Electricity Steam Generation Waste Heat Recovery Systems Market

Electricity & Steam Generation Waste Heat Recovery Systems Market Size

The global electricity & steam generation waste heat recovery systems market was valued at USD 33.4 billion in 2024 and is estimated to reach the value of USD 73.7 billion by 2034, growing at a CAGR of 8.4% from 2025 to 2034. Recent government initiatives regarding the recovery of waste heat as well as environmental regulations have positively impacted the regions, which in turn, has enabled the market’s vigorous growth.

Governments worldwide are promoting electricity & steam generation heat recovery systems to enhance energy efficiency and reduce emissions. For instance, in 2024, the DOE’s CHP Deployment Program provides further support and services necessary for the development of heat recovery systems. Credit also lowers the economic hindrance to investors in CHP since they also receive a 10% rebate for these systems. All these efforts should enhance energy productivity and lower the gas emissions in different industries.

Growing emphasis on incorporating waste heat recovery systems (WHRS) in various industrial sectors for operational cost savings and energy efficiency improvement. As a reference, in 2025, the Ministry of New and Renewable Energy (India) outlines that there is an approximate 5,000 to 7,500 MW potential of energy generation from waste heat recovery in different industries. The cement industry has a potential of about 750-1,000 MW WHRS which indicates that there are great opportunities for its adoption. Even though WHRS requires high initial investment costs, it is beginning to attract a wider audience due to its impact on reducing the carbon footprint and cost savings.

Incorporating waste heat into district heating systems is gaining importance as it seeks to improve energy efficiency and aid in environmental sustainability. District heating systems that provide thermal energy to multiple buildings from one central location can make use of the waste heat which is normally lost during industrial processes or electricity generation. Capturing and rerouting the available residual heat into heating networks makes it is possible to cut back on fossil fuel consumption while also decreasing emissions. This approach not only makes more circular and effective energy systems, but also works to mitigate energy waste, support resource use, and transcend other energy system efficiency designed goals.

Electricity & Steam Generation Waste Heat Recovery Systems Market Trends

Utilization of waste heat in district heating systems is becoming a priority focus in the improvement of energy efficiency and environmental protection. Heating systems for large areas that give thermal power to a number of buildings from one place will benefit significantly from incorporating auxiliary heat which is wasted during industrial processes or power generation. As a reference, in January 2024, The heat recovery steam generator of hydrogen-ready classification by John Cockerill, a large-scale provider of technological solutions.

Recovery of heat to preserve combustion fuels and fossil fuels is possible by repurposing heating residue into heating networks, and therefore fossil fuels reliance and emissions will decrease. This enhances energy system circularity alongside strived goals which seek to minimize energy consumption and optimize resources utilization globally. Area planners should consider repurposing fossil fuels waste to aid mobilization because burning fossil fuels helps meet district integration waste ensure efficient heating for urban infrastructures.

Increased focus on the advantages of various extraction methods is witnessed from government and private stakeholders, which indicates changes to exploitation responsive regions beyond the equator. Incorporating wasted heat regions marks a shift toward the use-oriented energy systems which aim to ensure all boundaries of thermal energy are available to be maximized.

These approaches highlight the worldwide efforts made to encourage the use of heat recovery systems as a method for attaining energy efficiency and emission reduction. In various sectors, governments are assisting the adoption of waste heat recovery systems technologies through funding, favorable policies, and other forms of help. As a reference, The ENE-FARM government program aims to install 5.3 million residential fuel waste heat recovery systems units by 2030, subsidizing their installation.

Electricity & Steam Generation Waste Heat Recovery Systems Market Analysis

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• The market was valued at USD 30.9 billion, USD 32 billion and USD 33.4 billion in 2022, 2023, and 2024 respectively. The steam rankine cycle is still a foundation of waste heat recovery in processes with high temperature systems, like cement, steel, and glass manufacturing. There seems to be a unified trend from governments towards upgrading these systems to increase energy efficiency and lower emissions.
  
• As a reference, the Federal Ministry for Economic Affairs and Energy in Germany has developed the “Energy Efficiency Strategy for Industry,” which seeks to improve energy efficiency related to industrial processes. This strategy also implements measures for the modernization of steam-based systems, stimulating the use of advanced novel materials and control methodologies to improve system performance.
  
• The organic rankine cycle is increasingly popular nowadays because of its capability to transform low, as well as medium temperature waste heat, into electric power. The implementation of organic rankine cycle systems in different industries is aided by the government in efforts to improve energy efficiency.
  
• While the steam rankine Cycle is being modernized with policy-driven efficiency improvements, the Organic Rankine Cycle is growing its range of uses with substantial government backing and the Kalina Cycle is model being bolstered by minimal government initiative funding for niche application. All of these focus areas indicate international efforts targeting the integration of systems designed for recovering waste heat to improve energy efficiency and sustainability.
  
• The kalina cycle which employs an ammonia-water solution has potential in recovering low-temperature waste heat. Its adoption has been slower than other technologies, but mandate changes indicate an increasing exploration of its possible uses. This appears to be motivated by government initiatives focused on waste heat recovery systems in recent years.
  

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• The end-use-based market is divided into petroleum refining, cement, heavy metal manufacturing, chemical, pulp & paper, food & beverage, glass, and others, from which cement market share was 25.8% in 2024. The petroleum refining sector is incorporating waste heat recovery systems with the aim of increasing energy efficiency and minimizing the emission of greenhouse gases.
  
• The most energy intensive cement industry segment is increasingly incorporating waste heat recovery systems WHRS to improve carbon efficiencies. Government incentives have been the most important factor in recent years. In some countries, WHRS powered electricity and steam generated power is classified as renewable, therefore meeting RPOs. This policy motivates cement producers to install waste heat recovery systems for compliance with requirements and incentives.
  
• The capture and reuse of waste heat in large-scale undertaking projects is one of the main motivators. For example, in September 2022, ADNOC Refining achieved the first milestone of its Waste Heat Recovery project at the General Utilities Plant in Abu Dhabi. This project aims to recover waste heat in order to produce up to 230 MW of electricity and 62,400 m³ of distilled water per day, increasing the plant’s thermal efficiency and electricity generation by almost 30%.
  
• Industries such as steel and aluminum production within the heavy metal manufacturing sector are increasingly implementing waste heat recovery systems to improve energy efficiency and mitigate ecological impacts. Furthermore, Technology development is also enabling the increased implementation of waste heat recovery systems. These improvements in heat exchangers and thermoelectric generators have increased the economic and operational efficiency of these systems.
  

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• The U.S. electricity & steam generation waste heat recovery systems market was valued at USD 6.6 billion, USD 6.8 billion, and USD 7.1 billion in the year 2022, 2023, & 2024 respectively. The North American market for waste heat recovery systems in electricity and steam generation is growing as a result of the region’s adoption of energy efficiency policies and the use of renewable energy technologies.
  
• Europe electricity & steam generation waste heat recovery systems market leading the development and implementation of waste heat recovery systems integrated with robust policies and novel projects. The European Union has imposed energy efficiency and carbon neutrality targets which have funded investments in waste heat recovery technologies. For instance, in September 2024, In Germany, the city of Geretsried is pioneering an advanced geothermal energy technology devised by Eavor with the intent of using cleaner sources for heating and electricity generation. Eavor's method creates energy by drilling into deep populations of hot rocks which poses as a significant test Eavor's method.
  
• The Asia Pacific region is driving the adoption of waste heat recovery systems across the region owing to the rapid pace of industrialization and sustainable economic growth. The implementation of waste heat recovery systems is increasing in China, India, Japan, and South Korea driven by the focus on climate change activities in recent years.
  
• There is a growing awareness among the Middle Eastern countries towards electricity & steam generation waste heat recovery systems. Owing to the opportunity to improve energy efficiency and sustainability within the developing countries. For instance, in September 2022, according to a statement from the Emirates News Agency (WAM), ADNOC Refining, a joint venture between the Abu Dhabi National Oil Company (ADNOC), Eni, and OMV, is scheduled to finish the first phase of its waste heat recovery project at the General Utilities Plant in Ruwais, Abu Dhabi.
  
• Latin America is becoming a fun and attractive waste heat recovery market as countries seek ways to improve energy efficiency and mitigate ecological effects. The region's industrial activities, especially in mining and manufacturing, offer opportunities for applying waste heat recovery system technologies.
  

Electricity & Steam Generation Waste Heat Recovery Systems Market Share

The top 5 companies in the electricity & steam generation waste heat recovery systems industry include General Electric, Climeon, Mitsubishi Heavy Industries, Ltd., Siemens Energy, and Thermax Limited, gathering around 30% market share. Additionally, these companies have established and benefited from global networks and advanced technology, as well as collaborating with other investors to promote the development of electricity & steam generation waste heat recovery systems.

Contracts set up by companies as well as continual industrial growth contribute to the firm’s leadership position in the market. As a reference, in April 2023, Climeon integrated its Heat Power System for a new Rhodesia power plant located in Nottinghamshire, UK. The plant will deliver up to 10 MW of low carbon flexible power with natural gas-powered engines, using Climeon’s Heat Power technology to increase energy efficiency and carbon capture systems to further minimize carbon emissions.

Electricity & Steam Generation Waste Heat Recovery Systems Market Companies

• General Electric is headquartered in Boston, Massachusetts, USA, General Electric is a multinational conglomerate with a significant presence in the energy, aviation, and healthcare industries. It delivers steam and gas turbines, combined-cycle systems, grid automation, and digital energy services along with other products and services. The company has made around USD 67.9 billion in 2023 driven by the strong performance in sales.
  
• Mitsubishi Heavy Industries, Ltd. headquartered in Tokyo, Japan, is a diversified industrial group involved in power systems, aerospace, defense, and industrial machinery. MHI’s Power Systems division is central to its role in the energy transition, offering products such as gas and steam turbines, waste heat recovery systems, carbon capture solutions, and decarbonized heat technologies. The company generated USD 30.7 billion in the year 2024, driven by the investments in R&D.
  
• Siemens Energy is headquartered in Munich, Germany, and operates as a global leader in energy technology and products. The company provides comprehensive solutions across energy value chain—including gas turbines, steam turbines, power transformers, electrical systems, and digital services for energy efficiency. The company made around USD 39.2 billion in 2024, driven by the strong global presence.
  
• Thermax Limited headquartered in Pune, India, is a leading energy and environment solutions provider with a strong presence in thermal engineering, waste heat recovery, renewable energy, and pollution control. The company caters primarily to industrial clients, offering solutions such as boilers, vapor absorption chillers, heat recovery systems, and biomass-fired plants. It has logged a consolidated revenue of USD 359 million in the fourth quarter of FY 2024-25.
  

Key players operating across the electricity & steam generation waste heat recovery systems market are:

• AURA
• BIHL
• Bosch Industriekessel GmbH
• Climeon
• Cochran
• Durr Group
• Exergy International SRL
• Forbes Marshall
• Fortum
• General Electric
• HRS
• IHI Corporation
• Mitsubishi Heavy Industries Ltd.
• Ormat
• Promec Engineering
• Rentech Boilers
• Siemens Energy
• Sofinter S.p.a
• Thermax Limited
• Viessman
  

Electricity & Steam Generation Waste Heat Recovery Systems Industry News

• In September 2024, Thermax teamed up with Ceres Power to produce large-scale Solid Oxide Electrolysis Cells (SOECs), which are a piece of equipment used to produce green hydrogen. Through this collaboration, Thermax will use its vast knowledge of waste heat recovery and heat integration to design, engineer, and develop SAM balance of module (SBM), a foundational element for the subsequent development of a multi-MW SOEC electrolyser module.
  
• In February 2025, Siemens Energy, and NEM Energy signed a new deal in order to deliver two horizontal Heat Recovery Steam Generators (HRSGs) for a new combined cycle power plant in Texas, USA. An estimated 1.2 GW will be produced by the facility when it is finished.
  
• In June 2024, Exergy international and Clean Energy Technologies, Inc signs an MOU to promote ORC Heat Recovery Solutions throughout the Americas and nearby locations. This strategic collaboration seeks to propel growth in the heat recovery solutions industry.
  
• In October 2022, The WHR-ORC system is a cutting-edge binary power generating system built on Organic Rankine Cycle technology by Mitsubishi Heavy Industries Marine Machinery & Equipment Co., Ltd. Its primary purpose is waste heat recovery from sulfur-free fuel main engines, which are beginning to gain traction in the shift to a decarbonized and low-carbon civilization.
  

This electricity & steam generation waste heat recovery systems market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2021 to 2034, for the following segments:

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Market, By Type

• Steam rankine cycle
• Organic rankine cycle
• Kalina cycle

Market, By Temperature

• 230 °C
• 230 °C - 650 °C
• > 650 °C

Market, By End Use

• Petroleum refining
• Cement
• Heavy metal manufacturing
• Chemical
• Pulp & paper
• Food & beverage
• Glass
• Others

The above information has been provided for the following regions and countries:

• North America 
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
• Aisa Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina