Europe Heat Recovery Steam Generator Market Analysis

Europe Heat Recovery Steam Generator Market Analysis

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The Europe heat recovery steam generator market from horizontal drum design segment is set to expand at 4% CAGR between 2023 and 2032, owing to its ease of compatibility and lower capital expenditure. The systems are equipped with horizontal exhaust gas fans and heat exchanger tube bundles arranged in a vertical configuration. They are designed to facilitate the natural circulation of a mixture of water and steam across the evaporator tubes. Additionally, continuous technological development coupled with robust growth in combined cycle power plants will stimulate the market growth.
 

The rapid development of industrial and commercial sector comprising of refineries, chemical processing plants, textile plants, and food processing will drive the demand for vertical drums. These compact and flexible systems are typically used with gas turbines and offer the necessary flexibility and performance required for cogeneration and industrial systems. Ongoing investment toward the development of heating industry and manufacturing sector across emerging nations will provide favorable growth for the industry.
 

The < 30 MW of heat recovery steam generator market accounted for over USD 140 million revenue in 2022, due to high adoption rate across the small-scale generation plants and industrial sectors. These units are ideal for process heating and commercial spaces in cold climatic conditions. Rising demand for micro gas turbine and ongoing adoption of cogeneration systems have influenced favorable business scenarios to the industry players for expansion. The expansion and development of Combined Heat and Power units to sustain heat and energy consumption across small industrial, commercial, and isolated grid networks will further augment the business growth. Furthermore, accelerating investments in the development of effective combined cycle plants to sustain low heat requirements across these establishments will boost industry growth.
 

The >30 MW – 50 MW rated capacity is set to gain an appreciable upliftment over the forecast timeline, on account of their widespread utilization across mechanical drive, oil & gas, power generating stations, and other industrial processes. Furthermore, the favorable consumers and industry proximity supported by favorable regulatory reforms by respective government authorities will complement the business outlook. The shift towards cleaner energy to reduce emissions is driving the demand for these units.
 

The Europe heat recovery steam generator market from combined cycle operation segment is poised to observe around 4% CAGR through 2032, attributed to increasing concern of environment and adoption of sustainable power generation technology. Higher efficiency and lower emissions as compared to traditional products will augment the industry size. Countries including UK, Denmark, and Russia are replacing their coal-fired power plants with sustainable systems to meet their emission reduction targets. For instance, in 2021, 324 coal-based power plants in Europe have either closed or announced plans to retire before 2030. High-grade heat availability, low emissions, and high reliability are the key parameters impacting the market growth.
 

Ongoing government regulation toward reduction of coal-based power plants will further accelerate the development of cogeneration technologies in the region. Over the past decade, exponential increase in energy demands in line with favorable tariff structures has energized the overall industry size. Moreover, the growth of cogeneration technologies has provided an opportunity for product expansion. The integration of sustainable energy networks coupled with the adoption of energy-efficient technology system have created favorable business scenario for cogeneration technologies, which in turn will propel the demand for these HRSG’s systems.
 

The Europe heat recovery steam generator market from commercial application dominated over USD 60 million in 2022 and is estimated to surge at a CAGR of over 5% till 2032, on account of supporting government fundings schemes to expand infrastructure in respective countries. A positive outlook toward sustainable energy sources coupled with ongoing expansion of thermal power stations across developing nations will thrust the demand for these units. Implementation of strict emission norms has created an opportunity to deploy combined cycle plants, ultra-supercritical, and supercritical system thereby enhancing the industry outlook. In addition, the rapid industrialization and improving living standards in emerging economies have led to an increased demand for electricity thereby, creating growth opportunities for the industry.
 

Germany heat recovery steam generator market is projected to cross USD 100 million by 2032. Favorable regulatory policies and fundings in line with advancements in cogeneration technology will accelerate the investment opportunity across the country. The country is anticipated to upsurge owing to large population centers and strong industrial presence. The growing focus toward sustainable energy along with several government incentives for development of cogeneration technology will drive the Germany market. Ongoing modernization and refurbishment of power infrastructures by investing in waste heat recovery generation system will support waste heat and steam generation units across the country.