The global waste heat recovery system market size was estimated at USD 54.88 billion in 2023 and is projected to reach USD 102.41 billion by 2030, growing at a CAGR of 9.8% from 2024 to 2030. Increasing environmental concerns have compelled countries across the world to intensify their efforts toward reducing industrial carbon emissions, driving industries to adopt technologies that promote energy efficiency. As a result, waste heat recovery systems are gaining traction because they help capture excess thermal energy generated during industrial processes and convert it into usable power, thereby reducing dependence on traditional energy sources and lowering overall emissions.

Governments in many regions are introducing supportive policies and financial incentives to accelerate the deployment of waste heat recovery technologies. For example, in June 2023, the Government of India’s Ministry of Power established UTPRERAK, a specialized Centre of Excellence designed to promote the adoption of clean technologies in industries and enhance India’s contribution to the global energy transition. Worldwide initiatives aimed at minimizing greenhouse gas emissions continue to create strong demand for highly energy-efficient industrial solutions. Waste heat recovery systems play a crucial role by recovering thermal energy that would otherwise be discarded, thereby significantly reducing the carbon footprint of industrial facilities. Technological advancements, especially in heat exchangers, are improving system performance, making modern waste heat recovery units more compact, efficient, and suitable for broader applications. Additionally, the growing use of sensors, automation, and digital monitoring systems enables real-time performance tracking and optimization, helping companies increase efficiency while lowering maintenance and operational costs.

Despite these benefits, the market encounters several challenges. The initial capital investment required to install a waste heat recovery system can be substantial, discouraging some industries from adopting the technology. The design and implementation of an efficient system require careful evaluation of parameters such as the temperature of available waste heat, specific application needs, and the layout of the production facility. These technical complexities create barriers to widespread adoption and are likely to pose challenges to market growth throughout the forecast period.

The market environment is dynamic and competitive, with a mix of well-established global companies and emerging innovators striving to strengthen their positions. Competition is intense, particularly from major industrial technology providers operating across various segments. Leading players such as Siemens Energy, Mitsubishi Power, Ltd., General Electric, ABB, and Turboden S.p.A. contribute extensively to the industry with their technological expertise and diverse product portfolios in waste heat recovery solutions.

Key Market Trends & Insights:

  • Europe dominated the market, accounting for the largest revenue share of 29.9% in 2023. The region is expected to experience steady growth throughout the forecast period, supported by rising energy demand, increasing population, and the strong push for energy-efficient and clean energy technologies. Government initiatives promoting decarbonization further strengthen the region’s market prospects.
  • North America, led by the U.S., Mexico, and Canada, held a significant 27.30% share of the global market in 2023. This substantial share is a result of growing awareness of sustainability, stricter regulatory frameworks, and enhanced focus on energy conservation across various industrial sectors.
  • By application, the power & steam generation segment was the largest, representing 47.1% of the market in 2023, and is projected to continue experiencing robust growth over the coming years. The preheating segment is expected to expand at the fastest rate during the forecast period, supported by rising utilization in industrial heating processes.
  • In terms of end use, the petroleum refinery segment dominated the market with a 20.9% share in 2023 and is anticipated to register the fastest growth throughout the forecast period. Increasing emphasis among refineries on optimizing energy usage, reducing heat losses, and lowering operational costs is expected to drive strong adoption of waste heat recovery systems.
  • By phase type, the liquid-liquid phase system segment accounted for the largest share of 40.2% in 2023 and is projected to witness steady growth driven by expansion in the global petroleum and power industries. The liquid-gas phase system segment is expected to grow at the fastest rate over the forecast period, largely due to its increasing demand in chemical processing and related industrial applications.

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Market Size & Forecast:

  • 2023 Market Size: USD 54.88 Billion
  • 2030 Projected Market Size: USD 102.41 Billion
  • CAGR (2024-2030): 9.8%
  • Europe: Largest market in 2023

Key Companies & Market Share Insights:

The market remains moderately consolidated with the presence of several medium-sized and large players that dominate through technical expertise and broad product portfolios. The competitive landscape features both established companies and innovative startups, making it diverse and fast evolving. Leading organizations are actively implementing a combination of organic and inorganic growth strategies including technological innovations, expansion of manufacturing facilities, intensified R&D activities, mergers and acquisitions, and strategic joint ventures to strengthen their market position and broaden their global footprint.

Key Players

  • Siemens Energy
  • Mitsubishi Power, Ltd.
  • General Electric
  • ABB
  • Turboden S.p.A.
  • Bosch Industriekessel GmbH
  • Exergy International Srl
  • Forbes Marshall
  • IHI Corporation
  • Terrapin

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Conclusion:

The global waste heat recovery system market is poised for strong growth as industries increasingly prioritize energy efficiency and carbon reduction. Supportive government policies, technological advancements, and digital integration are further accelerating the adoption of these systems across various sectors. Although high upfront costs and complex design requirements remain challenges, ongoing innovation is helping to make these solutions more accessible and effective. Key regions such as Europe and North America continue to lead the market, driven by stringent environmental regulations and rising sustainability goals. With major companies investing in R&D and strategic expansions, the market is expected to become more competitive and technologically advanced. Overall, waste heat recovery systems are emerging as essential tools in the global transition toward cleaner and more efficient industrial operations.