Authors:
Ankit Gupta, Abhishek Chopra
Download free PDF
Heat Recovery Steam Generator Market Size & Share 2026-2035
Report ID: GMI3374
|
Published Date: October 2026
|
Report Format: PDF/Excel/Dashboard/Platform
Explore Our Licensing Options:
Heat Recovery Steam Generator Market
Get a free sample of this report
What are you hoping to find?
Your PDF is on its way. Tell us little about your research goal, and we'll help you find the most relevant market insights.
Heat Recovery Steam Generator (HRSG) Market Size
The heat recovery steam generator (HRSG) market was valued at USD 1.56 billion in 2025 and is projected to reach USD 1.64 billion in 2026, advancing at a 5.58% CAGR from 2026 to 2035, to reach USD 2.68 billion by 2035.
Heat Recovery Steam Generator Market Key Takeaways
Market Leader: GE Vernova led with over 18% market share in 2025.
Leading Players: Top 5 players in this market include GE Vernova, Siemens Energy, Mitsubishi Heavy Industries, Doosan Enerbility, Shanghai Electric, which collectively held a market share of 54% in 2025.
The heat recovery steam generator (HRSG) market is evolving from a predominantly greenfield combined-cycle equipment market toward a broader replacement, repowering, and industrial cogeneration opportunity. Utility-scale gas projects remain central to order intake, while aging pressure-part fleets and industrial steam-management requirements create demand that is less dependent on a single construction cycle.
GMI Analyst View
Based on our primary industry consultations with HRSG manufacturers and project-level EPC specialists, the global HRSG market generated USD 1.31 billion in revenue in 2022. We view this recovery-stage baseline as evidence that subsequent expansion has been supported by a more durable mix of combined-cycle development, fleet renewal, and industrial energy-system investment.
Heat Recovery Steam Generator (HRSG) Market Trends, Growth Drivers & GMI Forecast Outlook
Combined-cycle construction is expected to support near-term equipment demand, but the market's later-stage expansion increasingly depends on replacement decisions, industrial steam requirements, and specifications that reward operating flexibility. Procurement timing will remain closely linked to turbine availability, project financing, and the pace at which gas retains a dispatchable role alongside renewables.
Key Drivers
Evidence anchors use cited external data; demand implications and forecast conditions represent GMI analysis.
The U.S. construction pipeline gives HRSG suppliers a concentrated source of utility and EPC demand, particularly where grid reliability requirements and large-load connections favor combined-cycle additions. The Energy Information Administration identified 4.3 GW of combined-cycle capacity already under construction, indicating that part of the project pipeline has advanced beyond preliminary planning and into equipment-procurement sequencing. HRSG suppliers that can align engineering release, pressure-part fabrication, and site-delivery schedules with turbine awards are positioned to capture the strongest near-term conversion.
Fuel flexibility is becoming a specification differentiator rather than a niche technical feature. Three-pressure reheat designs, duct-burner integration, and hydrogen co-firing readiness can improve an asset's ability to serve variable dispatch and evolving emissions requirements. These requirements favor suppliers with established thermal-design capability, materials expertise, and the capacity to coordinate closely with turbine and EPC partners.
Key Restraints
Evidence anchors use cited external data; demand implications and forecast conditions represent GMI analysis.
Gas-turbine delivery constraints can defer an HRSG award even when developers retain confidence in the underlying power project. S&P Global reported that a new H-class combined-cycle facility was quoted at about USD 2,400 per kW in mid-2025, with costs roughly 2.5 times higher than comparable projects built several years earlier. Longer equipment queues and higher total project costs can extend financing and contracting cycles, pushing HRSG revenue recognition beyond the original construction timetable.
Renewable expansion also changes the role required of thermal assets. Low-emissions sources supplied 43% of global electricity in 2025, increasing pressure on new combined-cycle projects in mature markets to demonstrate flexibility, reliability, or replacement value rather than baseload expansion alone. For industrial buyers, the custom engineering, long-lead materials, and cycling-related maintenance exposure associated with high-specification HRSG systems can favor standardized or supplementary-fired alternatives with more predictable capital recovery.
GMI Analyst View
We see the principal near-term uncertainty as a timing issue rather than an absence of demand. Projects can be commercially compelling while still moving slowly through turbine allocation, financing, and EPC coordination. As the market matures, suppliers with replacement expertise and flexible-design capability should be less exposed to fluctuations in greenfield project conversion.
Heat Recovery Steam Generator (HRSG) Market Segment Analysis
By Design
The horizontal drum segment generated USD 1.12 billion in 2025 and is projected to hold a 70.4% share in 2035. In the heat recovery steam generator (HRSG) market, horizontal configurations remain the preferred utility-scale design where operators prioritize established reference bases, accessible pressure-part inspection, and integration with large combined-cycle power islands. Their continued prominence reflects procurement conservatism as much as thermodynamic performance.
Vertical drum HRSGs are projected to generate USD 795.0 million in 2035, advancing at a 6.0% CAGR (2026-2035). Their momentum is strongest where constrained sites, modular installation, and reduced field welding can improve project execution, particularly in industrial cogeneration and applications where civil-work duration carries material commercial risk.
By Technology
Unfired HRSGs generated USD 1.01 billion in 2025 and are projected to account for 63.2% of market revenue in 2035. They remain the core technology for utility-scale combined-cycle applications, where recovering turbine exhaust heat without supplementary combustion supports high-efficiency operating configurations and aligns naturally with advanced gas-turbine packages.
Supplementary-fired systems are projected to reach USD 798.0 million in 2035 at a 6.2% CAGR (2026-2035). Duct firing gives operators greater control over steam output when process-heat requirements do not match turbine loading, making this technology particularly relevant to chemicals, refining, district energy, and other industrial operations with variable thermal demand.
Fully-fired systems represented 7.0% of the market in 2025 and are projected to generate USD 190.0 million in 2035. Their addressable market remains specialized because they serve applications requiring dedicated steam production rather than conventional exhaust-heat recovery, but that role can be valuable in industrial utility systems where steam reliability outweighs the benefits of a standard combined-cycle configuration.
By Rated Power
The 30 MW segment generated USD 125.0 million in 2025 and is projected to expand at a 6.5% CAGR (2026-2035). Demand is tied to distributed industrial cogeneration, district-energy systems, and smaller gas-turbine applications, where modularity and site-specific steam requirements shape purchasing decisions more strongly than utility-scale efficiency optimization.
The >30-50 MW segment is projected to generate USD 335.0 million in 2035 and represented 12.0% of the market in 2025. This capacity range suits industrial parks, intermediate-scale independent power projects, and modular generation programs where developers seek a balance between standardized equipment packages and commercially meaningful steam output.
The >50-100 MW segment generated USD 281.0 million in 2025 and is projected to hold an 18.3% share in 2035. Its position reflects use in larger industrial cogeneration projects, mid-scale utilities, and process-industry facilities that need reliable steam and electricity without the footprint or capital commitment of the largest combined-cycle installations.
The >100-200 MW segment is projected to generate USD 800.0 million in 2035 and held a 30.0% share in 2025. It serves regional utilities and independent power producers deploying single-shaft combined-cycle configurations, particularly in markets where grid growth supports new thermal capacity but project economics favor intermediate plant sizes.
The >200 MW segment generated USD 499.0 million in 2025 and is projected to reach USD 824.0 million in 2035. Large-frame combined-cycle projects remain the principal demand base for this class, where power-island integration, thermal efficiency, and long operating lifetimes justify more complex HRSG pressure-part assemblies.
By Mode
Combined-cycle applications accounted for 65.0% of the market in 2025 and are projected to generate USD 1.70 billion in 2035. Their leadership reflects the centrality of CCGT projects to HRSG procurement, with equipment decisions typically sequenced alongside gas-turbine, steam-turbine, and generator awards.
Cogeneration is projected to generate USD 986.0 million in 2035, advancing at a 6.1% CAGR (2026-2035). The mode benefits from industrial owners' interest in controlling energy costs, improving steam reliability, and integrating power and process-heat investments into wider operational modernization programs.
By Application
The utilities segment generated USD 702.0 million in 2025 and is projected to account for 42.6% of market revenue in 2035. Utility demand remains closely tied to combined-cycle construction and fleet renewal, resulting in large but episodic procurement programs that depend on project awards, grid requirements, and power-market conditions.
The chemicals segment is projected to generate USD 512.0 million in 2035 at a 6.2% CAGR (2026-2035). Chemical producers value cogeneration HRSGs for their ability to supply controlled process steam while reducing exposure to purchased electricity and fuel-cost volatility.
Refineries represented 15.0% of the market in 2025 and are projected to generate USD 404.0 million in 2035. Refinery procurement is often embedded in wider modernization, conversion, or capacity-expansion programs, making steam integration and operational continuity more important than a purely stand-alone equipment comparison.
The commercial segment is projected to generate USD 293.0 million in 2035, advancing at a 6.5% CAGR (2026-2035). District-energy and institutional cogeneration projects provide demand where operators require dependable thermal output and flexibility to integrate with evolving local energy systems.
Pulp & paper applications generated USD 109.0 million in 2025 and are projected to hold a 7.0% share in 2035. These facilities remain a stable source of demand because their process operations require substantial steam and electricity, supporting both equipment replacement and targeted efficiency upgrades.
GMI Analyst View
We view segment development as a gradual broadening of the customer base rather than a displacement of utility demand. Combined-cycle projects will remain foundational, but industrial buyers increasingly evaluate HRSGs as part of integrated energy and steam-management strategies. This favors suppliers able to tailor configurations to site constraints, operating profiles, and process-heat requirements.
Heat Recovery Steam Generator (HRSG) Market Regional Analysis
North America Heat Recovery Steam Generator (HRSG) Market Analysis
North America generated USD 421.0 million in 2025 and is projected to reach USD 660.0 million in 2035. The heat recovery steam generator (HRSG) market in the region is supported by combined-cycle development, grid-reliability needs, and an installed fleet entering replacement and upgrade cycles. Procurement visibility is strongest where power demand growth and dispatchable-capacity requirements align.
United States
The United States generated USD 336.0 million in 2025 and is projected to reach USD 522.0 million in 2035. New combined-cycle development and a sizable installed fleet create parallel opportunities for greenfield packages and replacement pressure parts, while hydrogen-capable specifications are increasingly relevant to developers seeking to preserve future fuel flexibility.
Canada
Canada represented 12.1% of the North American market in 2025 and is projected to advance at a 4.7% CAGR (2026-2035). Demand is supported by combined-cycle additions, industrial cogeneration, and emissions-driven modernization in energy-intensive operations, with project economics shaped by provincial power-market conditions and local fuel availability.
Mexico
Mexico is projected to generate USD 59.0 million in 2035, advancing at a 5.4% CAGR (2026-2035). Private-power investment and industrial energy-cost management support demand, particularly in processing industries that can monetize dependable on-site electricity and steam production.
Europe Heat Recovery Steam Generator (HRSG) Market Analysis
Europe accounted for 20.0% of market revenue in 2025 and is projected to generate USD 440.0 million in 2035. The region's HRSG market is shaped by a tension between coal-to-gas transition projects, industrial cogeneration investment, and the expanding role of renewables. As a result, replacement, repowering, and flexible operation are becoming more consequential than broad-based greenfield expansion.
Germany
Germany generated USD 69.0 million in 2025 and is projected to hold a 23.4% share of the European market in 2035. Industrial cogeneration, coal-replacement projects, and continuing pressure to manage energy costs underpin demand, even as the wider generation mix moves toward lower-emissions capacity.
United Kingdom
The United Kingdom is projected to generate USD 74.0 million in 2035 at a 3.1% CAGR (2026-2035). The market is increasingly oriented toward life-extension, replacement, and repowering activity as aging combined-cycle assets require decisions on continued operating capability and efficiency.
Russia
Russia represented 17.0% of the European market in 2025 and is projected to advance at a 0.9% CAGR (2026-2035). Equipment access, project financing, and technology-sourcing constraints limit the pace of investment, leaving domestic and alternative-origin supply chains particularly important to modernization activity.
France
France generated USD 47.0 million in 2025 and is projected to hold a 14.8% share of European revenue in 2035. Demand is concentrated in industrial cogeneration, district-energy applications, and flexible thermal assets that complement a power system with a significant nuclear-generation base.
Italy
Italy is projected to generate USD 63.0 million in 2035 and represented 14.1% of the European market in 2025. Industrial cogeneration and conversion projects at existing thermal sites support equipment demand, particularly where process industries seek more efficient steam and power integration.
Asia Pacific Heat Recovery Steam Generator (HRSG) Market Analysis
Asia Pacific generated USD 578.0 million in 2025 and is projected to reach USD 1.09 billion in 2035. The heat recovery steam generator (HRSG) market in Asia Pacific combines large-scale CCGT additions with industrial expansion and replacement demand, giving the region the broadest set of procurement drivers among the major markets.
China
China generated USD 237.0 million in 2025 and is projected to reach USD 447.0 million in 2035. National utility procurement, industrial cogeneration, and replacement of older thermal assets support demand, while domestic suppliers retain an important role in serving local equipment programs.
India
India represented 18.0% of the Asia Pacific market in 2025 and is projected to advance at a 7.7% CAGR (2026-2035). Rising power needs, industrial expansion, and LNG-to-power development support a growing addressable market, with refinery and petrochemical investments adding a separate cogeneration demand stream.
Japan
Japan is projected to generate USD 153.0 million in 2035 and represented 15.9% of the Asia Pacific market in 2025. Its market is anchored in replacement and efficiency-upgrade decisions across an established combined-cycle fleet, with hydrogen-capable projects adding a selective source of higher-specification demand.
South Korea
South Korea generated USD 75.0 million in 2025 and is projected to hold a 12.0% share of Asia Pacific revenue in 2035. Combined-cycle conversion programs and domestic manufacturing capability underpin demand, while Korean suppliers remain active in both national projects and export-oriented power developments.
Australia
Australia is projected to generate USD 44.0 million in 2035 and represented 5.0% of the Asia Pacific market in 2025. Demand is linked to gas-fired generation, mining and resource-processing cogeneration, and replacement requirements at plants that have moved into later operating-life stages.
Middle East & Africa Heat Recovery Steam Generator (HRSG) Market Analysis
Middle East & Africa generated USD 187.0 million in 2025 and is projected to reach USD 390.0 million in 2035. Government-directed capacity programs, gas-fired power development, and industrial expansion provide a concentrated pipeline for heat recovery steam generator (HRSG) market participants, with demand often structured through large, multi-unit EPC awards.
Saudi Arabia
Saudi Arabia generated USD 65.0 million in 2025 and is projected to advance at a 7.9% CAGR (2026-2035). Large-scale power development and the transition toward gas-fired generation create sustained demand for integrated combined-cycle equipment, with procurement shaped by national capacity-planning priorities.
UAE
The UAE is projected to generate USD 98.0 million in 2035 and represented 27.8% of the Middle East & Africa market in 2025. National and municipal utility programs continue to favor efficient combined-cycle configurations that can support growing power demand while fitting broader energy-transition objectives.
Egypt
Egypt represented 11.8% of the Middle East & Africa market in 2025 and is projected to generate USD 47.0 million in 2035. Electricity-demand growth, domestic gas development, and utility expansion plans support a pipeline of combined-cycle opportunities with associated HRSG requirements.
South Africa
South Africa is projected to hold a 7.9% share of Middle East & Africa revenue in 2035 and advance at a 5.0% CAGR (2026-2035). The independent power sector and private generation market create opportunities for dispatchable gas capacity that can complement a growing renewable-energy base.
Latin America Heat Recovery Steam Generator (HRSG) Market Analysis
Latin America generated USD 62.0 million in 2025 and is projected to reach USD 106.0 million in 2035. The heat recovery steam generator (HRSG) market is supported by power-sector modernization and industrial cogeneration, although investment conditions and project-financing availability remain uneven across the region.
Brazil
Brazil represented 54.8% of the Latin American market in 2025 and is projected to generate USD 56.0 million in 2035. Thermal capacity development, industrial cogeneration, and equipment replacement in gas-fired assets support demand, with reserve-capacity mechanisms providing periodic visibility for larger projects.
Argentina
Argentina generated USD 12.0 million in 2025 and is projected to advance at a 4.1% CAGR (2026-2035). Longer-term demand is supported by domestic gas-resource development, although macroeconomic conditions and constrained financing can delay the conversion of technically viable projects into equipment orders.
GMI Analyst View
We see a widening regional divide in both demand scale and procurement character. Asia Pacific offers the deepest mix of new-build, industrial, and replacement opportunities, while Middle East & Africa benefits from more concentrated capacity programs. Europe's opportunity is increasingly selective, favoring suppliers that can address repowering, life extension, and flexible operation.
Heat Recovery Steam Generator (HRSG) Market Share & Competitive Landscape
The heat recovery steam generator (HRSG) market share structure is moderately concentrated, with the leading manufacturers including GE Vernova, Siemens Energy, Mitsubishi Heavy Industries, Doosan Enerbility, and Shanghai Electric collectively accounting for approximately 54.0% of global revenue in 2025. Competition centers on the ability to offer integrated power-island solutions, meet demanding pressure-part engineering requirements, manage long fabrication cycles, and provide proven performance across utility and industrial applications.
GE Vernova held an 18.0% share of the global market in 2025. Its competitive position is strengthened by integration with its gas-turbine portfolio, allowing the company to participate in coordinated turbine, HRSG, and long-term service arrangements where developers value a single accountable equipment partner.
Siemens Energy held a 12.0% share of the global market in 2025. The company's position reflects its ability to pair HRSG supply with SGT-series turbine packages and serve both utility combined-cycle and industrial cogeneration projects across multiple geographies.
Mitsubishi Heavy Industries held an 11.0% share of the global market in 2025. Its integrated turbine, HRSG, and steam-turbine offering is particularly relevant to high-efficiency combined-cycle projects, while its manufacturing and partnership base supports participation in Japanese, Asian, and Middle Eastern procurement programs.
Doosan Enerbility brings meaningful manufacturing and integration capability to domestic Korean projects and selected export markets. Its position is supported by participation in combined-cycle conversion programs and by the growing relevance of Korean equipment suppliers in regional power-project procurement.
Shanghai Electric has a strong position in Chinese utility and industrial markets, where domestic supply chains and locally aligned EPC activity are important competitive advantages. Its international role is expanding selectively in projects supported by Chinese engineering and construction partners.
Recent Industry Developments
November 2025 - GE Vernova / Enea Group, Kozienice Power Station, Poland. GE Vernova received an order from Enea Group for two 9HA.01 combined-cycle blocks for the Kozienice Power Station, including three-pressure reheat HRSGs. The development illustrates continuing HRSG demand from coal-to-gas replacement projects in Central Europe [4]GE Vernova. "GE Vernova to Provide H-Class Combined Cycle Equipment for Enea Group's Kozienice Power Station in Poland." gevernova.com.
February 2026 - John Cockerill / Siemens Energy, Grudziadz 2 and Gdansk, Poland. John Cockerill received contracts from Siemens Energy for Benson-type, three-pressure reheat HRSGs serving combined-cycle projects at Grudziadz 2 and Gdansk. The awards reinforce the role of Polish thermal-transition projects in sustaining regional procurement activity [5]John Cockerill. "John Cockerill Has Been Awarded 2 Contracts for 2 New Heat Recovery Steam Generators in Poland." johncockerill.com.
Need a specific section of this report?
Purchase regional analysis, country-level analysis, company profiles, or any other segment-level insights separately
based on your research needs.
Frequently Asked Questions (FAQs):
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
Industry journals, trade publications, and specialized media.
Industry databases
Proprietary and third-party market databases
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 20+ 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 →