Heat Recovery Steam Generator Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031F

The Global Heat Recovery Steam Generator (HRSG) Market is expected to increase from USD 1.56 Million in 2025 to USD 2.12 Million by 2031, reflecting a 5.25% CAGR. An HRSG functions as a heat exchanger, recovering thermal energy from hot exhaust gases - mostly from industrial processes or gas turbines - to produce steam for heating, electricity, and various other uses. Market growth is propelled by the rising global need for energy-efficient power production, particularly in combined cycle systems, along with the industrial push to cut operational expenses. Furthermore, the escalating mandate to decrease carbon emissions via better energy use bolsters the implementation of HRSGs.

Based on COGEN Europe's 2024 Snapshot Survey, renewables accounted for more than 25% of the primary energy consumed in cogeneration plants across the European Union. However, a major obstacle hindering market growth is the hefty initial capital cost necessary to install HRSG systems. This steep financial requirement often acts as a hurdle for industrial operators and project developers, which can delay or completely halt new installations, especially in areas experiencing economic instability.

Market Driver

The rising implementation of Combined Cycle Power Plants (CCPPs) aimed at improving efficiency serves as a primary catalyst for the global Heat Recovery Steam Generator market. Acting as essential elements within CCPPs, HRSGs capture waste heat from gas turbines to create supplementary steam for generating electricity, drastically improving total plant efficiency and lowering fuel usage. This functional strength positions HRSGs at the heart of contemporary, highly efficient power production. Consequently, the strong demand for new CCPP facilities leads directly to a surge in worldwide HRSG orders. As noted in GE Vernova's December 2025 investor update, the firm expects to close 2025 with an 80-gigawatt gas turbine backlog stretching to 2029, pointing to continuous expansion in a sector deeply dependent on HRSG systems.

At the same time, rising global funding for clean energy and decarbonization programs heavily drives the HRSG market. With governments and industries stepping up their campaigns to cut greenhouse gas emissions and shift to low-carbon operations, HRSGs serve a vital function by optimizing energy recovery in power generation and industrial activities, thus reducing overall carbon footprints. Such efforts frequently entail upgrading current sites or building new, highly efficient facilities integrated with modern heat recovery technologies. Emphasizing this massive financial dedication to greener industries, the European Commission distributed EUR 2.9 billion in Innovation Fund grants in February 2026 to back decarbonization efforts. Additionally, in March 2026, Doosan Škoda Power announced a 2026 backlog of roughly 13 billion CZK - a rise of more than a third from the previous year - highlighting the wider growth of the power generation equipment market, which encompasses HRSGs.

Market Challenge

A major obstacle hindering the growth of the Global Heat Recovery Steam Generator (HRSG) Market is the massive upfront capital investment necessary for installation. This steep financial requirement poses a direct hurdle for industrial operators and project developers. Consequently, it often causes postponed investment choices or completely blocks new system rollouts, especially in economically vulnerable areas where access to capital is heavily restricted.

The exorbitant expense of obtaining project funding severely compounds this issue. As reported by the International Energy Agency in 2025, capital costs for renewable power initiatives in developing economies and emerging markets were at least twice as high as those in developed nations. These soaring financing expenses directly weaken the economic feasibility and appeal of new projects, subsequently retarding the implementation of highly efficient HRSG systems. Ultimately, this uneven financial strain limits market expansion, particularly in regions where funding for fresh power generation and industrial capabilities is vital.

Market Trends

The rise of standardized and modular HRSG designs represents a major industry trend, directly meeting the market's need for rapid deployment and minimized on-site construction complications. Such pre-engineered systems streamline both manufacturing and installation, which ultimately shortens project schedules and reduces related labor costs. This method provides enhanced scalability and adaptability, allowing operators to react more swiftly to shifting energy requirements. Highlighting the growing industrial approval and real-world utility of this design approach across various power generation environments, leading supplier NEM Energy Group has successfully supplied dozens of modular HRSG systems for industrial gas turbines.

Another crucial trend involves broadening HRSG uses within green hydrogen generation, where capturing waste heat is vital for boosting the economic feasibility and total efficiency of electrolysis. With the worldwide push for decarbonization gaining momentum, green hydrogen plants are routinely incorporating heat recovery mechanisms to maximize the energy efficiency of electrolyzers, which produce significant amounts of heat. By doing so, this integration actively helps reduce the levelized cost of hydrogen. Showcasing the massive and expanding scope of this emerging market application for HRSG systems, a February 2026 analysis by the International Energy Agency (IEA) indicated that global low-emissions hydrogen output approached 1 million tons in 2025.

Key Market Players

• Thermax Limited
• Siemens AG
• Mitsubishi Hitachi Power Systems Ltd
• AC BOILERS SpA
• Kelvion Holding GmbH
• General Electric Company
• Alfa Laval AB
• Mersen SA
• Sofinter SpA
• Alstom SA

Report Scope

In this report, the Global Heat Recovery Steam Generator Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Heat Recovery Steam Generator Market, By Design:

• Horizontal Drum Units
• Vertical Drum Units

Heat Recovery Steam Generator Market, By Application:

• Cogeneration
• Combined Heat & Power

Heat Recovery Steam Generator Market, By Power Rating:

• Up to 30 MW
• 31 MW - 100 MW

Heat Recovery Steam Generator Market, By End-user:

• Utility
• Chemicals

Heat Recovery Steam Generator Market, By Region:

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Heat Recovery Steam Generator Market.

Available Customizations

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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