The Global Combined Heat and Power Market is Expected to Grow by USD 9.35 Billion by 2028
New York, May 9, 2024
The global combined heat and power market size is estimated to grow by USD 9.35 billion from 2024 to 2028, according to Technavio. This growth is expected to occur at a Compound Annual Growth Rate (CAGR) of 6.29% during the forecast period.
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Key Trends Fueling Growth
- Advancements in combined heat and power system technologies:
- Advancements in combined heat and power (CHP) systems have significantly shaped the global market. Notable improvements include enhanced efficiency through advanced turbines and engines, integrating renewable sources like solar and wind, and better utilization of waste heat. Micro-CH systems have expanded CHP to residential and small commercial users, offering energy independence and cost savings.
- Intelligent control systems optimize CHP operation, while hybrid systems combine various energy sources for flexibility. These innovations have boosted market growth, fostering higher efficiencies, increased renewable integration, and widespread adoption of micro-CH systems. Further developments in CHP technology are expected to drive market expansion globally.
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Major Challenges
- High cost associated with combined heat and power units:
- Many countries utilize combined heat and power (CHP) systems for their eco-friendly advantages. However, their widespread adoption faces challenges due to high upfront expenses. For instance, ENE-FARM, a PEMFC-based CHP system, incurs an operating cost 116% higher than traditional power systems. Fuel cells, integral to CHP, are costly despite declining prices.
- Although fuel cells date back to the 1960s, commercial development began in the 1990s. While natural gas abundance in the US and ongoing R&D efforts lowered fuel cell costs, they remain pricier than alternatives like engines. Consequently, subsidies are crucial for fuel cell competitiveness.
- Initially aiding adoption, subsidies diminish over time, requiring increased investments for sustained affordability. Such factors hinder global CHP market growth, particularly in developing nations.
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Segmentation Overview
- Product
- 1.1 Natural gas
- 1.2 Coal
- 1.3 Others
- End-user
- 2.1 Industrial
- 2.2 Commercial
- 2.3 Residential
- Geography
- 3.1 APAC
- 3.2 Europe
- 3.3 North America
- 3.4 South America
- 3.5 Middle East and Africa
Natural Gas
The natural gas sector is set to grow notably in the coming years. Combined heat and power technology, or cogeneration, lets us make electricity and useful heat at once from one fuel. Natural gas is chosen for this because it burns cleanly, is efficient, and easy to find. It’s good for the environment too, emitting fewer greenhouse gases and air pollutants than other fossil fuels.
This makes it a sustainable choice. The market’s seen big growth lately, with natural gas playing a big part in that. Lots of industries, like manufacturing, healthcare, and residential buildings, are turning to natural gas for their energy needs. These systems provide steady electricity and heat for things like heating spaces and water, as well as for industry. All these reasons are driving the growth of this sector, pushing the market forward.
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Analyst Review
The Combined Heat and Power (CHP) market encompasses various sectors such as biogas, gas turbines, reciprocating engines, solar panels, wind turbines, and hydrogen. With a focus on utilities, industrial applications, hospitals, nursing homes, laundries, hotels, universities, schools, prisons, private and sporting facilities, the market addresses emissions reduction and energy efficiency goals.
In response to environmental regulatory pressures, CHP systems offer a reliable solution, particularly for commercial and industrial facilities. They optimize energy costs and reduce greenhouse gas emissions by utilizing natural gas supply efficiently. This technology benefits from the resilience and reliability of electric power generation, especially in times of increased demand or lockdowns.
By integrating conventional and renewable energy sources, CHP systems contribute to the electricity grid’s stability and provide reserve capacity. They are widely adopted by small-to-medium-sized industrial facilities, power plants, and commercial buildings to enhance energy sustainability while meeting operational needs.
Overall, CHP systems play a crucial role in the global energy landscape, balancing the requirements of various sectors while minimizing emissions and maximizing energy efficiency.
Market Overview
Gas pretreatment is vital for reducing GHG emissions in industrial operations, especially in industries reliant on natural gas-based fuel types like Combined Heat and Power (CHP) systems. With lockdowns affecting discretionary spending, industries seek cost-effective solutions like CHP to optimize energy usage. CHP integrates industrial boilers to efficiently produce heat and power, minimizing waste.
The market for CHP systems benefits from this demand, offering sustainable energy solutions amidst economic constraints. Gas pretreatment ensures the smooth operation of industrial boilers within CHP setups, contributing to lower emissions and cost savings. As industries prioritize sustainability and cost efficiency, CHP emerges as a practical solution, supported by effective gas pretreatment methods and a focus on reducing GHG emissions.
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Key Topics Covered:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
SDGs, Targets, and Indicators
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 7: Affordable and Clean Energy
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 11: Sustainable Cities and Communities
- SDG 13: Climate Action
The article discusses the growth of the global combined heat and power market, which is related to the generation of affordable and clean energy (SDG 7). It also mentions advancements in combined heat and power system technologies, which contribute to industry innovation and infrastructure (SDG 9). The use of combined heat and power systems in residential and small commercial settings promotes sustainable cities and communities (SDG 11). Additionally, the reduction of greenhouse gas emissions through the use of combined heat and power systems aligns with climate action (SDG 13).
2. What specific targets under those SDGs can be identified based on the article’s content?
- Target 7.2: Increase substantially the share of renewable energy in the global energy mix
- Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable
- Target 11.6: Reduce the environmental impact of cities
- Target 13.2: Integrate climate change measures into national policies, strategies, and planning
The growth of the combined heat and power market, particularly with advancements in system technologies, contributes to increasing the share of renewable energy in the global energy mix (Target 7.2). The adoption of combined heat and power systems in various sectors, including industrial and commercial, supports the upgrading of infrastructure and retrofitting industries to make them sustainable (Target 9.4). The use of combined heat and power systems in cities helps reduce their environmental impact (Target 11.6). Additionally, the reduction of greenhouse gas emissions through the use of combined heat and power systems aligns with integrating climate change measures into national policies, strategies, and planning (Target 13.2).
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
Yes, there are indicators mentioned in the article that can be used to measure progress towards the identified targets:
- Share of renewable energy in the global energy mix
- Number of infrastructure upgrades and retrofits for sustainability
- Reduction in environmental impact of cities
- Reduction in greenhouse gas emissions
The article mentions advancements in combined heat and power system technologies, which can contribute to increasing the share of renewable energy in the global energy mix. The adoption of combined heat and power systems in various sectors indicates infrastructure upgrades and retrofits for sustainability. The use of combined heat and power systems in cities can lead to a reduction in their environmental impact. Additionally, the reduction of greenhouse gas emissions through the use of combined heat and power systems is an indicator of progress towards climate change mitigation.
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 7: Affordable and Clean Energy | Target 7.2: Increase substantially the share of renewable energy in the global energy mix | Share of renewable energy in the global energy mix |
| SDG 9: Industry, Innovation, and Infrastructure | Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable | Number of infrastructure upgrades and retrofits for sustainability |
| SDG 11: Sustainable Cities and Communities | Target 11.6: Reduce the environmental impact of cities | Reduction in environmental impact of cities |
| SDG 13: Climate Action | Target 13.2: Integrate climate change measures into national policies, strategies, and planning | Reduction in greenhouse gas emissions |
Copyright: Dive into this article, curated with care by SDG Investors Inc. Our advanced AI technology searches through vast amounts of data to spotlight how we are all moving forward with the Sustainable Development Goals. While we own the rights to this content, we invite you to share it to help spread knowledge and spark action on the SDGs.
Fuente: prnewswire.com
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