Combined heat and power market seen topping $44 billion by 2030

The global combined heat and power market is projected to exceed $44 billion by 2030, with Asia-Pacific and China leading growth, according to The Business Research Company. The report points to rising demand for efficient on-site power, smart heating systems and lower-emission energy infrastructure as the main drivers.

Why it matters: - The combined heat and power market is forecast to reach more than $44 billion by 2030. - The market would represent nearly 0.5% of the broader Utilities industry, which is projected at $9,379 billion by 2030. - The sector is growing as utilities, industrial operators and building owners look for more efficient, lower-emission ways to produce electricity and heat together.

What happened: - The Business Research Company published its Combined Heat And Power Global Market Report 2026, covering market size, trends and forecasts for 2026-2035. - The report estimates the combined heat and power market will grow at a 7% CAGR through 2030. - Asia-Pacific is projected to be the largest regional market in 2030 at $17 billion. - China is projected to be the largest country market in 2030 at $9 billion.

The details: - Asia-Pacific is expected to grow from $12 billion in 2025 to $17 billion in 2030. - China is expected to grow from $6 billion in 2025 to $9 billion in 2030. - Natural gas is projected to be the largest fuel segment, accounting for 65% of the market, or $29 billion, in 2030. - The market is also segmented by technology into combined cycle, steam turbine, gas turbine, reciprocating engine and other technologies. - The market is segmented by capacity into up to 10 MW, 10-150 MW, 151-300 MW and above 300 MW. - The market is segmented by end use into commercial, industrial, residential, utilities and other uses. - The report says natural gas growth is supported by supply networks, lower carbon emissions than coal, high efficiency in gas-fired CHP plants and adoption in commercial and industrial facilities. - The report says Asia-Pacific growth is driven by industrial expansion, rising urban and manufacturing electricity demand, energy-efficiency goals, district heating investment and supportive government policy. - The report says China growth reflects its industrial base, CHP deployment in heavy industry and urban heating networks, natural gas expansion and investment in grid reliability and energy efficiency.

Between the lines: - The report frames CHP as a practical response to grid instability, higher electricity use and pressure to cut transmission losses. - The strongest growth projections are tied to markets and fuels that can support decentralized power generation and continuous energy supply. - The report also positions smart heating systems and digital energy controls as a demand driver, especially in modern buildings and district heating applications. - Rising greenhouse gas emissions are cited as another catalyst because CHP can produce more useful energy from each unit of fuel than conventional generation.

What's next: - The report expects the natural gas, coal, biomass and other fuel segments to collectively add more than $14 billion in market value by 2030. - Natural gas is projected to add $9 billion over the next five years. - Coal is projected to add $3 billion, while biomass and other fuel are each projected to add $1 billion. - The Business Research Company says the 2026 edition of its market reports includes market attractiveness scoring, TAM analysis, company scoring matrix graphics and tables, Excel-based forecasting dashboards, market hotspot infographics and updated trend analysis. - The company is offering a free sample of the report and the full market report.

The bottom line: - Combined heat and power is positioned for steady global expansion through 2030, led by Asia-Pacific, China and natural gas-powered systems.