Combined Heat & Power Installation Market To Reach $12.84 Billion By 2030

Combined Heat & Power Installation Market Growth & Trends

The global combined heat & power installation market size is expected to reach USD 12.84 billion by 2030, according to a new report by Grand View Research, Inc., expanding at a CAGR of 2.7% from 2025 to 2030. Modification in preferences towards replacing conventional sources of energy systems on account of uninterrupted power supply and operational cost is expected to drive the market. Growing energy demand from industrial applications, such as paper, pulp, chemical, cement, pharmaceuticals, refining, and sugar is also expected to have a positive impact on market growth. Rising demand for lighting and space heating applications in retail malls, offices, hospitals, and universities has also encouraged CHP installation for commercial applications.

Natural gas-based fuel systems dominated the market and accounted for over 65.0% of the total capacity in 2019. A recent decline in natural gas prices on account of the discovery of unconventional natural gas reserves is expected to drive this segment over the forecast period. Coal-based systems are expected to witness moderate growth rates with an estimated CAGR of 2.3% from 2020 to 2027. Government regulations to curb Greenhouse Gases (GHG) into the atmosphere are expected to drive CHP system installations in various sectors such as industrial, residential, commercial, and institutional sectors which include hospitals and schools. CHP systems require less fuel to generate the same energy as SHIP systems, and therefore, can reduce GHGs and air pollutants such as nitrogen oxides and sulfur dioxide to enter into the atmosphere.

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Combined Heat & Power Installation Market Report Highlights

• The large scale segment dominated the market with the largest revenue share of 76.9% share in 2024, attributed to its efficiency in meeting the substantial energy needs of industrial and commercial sectors.

• The natural gas segment held the largest market share in 2024, fueled by its abundance, cost-effectiveness, and cleaner-burning properties compared to other fossil fuels.

• The combined cycle segment accounted for the largest revenue share in 2024, owing to its exceptional efficiency and versatility.

• The industrial segment held the largest share in 2024, propelled by its high energy demands and need for efficient, cost-effective power solutions.

• The European combined heat and power installation market accounted for the largest revenue of 52.0% in 2024

Combined Heat & Power Installation Market Segmentation

Grand View Research has segmented the global combined heat & power installation market on the basis of material, end-use industry, product, size, and region:

Combined Heat & Power Installation Type Outlook (Volume, GW; Revenue, USD Million, 2018 - 2030)

• Large scale

• Small scale

Combined Heat & Power Installation Fuel Outlook (Volume, GW; Revenue, USD Million, 2018 - 2030)

• Natural Gas

• Coal CHP

• Biomass

• Others

Combined Heat & Power Installation Technology Outlook(Volume, GW; Revenue, USD Million, 2018 - 2030)

• Combined Cycle

• Steam Turbine

• Combustion/Gas Turbine

• Reciprocating Engine

• Other

Combined Heat & Power Installation Application Outlook (Volume, GW; Revenue, USD Million, 2018 - 2030)

• Residential

• Commercial

• Industrial

Combined Heat & Power Installation Regional Outlook (Volume, GW; Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Russia

  • Germany

  • France

  • U.K.

  • Italy

  • Spain

  • Netherlands

  • Poland

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Taiwan

• Latin America

• Middle East and Africa

List of Key Players of Combined Heat & Power Installation Market

• E.ON SE

• Mitsubishi Heavy Industries, Ltd.

• Siemens

• Centrica plc

• General Electric Company

• BDR Thermea Group

• Dalkia Aegis

• Clarke Energy

• Cummins Inc.

• Capstone Green Energy Holdings

• Caterpillar

• Elite Energy & Engineering LTD

• Doosan Fuel Cell Co., Ltd

• Tecogen Inc.

• Wärtsilä