Heat Recovery Steam Generator Market Outlook - Forecast Trends, Market Size, Share and Growth Analysis Report (2025-2034)

The global heat recovery steam generator market attained a value of USD 1.26 Billion in 2024. Heat recovery steam generators improve energy efficiency by effectively capturing and utilising waste heat, which results in lower greenhouse gas emissions and supports a cleaner environment. The industry is expected to grow at a CAGR of 4.60% during the forecast period of 2025-2034 to attain a value of USD 1.98 Billion by 2034, owing to the shift towards renewable energy sources and regulatory backing.

Heat Recovery Steam Generator Market Overview

Heat recovery steam generators improve energy efficiency by effectively capturing and utilising waste heat, which results in lower greenhouse gas emissions and supports a cleaner environment. They provide substantial cost savings through decreased fuel consumption, making them economically beneficial. The growth of the heat recovery steam generator market is driven by the versatility of these systems, applicable in various sectors such as power generation and manufacturing, and they enhance the efficiency of combined cycle power plants. In March 2024, GE launched a new HRSG designed to boost efficiency in combined cycle power plants. This model features advanced heat exchanger technology and smart controls, promising significant reductions in emissions while optimising energy recovery, thereby reinforcing GE's commitment to sustainable power generation.

HRSGs are designed with modular features, facilitating easier installation and scalability to accommodate various requirements. They provide operational flexibility by efficiently utilising different fuel types, such as natural gas and biomass. With quick start-up times, they can swiftly adjust to load changes, maximising heat recovery and significantly reducing waste heat. Furthermore, HRSGs consume less water compared to traditional steam generation methods, enhancing resource efficiency, and driving demand of the heat recovery steam generator market. In February 2024, Mitsubishi Power launched its latest HRSG technology, designed for seamless integration with renewable energy sources. This new model boasts improved thermal efficiency and a smaller footprint, making it suitable for hybrid power applications and supporting global efforts toward decarbonisation and sustainable energy solutions.

Heat Recovery Steam Generator Market Growth

The heat recovery steam generator market dynamics and trends are influenced by their long operational life and minimal maintenance, thereby enhancing their cost-effectiveness. They boost the reliability of power generation systems, ensuring consistent performance. HRSGs generate high-quality steam, which is crucial for various industrial processes. Their effective energy recovery also results in lower fuel costs over time. Additionally, many regions offer government incentives that promote the adoption of energy-efficient technologies. In December 2023, Babcock & Wilcox launched a modular HRSG system tailored for quick installation and cost-effectiveness in industrial environments. This new product focuses on flexibility and adaptability, allowing businesses to improve energy efficiency and reduce emissions across diverse applications.

The growth of the heat recovery steam generator industry is propelled by a rising demand for sustainable energy solutions. Ongoing technological advancements are improving performance and lowering operational costs. This sector also supports economic development by generating jobs in manufacturing and installation. Companies that utilise HRSG technology achieve a competitive advantage, contributing to the overall success of the market. Ultimately, HRSGs are in line with global sustainability objectives, promoting a greener future. In January 2024, Siemens launched an enhanced HRSG featuring advanced digital control systems that enhance performance monitoring and predictive maintenance capabilities. This innovation is designed to optimise energy recovery and minimise operational costs, making it a valuable addition to contemporary power generation systems.

Key Trends and Developments

Shift towards renewable energy sources, increased regulatory backing and financial incentives, and the growth of the industrial sector are propelling the heat recovery steam generator market.

April 2024

CleanPower Innovations launched a hybrid HRSG system that harnesses both solar and waste heat. This innovative design optimises energy recovery, reduces operational costs, and improves overall efficiency, establishing it as a significant contributor to renewable energy integration.

March 2024

NextGen Energy unveiled a significant advancement in HRSG design featuring upgraded materials that can withstand high temperatures. This innovation boosts thermal efficiency and durability, ensuring dependable performance in demanding environments, which is essential for contemporary power generation systems.

November 2023

Alstom unveiled its newest HRSG technology, which incorporates advanced materials for enhanced durability and efficiency in high-temperature settings. This new model aims to improve the performance of combined cycle power plants while complying with strict environmental regulations.

October 2023

Ansaldo Energia launched a groundbreaking HRSG designed to optimise energy recovery capabilities. This system boosts overall efficiency in power generation while lowering emissions, aligning with global sustainability objectives, and providing reliable solutions for the energy sector.

Technological Advancements

Technological innovations are creating new opportunities in the heat recovery steam generator market, leading to enhanced performance, reliability, and operational flexibility. Improvements in materials and design, such as more efficient heat exchangers and digital control systems, are increasing efficiency and reducing maintenance costs. Furthermore, the emergence of HRSGs that integrate IoT and AI technologies allows for real-time monitoring and predictive maintenance. These developments not only optimise energy recovery but also extend the equipment's lifespan, making HRSGs a more appealing investment for industries seeking to enhance their energy management practices. In April 2023, Siemens launched its new advanced heat recovery steam generator with improved heat exchanger designs and digital control systems. This innovation is aimed at enhancing efficiency and integrating with renewable energy sources, reaffirming Siemens' commitment to sustainable energy solutions and improved performance in power generation.

Growing Focus on Renewable Energy

As the shift towards renewable energy sources accelerates, the heat recovery steam generator market is adapting to facilitate this transition. HRSGs are increasingly being integrated with biomass and solar thermal systems, which enhances overall efficiency and sustainability. This trend is driven by government initiatives that promote clean energy solutions and the need to reduce dependence on fossil fuels. Moreover, as energy storage technologies improve, HRSGs can effectively manage fluctuations in energy supply, making them essential for maintaining stability in renewable energy systems and ensuring consistent power output. According to the International Renewable Energy Agency, by the end of 2023, global renewable energy capacity reached an unprecedented 3,870 gigawatts (GW). This represents a 13.9% increase compared to 2022, with the most significant contributions coming from solar and wind energy.

Regulatory Support and Incentives

The heat recovery steam generator demand growth is being supported by increased regulatory backing and financial incentives aimed at promoting energy efficiency and reducing emissions. Governments around the world are implementing stricter environmental regulations to encourage industries to adopt cleaner technologies such as HRSGs. Various incentives, including tax credits, grants, and subsidies, are available for organisations investing in energy recovery systems. This regulatory environment not only boosts demand for HRSGs but also fosters research and development, driving innovation within the industry and contributing to a more sustainable energy future. The EPA's Combined Heat and Power (CHP) Partnership advocates for CHP systems that incorporate HRSG technology to enhance energy efficiency and lower greenhouse gas emissions in the United States. It offers technical assistance, financial resources, and networking opportunities to help organisations adopt best practices and comply with sustainability and emissions reduction regulations.

Growth of Industrial Sector

The growth of the industrial sector, particularly in petrochemicals, chemicals, and refineries, is significantly driving the heat recovery steam generator market. According to the International Energy Agency (IEA), the industrial sector accounted for nearly 37% of global energy consumption in 2022, with significant energy usage in high-heat industries like petrochemicals and refining. HRSGs help these industries improve energy efficiency by capturing waste heat from processes like oil refining and chemical production, reducing overall energy consumption and operational costs. For instance, BP Statistical Review of World Energy 2022 highlights that primary energy demand increased by 5.8% in 2021, exceeding 2019 levels by 1.3%, necessitating efficient heat recovery systems to manage energy-intensive operations. By integrating HRSGs, refineries and petrochemical plants can recover waste heat and convert it into useful steam or electricity, reducing fuel usage and carbon emissions. This trend towards energy optimisation is vital as industrial operations face pressure to cut costs and comply with increasingly stringent environmental regulations.

Heat Recovery Steam Generator Market Trends

The growth of combined cycle gas turbine (CCGT) power plants is a key factor driving the demand for heat recovery steam generators (HRSGs). Current generation CCGT plants offer efficiencies in the high 50% to low 60% range, significantly better than either type of cycle on its own. HRSGs play a vital role in CCGT plants by recovering waste heat from the gas turbine exhaust, which is then used to generate additional steam for the steam turbine, enhancing overall power generation efficiency.

The integration of HRSGs in CCGT plants enables the reduction of fuel consumption, lowers operational costs, and reduces greenhouse gas emissions, making HRSGs essential in the expansion of CCGT capacity worldwide.

Market Restraints

The heat recovery steam generator market faces several key restraints. High initial investment costs can deter companies, particularly small and medium-sized enterprises. Maintenance complexity and the need for skilled personnel can lead to operational challenges. Integration with existing systems may also pose technical difficulties, while competition from alternative technologies pressures prices.

Navigating regulatory requirements can introduce delays and additional costs. Fluctuating fuel prices affect economic viability, and limited awareness of HRSG benefits can hinder adoption. Environmental concerns regarding emissions from fossil fuel use further limit attractiveness. Economic downturns can reduce capital expenditure, and supply chain disruptions may cause delays and increased costs, ultimately impacting heat recovery steam generator market growth.

Heat Recovery Steam Generator Industry Segmentation

The report titled “Heat Recovery Steam Generator Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Rated Power

• Below 100 MW
• 101 MW to 200 MW
• 201 MW and Above

Market Breakup by End Use

• Power Plants
• Oil and Gas Facilities
• Chemical and Fertilizer Plants
• Other

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Market Analysis by Rated Power

The heat recovery steam generator market growth is driven by units below 100 MW, which provide several advantages, primarily due to their lower initial investment costs that make them accessible to small power plants and industrial facilities. Their design facilitates seamless integration into existing systems, allowing for gradual efficiency improvements. Moreover, these smaller units can be installed swiftly, resulting in quicker returns on investment. They optimise energy recovery in low-output settings, boosting overall efficiency and significantly reducing greenhouse gas emissions, thus supporting sustainability objectives. In June 2024, Alstom launched a compact HRSG specifically for facilities under 100 MW, featuring advanced thermal efficiency. This model enhances energy recovery and lowers emissions, making it an excellent choice for smaller power plants aiming for sustainable solutions while adhering to regulatory standards.

HRSGs in the 101 MW to 200 MW category offer improved thermal efficiency, optimising energy recovery for medium-sized power plants. These systems significantly enhance overall power generation capacity and can be integrated into larger combined cycle plants, allowing for scalability as energy demands increase. They are versatile, efficiently using various fuel types, including natural gas and biomass. The integration of renewable energy is one of the key trends in the heat recovery steam generators market, which facilitate the integration of renewable energy, thereby enhancing the stability and reliability of power generation. They also assist facilities in meeting strict emissions regulations and promoting cleaner energy solutions. In April 2024, Ansaldo Energia launched a new HRSG tailored for medium-sized power plants, emphasising efficiency and reliability, while enabling seamless integration with renewable energy sources to boost overall plant performance and sustainability.

Market Analysis by End-Use

Heat recovery steam generators enhance the efficiency of power plants by capturing waste heat from gas turbines, which improves thermal performance and increases energy output. This utilisation of waste heat reduces fuel consumption, leading to substantial cost savings. Additionally, HRSGs help lower greenhouse gas emissions, enabling compliance with environmental regulations and supporting sustainability goals. Their operational flexibility across various systems further impacts the heat recovery steam generator market revenue. According to the Ministry of Power, India's total electricity generation for the fiscal year 2023-24 reached 1,949 TWh, with a per capita generation of 1,395 kWh. Notably, India's power generation grew by 6.80% in 2023, marking the highest growth rate in over three decades.

In oil and gas facilities, HRSGs play a crucial role in capturing waste heat, thereby improving energy recovery and operational efficiency. The heat recovery steam generator demand is rising as they reduce the need for additional fuel, which lowers operational costs and enhances the cost-effectiveness of energy production. Furthermore, HRSGs boost energy efficiency, aiding regulatory compliance and sustainability initiatives, and can be seamlessly integrated into existing operations. According to the Australian Pipelines and Gas Association Ltd, Australia boasts approximately 42,000 kilometres of high-pressure natural gas transmission pipelines. As reported by the Australian Government, Australia was the seventh largest gas producer globally in 2021, with LNG exports reaching a peak of 83.2 million tonnes, solidifying its position as the top LNG exporter.

Heat Recovery Steam Generator Market Regional Insights

Europe Heat Recovery Steam Generator Market Analysis

Europe is witnessing a notable increase in heat recovery steam generator demand, particularly in Germany, Italy, and France. HRSGs greatly enhance energy efficiency by recovering waste heat from industrial processes or power generation, resulting in decreased fuel consumption and lower operational costs. According to the IEA, renewable energy emerged as the primary source of electricity in the EU in 2023, contributing to 44.7% of total electricity production, marking a 12.4% rise compared to 2022.

North America Heat Recovery Steam Generator Market Trends

The North American heat recovery steam generator market value is set for substantial growth, supported by major companies such as General Electric (GE), Siemens and Mitsubishi Power. The implementation of HRSGs results in considerable cost savings over time, enhancing the economic viability of energy production for both industrial facilities and power plants in North America. The Greenlight MPC Gas Power Plant in Canada, a 466 MW thermal project, is anticipated to commence operations by 2025 and is being developed by Greenlight Power Technologies.

Asia Pacific Heat Recovery Steam Generator Market Insights

In India brands such as Tata Power, L&T Power and BHEL (Bharat Heavy Electricals Limited) highlight the growing heat recovery steam generator market share in the Asia-Pacific region. HRSGs can be utilised in a range of sectors, such as power generation, manufacturing, and oil and gas, demonstrating their adaptability to diverse industrial requirements. According to the BP Statistical Review of World Energy, India produced 1,579.6 TWh of electricity, accounting for 11.7% of the regional total, with a growth rate of 5.3% per annum over the past decade.

Latin America Heat Recovery Steam Generator Market Analysis

Key markets in the region include Brazil, Mexico, and Argentina, where there is significant demand for the heat recovery steam generator market. HRSGs can be implemented in multiple sectors, such as power generation, manufacturing, and oil and gas, addressing a wide range of industrial requirements. According to the ITA, Brazil is anticipated to emerge as the fifth-largest crude oil exporter globally by 2030. In 2022, Brazil's natural gas production reached 138 million cubic metres per day, marking a 2.98% increase from 2021.

Middle East and Africa Heat Recovery Steam Generator Market Driving Factors

The African heat recovery steam generator market is growing, especially in Niger, Chad, Egypt, Ethiopia, and Morocco. The advancement and upkeep of HRSG technology play a crucial role in generating employment within the energy sector, thereby strengthening local economies. The IEA reports that Africa possesses substantial natural gas reserves, primarily found in Algeria, Tunisia, Libya, Nigeria, and Egypt. In 2021, crude oil reserves remained stable at 125.3 billion barrels, with Libya having the largest portion.

Innovative Startups in the Heat Recovery Steam Generator Market

Innovative startups in the heat recovery steam generator market offer numerous benefits, including enhanced efficiency through advanced technologies that improve thermal performance and reduce costs. They provide cost-effective solutions, making HRSGs accessible to smaller facilities. Startups are agile and adaptable, prioritising sustainability and fostering competition. By integrating modern technologies like IoT and AI, they enable real-time monitoring and predictive maintenance. Furthermore, startups often collaborate with larger firms and research institutions, promoting knowledge exchange. Their focus on niche markets aids in expanding the HRSG market, encouraging broader adoption across various industries while supporting the transition to cleaner energy sources.

In June 2024, EcoGen introduced a modular HRSG that incorporates artificial intelligence for predictive maintenance. This advancement boosts operational efficiency by minimising downtime and maintenance expenses, enabling power plants to optimise energy recovery and prolong the lifespan of their equipment.

In May 2024, GreenHeat Solutions launched a compact HRSG tailored for urban settings. This model boasts enhanced heat exchanger technology and lower emissions, making it well-suited for smaller installations in densely populated areas, thereby supporting sustainable energy solutions in urban environments.

Competitive Landscape

The heat recovery steam generator market key players are well-known for their wide array of technologies and services, operating across multiple sectors, including aviation, healthcare, power, and renewable energy. They are dedicated to innovation and sustainability, leading the way in the development of advanced technologies like gas and steam turbines while actively participating in the shift towards cleaner energy sources. With a strong focus on research and development, these companies continually push the limits of engineering and manufacturing, striving to improve efficiency and performance in both industrial and consumer markets worldwide.

Thermax Limited

Established in 1966 and headquartered in Pune, India, is a leading energy and environment solutions provider. The company offers a wide range of services, including heat recovery systems, waste management, and air pollution control. Thermax focuses on sustainable solutions that enhance energy efficiency and reduce environmental impact.

John Wood Group PLC

Founded in 1982 and based in Aberdeen, UK, John Wood Group PLC is a global engineering and consulting firm. The company provides services across various sectors, including energy and industrial markets. Wood Group is dedicated to delivering innovative solutions that improve efficiency and sustainability in operations worldwide.

Kawasaki Heavy Industries, Ltd.

Established in 1896 and headquartered in Kobe, Japan, is a diversified manufacturing company. It operates in various sectors, including aerospace, energy, and transportation. The company is known for its engineering excellence and innovation, particularly in developing advanced technologies for sustainable energy solutions.

Mitsubishi Hitachi Power Systems Ltd.

Founded in 2014 and headquartered in Yokohama, Japan, is a prominent player in the power generation industry. The company specialises in gas and steam turbines, heat recovery systems, and renewable energy solutions, focusing on efficiency and sustainability to meet global energy demands.

Other market key players in the heat recovery steam generator market report are General Electric Company, Babcock & Wilcox Enterprises, Inc., Belleli Energy, Spa, Cleaver-Brooks, Inc., and Clayton Industries Inc. among others.