The India combined heat power system market size reached USD 685.9 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 965.1 Million by 2033, exhibiting a growth rate (CAGR) of 3.87% during 2025-2033. The rising energy efficiency demands, government incentives for cogeneration, increasing industrial power needs, expanding manufacturing sectors, and growing adoption of sustainable energy solutions are some of the factors propelling the growth of the market.
Report Attribute
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Key Statistics
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Base Year
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2024 |
Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | USD 685.9 Million |
Market Forecast in 2033 | USD 965.1 Million |
Market Growth Rate 2025-2033 | 3.87% |
Expanding Clean Energy Integration in Power Systems
India’s increasing renewable energy capacity is accelerating the adoption of combined heat and power (CHP) systems, improving energy efficiency across industries. With a growing share of clean energy in the power mix, industries are integrating cogeneration solutions to optimize fuel usage and reduce operational costs. The shift toward sustainable energy sources aligns with national goals to expand non-fossil power capacity, creating opportunities for CHP deployment in manufacturing, commercial buildings, and district heating applications. Enhanced grid stability and reduced carbon emissions are further strengthening the market for efficient power generation technologies. As industries seek reliable and cost-effective energy solutions, CHP systems are emerging as a key enabler of sustainable energy transition, supporting India’s long-term energy security. For example, in 2024, India's renewable energy capacity surpassed 200 GW, constituting over 46.3% of the nation's total installed power capacity. This significant achievement underscores India's commitment to clean energy and aligns with its goal of reaching 500 GW from non-fossil sources by 2030.
Growing Investment in Low-Carbon Energy Solutions
India is witnessing increased financial support for sustainable energy projects, driving advancements in efficient power generation. With a strong focus on industrial decarbonization, efforts to expand renewable energy and integrate green hydrogen are enhancing the viability of combined heat and power (CHP) systems. Rising investments are encouraging industries to adopt energy-efficient solutions that optimize fuel use while reducing emissions. As clean energy initiatives gain momentum, CHP systems are becoming integral in industrial and commercial sectors, improving energy security and operational efficiency. Financial backing is also fostering innovation in hybrid power solutions, making cogeneration a key component of India’s low-carbon energy landscape. These developments are reinforcing the role of decentralized power generation in ensuring stable and cost-effective energy supply. For instance, in June 2024, the World Bank approved a USD 1.5 Billion financing to support India's low-carbon energy initiatives. This funding aims to promote green hydrogen production, expand renewable energy capacity, and stimulate private investment in sustainable energy projects. These efforts align with India's goal to decarbonize industrial sectors and enhance energy efficiency.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region/country level for 2025-2033. Our report has categorized the market based on prime mover, capacity, and end user industry.
Prime Mover Insights:
The report has provided a detailed breakup and analysis of the market based on the prime mover. This includes gas and steam turbine, reciprocating engine, fuel cell, and microturbine.
Capacity Insights:
A detailed breakup and analysis of the market based on the capacity have also been provided in the report. This includes 30 kW to 1 MW, 1.1 MW to 5 MW, and 5.1 MW to 10 MW.
End User Industry Insights:
A detailed breakup and analysis of the market based on the end user industry have also been provided in the report. This includes industrial, utilities, commercial, and others.
Regional Insights:
The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India.
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Million USD |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Prime Movers Covered | Gas and Steam Turbine, Reciprocating Engine, Fuel Cell, Microturbine |
Capacities Covered | 30 kW to 1 MW, 1.1 MW to 5 MW, 5.1 MW to 10 MW |
End User Industries Covered | Industrial, Utilities, Commercial, Others |
Regions Covered | North India, South India, East India, West India |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Questions Answered in This Report:
Key Benefits for Stakeholders: