The global electricity and steam generation waste heat recovery systems market is projected to grow at a CAGR of 8.2% from 2025 to 2033, driven by rising industrial energy demands, escalating fuel costs, and increasing emphasis on decarbonization. These systems capture residual heat from industrial operations and repurpose it for electricity or steam generation, significantly improving energy efficiency. Stringent environmental regulations, energy security concerns, and a growing shift toward circular energy practices across manufacturing, power generation, and refining sectors are contributing to the accelerated adoption of waste heat recovery systems (WHRS). Government incentives and technological advancements are further stimulating investment across both developed and emerging economies.
The current report comprises quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends & technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
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Market Drivers
Global Push for Industrial Energy Efficiency and COâ‚‚ Reduction
Governments and industries are prioritizing technologies that reduce energy consumption and carbon emissions. Waste heat recovery systems help lower fuel usage and COâ‚‚ emissions by utilizing surplus thermal energy from exhaust gases and high-temperature processes. In sectors such as cement, glass, steel, and chemicals, WHRS installations can enhance overall thermal efficiency by 10%-30%, significantly reducing operational costs. Favorable policy frameworks such as the EU Emissions Trading Scheme, U.S. DOE's Industrial Assessment Centers, and India's PAT (Perform, Achieve and Trade) scheme are catalyzing adoption across energy-intensive sectors.Advancements in Cycle Efficiency and Modular Design
The growing use of Organic Rankine Cycle (ORC) and Kalina Cycle technologies is enabling effective recovery from low- to medium-temperature heat sources, widening the scope of application in decentralized and smaller-scale facilities. Compact and modular WHRS designs offer improved scalability, faster installation, and reduced capital expenditure, supporting deployment in both retrofit and greenfield projects. Integration with cogeneration, district heating, and hybrid renewable systems is enhancing ROI and system resilience.Market Restraint
High Upfront Costs and Complex System Integration
Despite their long-term benefits, waste heat recovery systems require significant initial capital investment for feasibility studies, customization, installation, and integration with existing infrastructure. The economic viability of WHRS is highly dependent on heat source temperature, system design complexity, and energy pricing structures. In smaller facilities or developing regions, budgetary constraints, lack of technical expertise, and delayed ROI often hinder adoption. Maintenance of high-temperature components and ensuring corrosion resistance in aggressive environments also pose operational challenges.Market Segmentation by Type
The market is segmented into Steam Rankine Cycle, Organic Rankine Cycle (ORC), and Kalina Cycle. In 2024, the Steam Rankine Cycle held the largest revenue share due to its maturity, high thermal efficiency, and compatibility with high-temperature industrial processes. The Organic Rankine Cycle is expected to grow at the fastest pace from 2025 to 2033, driven by its applicability to low- and medium-temperature heat recovery, especially in geothermal, biomass, and marine waste heat utilization. The Kalina Cycle, known for its enhanced thermodynamic performance in variable-temperature sources, is gaining traction in niche applications such as petrochemical and gas turbine recovery projects.Market Segmentation by Temperature
By operating temperature, the market is segmented into < 230 °C, 230 °C-650 °C, and >650 °C. In 2024, the 230 °C-650 °C segment dominated global revenue, with wide applicability across steel, cement, and refining industries. This range allows optimum utilization of steam generation cycles and supports combined heat and power (CHP) applications. The < 230 °C segment is expected to witness the fastest growth due to rising deployment of ORC-based systems in wastewater treatment, marine, and food processing sectors. The >650 °C segment serves niche high-efficiency projects, including power boilers and high-performance gas turbines.Geographic Trends
In 2024, Europe led the global market for WHRS in electricity and steam generation, supported by stringent carbon regulations, industrial sustainability initiatives, and proactive adoption of energy-efficient technologies. North America followed, with investments in waste heat-to-power (WHP) initiatives across oil & gas and heavy industries. Asia Pacific is projected to witness the highest CAGR between 2025 and 2033, driven by rapid industrialization, government incentives, and strong manufacturing presence in China, India, and Southeast Asia. Latin America and the Middle East & Africa are emerging markets, where rising energy costs and growing environmental awareness are encouraging adoption of heat recovery technologies in refineries and cement plants.Competitive Trends
The electricity and steam generation WHRS market is highly competitive, comprising global power equipment leaders and specialized engineering firms. General Electric, Siemens Energy, Mitsubishi Heavy Industries, and IHI Corporation dominate large-scale system deployments, offering turnkey solutions with high reliability and customization. Thermax Limited, Forbes Marshall, and Bosch Industriekessel GmbH provide modular and region-specific offerings tailored to industrial applications in Asia and Europe. Exergy International SRL and Ormat lead innovation in ORC technologies for geothermal and low-grade heat sources. Companies like Climeon and AURA are focusing on compact systems for marine and remote installations. Competitive strategies center around cycle innovation, temperature versatility, cost efficiency, and service support. Collaborations for hybrid renewable integration and digital twin-based monitoring are shaping the next generation of heat recovery systems.Historical & Forecast Period
This study report represents an analysis of each segment from 2023 to 2033 considering 2024 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2025 to 2033.The current report comprises quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends & technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. The key data points that enable the estimation of Electricity & Steam Generation Waste Heat Recovery Systems market are as follows:- Research and development budgets of manufacturers and government spending
- Revenues of key companies in the market segment
- Number of end users & consumption volume, price, and value.
- Geographical revenues generate by countries considered in the report
- Micro and macro environment factors that are currently influencing the Electricity & Steam Generation Waste Heat Recovery Systems market and their expected impact during the forecast period.
Market Segmentation
- Type
- Steam rankine cycle
- Organic rankine cycle
- Kalina cycle
- Temperature
- 230 °C
- 230 °C - 650 °C
- > 650 °C
- End Use
- Petroleum refining
- Cement
- Heavy metal manufacturing
- Chemical
- Pulp & paper
- Food & beverage
- Glass
- Others
Region Segment (2023 - 2033; US$ Million)
- North America
- U.S.
- Canada
- Rest of North America
- UK and European Union
- UK
- Germany
- Spain
- Italy
- France
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East and Africa
- GCC
- Africa
- Rest of Middle East and Africa
Key questions answered in this report
- What are the key micro and macro environmental factors that are impacting the growth of Electricity & Steam Generation Waste Heat Recovery Systems market?
- What are the key investment pockets concerning product segments and geographies currently and during the forecast period?
- Estimated forecast and market projections up to 2033.
- Which segment accounts for the fastest CAGR during the forecast period?
- Which market segment holds a larger market share and why?
- Are low and middle-income economies investing in the Electricity & Steam Generation Waste Heat Recovery Systems market?
- Which is the largest regional market for Electricity & Steam Generation Waste Heat Recovery Systems market?
- What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
- Which are the key trends driving Electricity & Steam Generation Waste Heat Recovery Systems market growth?
- Who are the key competitors and what are their key strategies to enhance their market presence in the Electricity & Steam Generation Waste Heat Recovery Systems market worldwide?
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Table of Contents
1. Preface
2. Executive Summary
3. Electricity & Steam Generation Waste Heat Recovery Systems Market: Competitive Analysis
4. Electricity & Steam Generation Waste Heat Recovery Systems Market: Macro Analysis & Market Dynamics
5. Electricity & Steam Generation Waste Heat Recovery Systems Market: By Type, 2023-2033, USD (Million)
6. Electricity & Steam Generation Waste Heat Recovery Systems Market: By Temperature, 2023-2033, USD (Million)
7. Electricity & Steam Generation Waste Heat Recovery Systems Market: By End Use, 2023-2033, USD (Million)
8. North America Electricity & Steam Generation Waste Heat Recovery Systems Market, 2023-2033, USD (Million)
9. UK and European Union Electricity & Steam Generation Waste Heat Recovery Systems Market, 2023-2033, USD (Million)
10. Asia Pacific Electricity & Steam Generation Waste Heat Recovery Systems Market, 2023-2033, USD (Million)
11. Latin America Electricity & Steam Generation Waste Heat Recovery Systems Market, 2023-2033, USD (Million)
12. Middle East and Africa Electricity & Steam Generation Waste Heat Recovery Systems Market, 2023-2033, USD (Million)
13. Company Profile
List of Figures
List of Tables
Companies Mentioned
- AURA
- BIHL
- Bosch Industriekessel GmbH
- Climeon
- Cochran
- Durr Group
- Exergy International SRL
- Forbes Marshall
- Fortum
- General Electric
- HRS
- IHI Corporation
- Mitsubishi Heavy Industries Ltd.
- Ormat
- Promec Engineering
- Rentech Boilers
- Siemens Energy
- Sofinter S.p.a
- Thermax Limited