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Growing need for efficient energy generation to boost the growth of Combined Heat And Power (CHP) Market

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Gauri Cmi
Growing need for efficient energy generation to boost the growth of 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/


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