Germany Combined Heat and Power Market Report and Forecast 2025-2034

The Germany combined heat and power market size is projected to grow at a CAGR of 4.50% between 2025 and 2034. The market is expected to be propelled by the growing transition towards sustainable energy and the expansion of end-use sectors such as industrial and commercial.

Key Trends in the Market

Combined heat and power (CHP) refers to a type of technology that uses a single fuel method for generating power. It is an energy-efficient technique of producing electric and thermal energy at high efficiencies.

• The Germany combined heat and power market growth is being driven by the rapid development of state-of-the-art combined heat and power plants across Germany to enhance the sustainable production of electricity and reduce electricity price volatility.
• The introduction of favourable government initiatives to drive clean energy transition and lower greenhouse gas emissions is one of the crucial Germany combined heat and power market trends. Combined heat and power involves less burning of energy than several other technologies, which makes it a reliable and eco-friendly option.
• The growing expansion of various end-use sectors, including transportation and commercial, among others, in Germany is likely to generate higher demand for power and heat. Moreover, the increasing attempts to use sources like biomass, hydrogen, and biogas to generate electricity while enhancing the flexibility of electricity, heat, and gas networks are likely to fuel the Germany combined heat and power market demand in the forecast period.

Market Segmentation

The EMR’s report titled “Germany Combined Heat and Power Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Gas Turbine
• Steam Turbine
• Reciprocating Engine
• Others

Market Breakup by Fuel Type

• Coal
• Natural Gas
• Renewables
• Others

Market Breakup by Capacity

• Up to 10 MW
• 10 to 150 MW
• 151 to 300 MW
• Above 300 MW

Market Share by Fuel Type

Natural gas accounts for a significant portion of the Germany combined heat and power market share. This can be attributed to the lower price of natural gas compared to other fuels. It also offers ease of storage and transportation. Moreover, natural gas is a cleaner fuel compared to its counterparts. In this regard, favourable initiatives of the German government aimed at reducing greenhouse emissions are bolstering the segment’s growth.

Market Share by End Use

As per the Germany combined heat and power market analysis, the industrial sector is expected to witness a healthy growth in the forecast period. Combined heat and power is crucial in sectors such as pulp and paper for providing heat and power to facilitate various operations. In addition, CHP is used in the chemical sector to make use of the fuels and waste generated during the chemical processes, which is further propelling the segment’s growth.

Competitive Landscape

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the key players in the Germany combined heat and power market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.

General Electric Company

General Electric Company is a multinational company which offers energy equipment, catering to sectors such as aviation, power, and manufacturing, among others. The product portfolio of this company includes generators, steam turbines, and digital and control, among others.

Caterpillar Inc.

Caterpillar Inc. is one of the largest construction and mining equipment manufacturers around the world. The company manufactures and sells natural gas engines, industrial turbines, and diesel engines, among others.

Siemens AG

Siemens AG is a multinational technology company which was founded in 1847. With its headquarters in Munich, Germany, the company also provides services related to automation, electrification, and digitalisation.

Other Germany combined heat and power market players include Mitsubishi Heavy Industries, Ltd., Robert Bosch GmbH, Capstone Green Energy Corporation, Wärtsilä Corporation, 2G Energy AG, FuelCell Energy, Inc., and TEDOM A.S., among others.