Combined Heat and Power Industry Report 2025: General Electric, Siemens, Veolia Environnement, Wartsila, and 2G Energy Lead the $31 Billion Market, Which is Anticipated to Reach $41.6 Billion by 2029

Dublin, March 11, 2025 (GLOBE NEWSWIRE) -- The "Combined Heat and Power Market Report 2025" has been added to ResearchAndMarkets.com's offering.

The combined heat and power market size has grown strongly in recent years. It grew from $29.17 billion in 2024 to $31.01 billion in 2025 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to energy efficiency goals, industrial cogeneration, environmental regulations, increased combined cooling, heating, and power (CCHP) applications, district heating and cooling projects, waste heat recovery, decentralization of energy generation, increased awareness of CHP benefits.

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography. Asia-Pacific was the largest region in the combined heat and power market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global combined heat and power (CHP) market share during the forecast period.

Key Companies Profiled: General Electric Company; Siemens AG; Veolia Environnement S.A.; Wartsila Oyj Abp; 2G Energy AG



The combined heat and power market size is expected to see strong growth in the next few years. It will grow to $41.61 billion in 2029 at a compound annual growth rate (CAGR) of 7.6%. The growth in the forecast period can be attributed to transition to low-carbon energy systems, smart grid integration, resilience planning in critical infrastructure, urbanization and district energy networks, biogas and biomass CHP projects, support for micro-CHP in residential settings. Major trends in the forecast period include energy-as-a-service (EaaS) models, market consolidation and partnerships, remote monitoring and control, technological advancements, grid resilience and reliability, collaboration between utilities and CHP providers, advancements in fuel cell CHP systems.

The increasing adoption of biomass power is driving the growth of the combined heat and power (CHP) market. For example, in April 2024, the U.S. Energy Information Administration (EIA), a U.S. agency that collects and disseminates energy data, projected that renewables would account for 24% of electricity generation in the U.S., increasing to 25% by 2025. Within this renewable energy sector, biomass is expected to contribute approximately 2.27% to renewable electricity generation in 2024. Thus, the growing adoption of biomass power is anticipated to significantly boost the growth of the combined heat and power market in the coming years.

The rising emphasis on energy efficiency is anticipated to drive the growth of the combined heat and power (CHP) market in the future. For instance, in June 2023, the International Energy Agency (IEA), a Paris-based autonomous intergovernmental organization, highlighted that global improvements in energy efficiency must double by 2030 to meet climate objectives. The IEA emphasizes the need for an annual progress rate exceeding 4% to stay within the 1.5C global warming threshold. Additionally, the adoption of electric vehicles (EVs) is accelerating rapidly, with global EV sales reaching 2.3 million units in the first quarter of 2023, representing a 25% increase compared to the same period in 2022. This growth underscores the rising trend towards energy-efficient, digitally-enabled technologies that are essential for facilitating sustainable energy transitions. Therefore, the increase in energy efficiency is propelling the growth of the combined heat and power market.

Innovative technological solutions, exemplified by the Bloom Energy Server, are playing a crucial role in the profitability and advancement of major companies in the combined heat and power market. Bloom Energy, a US-based green energy company, launched the Bloom Energy Server in February 2023. This cutting-edge fuel cell power generation system is designed to efficiently generate electricity to meet diverse energy demands while maintaining a compact modular footprint. The Bloom Energy Server is recognized for delivering clean, reliable, and cost-effective energy solutions on-site, offering dependable and consistent power. Its flexibility allows it to adapt to the energy requirements of various applications and sectors, utilizing a variety of fuels such as natural gas, mixed hydrogen, biogas, and hydrogen. Operating on Solid Oxide technology and at high temperatures, the Bloom Energy Server represents a significant technological advancement in the combined heat and power market.

Major companies in the combined heat and power market are driving innovation through the development of new technological products, such as heat exchangers, to enhance their profitability. For instance, in March 2023, Alfa Laval AB, a Sweden-based provider of specialized products for heat transfer introduced the AlfaNova GL50, an asymmetric gas-to-liquid plate heat exchanger. This compact and asymmetric device, constructed entirely of stainless steel, is designed for fuel cell applications within the combined heat and power (CHP) sector. With a maximum gas flow rate of 250 m3/h and an incoming gas temperature of 750C, the AlfaNova GL50 aims to minimize energy losses and enhance fuel cell system efficiency. This innovative solution enables fuel cell producers to maximize the utilization of their fuel cell stacks.

Report Scope

Markets Covered:

1) by Fuel: Natural Gas; Coal; Biomass; Other Fuel
2) by Technology: Combined Cycle; Steam Turbine; Gas Turbine; Reciprocating Engine; Other Technologies
3) by Capacity: Up To 10 MW; 10-150 MW; 151-300 MW; Above 300 MW
4) by End-Use: Commercial; Industrial; Residential; Utilities; Other End-Uses

Subsegments:

1) by Natural Gas: Gas Turbines; Reciprocating Engines
2) by Coal: Coal-Fired Boilers; Integrated Gasification Combined Cycle (IGCC)
3) by Biomass: Wood Chips; Agricultural Residues
4) by Other Fuel: Oil; Waste Heat Recovery

Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa

Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain

Time Series: Five years historic and ten years forecast.

Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.

Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.

Key Attributes

Some of the major companies featured in this Combined Heat and Power market report include:

• General Electric Company
• Siemens AG
• Veolia Environnement SA
• Wartsila Oyj Abp
• 2G Energy AG
• Capstone Green Energy Corporation
• Caterpillar Inc.
• Dalkia Aegis EDF Group LLC
• Bosch Industriekessel GmbH
• Centrica PLC
• Cummins Inc.
• Kawasaki Heavy Industries Ltd.
• The Viessmann Group
• Kohler Co.
• Elite Energy Systems LLC
• MAN Energy Solutions SE
• Centrax Gas Turbines
• ABB Limited
• Tecogen Inc.
• Aegis Energy Services Inc.
• Curtis Engine & Equipment Co. Inc.
• Rolls-Royce Power Systems AG
• Mitsubishi Heavy Industries Ltd.
• Doosan Fuel Cell America Inc.
• FuelCell Energy Inc.
• Bloom Energy Corporation
• ClearEdge Power Inc.
• Ceres Power Holdings PLC
• Ceramic Fuel Cells Limited
• Ballard Power Systems Inc.
• Plug Power Inc.
• Hydrogenics Corporation
• ITM Power PLC
• AFC Energy plc

For more information about this report visit https://www.researchandmarkets.com/r/kixjvm

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• Combined Heat and Power Market