Global Waste Heat To Power Market Overview
As per MRFR analysis, the Waste Heat To Power Market Size was estimated at 17.87 (USD Billion) in 2022. The Waste Heat To Power Market Industry is expected to grow from 19.07 (USD Billion) in 2023 to 34.3 (USD Billion) by 2032. The Waste Heat To Power Market CAGR (growth rate) is expected to be around 6.73% during the forecast period (2024- 2032).
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Waste Heat To Power Market Trends Highlighted
The growing demand for sustainable energy solutions, combined with stringent environmental regulations, is fueling the expansion of the global Waste Heat to Power (WHP) market. Key market drivers include the rising cost of fossil fuels, advancements in WHP technologies, and government incentives for renewable energy projects. Opportunities abound in developing economies, where industrial sectors such as manufacturing, mining, and steel production generate significant amounts of waste heat.
Recent trends in the WHP market indicate a shift towards smaller, modular units that offer flexibility and ease of integration. Compact WHP systems can be tailored to specific applications, allowing businesses to efficiently harness waste heat from their operations. Moreover, innovations in WHP technologies, such as heat pumps and organic Rankine cycle systems, are enhancing efficiency and reducing capital costs. This has led to increased adoption across various industries, including food processing, pharmaceuticals, and transportation.
Waste Heat To Power Market Drivers
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Increasing Demand for Energy Efficiency
The Waste Heat To Power Market Industry is primarily driven by the increasing demand for energy efficiency. In an attempt to reduce energy consumption and carbon footprints, industries and governments all over the world are gradually veering towards waste heat to power technologies. With availability at various different sources, the heat can be captured and converted into electricity at a lower cost compared to what is incurred in producing power at power plants.The worldwide trend is going to increase over the coming years since there is a growing awareness regarding energy wastage and the need for improved energy efficiency.
Government Regulations and Incentives
Government regulations and incentives Are another driver of the Waste Heat To Power Market industry. Governments in most countries are implementing the needs which put upon companies on their emissions of greenhouse gasses. These companies are very much attracted to renewable energy to cut down their expenses incurred by penalties and other restrictions. They also get financial benefits like subsidies, taxes, grants, and many more from the government.
Technological Advancements
The growth of the Waste Heat To Power Market Industry is driven, in part, by technological advancements. Continued research and development will facilitate the production of waste heat-to-power products that are both more efficient and affordable. Furthermore, it will be possible to trap waste heat from an ever-increasing variety of sources- and at ever-decreasing temperatures. As the efficiency of the technology continues to improve, the market for waste heat-to-power systems will continue to expand in the future.
Waste Heat To Power Market Segment Insights
Waste Heat To Power Market Waste Heat Source Insights
The Waste Heat To Power Market is segmented by waste heat source, industrial waste heat, data center waste heat, power plant waste heat, petrochemical waste heat, and other waste heat sources. Excess heat is generated by your industry, and this waste source is substantial and needs to be sent to electricity generation devices. Industrial facilities, such as manufacturing plants, refineries, and steel extraction plants, generate waste heat. Therefore, waste heat recovery from industrial processes increases energy efficiency and decreases operating costs.
The additional heating load is a harsh product of the data center market that is growing at a rapid pace. To power servers and computer systems, a data center requires a significant amount of energy. Therefore, the waste heat generated from data center operations will help improve efficiency and effectiveness. Using their waste heat for power conversion is an effort to address the data center industry’s overall environmental sustainability.
The high waste heat from other sources is estimated to increase the global waste energy market. The thermal power plant market includes several markets, such as coal, oil and gas, and nuclear power plants. When these power plants generate electricity, they release significant waste heat. This implies that this heat source can be turned into electrical energy and used. The waste heat produced in petrochemical processing, crackers, refineries, reformers, and many other applications has the potential to be converted into electricity.
Therefore, waste heat exchangers in these factories will be used to generate power. The main additional source of waste energy considered in this report is geothermal energy. Earth’s meals and hot water are used to supplement electricity with geothermal energy. The waste heat markets for solar and biological energy are frequently referred to.
The sun generates vast amounts of light in the form of heat. This introduces other renewable energy options as a straightforward source of heat. Biomass involves decomposing organic matter to form heat, which can then be used for power generation. These sources of waste heat must be used to diversify energy sources and improve the market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Waste Heat To Power Market Power Generation Technology Insights
The Waste Heat To Power Market is expected to reach a valuation of USD 23.28 billion by 2026, exhibiting a CAGR of 7.4% during the forecast period. Segmentation of the market by power generation technology reveals several key players: Organic Rankine Cycle (ORC): ORC technology is widely used due to its capability to convert low to medium-grade waste heat into electricity.
It held the largest revenue share of 42.3% in 2023 and is anticipated to maintain its dominance throughout the forecast period. Steam Rankine Cycle: Steam Rankine Cycle technology is commonly employed in large-scale power generation plants. Its maturity and efficiency in converting high-temperature waste heat make it a prominent choice in industries like cement and steel.
Kalina Cycle: The Kalina Cycle is gaining traction as an advanced technology for waste heat recovery. It utilizes a mixture of ammonia and water as the working fluid, leading to higher efficiency compared to traditional Rankine cycles. Stirling Engine: Stirling Engine technology is known for its versatility and ability to operate with various heat sources.
Its compact design and low maintenance requirements make it suitable for small-scale waste heat recovery applications. Fuel Cells: Fuel Cells offer high efficiency and low emissions in waste heat for power generation. They are particularly well-suited for combined heat and power (CHP) systems, where both electricity and heat are produced simultaneously.
Waste Heat To Power Market Application Insights
The application segment of the global waste heat-to-power market can be broadly classified into power generation, cogeneration, combined heat and power (CHP), district heating, and industrial process heating. Power Generation holds the largest market share due to the increasing demand for electricity and the need to reduce carbon emissions.
Cogeneration, which involves the simultaneous production of heat and power, is also gaining traction due to its improved efficiency and cost-effectiveness. Combined Heat and Power (CHP) systems are widely used in industrial and commercial applications to generate both electricity and thermal energy, resulting in significant energy savings.
District Heating involves the distribution of heat from a central source to multiple buildings or facilities, reducing individual heating costs and improving overall energy management. Industrial Process Heating applications utilize waste heat to meet the thermal requirements of industrial processes, leading to energy conservation and reduced production costs.
The Waste Heat To Power Market for these applications is projected to grow significantly in the coming years, driven by rising energy costs, government regulations promoting energy efficiency, and the increasing adoption of renewable energy sources.
Waste Heat To Power Market Capacity Insights
The Waste Heat To Power Market is segmented by capacity into small-scale (up to 10 MW), medium-scale (10-100 MW), and large-scale (over 100 MW). Small-scale systems are typically used in industrial and commercial applications, while medium-scale systems are used in larger industrial facilities and power plants. Large-scale systems are used in utility-scale power plants and can generate hundreds of megawatts of electricity.
The large-scale segment is expected to dominate the Waste Heat To Power Market, accounting for over 60% of the market revenue in 2024. This is due to the increasing demand for renewable energy sources and the growing number of large-scale industrial facilities being built around the world.
The medium-scale segment is also expected to grow significantly as more businesses and industries look to reduce their energy costs and environmental impact. The small-scale segment is expected to remain relatively small, but it is still expected to grow at a steady pace as more businesses and homeowners adopt waste heat to power systems.
Waste Heat To Power Market End-User Insights
The Waste Heat To Power Market is segmented by end-user into Industries, Utilities, Municipalities, and Commercial Buildings. Among these, Industries held the largest market share in 2023, accounting for over 55.0% of the Waste Heat To Power Market revenue. This dominance is attributed to the significant generation of waste heat in industries such as manufacturing, mining, and chemicals, which can be harnessed for power generation.
Utilities are expected to witness the highest CAGR of 7.5% during the forecast period, owing to the growing demand for reliable and sustainable energy sources to meet the increasing electricity demand. Municipalities and Commercial Buildings also offer growth opportunities for waste heat to power solutions, driven by the need for energy efficiency and environmental sustainability.
Waste Heat To Power Market Regional Insights
Regionally, North America is projected to remain the largest market for waste heat to power, owing to the presence of a well-established industrial base and stringent environmental regulations. The region is also home to several leading manufacturers of waste heat recovery systems.
Europe is the second-largest market, driven by factors such as the increasing adoption of renewable energy sources and supportive government policies. APAC is expected to witness the highest growth rate during the forecast period, owing to the rapid industrialization and urbanization in the region. South America and MEA are expected to account for a smaller share of the global market, but they are likely to experience steady growth in the coming years.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Waste Heat To Power Market Key Players And Competitive Insights
Innovative solutions are offered by high-power stakeholders to ensure the best performance in the industry. It should be stated that the Waste Heat To Power Market is rife with stakeholders seeking to capitalize on the situation. This includes promising companies offering new solutions to the market and established historical stakeholders interested in preserving their positions.
Subsequently, one of the characteristics of the competitive Waste Heat To Power Market subsector is that it is one of the best in offering state-of-the-art and pioneering solutions for the respective companies. Another salient feature is the ability of stakeholders to build partnerships, enter promising markets with varying levels of success, and improve the overall availability of waste heat technology.
A number of companies in this particular industry have realized the potential of developing their waste heat recovery solutions and, as such, have begun innovating to create new systems. Nevertheless, Waste Heat To Power Market stakeholders continue to invest resources in research and development to boost energy production and system efficiency.
Despite past investments, a number of prominent companies in the Waste Heat To Power Market have made significant advances in their respective field. Siemens, a Waste Heat To Power Market stakeholder, is a significant competitor in the relative field of industry. Furthermore, Siemens is an organization with a long history of producing energy-related machinery and, as such, produces a significant number of heat recovery systems.
These systems are designed, manufactured, and supported by Siemens to develop the specific geological requirements of different companies. As a result, Siemens's global market presence was attributed to its success in the Waste Heat To Power Market. GE Power, another prominent participant in waste heat recovery systems, is a worldwide provider of solutions and technologies. Many waste heat recovery systems use the technology offered by the company to generate electricity, the so-called Topping Cycle System.
Key Companies in the Waste Heat To Power Market Include
- Enel Green Power
- Honeywell
- Siemens
- General Electric
- Alfa Laval
- Ormat Technologies
- Engie
- Clearway Energy Group
- DresserRand
- TerraNova Energy
- Veolia
- Mitsubishi Power
- ABB
- Enviva
- Cummins Inc
Waste Heat To Power Market Industry Developments
The Waste Heat To Power Market is projected to grow from USD 19.07 billion in 2023 to USD 34.3 billion by 2032, exhibiting a CAGR of 6.73% during the forecast period. Rising concerns about climate change and the need to reduce carbon emissions are driving the adoption of waste heat recovery technologies. Government initiatives and regulations promoting the use of renewable energy sources are further supporting market growth.
Key players in the market include Siemens, GE Power, and Mitsubishi Hitachi Power Systems. Recent developments include the launch of new waste heat recovery systems with improved efficiency and the establishment of partnerships between technology providers and end-users to drive project development.
Waste Heat To Power Market Segmentation Insights
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Waste Heat To Power Market Waste Heat Source Outlook
- Industrial Waste Heat
- Data Center Waste Heat
- Power Plant Waste Heat
- Petrochemical Waste Heat
- Other Waste Heat Sources
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Waste Heat To Power Market Power Generation Technology Outlook
- Organic Rankine Cycle (ORC)
- Steam Rankine Cycle
- Kalina Cycle
- Stirling Engine
- Fuel Cells
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Waste Heat To Power Market Application Outlook
- Power Generation
- Cogeneration
- Combined Heat and Power (CHP)
- District Heating
- Industrial Process Heating
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Waste Heat To Power Market Capacity Outlook
- Small-Scale (up to 10 MW)
- Medium-Scale (10-100 MW)
- Large-Scale (over 100 MW)
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Waste Heat To Power Market End-User Outlook
- Industries
- Utilities
- Municipalities
- Commercial Buildings
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Waste Heat To Power Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
17.87(USD Billion) |
| Market Size 2023 |
19.07(USD Billion) |
| Market Size 2032 |
34.3(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
6.73% (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 |
Enel Green Power, Honeywell, Siemens, General Electric, Alfa Laval, Ormat Technologies, Engie, Clearway Energy Group, DresserRand, TerraNova Energy, Veolia, Mitsubishi Power, ABB, Enviva, Cummins Inc. |
| Segments Covered |
Waste Heat Source, Power Generation Technology, Application, Capacity, End-User, Regional |
| Key Market Opportunities |
Industrial sector expansion High demand for waste heat recovery systems in industries for efficiency and sustainability Government initiatives Supporting policies and incentives drive the adoption of waste heat technologies. Renewable energy integration: Integration of waste heat power plants with renewable sources, e.g., solar wind, enhances energy security. Decarbonization goals: Increasing focus on reducing carbon emissions drives investments in waste heat recovery solutions Technological advancements Innovations in heat exchangers and turbines improve efficiency and cost-effectiveness. |
| Key Market Dynamics |
Government incentives Rising energy costs Technological advancements Environmental regulations Increasing industrialization |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Waste Heat To Power Market is expected to reach a valuation of USD 19.07 billion in 2023 and is projected to grow at a CAGR of 6.73% to reach USD 34.3 billion by 2032.
North America is expected to dominate the Global Waste Heat Power Market due to the increasing demand for energy-efficient solutions and the presence of a large number of industries in the region.
The industrial sector is expected to hold the largest market share due to the high availability of waste heat in industries such as steel, cement, and chemicals.
Key competitors in the Waste Heat To Power Market include General Electric, Siemens, Mitsubishi Heavy Industries, and Alfa Laval.
Key growth drivers of the Waste Heat To Power Market include the increasing demand for energy efficiency, the rising cost of fossil fuels, and the growing awareness of environmental sustainability.
Challenges faced by the Waste Heat To Power Market include the high cost of installation, the lack of awareness about the technology, and the limited availability of skilled professionals.
Opportunities for the Waste Heat To Power Market include the development of new technologies, the increasing demand for renewable energy sources, and the growing focus on sustainability.
Key trends in the Waste Heat To Power Market include the rising adoption of combined heat and power (CHP) systems, the increasing use of waste heat for district heating, and the development of more efficient waste heat recovery technologies.
The Waste Heat To Power Market is expected to grow at a CAGR of 6.73% from 2024 to 2032, reaching a valuation of USD 34.3 billion by 2032.
Key factors driving the growth of the Waste Heat To Power Market include the increasing demand for energy efficiency, the rising cost of fossil fuels, and the growing awareness of environmental sustainability.
