Waste Heat Recovery Market

• Rising energy demand to boost the market growth

The increasing need for energy, economic growth, and rising electricity prices are some of the key factors driving the global industry. Numerous industries are using more energy than ever before to produce goods. The primary energy usage was 93 quadrillion Btu, based on U.S. Energy Information Administration statistics. The developed world's industrialization has led to a rise in energy demand. Companies are developing various methods to turn waste heat into electricity in response to the growing need for energy. As a result, it is fueling the expansion of the waste heat recovery sector.

Thus the growing energy demand has enhanced the waste heat recovery market CAGR globally in recent years.

Countries have helped to recover and utilize waste heat directly or indirectly. In Denmark, several policies encourage waste heat recovery systems, including laws on district cooling, electrical heating, taxation, subsidies, and heat price regulation. The Italian Energy Management Authority (ARERA) adopted the eligibility of Waste Heat Recovery in the White Certificate Scheme in 2011, with the EEN 9-11, giving a 5-year advantage. Therefore, increased government initiatives to curb greenhouse gases are another factor driving the growth of the waste heat recovery market revenue.

The Global Waste Heat Recovery Market Industry is experiencing growth due to the increasing costs of energy. As industries face higher energy prices, the need for efficient energy management becomes paramount. Waste heat recovery systems allow companies to harness excess heat generated during industrial processes, thereby reducing energy consumption and costs. For instance, industries such as cement and steel have reported significant savings by implementing these systems. In 2024, the market is projected to reach 82.3 USD Billion, indicating a strong trend towards energy efficiency and sustainability in industrial operations.

The Global Waste Heat Recovery Market Industry is poised for substantial growth, with projections indicating a market size of 82.3 USD Billion in 2024 and an anticipated increase to 197.5 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 8.29% from 2025 to 2035, driven by various factors including rising energy costs, technological advancements, and increasing regulatory pressures. The market's expansion reflects a broader trend towards energy efficiency and sustainability across multiple industrial sectors.

Innovations in technology are propelling the Global Waste Heat Recovery Market Industry forward. Advances in heat exchanger designs, thermoelectric generators, and organic Rankine cycle systems are enhancing the efficiency of waste heat recovery processes. These technologies enable industries to capture and convert waste heat into usable energy more effectively. For instance, recent developments in thermoelectric materials have improved energy conversion rates, making waste heat recovery systems more attractive to manufacturers. This technological evolution is likely to contribute to a compound annual growth rate of 8.29% from 2025 to 2035, reflecting the increasing adoption of advanced waste heat recovery solutions.

The rapid pace of industrial growth and urbanization is significantly influencing the Global Waste Heat Recovery Market Industry. As developing nations industrialize, the demand for energy-efficient solutions becomes more pressing. Urban areas, characterized by high energy consumption, are particularly focused on implementing waste heat recovery systems to mitigate energy costs and environmental impact. For example, in countries like India and China, the integration of waste heat recovery technologies in manufacturing processes is becoming commonplace. This trend is expected to drive the market's expansion, as industries seek to optimize energy use and reduce their carbon footprint.

Stringent government regulations aimed at reducing carbon emissions are driving the Global Waste Heat Recovery Market Industry. Many countries are implementing policies that encourage the adoption of waste heat recovery technologies. For example, the European Union has set ambitious targets for reducing greenhouse gas emissions, which has led to increased investments in waste heat recovery systems. These regulations not only promote environmental sustainability but also provide financial incentives for industries to adopt cleaner technologies. As a result, the market is expected to grow significantly, with projections indicating a value of 197.5 USD Billion by 2035.

Growing awareness of sustainability and environmental responsibility is shaping the Global Waste Heat Recovery Market Industry. Consumers and businesses alike are increasingly prioritizing eco-friendly practices, prompting industries to adopt waste heat recovery technologies. This shift is evident in sectors such as food processing and chemical manufacturing, where companies are implementing systems to reduce waste and enhance energy efficiency. As sustainability becomes a core value for many organizations, the demand for waste heat recovery solutions is likely to rise, further propelling market growth in the coming years.

By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Waste Heat Recovery market accounted for USD 27.12 billion in 2021 and is expected to exhibit a significant CAGR of 43.2 percent growth during the study period. The demand for this region's waste heat recovery market has expanded due to rising onsite power generation and solid economic stability. About 4.11 trillion kilowatt-hours (kWh) of energy were produced by utility-scale electricity-producing facilities in the US in 2021, which is approximately 4,108 billion kWh.

Further, the key countries studied in the market report are The U.S, Germany, Canada, UK, France, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Waste Heat Recovery Market Share By The Region 2021 In (%)

Source: MRFR Database, primary research, secondary research, and analyst review

Europe's waste heat recovery market accounts for the second-largest market share. The European Union's measures to produce electricity from waste and the growing public awareness of waste heat recovery systems have been major waste heat recovery market growth drivers in this region. Germany's new administration, with encouragement from its coalition partner, the Greens party, toughened its climate protection law last year and has set the ambitious aim of accelerating the spread of renewable energy to 80% of electricity by 2030.

Further, the German waste heat recovery market held the largest market share, and the UK waste heat recovery market was the fastest-growing market in the European region.

The Asia-Pacific Waste Heat Recovery Market is expected to grow at the fastest CAGR from 2022 to 2030. The abundance of cement, paper and pulp, metal processing, and production sectors in this area also fuels the demand for Industrial Waste Heat Recovery Systems. By a wide margin, China will produce the most cement in the world in 2021, with an estimated 2.5 billion metric tonnes produced. Moreover, China's waste heat recovery market held the largest market share, and the Indian waste heat recovery market was the fastest-growing market in the Asia-Pacific region.

The market will rise due to major market players investing a lot of money in R&D to broaden the range of products they provide. Along with significant market developments like introducing new products, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are participating in several strategic initiatives to increase their global reach. Waste heat recovery industry rivals must provide competitively priced items to grow and remain in this increasingly competitive market.

Local production to cut operational costs is one of the main business methods manufacturers use in the global waste heat recovery industry to help customers and increase the market sector. Some of the most significant medical advances have come from the waste heat recovery industry. The waste heat recovery market major player such as, including Ormat Technologies Inc. (U.S.), Siemens AG (Germany), Thermax Limited (India), and ABB Ltd. (Switzerland), is attempting to increase market demand by funding R&D projects.

Boyd Corporation is a company that offers superior sealing, thermal management, and protection systems. Bonding, adhesive systems, extrusions, linear, gasket seals, air, conduction, liquid cooling, and related accessories are all available from the company. In January 2021, BOYD Corporation opened a new production plant in Juarez, Mexico, to extend its North American activities. The company will manufacture thermal systems and diverse engineered materials in an automated facility fueled by renewable energy. The quality management system will be accredited for the 40,000 square-meter facility.

Also, Ormat Technologies, Inc. is a multinational corporation headquartered in Reno, Nevada. Ormat provides geothermal energy technology that is both alternative and renewable. The company has constructed over 190 power plants and installed over 3,200 MW capacity. It owned and operated 933 MW of geothermal and recovered energy-based power facilities as of January 2021. In December 2020, Ormat Technologies Inc. finalized the acquisition of a 25-MW shovel-ready energy storage project in Upton County, Texas, from Consolidated Edison Inc. subsidiary Consolidated Edison Development Inc.

According to a Dec. 16 news release, the project is co-located with a 157-MW solar photovoltaic complex owned and operated by CED Upton County Solar LLC.