USD 8.99 billion
North America CHP Market Size, Share, Growth Analysis, By Fuel(Natural Gas, Coal), By Technology(Combined Cycle, Steam Turbine) - Industry Forecast 2024-2031
Report ID:
SQMIG10G2029 |
Region:
Global |
Published Date: February, 2024
Pages:
157
|
Tables:
66 |
Figures:
80
North America CHP Market Insights
North America CHP Market size was valued at USD 8.99 billion in 2022 and is poised to grow from USD 9.48 billion in 2023 to USD 14.56 billion by 2031, growing at a CAGR of 5.5% in the forecast period (2024-2031).
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.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Natural Gas
Fastest Growth
Natural Gas
Growth Rate
5.5% CAGR
North America CHP Market ($ Bn)
Country Share for US Region (%)
North America CHP Market By Fuel ($ Bn)
North America CHP Market By Fuel (%)
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North America CHP Market Segmental Analysis
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.
North America CHP Market By Fuel, 2023 (%)
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North America CHP Market Regional Insights
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.
North America CHP Market By Geography, 2024-2031
- Largest
- Fastest
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North America CHP Market Dynamics
Drivers
Environmental Regulations and Sustainability Goals:
- The world is making amends and changes in light of recent worries about the environment. Governments and organizations have established new environmental standards and goals for achieving green targets. This has fueled the expansive usage of CHP systems in North America. This technology is supposedly cleaner and greener than traditional power generation techniques. This is because it lowers emissions of greenhouse gas and other pollutants. Many North American areas have established noteworthy targets for reduced carbon footprint. Thus, CHP systems are widely demanded across the continent to improve air quality using sustainable methods.
Energy Efficiency and Cost Savings:
- The North American CHP market has grown quite a bit in recent years. One of the key factors responsible for that growth is the region’s concentrated efforts to save cost and develop power efficiently. These systems can use one source of energy to simultaneously generate electricity and useful thermal energy, which would otherwise be wasted. This advantage that it portrays over traditional methods in efficient energy generation has driven its demand in North America. This in turn provides business with diminished costs, which is appealing to companies on a strict budget.
Restraints
Complexity of Implementation and Grid Integration:
- The integration of CHP systems can be complicated, especially in pre-established infrastructure. The deployment of this process in the existing thermal systems and electrical grids can be challenging. This is because it would need extensive revisions to the current infrastructure and can be complicated in a technical manner. Moreover, the differing regulatory requirements and approval process can further slow down the production. This can pose a greater problem in the development of CHP systems.
High Initial Capital Costs:
- New entrants in the market can be deterred by the high upfront costs of CHP systems. The capital required for the purchase and installation of this technology can be quite costly, Though the long-term savings can outweigh the initial cost, the one-time cost can be daunting for businesses with restricted budgets. Companies looking to invest in CHP systems need to weigh their financial options and calculate the ROI (Return on Investment) of this technology before taking the step.
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North America CHP Market Competitive Landscape
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
- General Electric (USA)
- Veolia (USA)
- E.ON SE (USA)
- Caterpillar Inc. (USA)
- ABB Group (USA)
- Siemens AG (USA)
- Capstone Turbine Corporation (USA)
- Centrica plc (USA)
- Engie North America (USA)
- Mitsubishi Power Americas, Inc. (USA)
- Exelon Corporation (USA)
- Johnson Controls (Canada)
- NRG Energy (USA)
- FuelCell Energy (USA)
- DTE Energy (USA)
- Clearway Energy Group (Canada)
- Constellation (USA)
- Turbomach (Canada)
- Bloom Energy (USA)
- Ener-G Cogen International (USA)
- Solar Turbines (USA)
- Echogen Power Systems (USA)
- Ameresco (USA and Canada)
- 2G Energy, Inc. (USA)
- Tecogen Inc. (USA)
Recent Developments
- Johnson Controls is an American conglomerate that produces fire, HVAC, and security equipment for buildings. The company, based in Ireland, reported it had entered into a contract with a new manufacturing plant located in the US in January 2023. The plant will utilise the natural gas-based CHP systems supplied by Johnson Controls to conduct electricity and heat. This installation will save the US-based company millions in one lifetime of energy costs.
- The United States Department of Energy (DOE) reported it will be funding the development of new CHP technologies in February 2023. Funnelling USD $10 million into the project, the DOE expects the creation of cost-friendly CHP systems which will produce more efficient energy.
- The Californian State passed a new mandate for commercial buildings in March 2023. This new law stated all of the state's buildings utilized for commercial use must have CHP systems installed by 2030. This mandate will expand the CHP market in California.
- The Canadian government spent a total of $50 million to fund the production of CHP projects countrywide in April 2023. This huge fund will help projects that intend to develop CHP systems that use renewable sources of energy.
North America CHP Key Market Trends
- Increased Adoption of Natural Gas CHP Systems: The CHP market in North America is heavily influenced by one specific trend. That is the rising usage of CHP systems based on natural gas. This energy source is supposedly cleaner and more affordable, thus gaining popularity in the market. North America’s wide sources of natural gas have fueled this trend. That coupled with the region’s focus on diminished carbon emissions by using sources which are not coal or other fossil fuels has driven the regional market expansion. Furthermore, the technological advancements in the gas turbine production has also made natural gas-CHP systems more sustainable and energy efficient.
- Focus on Energy Efficiency and Sustainability: The increased usage of natural gas-based CHP systems is only one of the key trends influencing the North American CHP market. Another one is the increasing emphasis on improving energy efficiency and promoting sustainable practices in the process. CHP systems are renowned to be able to produce power and useful heat simultaneously from a single energy source. This makes them a much more optimal source of power than other power generation methods. North American industries, institutions, and commercial places are adopting CHP systems to lower energy costs and greenhouse gas emissions, along with building their sustainability profiles. This trend is also impacted by the North American government putting out policies and rewards to promote the generation of clean and efficient energy.
North America CHP Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
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 8.99 billion |
| Market size value in 2031 | USD 14.56 billion |
| Growth Rate | 5.5% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| 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 |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on North America CHP Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on North America CHP Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
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.
Analyst Support
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.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
North America CHP Market Report Snapshots
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