Europe Waste Heat Recovery Systems Market Size & Share 2025 - 2034

Europe Waste Heat Recovery Systems Market Size

The Europe waste heat recovery systems market was valued at USD 22 billion in 2024 and is estimated to reach the value of USD 41.8 billion by 2034, growing at a CAGR of 6.8% from 2025 to 2034. The market is showing significant development, fueled by several factors that align with regulatory, environmental, and technological developments.

An advantage by captured and redirecting unused energy in industrial processes, Waste heat recovery systems has been identified as a solid alternative aid which reduces further energy consumption and cuts back GHG emissions. Across the world government are undertaking additional efforts to capture carbon-dioxide emissions and aim to reach net-zero around the mid-years of 2050. For example, European government set cover more ambitious aims by the EU – a goal of net 55% or greater reduction of greenhouse emissions from the 1990 levels by the year 2030 and climate neutrality by the year 2050.
 

EU waste management policies thus seek to minimize the environmental and health effects of waste and make the EU more resource efficient. The long-term objective of these policies is to minimize waste generation and, where waste generation cannot be avoided, encourage it as a resource and attain increased recycling rates and safe disposal of waste.
 

Tighter energy efficiency standards are being enforced worldwide, forcing industries to use technologies that consume less energy. Waste heat recovery systems are compatible with these regulations as they capture otherwise wasted thermal energy, helping overall energy efficiency increase. As reference, in November 2023, government act mandated that is aimed at decreasing energy consumption and meeting EU energy efficiency targets.
 

The introduction of U.S. tariffs in April 2025 under President Trump's administration is poised to impact the European Waste Heat Recovery Systems (WHRS) market, a sector integral to energy efficiency and industrial decarbonization. European manufacturers of WHRS components may face hurdles in exporting to the U.S. market, traditionally a significant destination for such technologies.
 

Europe Waste Heat Recovery Systems Market Trends

The use of renewable energy resources in industrial operations is a preference for most governments. Waste heat recovery systems have the ability to supplement renewable energy sources since they can offer a stable and steady supply of energy, particularly during times when the renewable sources are intermittent. As a reference, illustrative 2050 pathways from the Clean Growth Strategy (CGS) indicate that approximately 1 in every 5 buildings has the capability of accessing a primarily low carbon district heat network by 2050.
 

The Energy Efficiency Directive puts an emphasis on concerning member States to make energy conserving WHR Technology steps. Every state is expected to meet specific WHR targets and motivates companies to install investment recovery units to accomplish these goals. Wonderful technology developed by the ETEKINA project, which was financed by the EU, reduces damage to nature by recycling indusial heat. The study aids the idea of the EU to be free of pollution in the coming decades.
 

The Circular Economy Action Plan of the European Union, under the European Green Deal, highlights the significance of waste reduction and resource efficiency. The plan promotes material and energy reuse, with the aim of introducing WHR systems across different sectors. The systems fit into the circular economy model by utilizing waste heat and transferring it into available energy, thus reducing energy consumption overall and mitigating its impact on the environment.
 

For instance, in 2020, France has implemented policies like "Anti-waste Law" for the overall economy to enable the transition towards a circular economy, like offering incentives to businesses to invest in waste heat recovery technology. These policies aim to reduce waste and increase resource efficiency across various sectors.
 

Europe Waste Heat Recovery Systems Market Analysis

• The market was valued at USD 21.1 billion, USD 21.4 billion and USD 22 billion in 2022, 2023, and 2024 respectively. On the basis of application, the market is divided into pre-heating, electricity & steam generation, others, where electricity & steam generation will grow at a CAGR of over 7.8% till 2034 owing to focus on the climate change activities.
   
• Pre-heating refers to the process of using waste heat to increase the temperature of entering fluids and lower the amount of energy required in subsequent heating processes. Pre-heating is mostly used in industries like cement, steel, and chemical production where high-temperature processes are a norm.
   
• Electricity generation from waste heat recovery is the exploitation of waste thermal energy to produce electricity via either Organic Rankine Cycle (ORC) or Kalina cycle technologies. This practice is growing in popularity in energy-intensive industries like the cement, glass, and metal manufacturing. Thus, the increasing growth in industrial sector activities is propelling the market for waste heat recovery systems.
   
• For instance, in April 2025, NTT Data launched a new waste heat recovery project in collaboration with Quartierswerk Gartenfeld GmbH, GASAG Solution Plus and Engie Deutschland. The project will have waste heat potential of 8MW out of the NTT 17MW 1 Data Center, which will be supplied to “Das Neue Gartenfeld,” a new mixed-use development in Berlin-Spandau.
   

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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 other, where cement market share captured over 27% in 2024. This is owing to the adoption of recent technologies and beneficial government policies for the European market.
   
• The cement sector is a prime mover of the waste heat recovery market, mainly because of the extreme heat used in the manufacturing sectors. For instance, as reported in September 2024, by the World Cement Association, worldwide cement manufacturing is responsible for almost 8% of worldwide CO₂ emissions—prompting demand for energy-saving technologies such as WHR. Government regulations, including those under the European Green Deal, to further promote take-up.
   
• Petroleum refining industry is the biggest sector driving the waste heat recovery market, considering the processes are highly energy intensive. Refineries are always running 24/7 and consume enormous quantities of fuel for distillation, cracking, and reforming processes, which all result in high waste heat. WHR systems assist in recovering exhaust gases from furnaces, boilers, and flue stacks, transforming them into useful energy—in most cases, in the form of steam or power.
   
• Production of heavy metals, particularly steel and aluminum, is a key promoter of the waste heat recovery business. These operations are marked by continuous high-temperature operations—like smelting, rolling, and forging—that release tremendous amounts of thermal energy. These systems capture waste heat from equipment such as electric arc furnaces, reheating furnaces, and converter off-gases to generate steam or electricity.
   
• The glass manufacturing industry is another key market driver for waste heat recovery market growth, driven by the high-energy processes involved in the industry. Glass melting furnaces are operated at temperatures over 1,500°C, and up to 30–40% of the input energy is lost as waste heat in flue gases. WHR equipment can recover this heat to generate electricity, batch material, or cullet—raising thermal efficiency considerably.
   

• The Germany waste heat recovery systems market was valued at USD 3.9 billion, USD 4 billion, and USD 4.1 billion in the year 2022, 2023, & 2024 respectively. This is experiencing significant growth, driven by technological advancements, stringent climate policies, and a cooperative push towards decarbonization.
   
• Germany leads the way in incorporating waste heat recovery into its energy transition policy. The Renewable Energy Sources Act (EEG) has played a central role, shifting from feed-in tariffs to auctions, promoting cost-efficient renewable solutions such as waste heat recovery. The German government is further speeding up approval for geothermal facilities, heat pumps, and heat storage units as part of the move to eliminate fossil fuels in its heating system by 2045.
   
• The UK is using advanced heat networks to make the most of waste heat recovery systems in recent years. For reference, one prominent project is the South Westminster Area Network in London, which will provide low-carbon heating to around 1,000 buildings with surplus heat from the River Thames, London Underground, and sewers.
   
• France's strategy for waste heat recovery focuses on regulatory assistance and industrial integration. French energy policies promote the use of waste heat recovery technology by industries through incentives and simplified permitting. Although the specific market information is scarce, the commitment of France towards the reduction of industrial emissions is in line with the overarching European Union directives on energy efficiency and climate objectives. For instance, in December 2024, advanced heat recovery system for Placo plant backed by the French Agency for the ecological transition (ADEME) is introduced for its facility that will help to reduce environmental footprint.
   

Europe Waste Heat Recovery Systems Market Share

The top 5 companies in the Europe waste heat recovery system market include Climeon, Mitsubishi Heavy Industries, Ltd., Dürr Group, General Electric, and Cochran, gathering over 30% market share. These companies have emerged and funded in global collaborations along with increasingly active technologies and team up with other partners for the development of waste management services.
 

The dominant control of the prime market player through connections & agreements as well as their persistent investments largely affects their control in the industry. As a reference, In December 2024, Climeon signed a contract for more than USD 1.08 million (EUR 1 million) with one of the largest shipping companies in the world for the installation of HeatPower 300 waste heat recovery (WHR) systems. The aim is to restore energy efficiency on two big operating container vessels. The HeatPower 300 system of the company is flexible and holistic in its design, concentrating new build requirements as well as retrofitting on in-service vessels.
 

Europe Waste Heat Recovery Systems Market Companies

• Mitsubishi Heavy Industries, Ltd. is a Japanese multinational conglomerate manufacturing and engineering company that is the center of the Mitsubishi Group, known for its global presence of different products, ranging from energy systems, infrastructure, aerospace, to defense. With more than 77,778 employees and numerous subsidiaries, the company is global in operation. By creating and offering innovative solutions to many different industries it has generated over USD 32 billion from March 2023 to March 2024.
   
• Dürr Group is leading in mechanical and plant engineering with expertise in automation, digitalization, and energy efficiency. Its main customers are the automotive and furniture/timber house manufacturers, but it also supplies markets such as chemical, pharma, medical technology, and electrical engineering. In 2024 it has made approximately USD 5548.63 million driven by the strong product portfolio.
   
• General Electric is a General Electric is a global conglomerate with a reputation for having a wide range of businesses such as aerospace, energy, healthcare, and digital solutions. It was established in 1892 and has grown from its origins in electrical engineering and manufacturing to become a preeminent industrial technology and financial services company. The company created revenue of approximately USD 10 billion in 1^st Quarter 2025.
   
• BIHL is a world leader in the designing and supplying of thermal process equipment, including direct-fired heaters, heat recovery steam generators (HRSGs), waste heat recovery units (WHRUs), and once-through steam generators (OTSGs). The company produced around USD 17.7 million in 2024 driven by the strong offering to applications.
   

Key market players operating across the Europe waste heat recovery system industry are:

• BIHL
• AURA
• Bosch Industriekessel GmbH
• Climeon
• Cochran
• Danfoss
• Dürr Group
• E.ON
• EXERGY INTERNATIONAL SRL
• Forbes Marshall
• Fortum
• General Electric
• HRS
• MITSUBISHI HEAVY INDUSTRIES, LTD.
• Ormat
• Orcan Energy
• Promec Engineering
• Siemens Energy
• Sofinter S.p.a
• Viessman
   

Europe Waste Heat Recovery Systems Industry News

• In March 2025, Climeon is supporting the Clean Industrial Deal launched by the European Commission that will use Climeon’s ORC technology to enhance energy security, lower energy costs, and boost industrial decarbonization. The government will fund around USD 113 billion to support clean energy and decarbonization.
   
• In April 2025, E.ON Polska company has finished building a heat recovery system at ArcelorMittal Poland's Dbrowa Górnicza plant. The fully loaded technology is now in full setup and delivers substantial energy savings and is being put through final warranty tests.
   
• In May 2024, Google inaugurates heat recovery initiative at data center in city of Hamina, Finland. It will have heat produced at the data center channeled into a district heating system run by energy firm Haminan Energia, which heats houses, schools, and public service buildings in the region.
   
• In June 2024, Danfoss Hewlett Packard Enterprise jointly introduced HPE IT Sustainability Services Data Centre Heat Recovery, a heat recovery module designed to manage and value surplus heat in organizations in the process of becoming sustainable IT facilities.
   

This Europe waste heat recovery system 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 Application

• Pre-Heating
• Electricity & steam generation
  • Steam rankine cycle
  • Organic rankine cycle
  • Kalina cycle 
• Other

Market, By Temperature

• 230 °C
• 230-650 °C
• >650 °C

Market, By End Use

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

The above information has been provided for the following countries:

• Germany
• UK
• France
• Italy
• Spain