Heat Recovery Steam Generator Market Report 2026

The heat recovery steam generator market size has grown strongly in recent years. It will grow from $1.79 billion in 2025 to $1.89 billion in 2026 at a compound annual growth rate (CAGR) of 5.5%. The growth in the historic period can be attributed to expansion of gas-based power generation, need for improved plant efficiency, growth of industrial steam demand, replacement of conventional boilers, investment in large-scale power infrastructure.

The heat recovery steam generator market size is expected to see strong growth in the next few years. It will grow to $2.34 billion in 2030 at a compound annual growth rate (CAGR) of 5.5%. The growth in the forecast period can be attributed to decarbonization of power sector, expansion of combined heat and power plants, investments in flexible power generation, demand for high-efficiency thermal systems, growth in industrial energy recovery. Major trends in the forecast period include expansion of combined cycle power plants, increasing focus on waste heat utilization, demand for high-efficiency steam generation systems, adoption of modular hrsg designs, growth in industrial co-generation projects.

The expansion of the industrial sector is expected to drive the growth of the heat recovery steam generator (HRSG) market going forward. The industrial sector encompasses economic activities involved in producing goods through manufacturing, construction, and related industries. Its growth is fueled by rising demand for manufactured products and technological advancements that improve efficiency and production. HRSGs in the industrial sector capture and convert waste heat from industrial processes into steam, enhancing energy efficiency and reducing fuel consumption. For instance, in July 2023, according to Eurostat, a Luxembourg-based government statistical agency, seasonally adjusted industrial production in the Euro area increased by 0.2% in May 2023, while production in the European Union rose by 0.1% compared to April 2023. Therefore, industrial sector growth is boosting the HRSG market.

Major companies in the HRSG market are developing innovative solutions, such as hydrogen-ready HRSG systems, to support the transition to zero-carbon power generation. Hydrogen-ready HRSGs are conventional heat recovery steam generators adapted to operate using hydrogen instead of fossil fuels, with design, safety, and combustion modifications that allow turbine exhaust heat to be converted to steam while accommodating hydrogen’s combustion characteristics. For instance, in January 2025, John Cockerill, a Belgium-based power equipment manufacturer, received a “Concept Certificate” from TÜV-SÜD for the H₂-readiness of its HRSGs, including drum-type and once-through boiler variants. The design includes controls for ventilation, purging, fire/explosion protection, and safety analyses to ensure safe operation under hydrogen combustion. These hydrogen-ready HRSGs can be deployed in combined-cycle or cogeneration plants, delivering power and/or steam output comparable to traditional HRSGs while supporting decarbonization and future-fuel flexibility.

In March 2025, Bharat Heavy Electricals Limited (BHEL), an India-based power equipment manufacturer, partnered with Vogt Power International Inc. (VPI) to strengthen its HRSG capabilities. Through this collaboration, BHEL aims to enhance its technological expertise in HRSG design and supply, maintaining competitiveness in combined-cycle and cogeneration power projects. Vogt Power International Inc., a US-based company, specializes in HRSG designs, engineering services, and components for efficient steam-generation systems used in power and industrial applications.

Major companies operating in the heat recovery steam generator market are General Electric Company, Siemens Energy AG, Mitsubishi Heavy Industries Ltd., Hitachi Ltd., Alstom SA, Kawasaki Heavy Industries Ltd., Sumitomo Heavy Industries Ltd., Bharat Heavy Electricals Limited, John Wood Group PLC, Babcock & Wilcox Enterprises Inc., Nooter/Eriksen Inc., Thermax Limited, Hamon & Cie International, Rentech Boiler Systems Inc., Clyde Bergemann Power Group, Bosch Industriekessel GmbH, Doosan Heavy Industries & Construction, John Cockerill, Aalborg Industries, and CMI Energy.

North America was the largest region in the heat recovery steam generator market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the heat recovery steam generator market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the heat recovery steam generator market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The heat recovery steam generator market consists of sales of natural circulation heat recovery steam generators, dual pressure heat recovery steam generators, triple pressure heat recovery steam generators, modular heat recovery steam generators, and forced circulation heat recovery steam generators. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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