USD 8.99 billion
Report ID:
SQMIR10G2037 |
Region:
Regional |
Published Date: February, 2024
Pages:
157
|Tables:
66
|Figures:
80
North America CHP Market size was valued at USD 9.48 Billion in 2023 and is poised to grow from USD 10 Billion in 2024 to USD 15.36 Billion by 2032, growing at a CAGR of 5.5% during the forecast period (2025-2032).
Recently, the North American CHP (Combined Heat and Power) market has witnessed a substantial growth period. Its importance in industries like data centers, hospitals, industrial complexes, and universities, has helped market expansion. CHP, referred to as cogeneration, is a potent and efficient energy generation process. This technology can generate electricity and thermal energy from a single fuel source at the same time. Usually, this energy source is biomass or natural gas.
The CHP market in North America has thrived, and it is due to a number of reasons. CHP is a sustainable and green energy solution, which is vital in these times of environmental awareness that have birthed reduced emission targets. These systems lower costs and boost savings while maintaining said greenhouse gas emission standards. All of these benefits help producers access improved energy efficiency, that is in comparison to traditional power generation and heat separation techniques.
Moreover, CHP systems are a dependable electric and thermal energy source, which is vital in some of the industries mentioned earlier. These industries need smooth running in their operations without any interruptions, which is perfect for the resilient CHP system.
The North American government has also added various incentives and initiatives to support production clean and efficient energy efficiency, which has expanded the CHP market in this region. These initiatives run through state, federal, and local levels, promoting the increased adoption of GHP systems through financial incentives like tax credits and other regulatory support.
North America is moving up the path to developing clean and green sources of energy. This transition has helped the development of renewable energy technologies, which are made more efficient with CHP processes. These systems offer on-demand and consistent electricity, removing intermittent problems that usually come with renewable energy sources.
Global Market Size
USD 8.99 billion
Largest Segment
Natural Gas
Fastest Growth
Natural Gas
Growth Rate
5.5% CAGR
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Based on Fuel the market is segmented as, Natural Gas, Coal, Biomass, Others. Based on End Use the market is segmented as, Commercial, Educational Institution, District Energy, Office Buildings, Government/Military, Utilities, Others, Industrial, Chemicals, Petroleum Refining, Food, Paper, Primary Metals, Others. Based on Capacity the market is segmented as, 5 MW – 20 MW, > 20 MW. Based on Technology the market is segmented as, Combined Cycle, Steam Turbine, Gas Turbine, Reciprocating Engine, Others. Based on region, the market is segmented into US, Canada, Mexico, Cuba.
Analysis by Fuel
Natural gas-based CHP systems have retained the top market position in the North American CHP market. This energy source is found easily and is thus a more affordable choice to build a CHP system. This fuel is greener than fossil fuels like coal. That is why it is favored when companies need to comply with environmental requirements. It is especially appealing to commercial and industrial facilities as it can be relied on to deliver efficient energy usage and lower emission rate.
Though natural gas-based CHP systems still dominate the market, biomass-based CHP systems are quickly climbing the market ladder. Biomass is obtained from organic elements like agricultural remains and waste and wood, agricultural residues, and waste. Its natural source guarantees a carbon-free and green energy solution. Its rapid growth can be attributed to these factors in times of growing environmental consciousness, which in turn births the demand for sources of renewable energy. Biomass CHP systems are being widely adopted due to renewable energy targets and government initiatives promoting its usage. These systems offer a dependable power and heat source, while reducing biomass waste and greenhouse gas emissions. Biomass CHP systems are even more common in areas with high activities in the agricultural field and widespread forestry.
Analysis by Technology
The Gas Turbine CHP system is the leading technology segment in the North American CHP market. Gas turbines are commonly utilized in CHP applications in the region. The power and industrial sectors of North America feed the steady demand for this technology. This is owed to their versatility and efficiency in these industries’ applications. Gas Turbine CHP systems can utilize waste heat for and generate optimal power efficiently, making them this region’s preferred option.
Regardless, the North American CHP market’s fastest growing segment remains the Reciprocating Engine CHP technology. Reciprocating engines, commonly referred to as internal combustion engines, are rapidly expanding in the regional market. This is because they are compatible with a number of fuel sources, whether it be biogas or natural gas. Commercial and industrial areas are now increasing their adoption of this technology. This is due to their ability to uniformly produce and distribute electricity and heat, and it can be employed in multiple applications. Their appeal has increased as a result of their reliability in producing efficient and emission-free energy.
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The US is the largest contributor of the North American CHP market and thus holds the largest market share. Its dominance can be credited to several reasons. One of the reasons is the country’s flourishing and expansive commercial and industrial sector. Others include the region’s emphasis on sustainable and efficient energy, along with a developed energy infrastructure. The United States is a hub for CHP producers and distributors as its government has put out several incentives to support higher adoption rate of CHP systems. The country houses a ranging landscape of energy sources, from gas to waste heat, which only strengthen its place in the North American CHP market.
Following closely behind, Canada is the fastest-growing region in the CHP market in North America. The demand for CHP systems has grown exponentially in this country. The Canadian government’s focus on energy efficiency and reduced emission rates has fueled this demand and growth. The federal and provincial levels have established incentive programs and CHP favorable regulations to promote market growth. This is in alignment of industries and commercial spaces targeting sustainability. The economic and environmental advantages provided by these systems has driven market growth in Canada.
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Drivers
Environmental Regulations and Sustainability Goals:
Energy Efficiency and Cost Savings:
Restraints
Complexity of Implementation and Grid Integration:
High Initial Capital Costs:
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The Combined Heat and Power (CHP) market of North America is filled with a diverse array of companies vying for a piece, defining the market’s competitive landscape. Industry leaders satiate the need of multiple industries employed in various applications by offering an expansive range of different CHP systems and services. These leaders include names like Capstone Turbine Corporation, General Electric, ABB, Siemens AG, and Veolia Environnement S.A.
Siemens AG and General Electric dominate a large share of the market with their advanced CHP solutions refined over experienced expertise. ABB majorly contributes to the power electronics and automation industries, offering efficient CHP systems. Veolia Environnement S.A. is an expert in the delivery of green and sustainable CHP solutions. Capstone Turbine Corporation specializes in microturbine technology.
The market is flush with specialized and innovative solutions as local and niche players join the market. The competitive landscape is further influenced by government incentives, regulations, and the increasing focus on sustainable energy solutions, driving companies to enhance their CHP offerings and market presence.
Top Player’s Company Profiles
Recent Developments
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According to our analysis, the North American CHP market has grown in recent years. This growth can be attributed to the region’s emphasis on sustainable energy efficiency. CHP, commonly referred to as cogeneration, is an energy-efficient technology that generates power and heat at the same time from a single energy source. This source is general a natural gas or biomass.
CHP systems use the dispersed heat which would typically go to waste during the creation of electricity. These systems achieve that while lowering greenhouse gas emissions and reducing energy wastage. Global industries and governments are targeting a reduced carbon footprint in the face of environmental concerns. CHP systems do all that while being dependable and resilient.
These systems can supply a steady and reliable source of electricity even in power outages. This is a vital benefit in places like data centers, hospitals, and industrial areas. Moreover, market growth has surged as governments worldwide put out policies and rewards ro support CHP deployment. Federal programs in different areas have provided lucrative incentives, like tax credits, to promote the adoption of CHP systems. These developments have helped them look more economically appealing.
However, the North American CHP market is also faced with several challenges that can hamper market expansion. These issues include complex regulations, scarcity of skilled labor, and costly capital costs. Regardless, the market is ascertained to maintain its trajectory. As advancements in technology keep cropping up and the knowledge of its benefits increases, that market will continue offering efficient and green solutions for energy provision globally.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 9.48 Billion |
Market size value in 2032 | USD 15.36 Billion |
Growth Rate | 5.5% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the North America CHP Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the North America CHP Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the North America CHP Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the North America CHP Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
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Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
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Report ID: SQMIR10G2037
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