Metal Manufacturing Waste Heat Recovery System Market Size - By Application, By Temperature, Growth Forecast, 2025 - 2034

Metal Manufacturing Waste Heat Recovery System Market Size

According to a recent study by Global Market Insights Inc., the global metal manufacturing waste heat recovery system market was estimated at USD 12.4 billion in 2024. The market is expected to grow from USD 13.1 billion in 2025 to USD 24.2 billion in 2034, at a CAGR of 7.1%.

• The metal manufacturing waste heat recovery system market has been expanding steadily as industries increasingly focus on energy efficiency, sustainability, and cost optimization. In the metal manufacturing sector, production processes including smelting, forging, rolling, and casting involve high-temperature operations that generate significant amounts of heat.
   
• Waste heat recovery systems are designed to capture and reuse this excess energy, converting it into useful power, heat, or steam that can be reintegrated into the production cycle. This not only reduces fuel consumption but also helps manufacturers lower emissions and comply with increasingly stringent environmental regulations.
   
• Governments around the world are introducing strict carbon reduction policies, while consumers and businesses are demanding greener production methods. The metal industry, being one of the largest energy consumers globally, is under particular pressure to minimize its environmental footprint. By investing in waste heat recovery systems, metal manufacturers demonstrate their commitment to sustainable practices while reducing their dependency on primary energy sources.
   
• Technological advancements are also playing a crucial role in the expansion of the market. Innovations in heat exchangers, thermoelectric materials, and organic Rankine cycle systems have improved the efficiency and reliability of waste heat recovery solutions.
   
• For instance, the California Energy Commission demonstrated the viability of plastic heat exchangers in 2025, which recover low-level heat at 80% lower cost than traditional metallic systems. Successfully tested in breweries and wineries, this modular and mass-manufacturable technology is now being considered for broader industrial applications, including metal manufacturing, where low-grade heat is abundant but underutilized.
   
• Metal manufacturing is a highly competitive industry where production costs play a critical role in profitability. By reusing waste heat, manufacturers can reduce fuel consumption significantly, leading to lower operational expenses. Moreover, the cost savings generated from these systems often outweigh the initial capital investment, providing an attractive return on investment.
   
• For companies operating in regions with high energy prices, this advantage is particularly compelling. As more businesses recognize the long-term financial benefits, the demand for waste heat recovery systems continues to rise, directly impacting the market size.
   
• The global energy transition is another driver influencing market expansion. With renewable energy integration accelerating worldwide, industries are being encouraged to complement clean energy adoption with energy efficiency measures. Waste heat recovery in metal manufacturing aligns well with this transition, as it reduces reliance on fossil fuels and makes industrial energy use more sustainable.
   
• Moreover, international organizations and financial institutions are offering incentives, funding, and technical support for energy-efficient technologies, further enhancing the attractiveness of waste heat recovery solutions. This supportive ecosystem is contributing to the overall market size, ensuring continuous growth in the coming years.
   

Metal Manufacturing Waste Heat Recovery System Market Trends

• Exponential increase in government funding for industrial decarbonization along with rising corporate investments in metal mining production is augmenting the market growth. The targeted investments are catalyzing the development and deployment of WHRS solutions that reduce energy consumption and carbon emissions.
   
• For instance, in January 2024, the U.S. DOE Industrial Efficiency and Decarbonization Office (IEDO) allocated USD 1.8 million to support innovations in heat exchange processes for deep waste heat recovery. This funding, part of a broader USD 65 million initiative, aims to accelerate the adoption of energy-efficient technologies in industrial sectors, including metal manufacturing.
   
• Furthermore, in August 2024, Nippon Steel committed over USD 1 billion to expand its Mon Valley Works facility. These investments aim to boost high-grade steel output, which inherently increases energy demand. To offset this, WHRS adoption is being prioritized to reclaim energy lost during production, aligning with both economic and environmental goals.
   
• Rising innovations in thermoelectric generators (TEGs), organic Rankine cycle (ORC) systems, and ceramic heat exchangers have significantly improved the efficiency of WHRS. For instance, a steel plant implementing flue gas recovery achieved a 25% reduction in energy consumption. These advancements are enabling metal manufacturers to convert low-grade heat into usable energy, thereby enhancing operational efficiency and sustainability.
   
• Regulatory reforms supporting energy-efficient infrastructure coupled with global push for emission reduction in steel manufacturing is creating growth for the market. For instance, in September 2025, the U.S. EPA introduced reforms to streamline New Source Review (NSR) permitting, allowing certain non-emission-related construction activities to proceed without delay.
   
• This regulatory clarity encourages manufacturers to invest in WHRS infrastructure early in project development, reducing bureaucratic bottlenecks and accelerating energy efficiency upgrades in metal facilities. Furthermore, the World Economic Forum’s 2023 Net-Zero Industry Tracker outlines a 45% emission intensity reduction target for primary steel and 65% for secondary steel by 2030.
   
• Sustainability-driven market shift for all metal specific industries is further creating growth prospects for the market. In addition, Federal Steel Supply’s 2025 industry outlook highlights a surge in demand for green steel, driven by hydrogen-based production and recycled inputs. As manufacturers transition to low-carbon operations, WHRS is being integrated to reduce reliance on external energy sources and support ESG compliance.
   
• This shift is particularly evident in Europe and Asia, where sustainability mandates are stringent. Furthermore, with rising energy prices and decarbonization pressures, metal manufacturers are increasingly viewing WHRS as a strategic asset to reduce fuel costs and improve profitability, especially in energy-intensive operations including smelting and forging.
   

Metal Manufacturing Waste Heat Recovery System Market Analysis

• Based on applications, the industry is segmented into pre-heating, electricity & steam generation, and others. The electricity & steam generation segment dominated the market accounting for around 51.6% share in 2024 and is expected to grow at a CAGR of over 8.1% through 2034.
   
• Increasing integration of WHRS across renewable sectors, especially across developing economies in conjunction with government-supported electrification in emerging markets is bolstering the industry dynamics. For instance, India’s Ministry of New and Renewable Energy recognizes WHRS-generated power as equivalent to renewable energy. As of 2025, 538 MW of WHRS capacity has been installed in cement plants, with similar potential in steel manufacturing.
   
• Furthermore, the World Economic Forum’s 2023 report highlighted national WHRS initiatives in India, Japan, Malaysia, and South Africa. These countries are investing in electrification and renewable heat technologies to decarbonize industrial clusters. WHRS is central to these efforts, enabling steam and electricity generation from process heat and reducing reliance on fossil fuels in metal manufacturing.
   
• The steam ranking cycle process under electricity & steam generation will project at a CAGR of 7% through 2034. The Steam Rankine Cycle (SRC) is gaining traction globally for its ability to convert high-temperature industrial waste heat into electricity and steam with high efficiency.
• For instance, in November 2024, Kanin Energy deployed SRC systems across heavy industries in North America and Asia, enabling decarbonization by transforming waste heat into carbon-free baseload power. These systems use water as a working fluid and are optimized for waste streams above 300°C, making them ideal for metal manufacturing environments with consistent high-grade heat sources.
   
• The pre-heating application industry will grow at a CAGR of 6.2% till 2034. High use of scrap pre-heating in electric arc furnaces (EAF) and electric slab heating for steel production is augmenting the industry scenario. Scrap pre-heating has become a standard energy-saving practice in EAFs globally and the method is widely adopted in Europe and Asia, where steel recycling is central to decarbonization strategies and energy cost reduction.
   
• In addition, in August 2025, at the EU’s INCITE Workshop, Kanthal presented electric slab reheating systems capable of reaching 1,250°C with 95% thermal efficiency. Validated in Sweden under Horizon Europe projects, these systems are replacing fossil-fueled furnaces in steel production. Their scalability and alignment with EU emissions directives make WHRS-integrated pre-heating a key enabler of clean industrial transitions.
   
• Furthermore, Primetals Technologies has deployed WHRS across steel plants in Asia, including MIDREX and COREX units, to recover heat from sinter coolers and converters. These systems feed steam into on-site networks or generate electricity, enhancing energy efficiency and reducing emissions. Their modular design allows tailored integration, making pre-heating via WHRS a viable solution across diverse metallurgical setups.
   

• Based on temperature, the industry is segmented into 230°C, 230°C - 650 °C and > 650 °C. The > 650 °C segment holds 70.6% market share in 2024 with over 7% CAGR by 2034. The system requirement across direct heat recovery in smelting & casting along with product deployment in harsh environments is catering to the market growth
   
• Smelting operations produce extremely hot exhaust gases and WHRS technologies directly recover this heat, reducing the need for reheating and improving overall process efficiency. In addition, WHRS designs handles high-dust, high-temperature conditions typical of blast furnaces and converters. Their durability and reliability make them suitable for continuous operation in demanding industrial settings.
   
• 230°C temperature ranging waste heat recovery system market stood at USD 300 million in 2024. System integration with district heating networks along with its increasing deployment with high-efficiency heat pumps is increasing its disposition across the globe. Industries are increasingly channeling low-grade waste heat into urban heating systems, especially in Europe and parts of Asia.
   
• For instance, in September 2025, Johnson Controls announced to use heat pumps to power city of Zürich through a new waste incineration project spearheaded by the municipal utilities. To be operational in 2027, the company heat pumps feed the recovered energy into the district heating network and provide additional heat to around 15,000 homes.
   
• Modern heat pumps now recover low-temperature waste heat for steam and water heating. Their modularity and cost-effectiveness make them ideal for retrofitting in older metal processing units. Furthermore, Low-temperature WHRS is being enhanced by intelligent control platforms that optimize heat recovery from sintering and annealing processes, improving energy efficiency and reducing emissions.
   
• The industry for WHRS with temperature rating between 230°C - 650°C segment will reach USD 6.3 billion by 2034. HRSGs are widely used to recover heat from exhaust gases in furnaces and kilns. Their ability to generate steam without additional fuel input makes them a preferred choice in integrated steel plants.
   
• Companies are deploying WHRS tailored for medium-temperature furnaces, ensuring consistent power generation even during idle periods. These systems are now standard in various facilities across Asia and Middle East. Furthermore, system integration with CHP system is further augmenting their demand across renewables, where CHP systems using medium-grade waste heat are gaining traction for their dual output electricity and steam.
   

• The U.S. dominated the metal manufacturing waste heat recovery system market in North America with around 82% share in 2024 and generated USD 3.7 billion in revenue. Government funding for industrial decarbonization across countries including the U.S. & Canada along with rise in secondary metal demand and urban mining will augment the market landscape.
   
• For instance, in March 2023, the U.S. DOE office of Energy Efficiency and Renewable Energy announced a USD 156-million funding opportunity that will advance high impact applied research, development, and demonstration (RD&D) projects to reduce greenhouse gas (GHG) emissions across the U.S. industrial sector.
   
• The Europe metal manufacturing waste heat recovery system market will grow at a CAGR of 6.6% through 2034, driven by EU climate targets and steel industry reforms towards waste recovery. In addition, the market growth is spurred by expansion of waste-to-energy infrastructure across various industries as these systems are vital in urban areas facing landfill constraints and high energy costs.
   
• For instance, in March 2024, the European Union co-funded STAR project aims to produce thermoelectric devices for waste heat recovery applications from secondary mineral resources (mining waste). The WHR systems are being integrated across these types of applications and associated converter operations to meet emission targets, supported by EU Innovation Fund grants, will further propel the market growth.
   
• The Asia Pacific metal manufacturing waste heat recovery system market stood at USD 2.7 billion in 2024. Dominance in global metal recycling along with government-led green stimulus for WHR adoption is complementary to the business outlook. In addition, industrial scrap availability and government-backed recycling infrastructure is further enabling WHR integration in large-scale operations.
   
• For instance, in June 2025, Attero, an India based recycling company announced to increase its ability to make recycled-content rare earth elements (REE) from 300 metric tons to 30,000 metric tons of annual capacity. In addition, the company plans to invest USD 11.5 million, over the next two years to harvest rare earth metals, which in turn will increase the waste heat recovery process in its manufacturing facility.
   
• The Middle East & Africa metal manufacturing waste heat recovery system market will grow at a CAGR of 6.8% till 2034. The industry is gaining momentum as regional governments and industries increasingly prioritize energy efficiency and sustainability. The market is largely driven by the petroleum refining and power generation sectors, which produce substantial waste heat during operations.
   
• Countries including Saudi Arabia, UAE, Iraq, and Oman are actively investing in large-scale industrial projects that incorporate WHRS technologies to reduce energy waste and carbon emissions. These industrial projects generate significant amounts of hot flue gases, which are now being captured using heat exchangers and thermal regeneration systems.
   
• The Latin America industry will reach at USD 400 million by 2034 supported by the region’s energy-intensive industries including mining, metallurgy, manufacturing, and oil & gas. The push for cost reduction, energy optimization, and compliance with environmental regulations is encouraging industries to adopt WHRS technologies
   

Metal Manufacturing Waste Heat Recovery System Market Share

• The top 5 companies in the metal manufacturing waste heat recovery system industry are Siemens Energy, Thermax, Bosch, Cochran, and Climeon, and contribute around 35% of the market share in 2024. Climeon’s ORC-based low-temperature WHRS are ideal for aluminum and steel plants with moderate heat sources. Their compact systems are known for energy savings and easy integration into existing setups.
   
• In addition, UK-based Cochran offers waste heat recovery system steam boilers and heat exchangers for industrial furnaces and kilns. Their competitive edge lies in robust engineering and adaptability, whereas Siemens offers advanced WHRS tailored for high-temperature industrial processes. Their systems integrate digital monitoring and predictive maintenance, making them highly efficient and scalable for large metal manufacturing operations.
   

Metal Manufacturing Waste Heat Recovery System Market Companies

• Siemens Energy reported total revenues of USD 40.5 billion in 2024, underscoring its strong position in the global energy sector. The company achieved a gross profit of USD 5.3 billion, reflecting solid operational performance across its business units. Additionally, Siemens Energy invested USD 1.4 billion in research and development, reinforcing its commitment to innovation, energy transition, and the development of advanced technologies for sustainable and reliable power solutions.
   
• Thermax is an Indian energy solutions provider that specializes in WHR boilers and steam systems for steel and non-ferrous metal industries. Their strength lies in turnkey solutions and strong regional presence in Asia and Africa. The company reported a revenue of USD 1.1 billion in the fiscal year 2024-2025.
   

Major players operating in the metal manufacturing waste heat recovery system market are:

• AURA
• Bosch
• Climeon
• CMR Green Technologies Ltd.
• Cochran
• CTP TEAM
• Echogen Power Systems
• FirstESCO India Pvt. Ltd.
• Forbes Marshall
• IHI Corporation
• John Wood Group
• Kanin Energy
• Kawasaki Heavy Industries
• Mitsubishi Heavy Industries
• Primetals Technologies
• Promec Engineering
• Siemens Energy
• Sofinter
• Thermax
• Turboden
   

Metal Manufacturing Waste Heat Recovery System Industry News

• In August 2025, Kanin Energy secured credit facility from PaceZero Capital Partners to advance Waste Heat to Power Projects across North America. The funding will support the company’s continued efforts towards the waste heat to power project development, in turn adding to the overall market growth in the region.
   
• In May 2025, Tata Steel decided to implement a Waste Heat Recovery (WHR) project at its Ferro Alloys Plant in Athagarh, located in Odisha’s Cuttack district. The company signed a Memorandum of Understanding (MoU) with Comfit Enersav Private Limited, a provider of heat and energy recovery solutions. This is poised to benefit significantly from this strategic collaboration, which aims to enhance energy efficiency and promote sustainable industrial practices.
   
• In February 2024, JSW Steel announced plans for a joint venture with Japan's JFE Steel Corporation in a 50:50 partnership, committing USD 661.9 million to build a new plant in Karnataka, India. This investment is set to increase metal production capacity, driving the adoption of high-grade steel across multiple industries and supporting the growth of the Metal Manufacturing Waste Heat recovery systems market.
   

The metal manufacturing waste heat recovery system market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2025 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°C - 650 °C
• > 650 °C

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina