Combined Heat and Power Market Forecast to Hit USD 51.46 billion by 2034 with 5.6% CAGR Surge – openPR.com

Report on the Global Combined Heat and Power (CHP) Market

Executive Summary

The global Combined Heat and Power (CHP) market is undergoing significant expansion, driven by a global imperative to enhance energy efficiency and meet Sustainable Development Goals (SDGs). This report outlines the market’s financial projections, key segments, and direct contributions to international sustainability targets, particularly SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action). The market was valued at USD 29.91 billion in 2024 and is projected to reach USD 51.46 billion by 2034, reflecting a Compound Annual Growth Rate (CAGR) of 5.6%. This growth underscores the increasing adoption of CHP systems as a critical technology for building resilient infrastructure and promoting responsible production and consumption patterns.

Market Projections and Growth Dynamics

Financial Outlook

A recent analysis indicates a robust growth trajectory for the global CHP market.

• Current Market Valuation (2024): USD 29.91 billion
• Projected Market Valuation (2034): USD 51.46 billion
• Compound Annual Growth Rate (CAGR) 2025-2034: 5.6%

Alignment with Sustainable Development Goals (SDGs)

The expansion of the CHP market is intrinsically linked to the achievement of several key United Nations Sustainable Development Goals. The technology’s inherent efficiency and adaptability make it a vital tool for a sustainable energy transition.

SDG 7: Affordable and Clean Energy

CHP systems significantly increase energy efficiency by capturing and utilizing heat that would otherwise be wasted in conventional power generation. This process reduces fuel consumption, lowers energy costs, and facilitates the integration of cleaner fuels like natural gas, biomass, and hydrogen, thereby advancing the goal of universal access to clean and affordable energy.

SDG 13: Climate Action

By maximizing the energy output from a single fuel source, CHP systems substantially reduce greenhouse gas emissions compared to separate heat and electricity generation. The shift towards lower-carbon fuels such as natural gas and the development of advanced technologies like fuel cells further strengthen the market’s contribution to mitigating climate change.

SDG 9 & SDG 11: Industry, Innovation, and Sustainable Cities

CHP is a cornerstone technology for developing resilient and sustainable industrial infrastructure (SDG 9). It provides reliable, on-site power and thermal energy, enhancing industrial competitiveness. In urban contexts, CHP is central to district energy systems, contributing to the development of sustainable cities and communities (SDG 11) by improving the efficiency and reliability of urban energy supplies.

SDG 12: Responsible Consumption and Production

The core principle of CHP—producing two forms of energy from a single fuel source—is a prime example of responsible consumption and production. It minimizes energy waste and promotes the efficient use of natural resources, aligning directly with the objectives of SDG 12.

Market Segmentation Analysis

By Fuel Type

The choice of fuel is a critical determinant of a CHP system’s environmental and economic performance. The natural gas segment held the largest market share in 2024 due to its high efficiency and lower emissions profile compared to traditional fossil fuels, supporting the transition to cleaner energy as outlined in SDG 7.

• Coal
• Natural Gas
• Biomass
• Nuclear
• Others

By Prime Mover Technology

Technological innovation is a key driver of market growth, with different prime movers suited for various applications. The fuel cell segment is projected to witness the fastest growth, driven by advancements in hydrogen technologies and a strong policy emphasis on low-carbon energy solutions, directly supporting SDG 9 on innovation.

• Gas Turbine
• Fuel Cell
• Reciprocating Engine
• Combined Cycle
• Steam Turbine
• Others

Competitive and Regional Landscape

Key Industry Players

The market is characterized by the presence of several major technology and energy solution providers, including:

• Bosch Thermotechnology GmbH
• Caterpillar Inc.
• Doosan Corporation
• General Electric Company
• Johnson Controls International PLC
• MAN Energy Solutions SE
• Mitsubishi Heavy Industries, Ltd.
• Siemens Energy AG
• Veolia
• Wärtsilä Corporation

Regional Overview

The Asia-Pacific region dominated the market in 2024, a trend attributed to rapid industrialization and significant investments in sustainable energy infrastructure, which aligns with regional efforts to achieve SDG 9. Growth is also anticipated across other key regions as they pursue decarbonization and energy efficiency goals.

• North America (United States, Canada, Mexico)
• Europe (Germany, France, United Kingdom, Russia, Italy)
• Asia-Pacific (China, Japan, Korea, India, Southeast Asia, Australia)
• South America (Brazil, Argentina, Colombia)
• The Middle East and Africa (Saudi Arabia, UAE, Egypt, South Africa)

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 7: Affordable and Clean Energy: The article focuses on Combined Heat and Power (CHP), a technology that improves energy efficiency and can utilize cleaner fuel sources. It discusses the market growth driven by factors like “high efficiency,” “lower emissions,” and the use of fuels such as natural gas, biomass, and emerging hydrogen technologies, all of which are central to ensuring access to affordable, reliable, sustainable, and modern energy.
• SDG 9: Industry, Innovation, and Infrastructure: The growth of the CHP market is directly linked to industrial development and infrastructure upgrades. The article notes that market growth in the Asia Pacific region is “driven by rapid industrialization, expanding manufacturing sectors, and rising investments in sustainable energy infrastructure.” This highlights the role of CHP in building resilient and sustainable infrastructure.
• SDG 13: Climate Action: By promoting high-efficiency energy generation, CHP technology helps in reducing greenhouse gas emissions. The article emphasizes this by mentioning that the natural gas segment dominates due to “lower emissions” and that the fuel cell segment is growing due to an “increasing emphasis on low-carbon energy generation solutions.” These aspects directly contribute to combating climate change.
• SDG 8: Decent Work and Economic Growth: The article details significant economic activity and growth within the CHP market. It states the market is “currently valued at USD 29.91 billion in 2024 and is anticipated to generate an estimated revenue of USD 51.46 billion by 2034,” with a “robust 5.6% Compound Annual Growth Rate (CAGR).” This investment and market expansion contribute to overall economic growth.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Under SDG 7 (Affordable and Clean Energy):
  • Target 7.3: By 2030, double the global rate of improvement in energy efficiency. The entire premise of CHP is to increase energy efficiency by capturing and using heat that would otherwise be wasted. The article highlights the “high efficiency” of natural gas-based CHP systems as a key reason for their market dominance.
  • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The article mentions “Biomass” as one of the fuel sources for CHP. Furthermore, the projected fastest growth of the “fuel cell segment” is linked to “advancements in hydrogen technologies,” which can be produced from renewable sources, thus contributing to this target.
  • Target 7.a: By 2030, enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology. The report itself, analyzing a global market with key international players (Siemens, Mitsubishi, etc.) and detailing market values and investments (“rising investments in sustainable energy infrastructure”), points directly to the global investment and technological exchange related to clean energy infrastructure.
• Under SDG 9 (Industry, Innovation, and Infrastructure):
  • Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies. The article discusses CHP as a technology being adopted by “expanding manufacturing sectors” to create “sustainable energy infrastructure.” The technology’s high efficiency and use of cleaner fuels like natural gas and fuel cells represent the adoption of cleaner, more efficient industrial processes.
• Under SDG 13 (Climate Action):
  • Target 13.2: Integrate climate change measures into national policies, strategies and planning. The market’s growth is driven by an “increasing emphasis on low-carbon energy generation solutions” and the appeal of “lower emissions.” This suggests that policies and strategies favoring climate action are fueling the demand for CHP technology.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• For Target 7.3 (Energy Efficiency): While not providing a specific metric for energy efficiency improvement (Indicator 7.3.1), the article implies progress through the market growth of a high-efficiency technology. The dominance of the natural gas segment “owing to its high efficiency” serves as a qualitative indicator of the market’s contribution to this target.
• For Target 7.2 (Renewable Energy Share): The article provides indicators through its market segmentation.
  • The inclusion of “Biomass” as a fuel segment allows for tracking its market share as an indicator of renewable energy use in CHP.
  • The projection that the “fuel cell segment is projected to experience the fastest growth” serves as a forward-looking indicator for the adoption of advanced, potentially renewable-based (green hydrogen) technologies.
• For Target 7.a (Investment in Clean Energy): The article provides direct financial indicators.
  • Indicator 7.a.1 (International financial flows): The market valuation itself (“valued at USD 29.91 billion in 2024 and is projected to reach USD 51.46 billion by 2034”) acts as a proxy for financial flows and investment in this clean energy technology. The 5.6% CAGR is a direct measure of the growth in these financial flows.
• For Target 9.4 (Adoption of Clean Technologies): The market share data for different fuel types and prime movers serve as indicators.
  • The market share of “natural gas” as a “cleaner alternative” and the growth of the “fuel cell” segment can be used to measure the adoption rate of cleaner technologies within the industrial and energy sectors.

4. Summary Table of SDGs, Targets, and Indicators

Source: openpr.com