The global combined heat and power (CHP) installation market is expected to reach $813 billion by 2024, according to new analysis.

A new report from Transparency Market Research predicts a yearly growth rate of 4.38% to 2024 from 2014 levels.

The report cited increasingly stringent environmental regulations around the world as a major driver for both increased CHP installations in existing market segments and the expansion of segments that use CHP.

Europe leads in installations due to a positive policy environment, followed by North America and Asia Pacific. However, the report found that Asia Pacific is becoming one of the most attractive markets for CHP manufacturers and operators and is expected to see significant growth. As many CHP systems and components are manufactured in Asia Pacific, costs are lower in the region than elsewhere and supportive policies are predicted to offer a boost.

The industrial CHP segment holds the largest share of the installation market, the report said, while high costs for micro- and small-scale CHP have limited residential and commercial installations in both Europe and North America.

Countries expected to see high demand growth for CHP in the near future include Russia and Japan, which is a leader in the micro-CHP market. The growth forecast for Africa and the Middle East is moderate, with slow and gradual growth expected.