Global Heat Recovery Steam Generator Market Overview:
As per MRFR analysis, the Heat Recovery Steam Generator Market Size was estimated at 4.38 (USD Billion) in 2022. The Heat Recovery Steam Generator Market Industry is expected to grow from 4.64(USD Billion) in 2023 to 7.7 (USD Billion) by 2032. The Heat Recovery Steam Generator Market CAGR (growth rate) is expected to be around 5.8% during the forecast period (2024 - 2032).
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Heat Recovery Steam Generator Market Trends Highlighted
The HRSG market has shown significant growth opportunities due to the need for energy efficiency and compliance with emission standards in power plants. HRSGs are very useful in realizing the concept of sustainability through recuperating heat from exhaust gases to produce steam, hence efficiently using energy.
Major market drivers include government regulations on emission control and energy conservation, escalating prices of fossil fuels, and increased demand for combined cycle power plants that use HRSGs to increase their efficiencies. The growth in the renewable energy industry, like solar and wind, which intermittently generate electricity, also presents a chance for its expansion, while HRSGs can be used to bridge the gap between such sources and traditional power generation.
Recent market trends have seen a growing uptake of high-efficiency HRSGs with low emissions of NOx (nitrogen oxide) and the adoption of advanced technologies like ceramic heat exchangers and supercritical steam cycles. In addition, how smart and connected HRSGs are being driven by digitalization and IoT solutions being increasingly adopted in power plants, which enable real-time monitoring & optimization of performance by these systems. Such developments help enhance overall efficiency as well as environmental friendliness within such facilities when it comes to generating electricity.
Heat Recovery Steam Generator Market Drivers
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Increasing Demand for Energy Efficiency
The Heat Recovery Steam Generator Market industry is dominated by the growing focus of industries on implementing energy-saving measures. Heat recovery technologies are used to harness waste heat from industrial processes and turn it into useful power as energy costs escalate and industries are encouraged to follow sustainable practices. This technique is cost-effective and a good form of strategy because businesses can save a significant amount of money on the second most expensive utility, which is steam, and also reduce poisonous discharges.
This has resulted in the growth of the Heat Recovery Steam Generator Market Industry during this age, which is driven by improved awareness about energy-saving technologies and their adoption by governments and regulatory bodies such as emission control authorities.
Expansion of the Power Generation Sector
Demand for new-generation products has resulted from the upswings in the power generation sector, especially in the developing world. Developed and developing markets are primarily relying on dependable and efficient technologies integrated into combined cycle power plants to enhance the overall efficiency of their future power generation plants. Since nations are working to meet the rising energy demand while reducing the dependence on gas or diesel fuel sources, the generation sector is also going to continue on an upward trajectory, indicating a positive outlook for the HRSG market.
Technological Advancements and Innovation
Heat Recovery Steam Generator Market is experiencing profound changes in the scenario of the existing and new Market. The next 5 years of the forecast will be witnessing most of the changes in the existing scenario. Manufacturers are focusing more on innovation and finding ways to improve efficiency, reduce downtime, and ensure the reliability and flexibility of heat recovery steam generators. The incorporation of advanced materials like high-temperature alloys and coating makes the system more durable.
The digital technology and automation solution provided for optimizing the heat recovery steam generator technology and thereby prolonging the tonnage life of the process. The digital heat recovery steam generator solutions are IoT-based system solutions that include remote monitoring, predictive analytics, and a digital control system for response time assurance and optimization of operating processes.
Heat Recovery Steam Generator Market Segment Insights:
Heat Recovery Steam Generator Market Fuel Type Insights
The Heat Recovery Steam Generator Market is segmented by fuel type into fossil fuels (coal, natural gas, oil), biomass, and renewable sources (solar, geothermal, waste heat). Fossil fuels will still account for over 70% of the total revenue in the global market by 2023.
The reason behind this is that they are available widely and cheaply, and there is a well-developed infrastructure for their use. Nevertheless, the inclination towards sustainable development and the rising adoption of renewable energy will support an upward trend for biomass and renewable sources segments.
The biomass segment is estimated to witness a substantial growth rate during the forecast period due to the high demand for renewable and sustainable energy sources. Alternatively, Biomass-fired HRSGs use organic materials such as wood, agricultural residues, and municipal waste to generate steam, which is a cost-effective and environmentally friendly alternative to fossil fuels.
Further implementation of government policies promoting renewable energy usage will also continue to drive up demand for biomass-fired HRSGs. Similarly, the renewable sources segment is also expected to grow, driven by increasing penetration of solar and geothermal energy.
Solar-powered HRSGs use concentrated solar radiation for steam production, thereby eliminating the consumption of coal or oil. Conversely, Geothermal HRSGs capture heat from geothermal resources in order to produce steam. Concern over global warming and the need for viable power supplies will result in greater demand for Solar and Geothermal HRSGs as supplementary measures are taken in future generations. As per different fuel sources, the Heat Recovery Steam Generator Market segmentation offers relevant information with respect to its prospective growth.
while remaining dominant on a short-term basis, fossil fuels’ dominancy is seen fading away, giving way to biomass and renewable sources segments due to increased sustainability concerns in future years ahead.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Heat Recovery Steam Generator Market Capacity Insights
The Heat Recovery Steam Generator Market revenue is anticipated to grow significantly in the coming years. The Market is divided into 100 MWe, 100-250 MWe, 250-500 MWe, and >500 MWe based on Capacity. The demand for small-scale power generation systems is likely to fuel steady growth in the segment of 100 MWes. The range between 100 and 250 MWes has a significant portion of the Market because it can be used in many industries. Combustion turbine installations are driving the rise of CHP electric power plants with capacities between 250 and 500 MW.
The >500 MWe group is predicted to undergo substantial development due to increasing demand for big-scale electricity generating systems. Overall, global heat recovery steam generator sectoring provides insights into what drives this Market. By appreciating the peculiar needs as well as inclinations of each category, producers can create tailor-made goods that address shifting industry requirements.
Heat Recovery Steam Generator Market Application Insights
The Heat Recovery Steam Generator Market is segmented by application into Power Generation, Industrial Processes (Chemical, Petrochemical, Refining), Desalination Plants, and District Heating. The Power Generation segment is expected to account for the largest share of the Market in 2023, owing to the increasing demand for electricity and the need to improve the efficiency of power plants.
The Industrial Processes segment is expected to be the second-largest segment, driven by the growing demand for heat in various industrial processes. The Desalination Plants segment is expected to witness significant growth, owing to the increasing demand for fresh water in arid and semi-arid regions.
The District Heating segment is expected to grow at a steady pace, driven by the increasing demand for efficient and environmentally friendly heating solutions.
Heat Recovery Steam Generator Market Technology Insights
The Heat Recovery Steam Generator Market segmentation includes technology, which is further divided into vertical HRSG, horizontal HRSG, and shell and tube HRSG. Among these, vertical HRSG held the largest market share in 2023, and it is expected to continue its dominance during the forecast period.
The growth of this segment can be attributed to the increasing demand for vertical HRSGs in power plants and industrial applications. Vertical HRSGs are more compact and efficient than other types of HRSGs, making them a preferred choice for space-constrained applications.
he horizontal HRSG segment is expected to witness a significant growth rate during the forecast period. Horizontal HRSGs are gaining popularity in industrial applications due to their ability to handle larger gas flows and their lower maintenance costs. Shell and tube HRSGs are expected to have a moderate growth rate during the forecast period.
The growth of the Market is attributed to the increasing demand for HRSGs in power plants, industrial applications, and district heating systems. HRSGs help improve the efficiency of power plants and industrial processes by recovering heat from exhaust gases and converting it into steam.
This steam can be used to generate electricity, power turbines, or heat buildings.
Heat Recovery Steam Generator Market End User Insights
The End User segment of the Heat Recovery Steam Generator Market is broadly classified into Utilities, Industrial Companies, Municipal Authorities, and Independent Power Producers. Among these, Utilities held the dominant market share in 2023, accounting for around 45% of the global revenue. This dominance is attributed to the rising demand for electricity and the need for efficient power generation. Industrial Companies are expected to witness steady growth in the coming years, owing to the increasing adoption of combined heat and power (CHP) systems for industrial processes.
Municipal Authorities represent a growing segment driven by the focus on sustainable waste management and the generation of renewable energy. Independent Power Producers are expected to gain traction as they offer flexible and cost-effective power generation solutions. The Heat Recovery Steam Generator Market Segmentation data suggests that the industrial segment is anticipated to grow at a CAGR of 5.6% during 2024-2032, owing to the rising demand for energy-efficient solutions in various industries.
Heat Recovery Steam Generator Market Regional Insights
The Heat Recovery Steam Generator Market is segmented into North America, Europe, APAC, South America, and MEA. The regional sector is influenced by factors such as growing power efficiency regulations, rising combined cycle power plant demand, and increasing industrialization. Within these areas, APAC is projected to have a substantial market portion due to the increased interest in energy-efficient solutions and the presence of huge manufacturing sectors. For example, as per 2023 data from the Heat Recovery Steam Generator Market report, Asia-Pacific had around 35% of global revenues for that year.
By contrast, North America and Europe will also grow steadily in the Heat Recovery Steam Generator Market because of well-established power generation industries and stringent environmental rules.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Heat Recovery Steam Generator Market Key Players And Competitive Insights:
Major Heat Recovery Steam Generator Market players are continuously focusing on gaining a leading edge in the industry. Focused companies are heavily investing in research and development to create innovative and efficient products. Additionally, there has been a noticeable increase in strategic partnerships and collaborations, which, in turn, are supporting Heat Recovery Steam Generator Market companies in leveraging each other’s competencies and expanding the existing range of products.
The Heat Recovery Steam Generator Market is expected to be increasingly competitive for existing companies in the forthcoming years. The Market is expected to witness new product launches and companies focusing on increasing efficiency and developing sustainable products.
B W, based in North America, focuses on its core competencies in the design, manufacturing, and servicing of high-efficiency and custom-engineered HRSG. Babcock Wilcox Enterprises, Inc. is a renowned provider of boilers, environmental products, and power generation equipment. The company develops and offers Heat Recovery Steam Generators used in power generation, petrochemical, and refining companies.
Aalborg Industries A/S is a market participant in the manufacturing and design of efficient and high-performing HRSG products. This company designs and manufactures HRSG with dual pressure and water tube units. The company’s products are known for their environmental friendliness and low emissions. Most of the company's HRSG is delivered in triple-pressure and modular configurations. The company has a presence in Rotterdam and Busan, South Korea, for manufacturing, ATL, US, and assembly, and it has representatives in Argentina and Saint Petersburg.
Key Companies in the Heat Recovery Steam Generator Market Include:
- CMI Group
- HRS Heat Exchangers
- Alfa Laval
- Thermax
- Alstom
- Sumitomo Heavy Industries
- Aalborg Industries
- General Electric
- Kelvion
- Mitsubishi Heavy Industries
- Doosan Heavy Industries Construction
- Spirax Sarco
- Siemens
- Nooter Eriksen
- Babcock Wilcox
Heat Recovery Steam Generator Market Industry Developments
- Rising demand for energy efficiency: Governments and industries are increasingly focused on reducing energy consumption and carbon emissions, driving demand for HRSGs.
- Advancements in technology: Innovations in HRSG design, such as improved heat transfer efficiency and reduced emissions, are enhancing their performance and cost-effectiveness.
- Growing adoption in power generation: HRSGs are gaining popularity in power plants, particularly combined cycle and cogeneration facilities, due to their ability to recover waste heat and generate additional power.
- Expansion in industrial applications: HRSGs are finding increased use in various industries, including chemical processing, oil and gas, and manufacturing, to recover waste heat and improve energy efficiency.
- Government incentives and regulations: Governments are implementing incentives and regulations to promote the adoption of energy-efficient technologies, including HRSGs.
- Strategic acquisitions and partnerships: Key players in the HRSG market are engaged in acquisitions and partnerships to expand their product offerings and geographic reach.
- Emphasis on renewable energy integration: HRSGs are being integrated with renewable energy sources, such as solar and biomass, to enhance overall system efficiency and reduce reliance on fossil fuels.
Heat Recovery Steam Generator Market Segmentation Insights
Heat Recovery Steam Generator Market Fuel Type Outlook
- Fossil Fuels (Coal, Natural Gas, Oil)
- Biomass
- Renewable Sources (Solar, Geothermal, Waste Heat)
Heat Recovery Steam Generator Market Capacity Outlook
- 100 MWe
- 100-250 MWe
- 250-500 MWe
- >500 MWe
Heat Recovery Steam Generator Market Application Outlook
- Power Generation
- Industrial Processes (Chemical, Petrochemical, Refining)
- Desalination Plants
- District Heating
Heat Recovery Steam Generator Market Technology Outlook
- Vertical HRSG
- Horizontal HRSG
- Shell and Tube HRSG
Heat Recovery Steam Generator Market End User Outlook
- Utilities
- Industrial Companies
- Municipal Authorities
- Independent Power Producers
Heat Recovery Steam Generator Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
4.38(USD Billion) |
| Market Size 2023 |
4.64(USD Billion) |
| Market Size 2032 |
7.7(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
5.8% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
CMI Group, HRS Heat Exchangers, Alfa Laval, Thermax, Alstom, Sumitomo Heavy Industries, Aalborg Industries, General Electric, Kelvion, Mitsubishi Heavy Industries, Doosan Heavy Industries Construction, Spirax Sarco, Siemens, Nooter Eriksen, Babcock Wilcox |
| Segments Covered |
Fuel Type, Capacity, Application, Technology, End User, Regional |
| Key Market Opportunities |
1 Growing demand for energy efficiency2 Rising environmental concerns3 Government incentives and regulations4 Technological advancements |
| Key Market Dynamics |
1 Growing demand for energy efficiency2 Rising cost of fossil fuels3 Government incentives for renewable energy4 Technological advancements5 Increasing awareness of environmental benefits |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Heat Recovery Steam Generator Market was valued at USD 4.64 billion in 2023 and is projected to grow to USD 7.7 billion by 2032, exhibiting a CAGR of 5.8% during the forecast period.
Asia Pacific is expected to dominate the Heat Recovery Steam Generator Market over the forecast period due to the increasing demand for energy-efficient solutions and the presence of a large number of power plants in the region.
The key growth drivers of the Heat Recovery Steam Generator Market include the rising demand for energy efficiency, increasing environmental concerns, and government regulations promoting the adoption of renewable energy sources.
Major applications of Heat Recovery Steam Generators include power plants, oil and gas refineries, chemical plants, and industrial facilities.
Major players in the Heat Recovery Steam Generator Market include Babcock Wilcox, Amec Foster Wheeler, Thermax, HRSG Boiler, and Doosan Heavy Industries.
Challenges faced by the Heat Recovery Steam Generator Market include high initial investment costs, stringent environmental regulations, and the availability of alternative energy sources.
Emerging trends in the Heat Recovery Steam Generator Market include the development of new materials and technologies for improved efficiency and reduced emissions, as well as the integration of heat recovery steam generators with combined cycle power plants.
The future outlook of the Heat Recovery Steam Generator Market is positive due to the increasing demand for energy-efficient solutions, growing environmental concerns, and supportive government policies.
Key factors to consider when selecting a Heat Recovery Steam Generator include efficiency, reliability, cost, and maintenance requirements.
Environmental benefits of using Heat Recovery Steam Generators include reduced greenhouse gas emissions, improved air quality, and conservation of natural resources.
