GVR Report cover Heat Recovery Steam Generator Market Size, Share & Trends Report

Heat Recovery Steam Generator Market Size, Share & Trends Analysis Report By Power Rating (Below 100 MW, 101 MW to 200 MW, Above 201 MW), By Application, By Region, And Segment Forecasts, 2020 - 2027

  • Report ID: GVR-4-68038-461-1
  • Number of Report Pages: 95
  • Format: PDF, Horizon Databook
  • Historical Range: 2016 - 2018
  • Forecast Period: 2020 - 2027
  • Industry: Energy & Power

Report Overview

The global heat recovery steam generator market size was valued at USD 1.3 billion in 2019 and is anticipated to witness a CAGR of 3.2% over the forecast period (2020 to 2027). Rising concerns about Greenhouse Gas (GHG) emissions and severe regulations to decrease carbon footprint is projected to continue as a key driving factor for the market for heat recovery steam generator (HRSG) over the forecast period.

U.S. heat recovery steam generator market size

Escalating costs of electricity, supportive regulatory norms to keep a cleaner environment and decreasing capital costs owing to current technological expansions are some of the significant factors driving the market for HRSG. Heat Recovery Steam Generators (HRSGs) are achieving reputation among energy-efficient industries owed to their capability to curtail carbon footprints and the ability to produce clean energy.

Growing adoption of cogeneration technology attributed to rising demand for energy-efficient systems is anticipated to drive the market for HRSG. For example, as per the U.S. Energy Information Administration (EIA), the involvement of coal in the overall U.S. energy consumption in 2018 deteriorated by 4% when matched with its consumption in the previous year. Additionally, the briskly expanding industrial sector along with the ever-changing inclination toward non-conventional energy consumption is expected to impact industry growth.

Also, the high cost of shipping (transportation) is the core reason hindering the market for heat recovery steam generators. On an overall account, the high cost of proprietorship of the HRSGs is also one of the noteworthy reasons that are hampering the development of the market for HRSG.

Introduction of encouraging government strategies towards the development of combined-cycle power plants along with rising consumer inclination towards cogeneration technology are expected to positively impact the market for HRSG. In addition, the noteworthy growth across utility, chemicals, fertilizers, food and beverages, and oil and gas industries are anticipated to drive industry growth.

According to the U.S. Department of Energy, combustion air preheat is anticipated to optimize the furnace efficiency by as much as 50.0%. Moreover, pre-heating combustion exhaust gases can potentially eliminate the need for additional space heating equipment, thereby reducing capital and overhead costs. These trends present a potential growth landscape for the heat recovery steam generator market.

Power Rating Insights

The below 100 MW segment is anticipated to significant growth owing to the increasing use of co-generating units to withstand energy and heat ingestion throughout small industries, commercial and sequestered grid networks. In addition, predominant innovations with reverence to the expansion of combined-cycle power plants to resist low heat necessities across various formations are anticipated to increase product penetration.

Continuing execution of the circulated generation technologies through stationary energy generation applications is expected to drive the above 201 MW segment in the market for HRSG. Lesser electricity costs and emissions, with a vast prospect to utilize waste fuels are some of the rare essential parameters that will boost the demand for heat recovery steam generators.

HRSGs of capacity between 101 MW and 200 MW are also expected to witness substantial demand from the Middle East region owing to the existing energy mix, which consists of oil and natural gas as its primary energy source. This segment is anticipated to witness the fastest CAGR of 4.1% from 2020 to 2027.

Application Insights

Increasing use of HRSGs in various industries including pulp and paper processing plants, chemical processing plants, and petroleum refineries is anticipated to drive the industry. HRSG has a compact and flexible design and is mainly used with gas turbines. The increasing energy demand from manufacturing and associated industrial sectors established across the emerging nations is likely to influence product acceptance.

Various government initiatives are being taken to conserve energy and reduce energy costs which are anticipated to further drive the market for heat recovery steam generator. Rising HRSG practice in numerous industries such as utilities, refineries, pulp and paper, and chemicals for combined-cycle power plants and cogeneration power plants to generate electricity is expected to further complement the growth of the market for HRSG.

Global heat recovery steam generator market share

The ongoing progress of thermal power-producing stations along with the changing trends toward the utilization of supportable energy resources is expected to stimulate the market for HRSG. The introduction of strict regulatory standards subsequent in an upsurge in the adoption of combined-cycle power plants is anticipated to further increase the demand for heat recovery steam generators.

Regional Insights

Growing investments throughout the oil and gas industry post-oil price decline, mainly across Asia Pacific and Middle East are certainly affecting the demand for HRSG systems. Also, the ongoing expansions plans for refinery and petrochemical plant owing to snowballing demand for hydrocarbon products is anticipated to further push the growth of the market for HRSG.

In the U.S., the market for HRSG is set to surpass USD 253.8 million by 2027. Cumulative emphasis on the use of energy-efficient systems along with increasing need to switch aging coal-fired power plants to improve the emissions have considerably broadened the installation of HRSGs. Federal and state governments offer various incentives and strategies to reduce operational costs along with combined heat and power-friendly guidelines and utility provision. This, in turn, is anticipated to propel the growth of the segment in the region.

Hastening thermal capacity add-ons, growth of industrialization, and an optimistic outlook towards the combined cycle power plant is anticipated to drive the market for heat recovery steam generator in China. Increasing investments toward reconstruction of infrastructure by spending across distributed energy sources along with the growing acceptance of combined cycle power plants (CCPP) is likely to boost industry growth.

Heat Recovery Steam Generator Market Share Insights

Some of the major market participants include Baker Hughes (a GE Company), Siemens AG, Mitsubishi Heavy Industries, Ltd, John Wood Group PLC, Larsen and Toubro Ltd., Thermax, and Bharat Heavy Electricals Limited (BHEL).

The stimulation of sub-urbanization and industrialization drifts and growing demand for electrical power are expected to energize the scope of the market for HRSG. Industries are now accepting energy-effective technologies such as HRSG to decrease energy costs with lesser use of power. This movement is likely to drive the industry in the upcoming years.

Report Scope

Report Attribute


Base year for estimation


Actual estimates/Historical data

2016 – 2018

Forecast period

2020 – 2027

Market representation

Revenue in USD million and CAGR from 2020 to 2027

Regional scope

North America, Europe, Asia Pacific, Middle East & Africa, Central & South America

Country scope

U.S., Canada, Mexico, U.K., Germany, Russia, China, India, Japan, South Korea, Brazil, UAE, Saudi Arabia

Report coverage  

Revenue forecast, company share, competitive landscape, growth factors and trends

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this report, Grand View Research has segmented the global heat recovery steam generator market report on the basis of power rating, application, and region:

  • Power Rating Outlook (Revenue, USD Million, 2016 - 2027)

    • Below 100 MW

    • 101 to 200 MW

    • Above 200 MW

  • Application Outlook (Revenue, USD Million, 2016 - 2027)

    • Power & Utility

    • Industrial

    • Others

  • Regional Outlook (Revenue, USD Million,  2016 - 2027)

    • North America

      • The U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • The U.K.

      • Russia

    • Asia Pacific

      • China

      • Japan

      • South Korea

      • India

    • Central & South America

      • Brazil

    • Middle East & Africa

      • Saudi Arabia

      • UAE

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