Heat Recovery Steam Generator Market Report 2025

This Heat Recovery Steam Generator market report delivers an in-depth analysis of the market’s key characteristics, including size, growth potential, and segmentation. It provides a detailed breakdown of the market across major regions and leading countries, highlighting historical data and future growth projections. The report also examines the competitive landscape, market share insights, emerging trends, and strategic developments shaping the market.

The heat recovery steam generator market size has grown strongly in recent years. It will grow from $1.71 billion in 2024 to $1.82 billion in 2025 at a compound annual growth rate (CAGR) of 6.2%. The growth in the historic period can be attributed to rising demand for energy efficiency, increasing adoption of combined cycle power plants, stringent environmental regulations, growth in global power generation capacity, and the expansion of industrial sectors such as oil and gas and manufacturing.

The heat recovery steam generator market size is expected to see strong growth in the next few years. It will grow to $2.29 billion in 2029 at a compound annual growth rate (CAGR) of 6%. The growth in the forecast period can be attributed to increasing investments in renewable energy integration, growing emphasis on reducing operational costs, rising demand from emerging economies, expanding applications beyond utilities, and the development of smart monitoring and maintenance technologies. Major trends in the forecast period include a shift towards more compact and modular designs, greater adoption of digital twin technology for performance optimization, development of next-generation materials for higher temperature tolerance, emphasis on reducing carbon footprints through advanced emission control solutions, and the adoption of advanced automation and AI-driven maintenance strategies.

The growth of the industrial sector is anticipated to drive the heat recovery steam generator (HRSG) market in the future. The industrial sector encompasses activities related to manufacturing, construction, and other production processes. It is expanding due to increased demand for manufactured goods and technological advancements that enhance efficiency and production. HRSGs in the industrial sector capture and convert waste heat from industrial processes into steam, thereby improving energy efficiency and reducing fuel consumption. For example, Eurostat reported that in May 2023, seasonally adjusted industrial production in the European area increased by 0.2%, and by 0.1% in the European Union compared to April 2023. This expansion in the industrial sector is contributing to the growth of the HRSG market.

Leading companies in the HRSG market are developing innovative products, such as heat recovery power generation systems, to gain a competitive advantage. These systems capture and use waste heat from industrial processes, exhaust gases, or other energy sources to generate electricity. For instance, in October 2022, Kawasaki Heavy Industries Ltd., a Japanese manufacturing company, delivered its new high-efficiency waste heat recovery power generation system, the VEGA boiler, to Taiheiyo Cement. This was the first installation of the VEGA boiler in Japan, highlighting Kawasaki's commitment to enhancing energy efficiency in the cement industry. The VEGA boiler is designed specifically for waste heat recovery in cement plants, utilizing heat from the preheater's exhaust gases, which contain significant dust, to produce steam that drives a turbine for electricity generation.

In June 2022, Mutares, a German private equity firm, acquired Heat Transfer Technology from Siemens Energy B.V. for an undisclosed amount. This acquisition aims to broaden Mutares' portfolio in the HRSG market and strengthen its capabilities and offerings in energy efficiency solutions and industrial technology. Siemens Energy B.V., based in the Netherlands, is a provider of HRSGs.

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

North America was the largest region in the heat recovery steam generator market in 2024. 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, 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, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A heat recovery steam generator (HRSG) is a device designed to recover waste heat from exhaust gases, often from gas turbines or other industrial processes, and convert it into steam. This steam can then be used to drive a steam turbine for electricity generation or for industrial heating. HRSGs are crucial in combined cycle power plants, as they enhance overall efficiency by utilizing heat that would otherwise be wasted.

HRSGs come in several design types such as modular construction, c-section construction, bundle construction, and fully assembled. In modular construction, HRSGs are built in prefabricated modules that are assembled on-site. The configurations include horizontal drum units, vertical drum units, and horizontal-once through units. They are available in power outputs ranging from 0 to 60 megawatts (MW), 60 to 100 megawatts (MW), and above 100 megawatts (MW). Applications for HRSGs include co-generation (process heating), combined cycle, and combined heat and power (CHP) systems. They are used by a variety of industries, including utilities, chemicals, refineries, and pulp and paper, among others.

The heat recovery steam generator market research report is one of a series of new reports that provides heat recovery steam generator market statistics, including heat recovery steam generator industry global market size, regional shares, competitors with a heat recovery steam generator market share, detailed heat recovery steam generator market segments, market trends and opportunities, and any further data you may need to thrive in the heat recovery steam generator industry. This heat recovery steam generator market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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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