The on grid combined heat and power market size has grown strongly in recent years. It will grow from $24.56 billion in 2025 to $26.05 billion in 2026 at a compound annual growth rate (CAGR) of 6.1%. The growth in the historic period can be attributed to industrial energy efficiency programs, rising fuel costs, expansion of district heating, growth in distributed generation, supportive energy efficiency regulations.
The on grid combined heat and power market size is expected to see strong growth in the next few years. It will grow to $33.28 billion in 2030 at a compound annual growth rate (CAGR) of 6.3%. The growth in the forecast period can be attributed to decarbonization targets adoption, growth in distributed energy systems, rising industrial power demand, expansion of smart grids, incentives for efficient generation. Major trends in the forecast period include high efficiency cogeneration systems, grid synchronized chp installations, industrial waste heat recovery projects, modular chp plant designs, gas based distributed chp units.
The increasing demand for energy efficiency is expected to accelerate the expansion of the on grid combined heat and power market going forward. Energy efficiency refers to lowering the amount of energy needed to perform the same function while reducing waste and decreasing operational expenses. The rising demand for energy efficiency is attributed to strengthened global policies and initiatives focused on enhancing energy performance and cutting carbon emissions. The on grid combined heat and power system supports energy efficiency goals by generating electricity and useful thermal energy simultaneously, reducing total energy usage and enhancing cost effectiveness for industrial and commercial users. For example, in November 2025, according to the International Energy Agency (IEA), a France-based intergovernmental body, global primary energy intensity is projected to improve by 1.8% in 2025, up from 1% in 2024, indicating a notable acceleration in energy efficiency advancements. Therefore, the increasing demand for energy efficiency is fueling the growth of the on grid combined heat and power market.
Leading companies operating in the on grid combined heat and power market are concentrating on deploying advanced cogeneration systems, such as hydrogen-ready combined-cycle turbines, to improve fuel efficiency, reduce emissions, and enhance the reliability of grid-connected electricity and thermal energy production. Hydrogen-ready combined-cycle cogeneration refers to power systems that simultaneously generate electricity for the grid and useful thermal energy for industrial processes while being capable of operating with increasing hydrogen fuel blends, thereby improving overall system efficiency and supporting long-term decarbonization goals. For instance, in July 2024, Guangdong Energy Group Co., a China-based power company, launched its Huizhou combined heat and power facility featuring a hydrogen-ready H-class gas turbine system, which is now fully operational supplying up to 1.34 GW of electricity to the grid and providing continuous steam to a nearby industrial complex. Designed to support high-efficiency, low-emission energy generation, the facility integrates waste heat recovery for continuous steam production and hydrogen-ready operation, enabling higher total energy output, reduced fuel consumption per unit of energy, and stable performance for on-grid cogeneration applications.
In November 2025, Energy Developments Pty Limited, an Australia-based producer of low-emission energy, completed the acquisition of GWE Biogas Ltd. for an undisclosed value. As part of this transaction, EDL Energy plans to enhance its on-grid combined heat and power (CHP) operations by incorporating the Sandhill site’s 4.5 MW CHP infrastructure and renewable biomethane generation. This will allow the company to supply electricity to the national power grid while delivering thermal energy to nearby industrial users. GWE Biogas is a UK-based renewable energy firm that operates grid-connected biogas-fueled CHP plants, generating electrical power for the grid along with usable heat at its facilities.
Major companies operating in the on grid combined heat and power market are Caterpillar Inc., Siemens Energy AG, Cummins Inc., GE Vernova Inc., Mitsubishi Heavy Industries Ltd., Rolls‑Royce Holdings Plc, Kawasaki Heavy Industries Ltd., Wärtsilä Oyj Abp, Ameresco Inc., Vaillant Group, 2G Energy AG, Capstone Turbine Corporation, Viessmann Werke GmbH, Bosch Thermotechnology, Aegis Energy Services Inc., Primary Energy Recycling Corporation, Clarke Energy Ltd., Samad Power Ltd., MAN Energy Solutions SE, and EC POWER A/S.
Tariffs on turbines, generators, and heat recovery components are raising capital costs in the on grid combined heat and power market. Equipment intensive segments such as gas turbines and reciprocating engines are most affected. Import dependent regions in asia and latin america face higher project installation expenses. These cost increases can delay medium scale and commercial scale chp deployments. However, tariffs are also promoting domestic manufacturing of chp equipment and strengthening local energy technology supply chains.
The on grid combined heat and power market research report is one of a series of new reports that provides on grid combined heat and power market statistics, including on grid combined heat and power industry global market size, regional shares, competitors with a on grid combined heat and power market share, detailed on grid combined heat and power market segments, market trends and opportunities, and any further data you may need to thrive in the on grid combined heat and power industry. This on grid combined heat and power market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
On-grid combined heat and power is an energy generation system that simultaneously produces electricity and useful heat while connected to the main utility grid. It improves overall energy efficiency by capturing and reusing heat that would otherwise be wasted during electricity generation. The system can supply surplus electricity to the grid and ensures reliable power availability when on-site generation is insufficient.
The main products of on-grid combined heat and power are gas turbine, steam turbine, reciprocating engine, and other products. Gas turbine refers to a turbine-based system that generates electricity and captures waste heat for thermal applications in an integrated manner. These systems utilize various technology types, including microturbines, gas engines, steam turbines, fuel cells, and reciprocating engines, and are available in different system sizes, including small scale, medium scale, large scale, and commercial scale. They are applied across multiple applications, including cogeneration for industrial process heat, residential heating and power supply, district heating systems, and backup power systems, and serve diverse end-users, including manufacturing, healthcare, hospitality, and other end-users.
The on grid combined heat and power consists of heat recovery steam generators, electrical generators, power control panels, grid synchronization equipment, heat exchangers, boilers, and exhaust heat recovery units. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
This product will be delivered within 1-3 business days.
The on grid combined heat and power market size is expected to see strong growth in the next few years. It will grow to $33.28 billion in 2030 at a compound annual growth rate (CAGR) of 6.3%. The growth in the forecast period can be attributed to decarbonization targets adoption, growth in distributed energy systems, rising industrial power demand, expansion of smart grids, incentives for efficient generation. Major trends in the forecast period include high efficiency cogeneration systems, grid synchronized chp installations, industrial waste heat recovery projects, modular chp plant designs, gas based distributed chp units.
The increasing demand for energy efficiency is expected to accelerate the expansion of the on grid combined heat and power market going forward. Energy efficiency refers to lowering the amount of energy needed to perform the same function while reducing waste and decreasing operational expenses. The rising demand for energy efficiency is attributed to strengthened global policies and initiatives focused on enhancing energy performance and cutting carbon emissions. The on grid combined heat and power system supports energy efficiency goals by generating electricity and useful thermal energy simultaneously, reducing total energy usage and enhancing cost effectiveness for industrial and commercial users. For example, in November 2025, according to the International Energy Agency (IEA), a France-based intergovernmental body, global primary energy intensity is projected to improve by 1.8% in 2025, up from 1% in 2024, indicating a notable acceleration in energy efficiency advancements. Therefore, the increasing demand for energy efficiency is fueling the growth of the on grid combined heat and power market.
Leading companies operating in the on grid combined heat and power market are concentrating on deploying advanced cogeneration systems, such as hydrogen-ready combined-cycle turbines, to improve fuel efficiency, reduce emissions, and enhance the reliability of grid-connected electricity and thermal energy production. Hydrogen-ready combined-cycle cogeneration refers to power systems that simultaneously generate electricity for the grid and useful thermal energy for industrial processes while being capable of operating with increasing hydrogen fuel blends, thereby improving overall system efficiency and supporting long-term decarbonization goals. For instance, in July 2024, Guangdong Energy Group Co., a China-based power company, launched its Huizhou combined heat and power facility featuring a hydrogen-ready H-class gas turbine system, which is now fully operational supplying up to 1.34 GW of electricity to the grid and providing continuous steam to a nearby industrial complex. Designed to support high-efficiency, low-emission energy generation, the facility integrates waste heat recovery for continuous steam production and hydrogen-ready operation, enabling higher total energy output, reduced fuel consumption per unit of energy, and stable performance for on-grid cogeneration applications.
In November 2025, Energy Developments Pty Limited, an Australia-based producer of low-emission energy, completed the acquisition of GWE Biogas Ltd. for an undisclosed value. As part of this transaction, EDL Energy plans to enhance its on-grid combined heat and power (CHP) operations by incorporating the Sandhill site’s 4.5 MW CHP infrastructure and renewable biomethane generation. This will allow the company to supply electricity to the national power grid while delivering thermal energy to nearby industrial users. GWE Biogas is a UK-based renewable energy firm that operates grid-connected biogas-fueled CHP plants, generating electrical power for the grid along with usable heat at its facilities.
Major companies operating in the on grid combined heat and power market are Caterpillar Inc., Siemens Energy AG, Cummins Inc., GE Vernova Inc., Mitsubishi Heavy Industries Ltd., Rolls‑Royce Holdings Plc, Kawasaki Heavy Industries Ltd., Wärtsilä Oyj Abp, Ameresco Inc., Vaillant Group, 2G Energy AG, Capstone Turbine Corporation, Viessmann Werke GmbH, Bosch Thermotechnology, Aegis Energy Services Inc., Primary Energy Recycling Corporation, Clarke Energy Ltd., Samad Power Ltd., MAN Energy Solutions SE, and EC POWER A/S.
Tariffs on turbines, generators, and heat recovery components are raising capital costs in the on grid combined heat and power market. Equipment intensive segments such as gas turbines and reciprocating engines are most affected. Import dependent regions in asia and latin america face higher project installation expenses. These cost increases can delay medium scale and commercial scale chp deployments. However, tariffs are also promoting domestic manufacturing of chp equipment and strengthening local energy technology supply chains.
The on grid combined heat and power market research report is one of a series of new reports that provides on grid combined heat and power market statistics, including on grid combined heat and power industry global market size, regional shares, competitors with a on grid combined heat and power market share, detailed on grid combined heat and power market segments, market trends and opportunities, and any further data you may need to thrive in the on grid combined heat and power industry. This on grid combined heat and power market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
On-grid combined heat and power is an energy generation system that simultaneously produces electricity and useful heat while connected to the main utility grid. It improves overall energy efficiency by capturing and reusing heat that would otherwise be wasted during electricity generation. The system can supply surplus electricity to the grid and ensures reliable power availability when on-site generation is insufficient.
The main products of on-grid combined heat and power are gas turbine, steam turbine, reciprocating engine, and other products. Gas turbine refers to a turbine-based system that generates electricity and captures waste heat for thermal applications in an integrated manner. These systems utilize various technology types, including microturbines, gas engines, steam turbines, fuel cells, and reciprocating engines, and are available in different system sizes, including small scale, medium scale, large scale, and commercial scale. They are applied across multiple applications, including cogeneration for industrial process heat, residential heating and power supply, district heating systems, and backup power systems, and serve diverse end-users, including manufacturing, healthcare, hospitality, and other end-users.
The on grid combined heat and power consists of heat recovery steam generators, electrical generators, power control panels, grid synchronization equipment, heat exchangers, boilers, and exhaust heat recovery units. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
This product will be delivered within 1-3 business days.
Table of Contents
1. Executive Summary
2. On Grid Combined Heat and Power Market Characteristics
3. On Grid Combined Heat and Power Market Supply Chain Analysis
4. Global On Grid Combined Heat and Power Market Trends and Strategies
5. On Grid Combined Heat and Power Market Analysis Of End Use Industries
7. Global On Grid Combined Heat and Power Strategic Analysis Framework, Current Market Size, Market Comparisons and Growth Rate Analysis
8. Global On Grid Combined Heat and Power Total Addressable Market (TAM) Analysis for the Market
9. On Grid Combined Heat and Power Market Segmentation
10. On Grid Combined Heat and Power Market Regional and Country Analysis
11. Asia-Pacific On Grid Combined Heat and Power Market
12. China On Grid Combined Heat and Power Market
13. India On Grid Combined Heat and Power Market
14. Japan On Grid Combined Heat and Power Market
15. Australia On Grid Combined Heat and Power Market
16. Indonesia On Grid Combined Heat and Power Market
17. South Korea On Grid Combined Heat and Power Market
18. Taiwan On Grid Combined Heat and Power Market
19. South East Asia On Grid Combined Heat and Power Market
20. Western Europe On Grid Combined Heat and Power Market
21. UK On Grid Combined Heat and Power Market
22. Germany On Grid Combined Heat and Power Market
23. France On Grid Combined Heat and Power Market
24. Italy On Grid Combined Heat and Power Market
25. Spain On Grid Combined Heat and Power Market
26. Eastern Europe On Grid Combined Heat and Power Market
27. Russia On Grid Combined Heat and Power Market
28. North America On Grid Combined Heat and Power Market
29. USA On Grid Combined Heat and Power Market
30. Canada On Grid Combined Heat and Power Market
31. South America On Grid Combined Heat and Power Market
32. Brazil On Grid Combined Heat and Power Market
33. Middle East On Grid Combined Heat and Power Market
34. Africa On Grid Combined Heat and Power Market
36. On Grid Combined Heat and Power Market Competitive Landscape and Company Profiles
37. On Grid Combined Heat and Power Market Other Major and Innovative Companies
41. On Grid Combined Heat and Power Market High Potential Countries, Segments and Strategies
42. Appendix
Executive Summary
On Grid Combined Heat and Power Market Global Report 2026 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on grid combined heat and power market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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Description
Where is the largest and fastest growing market for on grid combined heat and power? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The on grid combined heat and power market global report answers all these questions and many more.The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
- The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
- The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
- The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
- The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
- The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
- The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
- Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.
Report Scope
Markets Covered:
1) By Product: Gas Turbine; Steam Turbine; Reciprocating Engine; Other Products2) By Technology Type: Microturbines; Gas Engines; Steam Turbines; Fuel Cells; Reciprocating Engines
3) By System Size: Small Scale; Medium Scale; Large Scale; Commercial Scale
4) By Application: Cogeneration for Industrial Process Heat; Residential Heating and Power Supply; District Heating Systems; Backup Power Systems
5) By End-User: Manufacturing; Healthcare; Hospitality; Other End-Users
Subsegments:
1) By Gas Turbine: Heavy Duty Gas Turbine; Industrial Gas Turbine; Aero Derivative Gas Turbine2) By Steam Turbine: Condensing Steam Turbine; Back Pressure Steam Turbine; Extraction Steam Turbine
3) By Reciprocating Engine: Diesel Engine; Gas Engine; Dual Fuel Engine
4) By Other Products: Microturbine; Fuel Cell; Stirling Engine
Companies Mentioned: Caterpillar Inc.; Siemens Energy AG; Cummins Inc.; GE Vernova Inc.; Mitsubishi Heavy Industries Ltd.; Rolls‑Royce Holdings Plc; Kawasaki Heavy Industries Ltd.; Wärtsilä Oyj Abp; Ameresco Inc.; Vaillant Group; 2G Energy AG; Capstone Turbine Corporation; Viessmann Werke GmbH; Bosch Thermotechnology; Aegis Energy Services Inc.; Primary Energy Recycling Corporation; Clarke Energy Ltd.; Samad Power Ltd.; MAN Energy Solutions SE; and EC POWER A/S.
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery Format: Word, PDF or Interactive Report + Excel Dashboard
Added Benefits:
- Bi-Annual Data Update
- Customisation
- Expert Consultant Support
Companies Mentioned
The companies featured in this On Grid Combined Heat and Power market report include:- Caterpillar Inc.
- Siemens Energy AG
- Cummins Inc.
- GE Vernova Inc.
- Mitsubishi Heavy Industries Ltd.
- Rolls‑Royce Holdings Plc
- Kawasaki Heavy Industries Ltd.
- Wärtsilä Oyj Abp
- Ameresco Inc.
- Vaillant Group
- 2G Energy AG
- Capstone Turbine Corporation
- Viessmann Werke GmbH
- Bosch Thermotechnology
- Aegis Energy Services Inc.
- Primary Energy Recycling Corporation
- Clarke Energy Ltd.
- Samad Power Ltd.
- MAN Energy Solutions SE
- and EC POWER A/S.
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 250 |
| Published | March 2026 |
| Forecast Period | 2026 - 2030 |
| Estimated Market Value ( USD | $ 26.05 Billion |
| Forecasted Market Value ( USD | $ 33.28 Billion |
| Compound Annual Growth Rate | 6.3% |
| Regions Covered | Global |
| No. of Companies Mentioned | 21 |
