Organic Rankine Cycle Market Size, Share & Trends Analysis Report By Application (Waste Heat Recovery, Biomass, Geothermal, Solar Thermal, Oil & Gas, Waste To Energy), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global organic rankine cycle market size was valued at USD 830.19 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 3.3% from 2023 to 2030. Rise in the adoption of renewable energy and the longer life cycle of organic rankine cycle (ORC) coupled with low O&M costs are some of the major factors driving the growth of the ORC market globally. ORC technology faces stiff competition from the availability of substitute technology such as the Steam Rankine cycle (SRC) which is also utilized in similar application segments including geothermal, biomass, waste heat recovery, and solar thermal which is expected to restrain the growth of the ORC market in the forecast period. The U.S. has been one of the leading countries in ORC market development and deployment in the past on a global level. High presence of geothermal reserves has resulted to drive the market for ORC market in the country owing to which the geothermal application segment has dominated its position in the U.S. ORC market. ORMAT has been the major company that has been active in the country in the ORC market as the company provides its ORC equipment along with EPC services for the development of geothermal ORC projects. Further, the company owns and operates around 622 MW of geothermal and recovered energy generation projects across the U.S.

North America region emerged as one of the major regions for the ORC market in 2022. Geothermal has the largest market share in the application segment in the global ORC market in 2022. Geothermal projects are of usually higher capacity as compared to biomass and waste heat recovery projects owing to which the ORC market is higher for geothermal applications in 2022 due to the deployment of large-scale geothermal projects in recent years.

North America region is expected to have a higher demand for ORC installation over the coming years owing to the rising focus on the development of power through clean energy sources and with the availability of supporting policies and financial support for clean energy projects. Further, various large-scale ORC based geothermal power projects are also under pipeline in the U.S. which is expected to drive the market for ORC in North America region during the forecast period.

Rise in adoption of renewable energy in countries such as the U.S., China, Germany, and Canada are making supporting regulations and providing financial incentives for the deployment of renewable energy. Financial incentives such as feed-in-tariff, subsidies, and tax benefits are some of the major tools utilized by countries around the world to attract investment in the renewable energy sector. These factors propel the growth of the organic rankine cycle (ORC) industry in the near future.

Application Insights

The geothermal segment led the market and accounted for the largest revenue share of 59.67% in 2022. The major reason for the dominance of the geothermal segment is due to large scale megawatt capacity of these geothermal projects as compared to other application segments such as biomass, waste heat recovery, and solar thermal. Since each of the geothermal projects is usually of capacity more than 10 MW whereas ORC based projects in other application segment are not always of capacities equivalent to 10 MW and are generally less than 1 to 2 MW.

Countries with high geothermal potential such as the U.S., Turkey, Kenya, New Zealand, and Indonesia have taken significant steps to utilize the available geothermal potential available in their respective countries. For instance, from 2017 to 2018 Indonesia started commercial operation of geothermal power plants with cumulative capacity of 330 MW.

Region Insights

North America dominated the market for organic rankine cycle (ORC) and accounted for the largest revenue share of more than 43.54% in 2022. U.S. dominated the ORC market in the North America region owing to high geothermal potential in the country. Further, the country has taken active steps to enhance the deployment of geothermal potential for power generation applications from the past. ORMAT has been the major company working in the U.S. to tap geothermal potential in the country by use of its ORC technology. This factor is expected to make the U.S. dominant in the North American region for the ORC market in the forecast period. The availability of large geothermal potential in Turkey serves as the major driver for the ORC market in Europe.The European market for organic rankine cycle (ORC) is primarily driven by implementing favorable policies and support mechanisms for the growth of renewable energy and energy efficiency projects across the globe.

Further, new ORC based geothermal power projects are under construction and are expected to commission in the forecast period in countries such as Turkey and France. For instance, Turboden is constructing an 11 MW ORC based geothermal power project in France for Fonroche Geothermie which is expected to commence operation in the forecast period. These developments will lead the geothermal application segment to grow in the forecast period in the region.

Key Companies & Market Share Insights

The organic rankine cycle (ORC) market key players operating in the market are Ormat, Turboden, and Exergy, along with the presence of a few medium and small regional players. Leading market players compete based on their product development capabilities and new technologies used in product formulations. Established players such as Turboden are investing in the development of innovative ORC systems that give them an edge over their competitors.

For instance, in February 2020, Turboden signed a contract to provide 8,000 kW ORC system for power generation which uses sawmill residual woody biomass as fuel to Meadow Lake Tribal Council (MLTC), in Canada. Some of the prominent players operating in the global organic rankine cycle (ORC) market are:

• Turboden S.p.A.

• Exergy International Srl

• Zhejiang Kaishan Compressor Co., Ltd.

• Enogia SAS

• Triogen

• Calnetix Technologies, LLC

• ABB

• Atlas Copco AB

• TAS Energy Inc. (TAS)

• Elvosolar, a.s.

Organic Rankine Cycle Market Report Scope

Global Organic Rankine Cycle Market Report Segmentation

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global organic rankine cycle (ORC) market report based on application and region:

• Application Outlook (Revenue, USD Million, MW, 2018 - 2030)

  • Waste Heat Recovery

    • Petroleum Refinery

    • Chemical

    • Glass

    • Cement

    • Metal Production and Casting (Iron & Steel)

  • Biomass

  • Geothermal

  • Solar Thermal

  • Oil & Gas (Gas Pipeline Pressure Stations)

  • Waste to Energy

• Regional Outlook (Revenue, USD Million, MW, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • Turkey

    • Italy

  • Asia Pacific

    • China

    • Japan

    • Thailand

  • Central & South America

  • Middle East & Africa