Waste Heat Recovery System Market by Application (Preheating and Steam & Electricity Generation), End-Use Industry (Petroleum Refining, Metal Production, Cement, Chemicals, Pulp & Paper), and Region - Global Forecast to 2027
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Updated on : May 30, 2023
Waste Heat Recovery System Market
The global waste heat recovery system market was valued at USD 72.5 billion in 2022 and is projected to reach USD 102.1 billion by 2027, growing at a cagr 7.1% from 2022 to 2027. The increase in demand for heat recovery systems is due to fast industrialization and growing awareness about attaining sustainable growth through energy efficiency. A significant drawback of waste heat recovery systems is their high cost. Additionally, the installation of waste heat recovery systems necessitates significant changes to the current setup, which results in a halt of production and downtime. Waste heat recovery systems are frequently used to preheat combustion air, space heating, furnace loads, and boiler feed water. The cascade system of waste heat recovery is bolstering the product demand which is an opportunity for the market. The industrial processes generating waste heat streams have variations in their temperatures. Many industrial facilities do not have onsite utilization of low-temperature heat. The heat exchanger surface corrodes as a result of low heat recovery is a challenge to the market.
Attractive Opportunities in the Waste Heat Recovery System Market
e- Estimated, p- Projected
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Waste Heat Recovery System Market Dynamics
Driver- Growing environmental concerns
Climate change is the greatest economic, political, developmental, and environmental challenge for countries worldwide. Enhancing energy efficiency is the cheapest and the most reliable method of curbing carbon emissions, thus saving costs. Supplying energy for sustainable economic development is a goal shared by both developed and developing countries. The exhaust manufacturing facilities generate a lot of heat, which raises the carbon footprint and has a negative impact on the environment. Waste heat recovery systems are useful for improving the overall energy efficiency of industrial manufacturing processes, thereby boosting their demand.
Restraint- High capital investment
The major restraints of waste heat recovery systems are their high cost. The waste heat recovery systems require complex maintenance, which is expensive. Because of this, installing such a system requires a significant capital investment, which only large industries can afford. Small and medium-sized businesses cannot afford to cover such high costs. In most cases, the recovered heat may not be of sufficient quality to improve the process's energy efficiency. The cost-benefit analysis may be skewed by high costs and little benefit. One of the obstacles to the market's expansion is the high cost of waste heat recovery systems.
Opportunity - Rise in government incentives and emerging waste heat recovery system technologies
The EU promotes best practices and incentivizes Member States to implement waste heat recovery measures. Countries have directly or indirectly supported the recovery and use of waste heat. In Denmark, there are several measures in place that support waste heat recovery systems, including heat planning regulation, taxation, subsidies, heat price regulation, a ban on electrical heating, and a law on district cooling. In Italy, since 2011, with the EEN 9-11, the Italian Energy Management Authority (ARERA) has introduced the eligibility of Waste Heat Recovery in the white certificate scheme, allowing a 5-year benefit. Since 2017, with Decree DM 11 Gennaio 2017, a specific incentive scheme for waste heat recovery with Organic Rankine Cycle systems has been introduced, allowing a 10-year benefit. To remain competitive in the market, key players are favorably inclined to pursue various growth strategies such as capacity expansions, product launches, and product innovations. This is expected to have a significant positive impact on market growth.
Challenge - Issues associated with waste heat recovery systems
The industrial processes generating waste heat streams have variations in their temperatures. Many industrial facilities do not have onsite utilization of low-temperature heat. The heat exchanger surface corrodes as a result of low heat recovery. Some of the cooling water vapor in exhaust gases condenses, depositing corrosive solids and liquids on the heat exchanger surface. It is necessary to build the heat exchanger to withstand contact with these corrosive deposits. Industrial facilities that generate high-temperature waste heat require expensive materials and mechanisms to retain that temperature for use in other applications. The temperature reduces fast when exposed to the outside environment. This temperature reduction may affect the quality of the energy available for recovery. These complexities in recovering the waste heat make waste heat recovery systems unsuitable for use in many applications.
Waste Heat Recovery System Market Ecosystem
By End-use industry, the Cement segment registered the highest CAGR during the forecast period.
The demand for waste heat recovery systems in the cement industry is driven by the rapid global growth of the construction sector. Increased investment in construction operations in numerous emerging economies and economic growth are driving the market in the cement industry. The industry is expected to be driven by the expansion of construction activities in emerging economies such as China, India, and Indonesia, particularly in social, educational, medical, retail, and residential construction.
By Application, the Preheating segment registers the highest cagr during the forecast period.
Due to its great efficiency and low fuel use, preheating is one of the most popular applications of waste heat in furnaces and kilns. Large boilers, metal-heating furnaces, high-temperature kilns, compact boilers, and compact industrial furnaces benefit from waste heat preheating. waste gases generated after recovery are utilized to preheat the stock in the aluminum and copper industries. This has the added benefit of reducing explosions caused by entrapped water vapor. As a result, the heat rejected by the process is utilized in the preheating application, resulting in increased energy efficiency and lower fuel costs.
China to register the highest CAGR during the forecast period.
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The key factor driving the installation of waste heat recovery systems in (China) country is its economic and industrial expansion. China is taking steps to boost growth in a variety of industries, including chemicals, food and beverage, and cement. The country's construction sector is developing rapidly, driving up the demand for waste heat recovery systems in the cement industry. Because of the availability of low-cost raw materials and labor, China has developed itself as a manufacturing hub in recent years. This has resulted in significant expenditures in the country's manufacturing sector, increasing the need for waste heat recovery systems.
Key Market Players
Key players, ABB Ltd. (Switzerland), Wood (John Wood Group Plc) (UK), Ormat Technologies Inc. (US), General Electric Co. (US), Mitsubishi Heavy Industries Ltd. (Japan), Echogen Power Systems Inc. (US), Econotherm Ltd. (UK), Thermax Limited (India), Siemens AG (Germany), and Cool Energy Inc. (Colorado) have adopted various growth strategies, such as acquisitions, contracts, agreements, and new projects to increase their market shares and enhance their product portfolios.
Waste Heat Recovery System Market Report Scope
Market Size Value in 2022
USD 72.5 billion
Revenue Forecast in 2027
USD 102.1 billion
Value (USD Million/USD Billion)
Application and Region
North America, Europe, Asia-Pacific, Middle East and Africa, and South America
ABB Ltd. (Switzerland), Wood (John Wood Group Plc) (UK), Ormat Technologies Inc. (U.S.), General Electric Co. (US), Mitsubishi Heavy Industries Ltd. (Japan), Echogen Power Systems Inc. (US), Econotherm Ltd. (UK), Thermax Limited (India), Siemens AG (Germany), Cool Energy Inc. (Colorado) and others are covered in the WHRS market.
This research report categorizes the global WHRS market on the basis of Application, End-Use Industry, and Region.
WHRS market, By Application
- Steam & Electricity generation
WHRS market, By End-use Industry
- Petroleum Refining
- Metal Production
- Paper & Pulp
WHRS market, By Region
- North America
- Asia Pacific (APAC)
- Middle East and Africa
- South America
The market has been further analyzed for the key countries in each of these regions.
- In January 2022, The Ormat Technologies Inc. completed the acquisition of a shovel-ready energy storage asset in Upton County, Texas, from Con Edison Development.
- RBC acquired rival Asea Brown Boveri's (ABB) DODGE Mechanical Power Transmission business for USD 2.9 billion in cash in November 2022.
- WSP Global Inc. completed its previously announced acquisition of the environment and infrastructure business (E&I) of John Wood Group PLC through a sale and purchase agreement in September 2022.
- Swiss industrial group ABB Ltd. acquired a minority stake in UK-based climate tech start-up Tallarna Ltd. in a push to expand its portfolio of user-friendly energy management technologies and strengthen the digital portfolio of its Smart Power division in November, 2022.
Frequently Asked Questions (FAQ):
What are your views on the growth prospects of the Waste heat recovery system market?
The industry will grow in coming years as companies are focusing on environment friendly technologies.
Kindly provide the drivers, restraints, opportunities, and challenges of the WHRS market?
Driver: Growing environmental concerns, Restraint: High capital investment, Opportunity: Rise in government incentives and emerging waste heat recovery system technologies, and Challenge: Issues associated with waste heat recovery systems.
What are the emerging technologies/products that are expected to have a significant impact on the market in the future?
Companies are working using traditional methods only. Waste heat recovery system is designed as per the requirement.
Who are the major players in the Waste heat recovery system market?
ABB Ltd, Wood (John Wood Group Plc), Ormat Technologies Inc. (U.S.), Mitsubishi Heavy Industries Ltd. (Japan), Thermax Limited (India), Siemens AG (Germany)
Which is the dominating region in terms of demand for the Waste heat recovery system market?
Europe, followed by APAC .
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This research study involves the use of extensive secondary sources, directories, and databases, such as Hoovers, ICIS articles, Factiva, and Bloomberg Businessweek, to identify and gather information for a technical, market-oriented, and commercial study of the WHRS market. The primary sources include industry experts from core and related industries and preferred suppliers, regulatory bodies, and organizations related to all segments of the value chain of this industry. In-depth interviews have been conducted with different primary respondents, such as key industry participants, subject matter experts (SMEs), C-Level executives of key market players, and industry consultants, to obtain and verify critical qualitative and quantitative information, as well as to assess growth prospects.
In the secondary research process, sources such as annual reports, press releases, investor presentations of companies; white papers; publications from recognized websites; and databases have been referred to for identifying and collecting information. Secondary research has been used to obtain key information about the supply chain of the industry, the total pool of key players, market classification, and segmentation according to industry trends to the bottom-most level, regional markets, and key developments from both the market- and technology-oriented perspectives.
After the complete market estimation process (which includes calculations for market statistics, market breakdown, market size estimations, market forecast, and data triangulation), extensive primary research has been conducted to gather information and to verify and validate the critical numbers arrived at. Primary research has also been conducted to identify the segmentation, industry trends, key players, competitive landscape, industry trends, strategies of key players, and key market dynamics such as drivers, restraints, opportunities, and challenges.
In the primary research process, different primary sources from the supply and demand sides have been interviewed to obtain qualitative and quantitative information. The primary sources include industry experts such as CEOs, vice presidents, marketing directors, technology & innovation directors, and related key executives from various companies and organizations operating in the WHRS market.
Following is the breakdown of primary respondents—
Note 1: Others include sales, marketing, and product managers.
Note 2: Tier 1, Tier 2, and Tier 3 companies are classified based on their market share, product portfolio, and regional & global presence.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
In the market size estimation process, both the top-down and bottom-up approaches have been used, along with several data triangulation methods to carry out estimations and projections for the overall market and its sub-segments listed in this report. Extensive qualitative and quantitative analyses have been carried out on the complete process to list key information/insights throughout the report. The research methodology used to estimate the market size includes the following:
- The key players in the industry were identified through extensive secondary research.
- The supply chain of the industry and market size, in terms of value, were determined through primary and secondary research.
- All percentage shares split, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research includes the study of reports, reviews, and newsletters of key industry players along with extensive interviews with key officials, such as directors and marketing executives.
Market Size Estimation: Supply side estimation
Note: Bottom-Up Approach
Note: Top-Down Approach
After arriving at the overall market size from the process explained above, the total market has been split into several segments and sub-segments. To complete the overall market size estimation process and arrive at the exact statistics for all the segments and sub-segments, the data triangulation and market breakdown procedures have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from the demand and supply sides. In addition, the market size has been validated using both the top-down and bottom-up approaches.
- To define, describe, and forecast the WHRS market in terms of value and volume.
- To provide detailed information regarding the key factors influencing the growth of the market, such as drivers, restraints, opportunities, and challenges.
- To analyze and forecast the market size based on form, and application.
- To analyze and forecast the market size in terms of value, with respect to four main regions: North America, Europe, Asia-Pacific, Middle East and Africa, and South America.
- To strategically analyze the micro markets with respect to individual growth trends, future prospects, and contribution to the total market.
- To analyze the opportunities in the market for stakeholders and draw a competitive landscape for market leaders.
- To analyze competitive developments, such as products & services offered, and expansion, in the market.
- To strategically profile key players and comprehensively analyze their core competencies.
Along with the given market data, MarketsandMarkets offers customizations as per the specific needs of the companies. The following customization options are available for the report:
- Product Matrix which gives a detailed comparison of the product portfolio of each company
- Further breakdown of the Rest North America WHRS market
- Further breakdown of the Rest of APAC WHRS market
- Further breakdown of Rest of Europe WHRS market
- Further breakdown of the Rest of Middle East & Africa WHRS market
- Further breakdown of Rest of South America WHRS market
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Waste Heat Recovery System Market
Detailed insights heat recovery system market with focus on government regulations and incentives with regard to ORC technology.Information on the expected share of ORC in power generation application and by industry (e.g. refining, metals, etc.). and waste heat potentials with regard to volume, temperature, megawatts
General information required on Waste heat recovery market
Number of Organic Rankine Cycle ORC systems (units shipped in addition to revenue) sold / deployed by year, by application, by geography , by system provider, worldwide
Interested in adsorption cooling for thermal energy storage and waste heat based systems.
General information required on Waste heat recovery market in Africa
General information on Waste Heat Recovery System Market, growing segment and competitive landscape
Specific information on electricity generation during Waste Heat Recovery System process
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General information of environmental impact of climate change
Intrested in general information on waste heat recovery market
Information on Waste Heat Recovery System Market by Application
General information on Waste Heat Recovery System market
General information on Waste Heat Recovery System Market
Technical report on Asia-Pacific Waste Heat Recovery Market
Deeper insight in the waste heat market.
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