The global installed capacity of industrial combined heat and power systems will grow from 317.9 GW in 2013 to 483.7 GW in 2023, an increase of around 50%, according to new analysis.

A recent report from Navigant Research found that the industrial CHP market is capturing renewed interest across all regions. Although high capital costs and variability across sites restrict market growth, the report said, the expansion of low-cost natural gas is lowering the barriers to greater CHP adoption in the industrial sector.

In addition, governments around the world are focusing on increasing subsidies and other incentives for the adoption of industrial CHP systems due to concerns about growing electricity demand, grid reliability and efficiency and emissions reduction.

The report showed 80% of installed global capacity in North America and Europe in 2012. But, the authors said, the industrial CHP market is highly dynamic across all continents due to its diversity in fuel use, technology and end users.