Waste Heat Recovery System Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 78.93 Billion
CAGR (2026-2031)	7.93%
Fastest Growing Segment	Steam & Power Generation
Largest Market	Asia Pacific
Market Size (2031)	USD 124.77 Billion

Market Overview

The Global Waste Heat Recovery System Market will grow from USD 78.93 Billion in 2025 to USD 124.77 Billion by 2031 at a 7.93% CAGR. Waste Heat Recovery Systems (WHRS) are energy recycling units that capture excess thermal energy generated during industrial processes—such as exhaust gases or steam—and convert it into valuable electricity or heating for on-site utility. The market is primarily propelled by stringent regulatory frameworks mandating industrial decarbonization and the escalating costs of energy, which compel heavy industries to optimize thermal efficiency. These drivers differ from market trends by representing the fundamental necessities forcing adoption rather than temporary technological shifts.

A significant impediment to market expansion is the high initial capital expenditure required for installation, coupled with long payback periods that can deter price-sensitive enterprises. According to the Global Cement and Concrete Association India, in 2025, approximately 11% of the electricity mix within the Indian cement sector was generated specifically from waste heat recovery systems. This figure highlights the critical role of such technologies in mitigating power demands for energy-intensive manufacturing industries.

Key Market Drivers

Implementation of Stringent Environmental Regulations and Emission Standards serves as a primary catalyst for the Global Waste Heat Recovery System Market, forcing energy-intensive sectors to adopt thermal recycling technologies. Governments and international bodies are enforcing rigorous Scope 1 and Scope 2 emission limits, compelling industries such as cement, steel, and maritime to integrate waste heat recovery (WHR) units as a compliance necessity rather than an optional upgrade. This regulatory pressure drives substantial capital flow into decarbonization projects where WHR plays a central role in lowering carbon intensity. According to Global Cement, September 2024, in the article 'Heidelberg Materials Egypt launches waste heat recovery system at Helwan Cement plant', Heidelberg Materials inaugurated a $30 million WHR system capable of generating approximately 18 MW of energy, directly aimed at saving 40,000 tonnes of CO2 annually to meet sustainability mandates.

Escalating Global Energy Prices and Need for Operational Cost Reduction further accelerate market adoption, as manufacturers seek to insulate their margins from volatile fossil fuel tariffs. By converting exhaust heat into captive electricity, industries can significantly lower their reliance on expensive grid power, turning a waste byproduct into a critical asset for long-term financial stability. According to Manufacturing Today India, September 2024, in the report 'Ambuja Cements plans ₹100 billion renewable energy push', the company committed to expanding its Waste Heat Recovery Systems capacity to 376 MW specifically to reduce operational costs and enhance energy security. The magnitude of this cost-driven capacity addition is visible across major emerging economies; according to SolarQuarter, July 2024, in the 'Shree Cement Achieves 1 GW Milestone in Renewable Power Capacity' article, Shree Cement reported that its installed waste heat recovery capacity reached 244 MW, positioning it as a global leader in thermal efficiency deployment.

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Key Market Challenges

The high initial capital expenditure required for the installation of Waste Heat Recovery Systems acts as a primary restraint on market growth. Implementing these systems involves significant costs related to high-grade heat exchangers, boilers, and turbine generators, alongside the expenses for engineering and site integration. For many industrial operators, particularly those in price-sensitive regions or sectors with tight margins, the return on investment is often not immediate enough to justify the diversion of funds from core production activities. Consequently, the long payback periods associated with these projects frequently lead to the postponement or cancellation of installation plans, thereby slowing the overall momentum of market adoption.

This hesitation is evident when observing the disparity between the available potential and actual implementation in key sectors. According to the Cement Manufacturers' Association, in 2024, the installed capacity of waste heat recovery systems in the Indian cement industry stood at 538 MW. This figure, while substantial, represents only a fraction of the sector's total identified potential, illustrating how financial barriers effectively cap the scalability of the technology. Such capital constraints prevent the market from fully capitalizing on the available thermal energy resources across energy-intensive industries.

Key Market Trends

Widespread adoption of Organic Rankine Cycle (ORC) technology is reshaping the market by enabling the capture of low-grade thermal energy previously deemed unviable. Unlike traditional steam-based systems that require high temperatures, ORC solutions utilize organic fluids with lower boiling points, making them ideal for fluctuating heat sources found in cement and glass manufacturing. This technological shift allows industrial facilities to maximize power generation from lower-temperature exhaust streams without significant water consumption, addressing both efficiency and resource constraints. According to Turboden, October 2024, in the press release 'Turboden to Revolutionize Energy Landscape at Riyadh Cement Company', the company inaugurated a 13 MWe ORC power plant in Saudi Arabia, which stands as the largest of its kind utilizing waste heat from clinker coolers to support industrial decarbonization.

Rising utilization of heat recovery in maritime applications is simultaneously gaining momentum as shipping operators rush to comply with strict efficiency regulations like the Carbon Intensity Indicator. Vessel owners are increasingly integrating waste heat recovery units to capture thermal energy from main engines and convert it into onboard electricity, thereby reducing auxiliary fuel consumption and improving their environmental ratings. This trend is expanding beyond standard cargo ships to specialized vessels utilizing dual-fuel propulsion systems. According to Climeon, December 2024, in the press release 'Climeon Signs Order with NovaAlgoma for HeatPower 300 Installation on Groundbreaking Cement Carrier', NovaAlgoma Cement Carriers placed an order for a system capable of generating up to 300 kW of sustainable electricity on a new methanol dual-fuel vessel, highlighting the sector's move toward hybrid efficiency solutions.

Segmental Insights

The Steam & Power Generation segment is emerging as the fastest-growing category within the Global Waste Heat Recovery System market due to the increasing prioritization of energy efficiency in heavy industries. Manufacturers in sectors such as cement and heavy metal processing are rapidly adopting steam-based recovery units to convert high-temperature exhaust into captive electricity, which significantly lowers operational expenses. Furthermore, stringent guidelines from regulatory bodies like the US Environmental Protection Agency regarding industrial emissions are accelerating this adoption. This shift allows facilities to reduce reliance on external power grids while maintaining compliance with rigorous environmental standards.

Regional Insights

Asia Pacific commands the leading position in the Global Waste Heat Recovery System Market, primarily due to its status as the world’s industrial hub. Rapid economic expansion in countries like China and India has fueled extensive growth in energy-intensive sectors, including cement, steel, and heavy manufacturing. This dominance is reinforced by stringent government measures aiming to reduce carbon footprints and enhance energy efficiency. For instance, mandates from regulatory institutions such as China’s Ministry of Industry and Information Technology compel industrial facilities to adopt sustainable technologies. Consequently, regional manufacturers are aggressively implementing these systems to lower operational costs and ensure compliance with rigorous environmental standards.

Recent Developments

In January 2025, ENOGIA finalized a strategic sales agent agreement with Atlas Copco Airpower to expand the commercial reach of its waste heat recovery technology within the global maritime sector. This collaboration focuses on distributing ENOGIA’s Organic Rankine Cycle (ORC) machines through the partner’s extensive international network, effectively integrating them with existing marine compressor and expander portfolios. The initiative is designed to provide ship operators with efficient heat-to-electricity conversion solutions that support compliance with the International Maritime Organization’s decarbonization goals. By leveraging this partnership, the companies aim to accelerate the adoption of energy recovery systems that significantly reduce the carbon footprint of large-scale marine vessels.
In December 2024, Climeon completed the delivery of six HeatPower 300 waste heat recovery units intended for installation on a series of new 17,200 TEU container vessels owned by A.P. Møller–Maersk. These systems are engineered to convert engine exhaust heat into clean electricity while the ships are at sea, directly contributing to lower fuel consumption and reduced greenhouse gas emissions. The successful deployment of these units highlights the growing viability of Organic Rankine Cycle technology for large commercial shipping fleets. This project represents a critical step in the maritime industry's transition toward more energy-efficient operations and demonstrates the scalability of waste heat recovery solutions for high-capacity vessels.
In November 2024, GEA supplied two advanced waste heat recovery plants to Asahi India Glass Limited to enhance energy efficiency at its manufacturing facilities in Rajasthan and Uttarakhand. Each system was designed to generate approximately 1.8 megawatts of electricity by capturing and converting thermal energy from the exhaust gases of glass melting furnaces. The implementation of this technology is projected to lower carbon dioxide emissions by roughly 13,000 tons annually at each site. This project underscores the glass industry's increasing reliance on heat recovery innovations to reduce dependency on external power sources and achieve significant operational cost savings while meeting rigorous sustainability targets.
In September 2024, Heidelberg Materials Egypt inaugurated a first-of-its-kind waste heat recovery system at its Helwan Cement plant, representing a major investment in industrial decarbonization. The project, which involved a total investment of USD 30 million, is capable of generating up to 20 megawatts of electrical power by utilizing excess heat from the clinker production process. This installation is expected to reduce the facility's carbon dioxide emissions by approximately 40,000 tons per year, significantly lowering the plant's reliance on the national electricity grid. The initiative aligns with the company's broader strategy to modernize its production infrastructure and implement circular energy solutions across its heavy industry operations.

Key Market Players

ABB Ltd.
Siemens Aktiengesellschaft
General Electric Company
Mitsubishi Heavy Industries, Ltd.
Thermax Limited
John Wood Group PLC
Kawasaki Heavy Industries, Ltd.
Ormat Technologies, Inc.
Robert Bosch Industriekessel GmbH
Dürr Aktiengesellschaft

By Application	By Temperature	By End-use	By Region
Pre Heating Steam & Power Generation	<230°C 230-650°C >650°C	Petroleum Refinery Chemical Cement	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Waste Heat Recovery System Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Waste Heat Recovery System Market, By Application:

Pre Heating
Steam & Power Generation

Waste Heat Recovery System Market, By Temperature:

<230°C
230-650°C
>650°C

Waste Heat Recovery System Market, By End-use:

Petroleum Refinery
Chemical
Cement

Waste Heat Recovery System Market, By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Waste Heat Recovery System Market.

Available Customizations:

Global Waste Heat Recovery System Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Waste Heat Recovery System Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Waste Heat Recovery System Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Application (Pre Heating, Steam & Power Generation)

5.2.2. By Temperature (<230°C, 230-650°C, >650°C)

5.2.3. By End-use (Petroleum Refinery, Chemical, Cement)

5.2.4. By Region

5.2.5. By Company (2025)

5.3. Market Map

6. North America Waste Heat Recovery System Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Application

6.2.2. By Temperature

6.2.3. By End-use

6.2.4. By Country

6.3. North America: Country Analysis

6.3.1. United States Waste Heat Recovery System Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Application

6.3.1.2.2. By Temperature

6.3.1.2.3. By End-use

6.3.2. Canada Waste Heat Recovery System Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Application

6.3.2.2.2. By Temperature

6.3.2.2.3. By End-use

6.3.3. Mexico Waste Heat Recovery System Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Application

6.3.3.2.2. By Temperature

6.3.3.2.3. By End-use

7. Europe Waste Heat Recovery System Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Application

7.2.2. By Temperature

7.2.3. By End-use

7.2.4. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Waste Heat Recovery System Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Application

7.3.1.2.2. By Temperature

7.3.1.2.3. By End-use

7.3.2. France Waste Heat Recovery System Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Application

7.3.2.2.2. By Temperature

7.3.2.2.3. By End-use

7.3.3. United Kingdom Waste Heat Recovery System Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Application

7.3.3.2.2. By Temperature

7.3.3.2.3. By End-use

7.3.4. Italy Waste Heat Recovery System Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Application

7.3.4.2.2. By Temperature

7.3.4.2.3. By End-use

7.3.5. Spain Waste Heat Recovery System Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Application

7.3.5.2.2. By Temperature

7.3.5.2.3. By End-use

8. Asia Pacific Waste Heat Recovery System Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Application

8.2.2. By Temperature

8.2.3. By End-use

8.2.4. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Waste Heat Recovery System Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Application

8.3.1.2.2. By Temperature

8.3.1.2.3. By End-use

8.3.2. India Waste Heat Recovery System Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Application

8.3.2.2.2. By Temperature

8.3.2.2.3. By End-use

8.3.3. Japan Waste Heat Recovery System Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Application

8.3.3.2.2. By Temperature

8.3.3.2.3. By End-use

8.3.4. South Korea Waste Heat Recovery System Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Application

8.3.4.2.2. By Temperature

8.3.4.2.3. By End-use

8.3.5. Australia Waste Heat Recovery System Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Application

8.3.5.2.2. By Temperature

8.3.5.2.3. By End-use

9. Middle East & Africa Waste Heat Recovery System Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Application

9.2.2. By Temperature

9.2.3. By End-use

9.2.4. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Waste Heat Recovery System Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Application

9.3.1.2.2. By Temperature

9.3.1.2.3. By End-use

9.3.2. UAE Waste Heat Recovery System Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Application

9.3.2.2.2. By Temperature

9.3.2.2.3. By End-use

9.3.3. South Africa Waste Heat Recovery System Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Application

9.3.3.2.2. By Temperature

9.3.3.2.3. By End-use

10. South America Waste Heat Recovery System Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Application

10.2.2. By Temperature

10.2.3. By End-use

10.2.4. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Waste Heat Recovery System Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Application

10.3.1.2.2. By Temperature

10.3.1.2.3. By End-use

10.3.2. Colombia Waste Heat Recovery System Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Application

10.3.2.2.2. By Temperature

10.3.2.2.3. By End-use

10.3.3. Argentina Waste Heat Recovery System Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Application

10.3.3.2.2. By Temperature

10.3.3.2.3. By End-use

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Waste Heat Recovery System Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. ABB Ltd.

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Siemens Aktiengesellschaft

15.3. General Electric Company

15.4. Mitsubishi Heavy Industries, Ltd.

15.5. Thermax Limited

15.6. John Wood Group PLC

15.7. Kawasaki Heavy Industries, Ltd.

15.8. Ormat Technologies, Inc.

15.9. Robert Bosch Industriekessel GmbH

15.10. Dürr Aktiengesellschaft

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

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