Waste Heat Recovery System Market Size, Share & Trends Analysis Report By Application (Pre Heating, Steam & Power Generation), By End-use (Petroleum Refinery, Chemical, Cement), By Phase System, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global waste heat recovery system market size was valued at USD 52.02 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 9.3% from 2023 to 2030. Rising environmental concerns have led various countries around the world to take steps to reduce the carbon footprint from the industrial sector and to opt for waste heat recovery systems. The governments of most countries are framing supporting policies and taking financial measures to enhance the pace of deployment of waste heat recovery systems. For instance, in June 2023, a specialized Centre of Excellence, namely, UTPRERAK was established by the Ministry of Power of the Government of India to speed up industrial adoption of clean technologies and increase the participation of the country in the global energy transition.

The U.S. is among the early adopters of clean-energy solutions in the world for sectors such as power generation and manufacturing industry, including chemicals, pulp and paper, and others. This can be attributed to the adoption of clean-energy solutions as per the Energy Act introduced by the U.S. government.

Greenhouse gas (GHG) emission levels, particularly from carbon dioxide (CO2), remain on top of discussion among policymakers and stakeholders in the U.S. The Electricity sector is the second-largest source of greenhouse gases owing to the combustion of fossil fuels in power plants. Thus, the U.S. government has taken steps to reduce carbon emissions from the power sector and is making continuous efforts to curb greenhouse gas emissions within power plants. In June 2023, the U.S. Department of Energy (DOE) announced USD 135 million of investment for 40 projects that would lower carbon emissions from the industrial sector and lead the country towards a carbon-neutral economy by 2050, by promoting crucial transformative and cutting-edge technologies. 

Application Insights

In terms of revenue, the transportation segment led the market in 2022, accounting a revenue share of 47.03%. Increasing prices of electricity and fuel due to inflation along with ongoing efforts to reduce GHG emissions are expected to boost the adoption of waste heat recovery systems for power and steam generation. According to Industry Dive update, in June 2023, the price of electricity increased by 14.3% in 2022, due to inflation in the U.S. In addition to this, as per the EIA, the growth in U.S. power generation is primarily attributable to generation from renewable sources.

One of the primary reasons for the growth of pre-heating applications is the potential for significant cost savings. By using waste heat instead of additional energy sources such as electricity and natural sources, companies can lower their operational expenses, making them more competitive in the market. According to a study published by Skill-Lync in March 2021, in a typical furnace, less than half of the heat generated serves a useful purpose, with the majority being lost in various forms. The primary contributor to this loss, accounting for around 30% of the total heat input, is flue gas dissipation. Remarkably, this high-temperature flue gas holds the potential for reuse within the furnace. To harness this waste heat from flue gases, a recuperator or heat exchanger is employed.

End-use Insights

In terms of revenue, the petroleum refinery segment led the waste heat recovery system industry in 2022, accounting a share of 20.8%. The growing focus of petroleum refineries to conserve waste energy and reduce energy costs is anticipated to drive the market in the coming years. Petroleum refining is an energy-intensive industry and waste-heat recovery systems are essential for the same. In addition, oil & gas companies are taking measures to reduce the carbon footprint of their manufacturing facilities. For instance, in February 2022, ORCAN ENERGY AG, a waste heat supplier signed a long-term supply agreement with a North American supplier, ICE Thermal Harvesting (ICE). To collect waste heat for use in ICE’s power systems, the company provided 15 Organic Rankine cycle.

Waste heat recovery systems deployed in power sector increase the amount of power generated from the plant and enhance the power generation efficiency of the plant. Waste heat recovery systems can be deployed in thermal power plants using coal, gas, and oil as fuel. Waste heat recovery systems are widely used in power plants, especially in combined heat and power (CHP) systems. CHP systems capture waste heat from electricity generation and use it for heating or cooling purposes, thus increasing overall energy efficiency.

Phase System Insights

The liquid-liquid phase system segment held the largest share of 40.26% in the market in 2022. This growth is fueled by the increasing demand in the petroleum and power industries worldwide. In the petroleum refining industry, waste heat recovery systems play a crucial role in processes like refining, thermal cracking, and catalytic treatment. The liquid-liquid phase system uses a special fluid to efficiently recover waste heat and cool down equipment without using excessive water.

Another important part of the waste heat recovery market is the thermal regeneration system. This system helps remove CO2 substitutes and enhances the corrosion resistance of the waste heat recovery setup. It basically recovers extra heat or cooling capacity after the main heat exchange process is done. The thermal regeneration system finds applications in various industries like petroleum refining, chemicals, cement, metal production, paper making, power generation, and others.

Regional Insights

Europe is expected to account for the largest revenue share of over 29.95% in 2022. The European Union (EU) has consistently been a global leader in addressing the challenges associated with climate change. With an ambitious target of becoming the world’s first climate-neutral continent by 2050, the EU has been at the forefront of environmental initiatives. However, in 2022, the region faced a significant challenge of combating climate change while navigating a global energy supply crisis. Amid these issues, the emergence of waste heat recovery power generation (WHRPG) systems has gained significant interest, particularly within the energy-intensive cement industry in the region. Rohrdorf, which is located in Bavaria, Southern Germany, is the first region to initiate the adoption of WHRPG systems to address climate change and energy security concerns. Some of the major end-use industries for waste heat recovery systems in Europe are power generation, oil & gas, chemicals, and pulp & paper.

Asia Pacific is expected to witness a significant CAGR over the forecast period owing to the presence of some of the world’s fastest-growing and most densely populated countries, has witnessed a remarkable expansion in electricity production. However, the predominant source of this electricity has been coal. Approximately 60% of the electricity generated in the Asia-Pacific region comes from coal, which has led to the region being the primary contributor to global carbon dioxide emissions. However, heightened environmental awareness and stringent regulations aimed at reducing greenhouse gas emissions are driving the adoption of WHRS in the region.

Key Companies & Market Share Insights

The market is highly competitive and partially fragmented due to the presence of a large number of market players. The dominant trend in the operations of these waste heat recovery system companies includes collaborations, mergers & acquisitions and expansion which facilitates competition in the market. Some prominent players in the global waste heat recovery system market include:

• Siemens Energy

• Mitsubishi Power, Ltd.

• General Electric

• ABB

• Turboden S.p.A.

• Bosch Industriekessel GmbH

• Exergy International Srl

• Forbes Marshall

• IHI Corporation

• Terrapin

Waste Heat Recovery System Market Report Scope

Global Waste Heat Recovery System Market Report Segmentation

This report forecasts revenue growth at the 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 waste heat recovery system market report based on end-use, application, phase system, and region:

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Pre Heating

  • Power & Steam Generation

  • Others

• End-use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Petroleum Refinery

  • Power

  • Cement

  • Chemical

  • Metal Production

  • Pulp & Paper

  • Other

• Phase System Outlook (Revenue, USD Billion, 2018 - 2030)

  • Liquid-liquid Phase System

  • Liquid Gas Phase System

  • Thermal Regeneration

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Italy

    • Germany

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia

    • UAE

    • South Africa