majorly used in gas engines for the generation of electricity because it burns cleaner and has low carbon emissions in comparison to other types. It also emits low levels of sulfur dioxide and nitrogen oxide.
- The Industrial segment held a market share of around 45% in 2020. The Industrial sector is the largest consumer of delivered energy. In industrial sectors such as oil & gas, chemicals, and pharmaceuticals, energy usage has a wide variety of applications, including heating and air conditioning for buildings, steam and cogeneration, and process heating.
- Asia Pacific is expected to expand at a CAGR of over 7.38% from 2021 to 2028. The growth in the region is driven by the fact that countries such as India and China are growing through rapid industrialization and have introduced several policies in support of industrial growth which includes initiatives to ensure sufficient power supply.
Some of the key players in the Combined Heat and Power Market include SourceOne, Alfa Laval, Foley (CAT), Yanmar, SIEMENS, Macallister Power (CAT), Wolf GmbH, GE, Liebherr, Clarke Energy, are among others.
Combined Heat and Power (CHP) is a great option for achieving efficiency in energy as it reduces emissions and is a sustainable solution. The electric rates are increasing and expected to continue, businesses should naturally adopt ways for the reduction of their energy costs combined heat and power give financial savings by assisting in avoiding the compliance environmental costs. Various regulatory bodies in different countries are promoting investments in industrial energy efficiency. On the contrary, the development of systems can be costly and technology cannot be deemed for being sustainable in the long term when it is used to extract efficiencies from fossil fuels are some factors pulling the market growth down.
Europe is poised to record the highest CAGR. The region is expected to continue its dominance in the cortex of revenue share during the forecast period. Strict government norms to curb pollution levels in countries like the U.K., Germany, and France are about to increase the installation of CHP systems.