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Renewable energy

Combined Heat and Power Market to Reach USD 41.48 Billion by 2030

Strategic Insights

— 1 min read

The global combined heat and power (CHP) market is expected to grow significantly over the next five years, driven by the increasing demand for energy efficiency and reliable power generation. With the global power load increasing due to expanding urban infrastructures, industrial processes, and the integration of renewable energy sources, there is a critical need for high-level monitoring systems. Aging power generation units in developed economies and high rates of energy demand growth in developing economies are also driving the adoption of intelligent, IoT-based monitoring solutions.

Key Takeaways:

  • The global CHP market is anticipated to grow from USD 32.02 billion in 2025 to USD 41.48 billion by 2030, at a compound annual growth rate (CAGR) of 5.3% during the forecast period.
  • The microturbine segment is projected to register the highest CAGR during the forecast period, driven by its compact design, high reliability, and high efficiency applications in space-constrained areas.
  • Asia Pacific is expected to emerge as the largest market during the forecast period, driven by a growing emphasis on energy efficiency, stringent environmental regulations, and rising industrial energy needs.
  • Key market players in the sector include Siemens Energy, GE Vernova, Wärtsilä, Veolia, and MITSUBISHI HEAVY INDUSTRIES, LTD.
  • Major strategies adopted by these players include acquisitions, product launches, agreements, partnerships, and expansions.
  • The combined heat and power market is influenced by government energy efficiency standards and the increasing adoption of smart energy systems worldwide.

Statistics:

  • The global CHP market is expected to grow at a CAGR of 5.3% from 2025 to 2030.
  • The microturbine segment is projected to grow at a CAGR of 8.5% during the same period.
  • Asia Pacific is expected to account for the largest share of the global CHP market, with a CAGR of 6.2% from 2025 to 2030.
  • The market size of the combined heat and power market in the Asia Pacific region is expected to reach USD 14.51 billion by 2030.
  • The combined heat and power market is expected to be driven by factors such as government energy efficiency standards, increasing adoption of smart energy systems, and the need for high-efficiency power generation.

Sources:

  • MarketsandMarkets(TM) press release dated August 15, 2025
  • MarketsandMarkets(TM) report titled "Combined Heat and Power Market" 2025
  • MarketsandMarkets(TM) KnowledgeStore(TM)
  • PRNewswire press release dated August 15, 2025

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