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| Global Combined Heat And Power (CHP) Market |
The global Combined Heat And Power (CHP) Market is estimated to be valued at US$ 26.98 Bn in 2023 and is expected to
exhibit a CAGR of 8.8% over the
forecast period 2023 to 2030, as highlighted in a new report published by
Coherent Market Insights.
Market Overview:
Combined heat and power (CHP) is a technology used to generate electricity and
useful heat simultaneously from one energy source. CHP plants burn fuels like
natural gas, biomass or coal to produce both electricity and thermal energy in
the form of steam or hot water. This integrated system helps with higher fuel
efficiency as compared to separate systems for producing electricity and heat.
CHP systems provide various advantages such as reduced emissions, low operating
costs, energy independence, improved reliability and reduced transmission
losses. With growing worldwide demand for affordable and reliable power, CHP
technology continues to gain traction across residential, commercial and
industrial sectors.
Market key trends:
One of the key trends in the CHP market is the shift towards clean and
renewable energy sources. Several governments are supporting the adoption of
biomass-fueled CHP systems to reduce carbon footprint. Rising focus on
distributed energy generation is another major trend driving market growth. To
address issues of aging electric grid infrastructure, more organizations are
adopting CHP systems for on-site power generation. Technological advancements
are also fueling the demand, with new systems featuring improved efficiency and
ability to use hybrid fuels. In addition, favorable government policies
offering tax credits and incentives for clean energy projects are positively
impacting the adoption of CHP technology worldwide.
Porter’s Analysis
Threat of new entrants: The high initial capital requirement and complex
technology pose entry barriers for new players in the CHP market.
Bargaining power of buyers: Large industrial and commercial customers have
significant bargaining power as buyers due to bulk purchase volumes.
Bargaining power of suppliers: The presence of many component and technology
manufacturers limits the bargaining power of suppliers in the CHP market.
Threat of new substitutes: Improving renewable energy technologies pose a
potential threat, however, CHP offers efficiency and energy cost savings.
Competitive rivalry: The global CHP market is moderately concentrated with the
presence of global and regional players.
Key Takeaways
The Global
Combined Heat And Power (CHP) Market is expected to witness high growth,
exhibiting CAGR of 8.8% over the
forecast period 2023 to 2030, due to increasing demand for low carbon and
efficient energy sources. The market size for CHP is estimated to reach US$
46.28 Bn by 2030.
Regional analysis indicates that Asia Pacific region is expected to dominate
the global CHP market owing to rapid industrialization and infrastructure
development in countries such as China and India. Strong government support
through fiscal incentives for clean energy adoption further accelerates the regional
market growth. The North American regional market is also anticipated to
exhibit significant expansion over the coming years.
Key players operating in the CHP market are Wartsila, Siemens, GE, 2G Energy,
Aegis Energy Services, Bosch Thermotechnology, Kawasaki Heavy Industries,
Viessmann Werke, FuelCell Energy, Veolia, Clarke Energy, CAPSTONE TURBINE,
Caterpillar, Yanmar, ABB, Edina, Wolf GmbH, Atlas Copco, Tecogen Inc. Major
players are focusing on new product launches, partnerships and mergers &
acquisitions to gain competitive advantage and expand their global footprints
in the rapidly growing CHP industry.
Read More: https://www.trendingwebwire.com/combined-heat-and-power-market-trends/