ORC Waste Heat to Power Market

ORC Waste Heat to Power Market Size

According to a recent study by Global Market Insights Inc., the ORC waste heat to power market was estimated at USD 4.6 billion in 2025. The market is expected to grow from USD 5.2 billion in 2026 to USD 12.9 billion by 2035, at a CAGR of 10.6%.

• Industrial decarbonization and stringent environmental regulations stand as foundational growth drivers for the ORC (Organic Rankine Cycle) waste heat to power market. Industries such as cement, steel, petrochemicals, and chemicals generate vast quantities of low-grade heat—typically between 80°C and 350°C—that would otherwise go unused. ORC technology enables the conversion of this waste heat into electricity, reducing greenhouse gas emissions and improving overall plant efficiency.
  
• For instance, Europe’s Clean Industrial Deal and the U.S. Inflation Reduction Act include provisions incentivizing waste heat recovery solutions, prompting industrial operators to implement ORC systems to comply and reduce carbon footprints. In many regions, adoption is fueled by binding emission-reduction targets and energy-efficiency mandates.
  
• Rising energy prices and cost-reduction pressures are accelerating ORC adoption across energy-intensive sectors. As energy prices surge globally, industrial firms face mounting operational expenses. ORC systems offer compelling economic benefits: they generate electricity from heat that would otherwise be wasted, effectively lowering energy bills and enhancing profitability. Moreover, decreasing levelized cost of electricity (LCOE) for ORC systems thanks to greater economies of scale and technological improvements has made them accessible for midsized facilities that were previously financially marginal.
  
• Technological advancements in ORC systems are significantly boosting their performance and affordability. Improvements in working fluids—from low-boiling organic compounds to emerging supercritical CO2 options—alongside innovations in high-efficiency heat exchangers and scroll or screw expanders, have raised thermal efficiency while reducing maintenance requirements. Furthermore, digital monitoring, automation, and predictive maintenance tools enhance system reliability, uptime, and lifecycle economics. These engineering leaps are expanding ORC’s viability across a wider array of heat sources and operational conditions.
  
• Supportive government policies and financial incentives are instrumental in steering ORC market growth. Jurisdictions across North America, Europe, and Asia offer tax credits, subsidies, and renewable energy mandates that explicitly include waste heat recovery installations. Incentives like the U.S. Production Tax Credit, Canada’s Clean Technology Investment Tax Credit, and Europe’s Green Deal enable accelerated returns on ORC investments. Additionally, industrial decarbonization funding—such as the U.S. Department of Energy’s USD 104 million FOA—lowers the financial risk for early adopters and stimulates deployment.
  
• Expanding applications across geothermal, biomass, and off-grid or remote power systems are diversifying ORC use cases. ORC technology has proven especially suitable for low-to-medium thermal sources such as geothermal reservoirs, biomass combustion flue gas, and internal combustion engine exhaust. It’s also gaining traction in hybrid renewable systems—combining solar, geothermal, and ORC—to ensure stable energy output.
  
• In October 2025, Clean Energy Technologies (CETY) partnered with RPG Energy Group to deploy a Clean Cycle ORC system at a Fortune 100 industrial manufacturing plant in Martin, Tennessee. This U.S. installation marked one of the first large-scale industrial ORC deployments, capturing waste heat that would otherwise be lost and converting it into clean electricity.
  
• Modularization and scalability of ORC platforms support broader market penetration. Manufacturers are increasingly offering compact, factory-built ORC units that are easy to install, even in challenging site conditions. These modular systems allow customers to scale capacity incrementally—starting with small (<1 MW) installations and expanding to multi-MW setups—while keeping installation timelines and capital costs low. Such flexibility appeals to distributed energy systems, remote industrial sites, and off-grid applications, enabling wider adoption even among smaller operators.
  

ORC Waste Heat to Power Market Trends

• Rapid growth in energy-intensive industries such as cement, steel, and chemicals generates significant low-grade waste heat. ORC systems efficiently convert this heat into electricity, improving energy efficiency and reducing operational costs. As global manufacturing scales up, particularly in emerging economies, the availability of waste heat sources increases, creating strong demand for ORC technology. This trend aligns with industrial sustainability goals and supports cost-effective power generation without additional fuel consumption.
  
• Governments worldwide are enforcing strict emission regulations to curb greenhouse gas emissions. ORC systems help industries comply by reducing carbon footprints through waste heat recovery. Policies like the EU Green Deal and U.S. Inflation Reduction Act incentivize clean technologies, making ORC adoption a strategic choice for compliance and sustainability. These regulations are expected to intensify, driving industries to integrate ORC solutions as part of their decarbonization roadmap.
  
• For instance, in October 2025, Clean Energy Technologies (CETY) and RPG Energy successfully deployed the Clean Cycle II ORC system at a Fortune 100 industrial manufacturing plant in Martin, Tennessee. This project captures exhaust heat—a byproduct of heavy manufacturing—and converts it into clean electricity, showcasing how ORC systems enable industrial expansion while enhancing energy efficiency. It exemplifies the rising industrial demand for low-grade waste heat recovery and demonstrates the financial benefits of on-site power generation. 
  
• Global energy prices remain volatile, pushing industries to seek cost-saving measures. ORC technology offers a practical solution by converting unused heat into electricity, lowering energy bills and improving profitability. This economic advantage is particularly attractive for sectors with high thermal losses, such as petrochemicals and glass manufacturing. As energy efficiency becomes a competitive differentiator, ORC systems will gain traction as a reliable and cost-effective technology.
  
• For citation, in October 22, 2025, Turboden, a Mitsubishi Heavy Industries Group company, commissioned a 19 MW ORC plant at Strathcona Resources’ Orion SAGD facility in Cold Lake, Alberta. This system recovers low-grade heat (≈150 °C) from steam-assisted gravity drainage processes, generating electricity that offsets roughly 80% of the facility’s grid usage. This project directly addresses emission reduction mandates and high energy costs in oil sands extraction.
  
• Continuous innovation in working fluids, heat exchangers, and turbine designs has enhanced ORC efficiency and reduced maintenance costs. Emerging supercritical CO₂ cycles and advanced organic fluids enable better performance at lower temperatures, expanding ORC applications. Additionally, digital monitoring and predictive maintenance tools improve reliability and lifecycle economics. These advancements make ORC systems more adaptable and appealing for diverse industrial environments.
  
• ORC technology is increasingly integrated with renewable energy sources like geothermal and biomass, creating hybrid systems that ensure stable power generation. This synergy supports grid reliability and sustainability goals, especially in regions with growing renewable penetration. ORC’s ability to utilize low-temperature heat makes it ideal for complementing intermittent renewables, positioning it as a critical component in future energy systems.
  
• For illustration, the U.S. federal government expanded tax incentives under the Inflation Reduction Act, classifying Waste Energy Recovery Property—including ORC systems—as eligible for a 30% investment tax credit (ITC) through December 2024. These incentives aim to accelerate decarbonization in energy-intensive industries by offsetting upfront project costs. By making ORC installations more financially attractive, the policy strengthens demand for clean energy technologies.
  

ORC Waste Heat to Power Market Analysis

• Based on power output, the market is segmented into ≤ 1 MWe, > 1 - 5 MWe, > 5 - 10 MWe, and > 10 MWe. The > 1 - 5 MWe ORC waste heat to power market holds a share of about 62.1% in 2025 and is projected to grow at a CAGR of over 9.6% through 2035.
• Small-scale ORC systems (≤ 1 MWe) are gaining traction in decentralized energy setups and remote industrial sites. Their compact design and modularity make them ideal for small manufacturing units, data centers, and commercial facilities with limited waste heat availability. Growing interest in distributed generation and microgrid solutions further supports this segment, as industries seek cost-effective, low-maintenance systems for localized power needs.
  
• Medium-scale ORC systems dominate applications in cement, glass, and food processing industries where moderate waste heat streams are available. This segment benefits from increasing energy efficiency mandates and the need for cost optimization in mid-sized industrial plants. ORC systems in this range offer a balance between scalability and affordability, making them attractive for facilities aiming to reduce grid dependency.
  
• For instance, In October 2025, Turboden commissioned a 19 MW ORC plant at Strathcona Resources’ Orion SAGD facility in Alberta, Canada. This project recovers low-grade heat from steam-assisted gravity drainage processes and converts it into clean electricity, offsetting nearly 80% of the facility’s grid consumption. The installation demonstrates how high-capacity ORC systems (>10 MWe) meet stringent emission norms and reduce operational costs in energy-intensive sectors like oil sands.
  
• The > 5 - 10 MWe segment is set to exceed USD 1.5 billion by 2035. Large ORC systems in the 5–10 MWe range are primarily deployed in heavy industries such as steel, petrochemicals, and large-scale geothermal plants. These installations leverage substantial waste heat streams to generate significant on-site electricity, reducing operational costs and emissions. The segment is driven by stringent environmental regulations and corporate sustainability goals, which encourage investment in high-capacity waste heat recovery solutions.
  
• ORC systems above 10 MWe cater to mega-scale industrial complexes and geothermal power plants. This segment is fueled by global renewable energy expansion and the need for high-efficiency solutions in large facilities. Integration with hybrid renewable systems—such as geothermal-solar combinations—further boosts demand for these high-capacity ORC units. Their ability to deliver substantial power output from low-grade heat sources aligns with decarbonization targets and energy security initiatives worldwide.
  
• For illustration, Clean Energy Technologies (CETY) partnered with RPG Energy Group to deploy its Clean Cycle II ORC system at a Fortune 100 manufacturing plant in Tennessee. This compact ORC unit captures waste heat from industrial processes and converts it into electricity, supporting distributed generation and sustainability initiatives
  

• The U.S. dominated the ORC waste heat to power market in North America with around 73% share in 2025 and generated USD 660 million in revenue. The U.S. market benefits from strong federal incentives under the Inflation Reduction Act, which includes tax credits for waste heat recovery systems. Rising energy costs and stringent emission norms drive industrial adoption of ORC technology. Heavy industries such as oil and gas, chemicals, and manufacturing are integrating ORC systems to meet decarbonization targets. Additionally, growing interest in distributed generation and microgrid solutions supports small-scale ORC installations.
  
• The North America ORC waste heat to power market is projected to hit USD 2.3 billion by 2035. Canada and Mexico are witnessing increased ORC adoption due to industrial expansion and renewable integration. Canada’s oil sands sector is a major driver, with ORC systems deployed to recover heat from steam-assisted gravity drainage processes. Government initiatives promoting clean technology investments and carbon reduction goals strengthen market growth. Mexico’s manufacturing sector, particularly automotive and cement, is exploring ORC solutions to reduce energy costs and comply with sustainability mandate.
  
• For instance, in July, 2024, Eldec appointed LINK Induction LLC, based in Bloomfield Hills, Michigan, as its exclusive sales and service partner for all Eldec products across the U.S., Canada, and Mexico, strengthening its North American market presence.
  
• Europe leads in ORC deployment due to stringent environmental regulations and aggressive decarbonization targets under the EU Green Deal. Industries such as cement, steel, and glass are adopting ORC systems to meet energy efficiency directives and carbon neutrality goals. The region also benefits from strong incentives for waste heat recovery and renewable integration. Geothermal-rich countries like Italy and Turkey are expanding ORC-based power generation.
  
• The Asia Pacific ORC waste heat to power market accounted for about 18.5% of the revenue share in 2025. Asia Pacific is experiencing rapid industrialization, creating abundant waste heat sources for ORC systems. Countries like China, India, and Japan are investing heavily in energy efficiency technologies to address rising energy demand and emission concerns. Geothermal potential in Indonesia and the Philippines further supports ORC adoption in renewable applications. Government programs promoting clean energy and industrial sustainability, coupled with growing manufacturing activity, make Asia Pacific a high-growth region.
  
• The Middle East & Africa ORC waste heat to power market is set to grow at a rate of over 9.5% by 2035. The Middle East’s oil and gas sector offers significant opportunities for ORC systems to recover heat from refining and petrochemical processes. Regional governments are implementing sustainability initiatives to diversify energy sources and reduce carbon emissions, creating demand for waste heat recovery technologies. Africa’s emerging industrial base and geothermal resources in countries like Kenya and Ethiopia also support ORC adoption.
  
• Latin America’s ORC market is driven by industrial modernization and renewable energy expansion. Countries like Brazil and Chile are investing in waste heat recovery systems to improve energy efficiency in cement, steel, and mining sectors. Geothermal potential in Central America further supports ORC deployment for clean power generation. Regional sustainability policies and international funding for decarbonization projects enhance market prospects.
  

ORC Waste Heat to Power Market Share

• The top 5 players in ORC waste heat to power industry are Ormat Technologies, Turboden, Atlas Copco, Exergy International, and ALFA LAVAL contribute around 36% of the market share in 2025.
  
• The ORC waste heat to power market is characterized by a mix of established technology providers and emerging innovators focusing on efficiency, modularity, and cost optimization. Competition is driven by advancements in system design, integration capabilities, and adaptability to diverse industrial applications such as cement, steel, glass, and oil & gas. Players differentiate through proprietary ORC technology, scalability for varying heat sources, and enhanced performance under low-temperature conditions.
  
• Ormat Technologies is one of the leading players in the ORC waste heat to power market, recognized for its extensive experience in geothermal and recovered energy solutions. The company focuses on delivering high-efficiency ORC systems tailored for industrial waste heat recovery applications. Ormat emphasizes modular designs that enable flexible deployment across diverse sectors, including oil & gas, cement, and manufacturing.
  
• Turboden specializes in Organic Rankine Cycle technology, offering advanced solutions for converting low- and medium-temperature heat into power. The company is known for its engineering expertise and ability to customize systems for industrial waste heat recovery, biomass, and geothermal applications. Turboden’s ORC systems are designed for high efficiency and long-term durability, making them suitable for heavy industrial environments.
  
• Atlas Copco is a diversified industrial group that has extended its capabilities into waste heat recovery through advanced ORC technology. The company leverages its strong engineering foundation to deliver energy-efficient solutions that help industries reduce emissions and operational costs. Atlas Copco’s ORC systems are integrated with its broader portfolio of industrial equipment, enabling seamless energy optimization across manufacturing and processing facilities.
  
• Exergy International is a prominent ORC technology provider, recognized for its patented radial outflow turbine design that improves energy conversion efficiency. The company offers tailored solutions for waste heat recovery in sectors such as cement, steel, and glass manufacturing. Exergy emphasizes flexibility and adaptability, enabling its systems to operate effectively under varying temperature and pressure conditions. Its competitive advantage lies in technological innovation and engineering excellence, supported by strong project execution capabilities.
  
• ALFA LAVAL is a global leader in heat transfer and energy recovery solutions, actively contributing to the ORC waste heat to power market. The company integrates its expertise in thermal systems with ORC technology to deliver efficient waste heat recovery solutions for industrial applications. ALFA LAVAL focuses on optimizing system performance through advanced heat exchanger designs and robust engineering practices.
  

ORC Waste Heat to Power Market Companies

• Ormat Technologies reported revenue from operations of USD 249.7 million for the third quarter ended September 30, 2025, marking a 17.9% year over year increase. The company recorded an operating income of USD 40.4 million (13.3% increase) and net income attributable to stockholders of USD 24.1 million, reflecting a 9.3% growth. This performance demonstrates strong momentum driven by growth in product and storage segments and resilience amid market headwinds.
  
• Turboden recorded revenue of approximately USD 79 million in 2023, with recent figures for 2025 not publicly disclosed. The company is recognized for its engineering expertise and ability to deliver customized ORC systems for industrial waste heat recovery. Turboden’s competitive advantage lies in its focus on high-efficiency solutions and digital monitoring capabilities, which enhance system reliability and reduce lifecycle costs.
  
• ALFA LAVAL reported revenue of USD 1.67 billion for the third quarter of 2025, reflecting steady growth across its thermal and energy recovery solutions. In the ORC waste heat to power industry, the company integrates its expertise in heat transfer with advanced ORC technology to deliver efficient systems for industrial applications.
  

Major players operating in the ORC waste heat to power market are:

• ABB
• ALFA LAVAL
• Atlas Copco AB
• Calnetix Technologies, LLC
• Elvosolar, a.s.
• Enertime
• ENOGIA
• Exergy International Srl
• General Electric
• INTEC GMK
• Kaishan USA
• Mitsubishi Heavy Industries, Ltd.
• ORCAN ENERGY AG
• Ormat Technologies
• Triogen
• Turboden S.p.A
  

ORC Waste Heat to Power Industry News

• In October 2025, Clean Energy Technologies, Inc. announced that its Clean Cycle II ORC technology had been successfully deployed in Martin, Tennessee for a Fortune 100 company. This waste heat-to-power project marked one of the first industrial-scale installations of its kind in U.S. manufacturing, transforming previously wasted thermal energy into clean electricity. This initiative highlights the company's commitment to driving energy efficiency and industrial decarbonization through advanced ORC solutions.
  
• In October 2025, Turboden America LLC confirmed that it had been awarded contracts to supply three Gen 2 ORC units totaling 180 MW for Phase II of Fervo Energy’s Cape Station geothermal project in Utah. This extends its engagement following Phase I and underscores Turboden's role in enabling large-scale enhanced geothermal systems in North America.
  
• In July 2025, Exergy International secured a USD 28.9 million contract from EDA Renováveis to revamp the Ribeira Grande geothermal plant in São Miguel, Azores. The scope includes the engineering, procurement, and commissioning of a 5 MWe ORC binary plant featuring its radial outflow turbine, replacing aging units and supporting local renewable energy goals.
  
• In May 2025, ALFA LAVAL launched the E PowerPack, a self-contained ORC waste heat recovery solution designed for maritime applications. This on-board system converts exhaust gas and jacket-water heat into electricity, enhancing vessel fuel efficiency, lowering CO₂ emissions, and improving compliance with energy efficiency regulations in the shipping industry.
  

The ORC waste heat to power market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume & revenue (MW & USD Million) from 2022 to 2035, for the following segments:

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Market, By Power Output

• ≤ 1 MWe
• > 1 - 5 MWe
• > 5 - 10 MWe
• > 10 MWe

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

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