Combined Heat and Power (CHP) Market to Exhibit a CAGR of 6.84% from 2024 to 2032; GE Inked a Deal with Aksa Energy to Supply Two GE 6F.03 Gas Turbines

The global combined heat and power (CHP) market size was valued at USD 17.90 billion in 2024 and is expected to grow from USD 19.06 billion in 2025 to USD 30.38 billion by 2032, exhibiting a CAGR of 6.89% during the forecast period. 

Fortune Business Insights™ presents this information in its report titled “Combined Heat and Power (CHP) Market Size, Share & Industry Analysis, By Fuel Type (Natural Gas, Coal, Biomass, and Others), By Technology (Combined Cycle, Steam Turbine, Gas Turbine, Reciprocating Engine, and Others), By Capacity (Up to 10 MW, 10-150 MW, 151-300 MW, and Above 300 MW), By Application (Utilities, Residential, and Commercial & Industrial), and Regional Forecast, 2024-2032.”

The great monetary focuses for leveraging CHP include applications with continuous demand for thermal energy and electricity. The market expansion can be ascribed to the surge in the inclination toward smart heating systems. The market is witnessing significant investment in research and development for different prime mover technologies to operate the combined heat and power (CHP) units economically by the U.S. government.

The market was negatively influenced by the COVID-19 pandemic and the lockdowns. Many crucial CHP projects were behind schedule owing to the halt caused by the pandemic, as reported by several CHP stakeholders. For instance, Virt Energy GmbH reported a six-month delay owing to the lockdowns due to the pandemic, as around 80% of the work was finished before the pandemic.

GE and Aksa Energy Unveiled a Contract to Supply Gas Turbines

In February 2023, GE and Aksa Energy, the largest publicly listed producer of global power, unveiled that they had signed a contract. Under this deal, GE will supply two highly efficient GE 6F.03 gas turbines to power Aksa Energy’s new combined heat and power plant in Kazakhstan’s Kyzylorda region. Moreover, maintenance services will also be provided by the company for the assurance of dependable equipment operation.

Humongous Demand For Heat And Power to Bolster the Market Growth

The combined heat and power (CHP) market growth is driven by huge demand for heat and power. The flourishing commercial sector, on account of the inflated economies, is poised to bolster the demand for heat and power, boosting product demand.

Despite such growth opportunities, the product’s constrained application, along with its prohibitive initial investment, may hinder the market growth.

Prominent Companies Emphasize Entering Contracts to Enhance Their Market Position

The combined heat and power (CHP) market represents a fragmented structure, with many companies providing diverse services and products across the value chain globally. Various strategic initiatives are being undertaken by prominent companies to sustain their leadership. Some of the strategies include mergers & acquisitions, joint ventures, partnerships, and others. Several companies are also focusing on entering contracts to offer enhanced solutions while strengthening their position.

List of Key Players Profiled:

• MAN Diesel & Turbo (Germany)


• Wärtsilä (France)


• General Electric (U.S.)


• Kawasaki Heavy Industries, Ltd. (Japan)


• Mitsubishi Heavy Industries, Ltd. (Japan)


• Bosch Thermotechnology  (Germany)


• Viessmann Werke (Germany)


• FuelCell Energy (U.S.)


• Cummins (U.S.)


• Veolia (France)


• BDR Thermia (Netherlands)


• CENTRAX Gas Turbines (U.K.)


• 2G Energy Services (Germany)


• ABB (Switzerland)


• Siemens (Germany)

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/combined-heat-and-power-chp-market-104958

Key Industry Development

• October 2023- Malarenergi inked a deal with ABB for the retrofication of solutions at its Vasteras-based cogeneration facility and the upgradation of switchgear. Moreover, three different stages with customized solutions were conducted in the retrofit process. Through the modernization of its switchgear, the company has an aim to boost safety for equipment and personnel.

Further Report Findings

• Europe market for combined heat and power (CHP) registered the dominant share during the historical period. This can be credited to the region’s instructions on renewable energy & energy efficiency promotion.


• The growth of North America market for combined heat and power (CHP) can be credited to the expanding residential, industrial, and commercial sectors.


• In terms of technology, the market is segregated into reciprocating engine, combined cycle, gas turbine, steam turbine, and others. The combined cycle segment is slated to dominate the market during the forecast period. Combined cogeneration systems demonstrate an overall electrical efficiency in the range of 50-60%, which is a major improvement of more than approximately 33% efficiency of a simple open-cycle cogeneration application. This factor is bolstering the combined cycle segment growth.


• By capacity, the market is classified into above 300 MW, 10-150 MW, 151-300 MW, and up to 10 MW. The 151-300 MW registers the largest combined heat and power (CHP) market share. 151-300 MW capacity products have a huge preference for commercial, utility, and industrial applications. This factor is impelling the 151-300 MW segment growth.

Table of Segmentation