Global Electricity and Steam Generation Waste Heat Recovery Systems Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

Global Electricity and Steam Generation Waste Heat Recovery Systems Market Segmentation, By Application (Pre Heating and Steam & Electricity Generation), End-Use (Petroleum Refinery, Chemical, Cement, Heavy Metal Manufacturing, Pulp & Paper, Food & Beverage, Glass, and Others), Technology (Heat Exchangers, Boilers, Turbines, Heat Pumps, Organic Rankine Cycle Systems, and Others), Temperature (<230 °C, 230-650 °C, and >650 °C) and Type (Gas and Diesel Cogeneration Systems, Boiler Exhaust Stack Economizer Systems, and Fume Incineration Systems)- Industry Trends and Forecast to 2032.

Electricity and Steam Generation Waste Heat Recovery Systems Market Size

• The global electricity and steam generation waste heat recovery systems market size was valued at USD 33.65 billion in 2024 and is expected to reach USD 46.76 billion by 2032, at a CAGR of 4.2% during the forecast period
• The market growth is primarily driven by increasing industrial energy efficiency demands, stringent environmental regulations, and the rising adoption of sustainable energy solutions to reduce greenhouse gas emissions
• The growing focus on energy conservation, coupled with the need for cost-effective power generation, is accelerating the adoption of waste heat recovery systems (WHRS) in industrial and commercial applications

Electricity and Steam Generation Waste Heat Recovery Systems Market Analysis

• Waste heat recovery systems capture and reuse heat generated as a by-product of industrial processes, converting it into electricity or steam to enhance energy efficiency and reduce operational costs.
• The demand for WHRS is fueled by rising energy costs, government initiatives promoting energy-efficient technologies, and increasing awareness of sustainability across industries such as petroleum refining, cement, and chemical manufacturing.
• North America dominated the electricity & steam generation waste heat recovery systems market with a revenue share of 27.4% in 2024, driven by stringent environmental regulations, high adoption of combined cycle power plants, and significant investments in energy-efficient technologies, particularly in the U.S.
• Asia-Pacific is expected to be the fastest-growing region during the forecast period, propelled by rapid industrialization, increasing construction activities, and supportive government policies in countries such as China and India.
• The steam & electricity generation segment dominated the largest market revenue share of 51% in 2024, driven by the increasing demand for energy-efficient solutions and the ability to convert waste heat into usable power, reducing operational costs and greenhouse gas emissions in industries such as power generation and manufacturing

Report Scope and Electricity and Steam Generation Waste Heat Recovery Systems Market Segmentation  

Electricity and Steam Generation Waste Heat Recovery Systems Market Trends

“Increasing Adoption of Advanced Technologies such as Organic Rankine Cycle (ORC) and Thermoelectric Generators”

• The global electricity and steam generation waste heat recovery systems market is experiencing a significant trend toward the integration of advanced technologies such as Organic Rankine Cycle (ORC) systems and thermoelectric generators (TEGs)
• These technologies enable efficient recovery of waste heat from industrial processes, converting it into usable electricity or steam, thereby improving energy efficiency
• ORC systems are particularly gaining traction in industries with low to medium-temperature waste heat sources, such as food and beverage, pulp and paper, and chemical manufacturing, due to their ability to generate power from lower temperature ranges

  • For instance, companies are deploying ORC systems to capture waste heat from cement kilns or refinery exhausts to produce clean electricity, reducing reliance on fossil fuels

• TEGs are being explored for their potential to convert waste heat directly into electricity, particularly in high-temperature applications such as steel and glass manufacturing
• This trend enhances the appeal of waste heat recovery systems by offering cost-effective and sustainable solutions for energy-intensive industries

Electricity and Steam Generation Waste Heat Recovery Systems Market Dynamics

Driver

“Rising Focus on Energy Efficiency and Carbon Emission Reduction”

• The increasing global emphasis on energy conservation and reducing greenhouse gas emissions is a major driver for the waste heat recovery systems market
• Industries such as petroleum refining, cement, and chemical production are adopting waste heat recovery systems to optimize energy use and lower operational costs
• Government regulations and incentives, such as the European Green Deal and the U.S. Bipartisan Infrastructure Law, are promoting the adoption of energy-efficient technologies, boosting market growth
• The expansion of IoT and advanced control systems enables real-time monitoring and optimization of waste heat recovery processes, enhancing system performance
• Growing industrial demand in regions such as Asia-Pacific, particularly in China and India, for sustainable energy solutions further drives the market, as these countries focus on reducing carbon footprints
• Waste heat recovery systems provide a cost-effective solution by generating on-site power and heat, reducing dependence on external energy sources

Restraint/Challenge

“High Initial Investment and Technical Complexity”

• The high upfront costs associated with the installation of waste heat recovery systems, including hardware, software, and integration, pose a significant barrier, particularly for small and medium-sized enterprises (SMEs) in emerging markets
• The complexity of retrofitting these systems into existing industrial setups, such as in petroleum refineries or heavy metal manufacturing plants, can increase implementation costs and downtime
• In addition, concerns about system maintenance and operational reliability, particularly for advanced technologies such as ORC and TEGs, can deter adoption
• The lack of standardized solutions across diverse industries, such as food and beverage or glass manufacturing, complicates system design and deployment, limiting market growth
• Regulatory variations across regions regarding energy efficiency standards and environmental compliance further challenge market expansion, especially for international manufacturers

Electricity and Steam Generation Waste Heat Recovery Systems market Scope

The market is segmented on the basis of application, end-use, technology, temperature, and type.

• By Application

On the basis of application, the global electricity and steam generation waste heat recovery systems market is segmented into pre-heating and steam & electricity generation. The steam & electricity generation segment dominated the largest market revenue share of 51% in 2024, driven by the increasing demand for energy-efficient solutions and the ability to convert waste heat into usable power, reducing operational costs and greenhouse gas emissions in industries such as power generation and manufacturing.

The pre-heating segment is expected to witness the fastest growth rate from 2025 to 2032, fueled by its widespread use in industries such as chemical processing and metal production, where waste heat is utilized to preheat raw materials or feedstock, reducing energy consumption and enhancing process efficiency. Advancements in heat exchanger technologies further accelerate adoption.

• By End-Use

On the basis of end-use, the market is segmented into petroleum refinery, chemical, cement, heavy metal manufacturing, pulp & paper, food & beverage, glass, and others. The cement segment is expected to hold the largest market revenue share of 21% in 2024, driven by the high energy consumption in cement production and the adoption of waste heat recovery systems to generate power and lower production costs, particularly in emerging economies with expanding construction sectors.

The heavy metal manufacturing segment is anticipated to experience robust growth from 2025 to 2032, propelled by rising global demand for steel and aluminum in industries such as construction and automotive, coupled with stricter environmental regulations encouraging energy-efficient technologies to reduce carbon emissions.

• By Technology

On the basis of technology, the market is segmented into heat exchangers, boilers, turbines, heat pumps, organic Rankine cycle (ORC) systems, and others. The heat exchangers segment is expected to hold the largest market revenue share of 35% in 2024, owing to their critical role in transferring waste heat from exhaust gases to process fluids, enabling efficient energy recovery across various industries.

The organic Rankine cycle (ORC) systems segment is anticipated to witness the fastest growth rate from 2025 to 2032, driven by its ability to generate electricity from low to medium-temperature waste heat sources, making it ideal for industries such as geothermal and solar thermal power plants, as well as other industrial processes with lower waste heat temperatures.

• By Temperature

On the basis of temperature, the market is segmented into <230 °C, 230-650 °C, and >650 °C. The 230-650 °C segment is expected to hold the largest market revenue share of 43% in 2024, as this temperature range is prevalent in medium-sized industries such as pulp & paper, food processing, and chemicals, where waste heat recovery systems enhance energy efficiency and reduce CO2 emissions.

The >650 °C segment is expected to witness significant growth from 2025 to 2032, driven by its application in high-temperature industries such as cement and glass production, where advanced heat recovery technologies capture substantial waste heat to generate electricity and steam, aligning with sustainability goals.

• By Type

On the basis of type, the market is segmented into gas and diesel cogeneration systems, boiler exhaust stack economizer systems, and fume incineration systems. The gas and diesel cogeneration systems segment is expected to hold the largest market revenue share of 40% in 2024, due to their widespread use in combined heat and power (CHP) systems, which simultaneously produce electricity and useful thermal energy, enhancing overall energy efficiency.

The boiler exhaust stack economizer systems segment is expected to witness rapid growth from 2025 to 2032, fueled by their ability to recover heat from boiler exhaust gases to produce steam, which is then used for power generation or process heating, particularly in energy-intensive industries such as petroleum refining and chemical processing.

Electricity and Steam Generation Waste Heat Recovery Systems Market Regional Analysis

• North America dominated the electricity & steam generation waste heat recovery systems market with a revenue share of 27.4% in 2024, driven by stringent environmental regulations, high adoption of combined cycle power plants, and significant investments in energy-efficient technologies, particularly in the U.S.
• Consumers and industries prioritize waste heat recovery systems for reducing energy costs, improving operational efficiency, and minimizing greenhouse gas emissions, particularly in energy-intensive regions with diverse industrial applications
• Growth is supported by advancements in waste heat recovery technologies, such as organic Rankine cycle (ORC) systems and high-efficiency heat exchangers, alongside rising adoption in both new installations and retrofit projects across various industries

U.S. Electricity and Steam Generation Waste Heat Recovery Systems Market Insight

The U.S. electricity and steam generation waste heat recovery systems market captured the largest revenue share of 72.2% in 2024 within North America, fueled by strong industrial demand and growing awareness of energy efficiency and carbon reduction benefits. The trend toward sustainable industrial practices and supportive government incentives, such as subsidies for energy-efficient technologies, further boost market expansion. The integration of waste heat recovery systems in combined cycle power plants and industrial facilities complements both new and retrofit applications, creating a robust market ecosystem.

Europe Electricity and Steam Generation Waste Heat Recovery Systems Market Insight

The Europe electricity and steam generation waste heat recovery systems market is expected to witness significant growth, supported by stringent regulatory frameworks promoting energy efficiency and sustainability. Industries seek systems that enhance energy utilization while reducing carbon footprints. The growth is prominent in both new installations and retrofit projects, with countries such as Germany and the U.K. showing significant uptake due to rising environmental concerns and industrial energy demands.

U.K. Electricity and Steam Generation Waste Heat Recovery Systems Market Insight

The U.K. market for electricity and steam generation waste heat recovery systems is expected to witness rapid growth, driven by demand for energy-efficient solutions in industrial and power generation sectors. Increased focus on reducing greenhouse gas emissions and improving energy utilization encourages adoption. Evolving environmental regulations and government incentives influence industrial choices, balancing energy efficiency with compliance.

Germany Electricity and Steam Generation Waste Heat Recovery Systems Market Insight

Germany is expected to witness rapid growth in the electricity and steam generation waste heat recovery systems market, attributed to its advanced industrial manufacturing sector and high focus on energy efficiency and sustainability. German industries prefer technologically advanced systems, such as ORC and steam Rankine cycle systems that reduce energy consumption and contribute to lower operational costs. The integration of these systems in energy-intensive industries and power plants supports sustained market growth.

Asia-Pacific Electricity and Steam Generation Waste Heat Recovery Systems Market Insight

The Asia-Pacific region is expected to witness the fastest growth rate, driven by rapid industrialization, increasing energy demand, and rising adoption of energy-efficient technologies in countries such as China, India, and Japan. Growing awareness of cost savings, sustainability, and carbon emission reduction is boosting demand. Government initiatives promoting energy efficiency and environmental regulations further encourage the use of advanced waste heat recovery systems.

Japan Electricity and Steam Generation Waste Heat Recovery Systems Market Insight

Japan’s electricity and steam generation waste heat recovery systems market is expected to witness rapid growth due to strong consumer and industrial preference for high-efficiency, technologically advanced systems that enhance energy utilization and sustainability. The presence of major industrial and power generation players and the integration of waste heat recovery systems in new and existing facilities accelerate market penetration. Rising interest in sustainable energy solutions also contributes to growth.

China Electricity and Steam Generation Waste Heat Recovery Systems Market Insight

China holds the largest share of the Asia-Pacific electricity and steam generation waste heat recovery systems market, propelled by rapid industrialization, rising energy demand, and increasing adoption of energy-efficient solutions. The country’s expanding industrial base and focus on sustainability support the adoption of advanced waste heat recovery systems. Strong domestic manufacturing capabilities and supportive government policies enhance market accessibility and growth.

Electricity and Steam Generation Waste Heat Recovery Systems Market Share

The electricity and steam generation waste heat recovery systems industry is primarily led by well-established companies, including:

• Siemens AG (Germany)
• Mitsubishi Heavy Industries, Ltd. (Japan)
• General Electric (U.S.)
• ABB Ltd. (Switzerland)
• Thermax Limited (India)
• Ormat Technologies Inc. (U.S.)
• Bosch Industriekessel GmbH (Germany)
• AURA GmbH & Co. (Germany)
• Climeon (Sweden)
• Forbes Marshall (India)
• Boustead International Heaters (U.K.)
• John Wood Group (U.K.)
• Econotherm Ltd. (U.K.)
• Echogen Power Systems Inc. (U.S.)
• Kawasaki Heavy Industries Ltd. (Japan)

What are the Recent Developments in Global Electricity and Steam Generation Waste Heat Recovery Systems Market?

• In April 2025, E.ON Polska completed the construction of a modern heat recovery system at ArcelorMittal Poland’s Dąbrowa Górnicza plant, which is now fully operational and undergoing final warranty testing. This innovative installation captures energy from flue gases up to 250°C, reheating fuel gas and air to around 180°C, and reintegrating it into the pig iron smelting process. The system delivers impressive results: an annual recovery of 117 GWh of energy, a reduction of 56,000 tonnes of CO₂ emissions, and a cut in coke consumption by nearly 10,000 tonnes. It represents a major step toward sustainable steel production and industrial decarbonization in Poland
• In April 2025, NTT Data launched a major waste heat recovery project at its Berlin 1 Data Center in partnership with Quartierswerk Gartenfeld GmbH, a joint venture of ENGIE Deutschland and GASAG Solution Plus. The initiative will supply up to 8 MW of carbon-free heating capacity to the “Das Neue Gartenfeld” development—a 76-acre residential and commercial district in Berlin-Spandau, home to over 10,000 residents. The system captures low-temperature waste heat (20–30°C) from IT operations and delivers it via a 2 km pipeline to an on-site energy center, where it’s upgraded for district heating. This marks one of Germany’s largest waste heat recovery projects from existing data centers and showcases a scalable model for urban decarbonization
• In March 2025, Climeon pledged its support for the European Commission’s Clean Industrial Deal by promoting its Organic Rankine Cycle (ORC) technology as a key enabler of industrial decarbonization, energy cost reduction, and enhanced energy security. The company’s HeatPower solution captures low-temperature waste heat to generate on-site electricity, helping industries reduce reliance on fossil fuels and stabilize energy expenses. This aligns with the EU’s Affordable Energy Action Plan, which is backed by over €100 billion (approx. USD 113 billion) in funding to accelerate clean energy adoption and improve industrial efficiency across Europe
• In December 2024, Climeon secured a contract exceeding USD 1.08 million (EUR 1 million) with a leading global shipping company to install its HeatPower 300 waste heat recovery systems on two large container vessels. The systems, based on Organic Rankine Cycle (ORC) technology, are designed to convert low-temperature engine waste heat into electricity, significantly improving energy efficiency and reducing fuel consumption. This initiative supports the maritime industry’s push toward decarbonization and compliance with tightening environmental regulations. The installations mark a key step in Climeon’s mission to deliver sustainable energy solutions for ocean transportation
• In June 2024, Danfoss and Hewlett Packard Enterprise (HPE) unveiled the HPE IT Sustainability Services – Data Center Heat Recovery, an off-the-shelf module designed to capture and reuse surplus heat from data centers. This solution enables organizations to transform waste heat into a renewable energy source, supporting sustainable IT infrastructure and reducing overall energy consumption. Inspired by Danfoss’ own heat reuse system in Denmark, the module integrates with HPE’s modular data centers, offering scalable deployment and improved energy efficiency. The partnership reflects a shared commitment to decarbonizing digital infrastructure and advancing climate-resilient technologies

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