Micro CHP Market Size

Micro CHP Market size was over USD 1.15 billion in 2024 and is poised to reach USD 2.87 billion by the end of 2037, growing at around 7.2% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of micro CHP is assessed at USD 1.22 billion.

Owing to the surging need for clean and sustainable power, the demand for micro CHP is rising and thus driving market growth. Global renewable electricity capacity is expected to more than double from 2020 levels by 2026, reaching over 4 800 GW - comparable to the current total worldwide electrical production from fossil fuels and nuclear together. Micro CHP plays a significant role in the utilization of clean energy. These systems offer an efficient and environmentally friendly way to generate heat and electricity simultaneously, thereby reducing greenhouse gas emissions and improving energy efficiency.

Moreover, Micro CHP systems have seen several technological advancements in recent years. This advancement is bringing new opportunities for the market and new ways to use the micro CHP system. For instance, the hybrid micro CHP system, integrates multiple heat and power generation technologies, such as fuel cells, internal combustion engines, and others. it improves load matching and enhances system flexibility.