The Commercial Combined Heat and Power Market Is Expected to Be Worth More than $14 Billion Annually by 2024, According to Navigant Research

A recent report from Navigant Research analyzes the global market potential for commercial combined heat and power (CHP) systems for a range of building applications, including global market forecasts for system installations, installed capacity, average installation capacity size, and revenue through 2024.

In light of concerns about grid reliability, demand for electricity, and greenhouse gas emissions, policymakers, utilities, and building owners in a growing number of countries are becoming more interested in commercial CHP systems. In fact, governments around the world are increasingly focused on boosting subsidies and other incentives for the adoption of these systems and related building efficiency technologies. Click to tweet: According to a recent report from Navigant Research, the commercial CHP market is expected to be worth more than $14 billion annually by 2024.

“While the market as a whole is experiencing steady growth, CHP’s penetration into global building infrastructure has been minimal,” says Brett Feldman, senior research analyst with Navigant Research. “In 2015, globally, the technical potential of floor space that could be served by commercial CHP is estimated at 441 billion square feet—but only a fraction of this total can be realistically served due to the high upfront capital cost associated with these types of systems.”

In addition to the high upfront expense, additional conditions, including high spark spreads, thermal requirements, and utility cooperation, must be present for installed systems to be viable, according to the report. As such, the majority of today’s installations are confined to developed areas such as the United States, Northern Europe, South Korea, and Japan.

The report, Combined Heat and Power for Commercial Buildings, analyzes the global market potential for commercial CHP systems for a range of building applications – hospitals, universities, hotels, casinos, airports, etc. – using technologies including turbines, reciprocating engines, and fuel cells. The report provides in-depth assessments of leading countries for the manufacture and adoption of commercial CHP systems and the technologies utilized in such systems. Global market forecasts for system installments, installed capacity, average installation capacity size, and revenue, segmented by region and application, extend through 2024. The report also examines the key industry players engaged in the global commercial CHP market. An Executive Summary of the report is available for free download on the Navigant Research website.

About Navigant Research

Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, and Smart Buildings sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.

About Navigant

Navigant is a specialized, global professional services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals deliver expert and advisory work through implementation and business process management services. The firm combines deep technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism to address clients’ needs in highly regulated industries, including Construction, Energy, Financial Services and Healthcare. More information about Navigant can be found at navigant.com.

* The information contained in this press release concerning the report, Combined Heat and Power for Commercial Buildings, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.