Heat Recovery Steam Generator Market Size - By Design (Horizontal Drum, Vertical Drum), By Rated Power, By Mode of Operation (Cogeneration, Combined Cycle), By Application (Utilities, Commercial, Chemicals, Refineries, Pulp & Paper) & Forecast, 2022 - 2030

Heat Recovery Steam Generator Market Size

Heat Recovery Steam Generator Market size exceeded USD 1.2 billion in 2021 and is projected to expand at more than 5% CAGR from 2022 to 2030. Growing adoption of cogeneration technology to boost industry growth.
 

Heat recovery systems like cogeneration technology are known for high levels of efficiency while using less fuel in comparison to conventional systems. This makes them a viable eco-friendly alternative for fuel optimization. While a traditional combustion system has an efficiency of 40%-50%, cogeneration systems can provide up to 80% efficiency. Furthermore, the technology works with a variety of fuels such as natural gas, biodiesel, LPG gases, and methane, among others. Environment-friendly technological benefits such as these will, in consequence, augment the industry expansion.

It is anticipated that the high investments required for developing and implementing heat recovery steam generation projects could act as a roadblock to the market growth to some extent. These costs include engineering, procurement and construction investments. However, a surge in awareness regarding the technology and continuous focus on the adoption of efficient cogeneration systems will stimulate the industry demand.
 

Heat Recovery Steam Generator Market Analysis

The heat recovery steam generator market from vertical drum design segment is predicted to exhibit a growth rate of over 6% through 2030. This growth is attributed to the increased adoption of the design across food processing facilities.
 

Food processing requires a large supply of heat energy. In addition, much of this energy is wasted once the process is complete. Therefore, heat recovery systems can be deployed to recycle the recovered heat. Moreover, vertical generators provide a vertical gas flow to horizontally placed coils which requires less floor area in comparison to the horizontal design.
 

The heat recovery steam generator market from ≥ 50 - 100 MW rated power segment will be worth more than USD 220 million by 2030. Growing concerns surrounding the environment have pushed companies to adopt sustainable solutions such as the purchase of carbon credits and earning renewable energy certificates. This fosters the integration of eco-friendly components such as heat recovery steam generators across facilities as they can offset carbon footprint and bolster clean energy.
 

The cogeneration operation segment is poised to register 5.5% gains through 2030, credited to increasing regulatory support for the deployment of cogeneration systems. For instance, the U.S. Department of Energy has implemented the CHP Deployment Program to initiate the transition to a clean energy economy. Some of the key services offered through the program include the CHP for Resiliency Accelerator, CHP Technical Assistance Partnerships (CHP TAPs), the Packaged Combined Heat and Power Catalog (eCatalog, and Packaged CHP Accelerator.
 

Heat recovery steam generator market value from the commercial applications is expected to record remuneration of USD 300 million by 2030. Commercial structures such as shopping malls can use heat exchangers to operate the air conditioning system functioning throughout the establishment. Additionally, governments are providing financial assistance for expanding infrastructure throughout their constituencies.
 

For instance, Shanghai announced eight infrastructural projects in September 2022 with an overall investment of around USD 257 billion. This strong focus on infrastructural expansion will increase deployment of heat recovery steam generators over the years, in turn strengthening the industry outlook.
 

The Asia Pacific heat recovery steam generator market is estimated to attain a CAGR of over 5.5% through 2022-2030, owing to advancements in power infrastructure across the region through investments in heat exchanger systems. Furthermore, development of advanced distributed generation technologies are observed in the region. The refurbishment of existing T&D systems will help transform regional industry dynamics. The European market for heat recovery steam generator is likely to cross USD 618.5 million by 2032 driven by increasing focus on combined cycle generation.
 

Heat Recovery Steam Generator Market Share

Some of the key companies involved in the industry include:

• John Wood Group PLC
• Kawasaki Heavy Industries
• Babcock & Wilcox Enterprises Inc.
• Larsen & Toubro Limited
• Bharat Heavy Electricals Limited (BHEL)
• Cleaver-Brooks
• Clayton Industries
• John Cockerill
• Mitsubishi Heavy Industries
• General Electric
• Siemens Energy
• Sofinter S.p.a
• Rentech Boilers
• Thermax Limited
• Kelvion Holding GmbH
• S.A. HAMON 

Prominent players are collaborating with major energy companies to deploy their products across their infrastructure.
 

Citing an instance, in August 2022, Siemens Energy and MYTILINEOS selected the HRSG technology offered by John Cockerill to develop and supply a Benson-type boiler. This system is intended to be deployed behind Siemen’s gas turbine in its upcoming combined cycle facility in Poland. Moreover, this technology will save close to 1.2 million tons of CO₂ per year. With the rapid rise in environmental concerns, such sustainable inclusions will generate lucrative growth opportunities for the market.
 

COVID-19 Impact

The COVID-19 pandemic affected many industries across various levels, from supply chain networks to final production. The chemical industry in particular experienced a decline in demand across end-markets and stock prices of these companies took unprecedented hits. The overall negative impact on the industry also affected the implementation of components such as heat exchanger systems. These systems are required throughout the chemical sector to regulate the temperature of corrosive liquids to condense gases as part of the chemical processes.
 

The industry-level disruption reduced the demand for newer heat management systems to curb additional costs. However, with the reconfiguration of global supply chains, there is an opportunity to expedite large-scale investments in sustainable solutions, which may foster the market expansion.
 

The heat recovery steam generator market research report includes in-depth coverage of the industry with estimates & forecasts in terms of “USD” from 2018 to 2030 for the following segments:

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Market Insights, By Design

• Horizontal Drum
• Vertical Drum

Market Insights, By Rated Power

• 0 – 30 MW
• >30 – 50 MW
• >50 – 100 MW
• >100 – 200 MW
• >200 MW

Market Insights, By Mode of Operation

• Cogeneration
• Combined Cycle

Market Insights, By Application

• Utilities
• Commercial
• Chemicals
• Refineries
• Pulp & Paper
• Others

The above information is provided on a regional & country basis for the following:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • France
  • Russia
  • Germany
  • Denmark
  • Sweden
  • Italy
  • Netherlands
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Indonesia
  • Singapore
  • Malaysia
  • Philippines
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • Oman
  • Kuwait
  • Egypt
  • South Africa
  • Nigeria
• Latin America
  • Brazil
  • Argentina
  • Chile
  • Peru