Europe Heat Recovery Steam Generator Market Size & Share 2025 - 2034
Market Size by Design, by Rated Power, by Mode of Operation, by Application and Forecast.
Report ID: GMI5728
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Published Date: December 2024
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Report Format: PDF
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Authors:
Ankit Gupta, Manish Dhiman
Europe Heat Recovery Steam Generator Market Size
The Europe heat recovery steam generator market size in 2024 was valued at USD 427.2 million and is estimated to grow at a CAGR of 4.5% from 2025 to 2034. Increasing energy demand, paradigm shift towards renewable energy integration, stringent energy efficiency regulations, and need to reduce carbon emissions is influencing the business dynamics. The focus on enhancing HRSG performance and efficiency through enhanced technologies including improved coatings, materials and control systems will augment the product adoption.
Europe Heat Recovery Steam Generator Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
The heat recovery steam generator is a complex pressure vessel comprising various heat exchangers, including a boiler, superheater, and economizer. Environmental regulations, increasing electricity costs, and declining capital expenses for HRSG systems are promoting their adoption across diverse industrial applications. Additionally, rapid industrialization, escalating energy demand, and government initiatives focused on enhancing energy efficiency will complement the industry landscape.
For instance, in February 2024, the European Commission introduced its 2040 climate target assessment. The plan calls for a 90% reduction in EU net greenhouse gas emissions compared to 1990 levels. This goal aligns with the EU's 2050 climate neutrality objective, as mandated by the European Climate Law and central to the European Green Deal.
Europe Heat Recovery Steam Generator Market Trends
Europe heat recovery steam generator industry is anticipated to witness significant growth owing to focus on integrating renewable energy sources along with substitution of coal with gas in small-scale industrial applications. Rising energy requirements and substantial investments in advanced turbine systems along with energy efficiency policies have encouraged the expansion of these plants, contributing to industry growth. For instance, In November 2023, NEM received certification for H2-Readiness in power plants for its products from TÜV SÜD. The certification confirms that NEM's HRSG can handle up to 100% hydrogen fuel, aligning with hydrogen use in energy systems.
Europe Heat Recovery Steam Generator Market Analysis
Horizontal drum segment is anticipated to grow over USD 350 million by 2034. These units are gaining popularity owing to their ease of compatibility and lower capital expenditure. These systems feature horizontal exhaust gas fans and vertically arranged heat exchanger tube bundles, and its design promotes natural circulation of water and steam mixture through the evaporator tubes. Ongoing technological advancements and the expansion of combined cycle power plants are set to positively influence the business dynamics.
Europe heat recovery steam generator market from ≤ 30 MW segment is anticipated to witness a CAGR of over 4% till 2034. Growing adoption rate across small-scale generation plants and various industrial applications along with adoption of these units for process heating and commercial spaces in cold climates will complement the industry landscape. The increasing demand for micro gas turbines and the continuous deployment of cogeneration systems have enabled an encouraging business scenario for industry players.
Germany heat recovery steam generator market is set to grow over USD 100 million by 2034. Government regulations aimed at reducing coal-based power plants, significant increase in energy demand, ongoing expansion and development of cogeneration technologies, is complementing the business landscape. For instance, in September 2024, Germany's National Energy and Climate Plan maps out the country's strategy to meet EU 2030 energy and climate goals. This decade-long plan aims to cut emissions and boost clean energy. Despite setting high renewable targets, the NECP reveals Germany's ongoing reliance on foreign fossil fuels and a limited clean energy technology portfolio.
Europe Heat Recovery Steam Generator Market Share
In the Europe heat recovery steam generator compressor market, industry leaders are prioritizing innovation and sustainability. These companies face a competitive landscape marked by rapid technological shifts and regulatory challenges. Key players like Kawasaki Heavy Industries, GE, John Wood Group, Mitsubishi, Thermax and Siemens Energy are focusing on developing efficient, cost-effective solutions to maintain their market positions. The industry's focus remains on advancing technology while meeting stringent environmental and operational standards.
Europe Heat Recovery Steam Generator Market Companies
Major players operating across the industry include:
Europe Heat Recovery Steam Generator Industry News
The Europe heat recovery steam generator market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” from 2021 to 2034, for the following segments:
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Market, By Design
Market, By Rated Power
Market, By Mode of Operation
Market, By Application
The above information has been provided for the following countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
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Industry databases
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Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →