The world’s combined heat and power (CHP) market is set to exceed $45bn and grow to 25 GW by 2024, according to new analysis.

In a recent market report, US-based Consultancy Global Market Insights attributed this projected growth to large-scale energy trends such as a shift to sustainable energy, a growing demand for captive power generation and rapid industrialization and urbanization.

CHP’s high efficiency, reliability and low emissions complement these trends.

On a more micro scale, rising demand for district heating in cold climates, especially in Europe, is expected to drive the market according to the report, with CHP’s low heat loss making it the top choice.

In the US, the CHP market is predicted to exceed 800 MW by 2024. In this region, energy security concerns, the growth of renewables, and a focus on replacing coal-fired plants with cleaner alternatives are expected to drive growth.

Gas-fired CHP accounts for over half of the global market share, the report noted.