May 8, 2015 – The global market for commercial combined heat and power (CHP) systems is expected to be worth more than $14 billion annually by 2024, according to a new report from Navigant Research.

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, Navigant said. “In fact, governments around the world are increasingly focused on boosting subsidies and other incentives for the adoption of these systems”, the research body added.

The report, titled 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.

“While the market as a whole is experiencing steady growth, CHP’s penetration into global building infrastructure has been minimal,” said 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 sf—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 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 found in the United States, Northern Europe, South Korea, and Japan.