United States Combined Heat and Power Market Insights Forecasts to 2033

• The Market is Growing at a CAGR of 6.92% from 2023 to 2033
• The US Combined Heat and Power Market Size is Anticipated to hold a significant share by 2033.

The US Combined Heat and Power Market is Anticipated to hold a significant share by 2033, growing at a CAGR of 6.92% from 2023 to 2033. The US combined heat and power market is growing with increasing energy efficiency demands, emission reduction goals, and industrial growth. Natural gas-based CHP systems are dominating the market due to government incentives, technological advancements, and increased adoption across industrial and commercial sectors for cost-effective, reliable power.

Market Overview

The US combined heat and power market would refer to the adoption or deployment of integrated energy systems that may generate electricity and useful thermal energy from a single fuel source. CHP systems are known to enhance energy efficiency and lower emissions while decreasing operational costs. Thus, they can be suited for use in industries, commercial sectors, and residential sectors across the United States. Moreover, the US combined heat and power market has significant importance because it ensures improved energy efficiency, reduction of greenhouse gas emissions, and cheaper energy. High demand for clean, decentralized, power generation from government incentives is an added catalyst towards making it stronger and for pushing the power of grid resiliency. The industrial, commercial, and residential sectors, combined with the increasing technological advancement of natural gas and renewable-based CHP systems, contribute to accelerating the growth of the market. Hence, CHP has become an essential part of the US energy landscape.

Report Coverage

This research report categorizes the market for the US combined heat and power market based on various segments and regions and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the US combined heat and power market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the US combined heat and power market.

Driving Factors

Rising energy efficiency demands, stringent emission regulations, and industrial power requirements have driven the US combined heat and power (CHP) market. Growing adoption of renewable and natural gas-based CHP systems along with grid reliability concerns boost market expansion. Government incentives, cost savings, and advancement in cogeneration technologies fuel the adoption, and CHP becomes an essential solution for sustainable and resilient energy generation in all kinds of industries and commercial applications.

Restraining Factors

The high initial investment, complex installation, and integration challenges restrain the US Combined Heat and Power (CHP) market. Dependence on fossil fuels, limited awareness, and regulatory hurdles hinder large-scale deployment and market penetration.

Market Segmentation

The US combined heat and power market share is classified into fuel type and application.

• The natural gas segment accounted for the largest share of the US Combined Heat and Power market in 2023 and is anticipated to grow at a significant CAGR during the forecast period.

On the basis of fuel type, the US combined heat and power market is divided into natural gas, renewable, coal, and other. Among these, the natural gas segment accounted for the largest share of the US combined heat and power market in 2023 and is anticipated to grow at a significant CAGR during the forecast period. This is because of easy availability, lower carbon emissions, and cost-effectiveness compared to coal, favorable government policies, advancements in gas turbine and reciprocating engine technology, and shifting towards cleaner sources of energy further accelerate the dominance of natural gas-based CHP systems over the forecast period.

• The industrial segment accounted for a substantial share of the US combined heat and power market in 2023 and is anticipated to grow at a rapid pace during the projected period.     

On the basis of application, the US combined heat and power market is divided into commercial and industrial. Among these, the industrial segment accounted for a substantial share of the US combined heat and power market in 2023 and is anticipated to grow at a rapid pace during the projected period. The segmental growth due to high energy consumption, a need for operational efficiency, and cost savings, chemical, refining, paper, and food processing industries depend on CHP systems for continuous power and thermal energy. Demand in these industries propels industrial applications to be the most significant market share.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the US combined heat and power market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• 2G Energy Inc.
• General Electric Company
• Aegis Energy Services Inc.
• Caterpillar Inc.
• Curtis Engine & Equipment Co. Inc.
• Yanmar America Corp
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In February 2023, Bloom Energy (NYSE: BE) just introduced the latest application for its company's new Bloom Energy Server™ to further optimize efficiency for the company in its service to customers in growing energy demand markets and constrained power grids as well as ambitious climate goals. Bloom platform is ordered now by customers whose compatibility can support CHP, increasing system efficiency and improving economics.

Market Segment

This study forecasts revenue at the United States, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the US combined heat and power market based on the below-mentioned segments:

US Combined Heat and Power Market, By Fuel Type

• Natural Gas
• Renewable
• Coal
• Other

US Combined Heat and Power Market, By Application

• Commercial
• Industrial