Waste Heat Recovery System Market Size, Share & Trends Analysis Report By Application (Preheating, Power & Steam Generation), By End User (Petroleum Refinery, Power, Metal Production), And Segment Forecasts, 2020 - 2027

Report Overview

The global waste heat recovery system market size was valued at USD 54.3 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 8.8% from 2020 to 2027. Growing concerns about Greenhouse Gas (GHG) emissions and strict regulations to decrease carbon footprint are projected to be the key driving factors for the growth of the global waste heat recovery system (WHRS) market.

These systems are highly energy-efficient and can generate onsite electricity, as well as reduce overall operational costs. These factors are also likely to boost their demand over the forecast period. Energy-intensive industries including heavy metal manufacturing, chemical, cement, glass, and petroleum refining are some of the key application areas with substantial waste heat recovery potential.

Domestic demand for WHR systems in North America is experiencing robust growth due to the rise in the severity of global energy efficiency regulations. U.S. is the largest contributor in North America’s market revenue owing to increased use of WHRS for optimization of exhaust gas in coal power plants and the provision of emission-free electricity.

Such systems enable the reuse of flue gases for pre-drying and co-generation in thermal power plants, which increases the thermal efficiency of the system, thereby fueling the product demand. Presence of major industry participants, such as General Electric and Terrapin, in this region will further boost the market growth.

The upcoming evolution of the industry will be amplified by investments done in several industries such as refineries, heavy metals, paper & pulp, petrochemicals and chemicals. Major manufacturing industries are actively adopting WHRS to decrease their dependence on conventional energy and produce in-house power to reduce working costs. Moreover, continuous technological inventions such as WHR with organic rankine cycle will further stimulate market growth.

A large amount of heat is produced from the exhaust manufacturing facilities, which increases the carbon footprint, thereby creating serious environmental impacts. Waste heat recovery systems serve as a valuable alternative for improving the overall energy efficiency of industrial manufacturing processes, which also boosts their demand.

Application Insights

Power and steam generation was the dominant application segment in the market owing to the rising demand across the globe. Increasing prices of electricity along with ongoing efforts to reduce GHG emissions will boost the WHRS deployment for power and steam generation. Rising demand for onsite power generation and focus on the improvement of plant efficiency are also the key factors driving the segment growth.

Preheating is estimated to be the fastest-growing application segment from 2020 to 2027. Waste heat recovery systems are majorly used for preheating of combustion air, furnace loads, boiler feed water, and space heating. Cascade system of WHR is bolstering the product demand. The system uses a high-temperature stage for air pre-heating and low-temperature stage for processing feedwater heating, thereby minimizing operational costs and increasing the overall efficiency.

According to the U.S. Department of Energy, combustion air preheat can increase furnace efficiency by as much as 50%. Moreover, preheating 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 waste heat recovery system market.

End-User Insights

The petroleum refinery segment accounted for the largest market share in 2019. It is estimated to expand further at the fastest CAGR over the forecast period owing to a rise in the drilling activities. In this sector, the WHR systems are used for procedures, such as refinement, thermal cracking, and catalytic treatment.

Various government initiatives to conserve energy and reduce energy costs are anticipated to drive the market further. Rising demand for WHRS in industries, such as petroleum refineries, pulp & paper, heavy metals, petrochemical, and chemicals, for pre-heating, electricity generation, and steam generation is expected to further complement the market growth.

Cement end-user segment is anticipated to have significant growth during the forecast period due to the rapid expansion of the construction sector. In addition, the increasing number of cement plants in developing nations, such as India and China, will result in an upsurge in WHRS installations, thereby boosting the segment growth.

Regional Insights

North America is anticipated to be the largest regional market over the forecast period owing to the increasing demand for onsite power generation along with growing initiatives for the deployment of energy-efficient technologies. Stringent government regulations regarding the toxic gas emission have led to retrofitting of the existing industrial facilities, which will further propel the product demand.

Europe is expected to be the second-largest regional market in the future. Growing awareness regarding WHR systems and initiatives undertaken by the European Union to produce energy through waste have been key driving factors for the market growth in this region.

Germany is the largest contributor in the Europe WHRS market owing to stringent emission standards to lower GHG emissions. Technological innovations, declining costs, and supportive policy environment are some of the underlying factors that will fuel product demand over the coming years.

Asia Pacific is projected to be the fastest-growing region at a CAGR of 10.3% over the forecast period. According to the UNCTAD 2018 world investment report, Asia Pacific was positioned as the largest FDI recipient in the manufacturing sector. Rapid industrialization along with increasing awareness about the significance of sustainable energy in emerging markets of India and China is likely to bolster the market growth in this region.

Key Companies & Market Share Insights

Major companies are investing in R&D activities to gain a competitive advantage over others. Mergers & acquisitions, overseas business expansion, and strategic collaborations are several other business strategies undertaken by market participants. Some of the major prominent players in the waste heat recovery system market include:

• Siemens AG

• Mitsubishi Heavy Industries, Ltd.

• General Electric

• ABB

• Boustead International Heaters

• Forbes Marshall

• Promec Engineering

• Terrapin

• Wood Plc (Amec Foster Wheeler)

• Climeon; BoschIndustriekessel GmbH

• AURA GmbH & Co.

• Exergy S.p.A.

• IHI Corporation

Waste Heat Recovery System (WHRS) Market Report Scope

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 waste heat recovery system market report on the basis of application, end user, and region:

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

  • Pre Heating

  • Steam & Electricity Generation

  • Others

• End-User Outlook (Revenue, USD Billion, 2016 - 2027)

  • Petroleum Refinery

  • Power

  • Cement

  • Chemical

  • Metal Production

  • Pulp & Paper

  • Other

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

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Italy

    • Germany

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • MEA

    • Saudi Arabia

    • UAE

    • South Africa