US Combined Heat and Power (CHP) Market Size
| 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 |
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) Market Trends
This section covers the major market trends shaping the US Combined Heat & Power Market according to our research experts:
Natural Gas-based CHP is Expected to Dominate the Market
- Over the past few years, the natural gas industry has grown significantly. Combined Heat and Power (CHP) or cogeneration, which is the generation of electricity or mechanical power and useful thermal energy from a single source of energy at the point of use, provides a number of potential benefits for the United States in terms of increased energy efficiency, lower greenhouse gas and other emissions, economic competitiveness, and energy resiliency. Approximately 70% of the existing CHP capacity in the United States is fueled by natural gas, resulting in approximately 4.5 trillion cubic feet (Tcf) of annual consumption, accounting for approximately 18% of annual natural gas demand.
- CHP's high-efficiency results in less fuel use and lower levels of greenhouse gas emissions. CHP in the United States avoids more than 1.9 Quadrillion Btus of fuel consumption and 248 million metric tons of CO2 emissions when compared to traditional separate production of electricity and heat. This CO2 reduction is the equivalent of removing more than 45 million cars from the road.
- Around 87% of the country's CHP capacity is found in industrial applications, providing power and steam to large industries such as chemicals, paper, refining, food processing, and metals manufacturing. CHP in commercial and institutional applications is 13% of existing capacity, providing power, heating, and cooling to hospitals, schools, campuses, nursing homes, hotels, and office and apartment complexes.
- CHP is a commercially available clean energy solution that directly addresses a number of national priorities including improving the competitiveness of the United States manufacturing, increasing energy efficiency, reducing emissions, enhancing energy infrastructure, improving energy security and growing the economy.
Federal and State Policies to Support the Growth of the Market
- Policymakers at the federal and state level are increasingly recognizing the benefits that CHP offers in terms of energy efficiency, reduced emissions, and economic growth.
- CHP's inherent higher efficiency and elimination of transmission and distribution losses from the central station generator results in reduced primary energy use and lower greenhouse gas (GHG) emissions.
- CHP provides not only operating savings for the user but may also represent a cost-effective supply of new power generation capacity for regions with declining reserve margins.
US Combined Heat and Power (CHP) Industry Overview
The United States combined heat and power market is moderately fragmented. Some of the key players in this market include 2G Energy Inc., General Electric Company, Aegis Energy Services Inc., Caterpillar Inc., and Curtis Engine & Equipment Co. Inc.
US Combined Heat and Power (CHP) Market Leaders
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2G Energy Inc.
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General Electric Company
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Aegis Energy Services Inc
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Caterpillar Inc.
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Curtis Engine & Equipment Co. Inc.
*Disclaimer: Major Players sorted in no particular order
US Combined Heat and Power (CHP) Market Report - Table of Contents
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1. INTRODUCTION
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1.1 Scope of the Study
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1.2 Market Definition
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1.3 Study Assumptions
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2. RESEARCH METHODOLOGY
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3. EXECUTIVE SUMMARY
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4. MARKET OVERVIEW
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4.1 Introduction
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4.2 Market Size and Demand Forecast in USD billion, till 2025
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4.3 Recent Trends and Developments
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4.4 Government Policies and Regulations
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5. MARKET DYNAMICS
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5.1 Drivers
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5.2 Restraints
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6. Supply Chain Analysis
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7. PESTLE ANALYSIS
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8. MARKET SEGMENTATION & ANALYSIS
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8.1 Applicaton
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8.1.1 Commercial
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8.1.2 Industrial
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8.2 Fuel Type
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8.2.1 Natural Gas
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8.2.2 Renewable
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8.2.3 Coal
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8.2.4 Other Fuel Types
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9. COMPETITIVE LANDSCAPE
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9.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
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9.2 Strategies Adopted by Leading Players
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10. Company Profiles
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10.1 2G Energy Inc.
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10.2 General Electric Company
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10.3 Aegis Energy Services Inc.
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10.4 Caterpillar Inc.
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10.5 Curtis Engine & Equipment Co. Inc.
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10.6 Yanmar America Corp
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- *List Not Exhaustive
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11. MARKET OPPORTUNITIES AND FUTURE TRENDS
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 Research 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.
What years does this US Combined Heat and Power (CHP) Market cover?
The report covers the US Combined Heat and Power (CHP) Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the US Combined Heat and Power (CHP) Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
US CHP Industry Report
Statistics for the 2024 US CHP market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. US CHP analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
