Heat Recovery Steam Generator Market Snapshot
In a recent market study, ESOMAR-certified consulting firm Future Market Insights (FMI) projects the global heat recovery steam generator market to reach US$ 1.1 Bn in 2021.
Demand for energy-efficient solutions for power generation, coupled with increasing investments in power plant efficiency enhancements are identified as chief growth drivers.
Owing to these factors, the market is estimated to grow at a steady 5.7% CAGR, with the U.K., the U.S., Germany, and Japan emerging as key producers.
Key Points Covered in Heat Recovery Steam Generator Market Survey
- Market estimates and forecast 2021-2031
- Key drivers and restraints impacting market growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Brand share and Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on Heat Recovery Steam Generator Market and how to Navigate
- Recommendation on Key Winning Strategies
Heat Recovery Steam Generator Market Historic Sales Compared to 2021-2031 Forecast Outlook
The global heat recovery steam generator market grew at a sluggish 3.9% CAGR between 2016 and 2020. The unprecedented impacts of the COVID-19 outbreak further caused a sharp decline in sales of heat recovery steam generators.
However, sales of heat recovery steam generators are anticipated to recover during the assessment period, with a year-over-year growth projection at 4.4% from 2020 to 2021.
In the view of energy crisis, heat recovery steam generators are vital in the field of energy conservation. These systems are integral components in combined cycle (gas turbine and steam power cycle) and are emerging as the most efficient energy conservation methods in recent trends.
Heat recovery steam generators also termed waste heat boilers, recover the waste heat present in the exhaust gases of the gas turbine cycle to generate steam which is used to run a steam power cycle.
Using these systems can significantly cut down greenhouse gas emissions and increase the efficacy of power plants, which in turn is driving their sales across various energy-producing industries. Product customizations in heat recovery steam generators offered by OEMs and increasing investments in clean energy generating sources will continue augmenting market growth through 2031.
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How Will Rising Adoption of Combined Cycle Power Plants Influence Heat Recovery Steam Generator Demand?
Growing energy demand and an alarming increase in greenhouse gas emissions have encouraged the development of advanced energy systems that potentially increase efficiency and enhance sustainability by reducing environmental impact.
Renewable energy utilization, waste heat recovery, and combined cycle power generation have attracted immense interest in recent years. Waste heat is derived from many industrial operations, which can be used for power generation by leveraging a heat recovery steam generator system.
Heat recovery steam generators have a myriad of applications, out of which, combined cycles are gaining significant traction. In combined cycles, waste heat is transferred from gas turbine exhaust gases to water for generating steam for power production in the Rankine cycle.
In basic forms of combined cycles, a gas turbine exhausting into a heat recovery steam generator is uses. The heat recovery steam generator supplies steam to steam turbine cycles to generate electricity, which is the most efficient way of power generation today.
It has been found that combine cycles can improve efficiency, economic and environmental aspects of power production through gas turbine cycles, and heat recovery steam generators significantly affect the economic and technical operation of combined cycles.
High overall plant efficacy, low investment costs, better operational flexibility, and phased installation are among the numerous advantages of combined cycles that are driving their adoption as compared to traditional fossil-fired power stations.
In addition, gas-burning combined cycle plants are ideal for use in heavily populated regions due to their high efficacy and low emission levels, making them a great source of clean energy.
Moreover, good thermodynamic properties of combined cycle plants facilitate the cogeneration of heat electricity. Increased output, coupled with high cycle efficiency, low emission levels, and lower investment costs are prominent attractive features of combined cycle power generation.
As heat recovery steam generators are vital components in combined cycles, increasing adoption of combined cycle for energy generation will translate into lucrative sales prospects of heat recovery steam generators in forthcoming years.
Will Oxy-Fuel Applications Improve Heat Recovery Steam Generator Sales?
In renewable energy generation, air is a common oxidant that is used in various combustion processes. Combustion can be improved by using an oxidant that comprises high levels of oxygen found in atmospheric air. The process of utilizing pure oxygen as an oxidant is known as oxy-fuel combustion.
Oxy-fuel combustion offers numerous advantages, including reduced carbon dioxide emissions from combustion, reduced requirement for emission control equipment, and increased potential for carbon capture. The process also potentially increases output rates, reduces fuel consumption, and enhances sustainability in gas power plant settings.
In applications of heat recovery steam generators, using oxy-fuel has shown to improve efficiency drastically. Increased energy transfer from oxy-fuel via heat recovery steam generators enables increased output in comparison with systems using air-fuel combustion.
Favorable results are mainly attributed to higher heat associated with oxy-fuel combustion exhaust gas. Using oxy-fuel combustion is beneficial for heat recovery steam generators and steam power plant performance in combined cycle arrangements, further contributing to sustainable development.
In addition to increased efficacy, oxy-fuel combustion is also beneficial for other components and operations in combined cycles, such as the functioning of the combustion chamber and expansion in gas turbines.
Since oxy-fuel requires use of oxygen as an oxidant, which is abundant in atmospheric air, its applications are increasing at a high pace in heat recovery steam generators. These trends are anticipated to further strengthen growth prospects in the global heat recovery steam generator market.
High Installation Costs Might Stunt Heat Recovery Steam Generator Market Growth
Although heat recovery steam generators have cost-effective benefits, the installation of the same can incur high costs, which may hamper growth prospects of the market.
Waste heat derived from industrial processes is of low quality, and it can be difficult to effectively utilize the quantity of low-quality heat contained in the waste heat medium. This results in additional equipment requirements, which increases costs to a great extent.
In addition, heat recovery steam generators are not suitable for every kind of industry. For instance, chemical industry, cabin rotary kiln industry, cement kiln industry, and sulfuric acid industry produce high quantities of high-temperature waste heat in the process. Here, heat recovery steam generators can be used to their full potential to improve energy savings.
However, for industries that produce low quantities of waste hear, the cost of equipment and installation can outweigh the benefits of heat recovery steam generators.
How Will the Heat Recovery Steam Generator Market Expand Across the U.S.?
As per FMI’s market survey, the U.S. is anticipated to witness high demand for heat recovery steam generators in the forthcoming years, with the North American market growing at a modest 4.4% CAGR.
Robust renewable energy infrastructure, coupled with demand for energy-efficient and cost-effective green energy solutions will continue boosting sales of heat recovery steam generators in the U.S.
In addition, several government-backed initiatives to promote the usage of renewable energy will enhance growth prospects in the heat recovery steam generators market. The U.S. federal government offers tax credits, grants, and loan schemes for qualifying renewable energy technology and projects.
These incentives include Renewable Electricity Production Tax Credit (PTC), the Residential Energy Credit (REC), the Investment Tax Credit (ITC), and the Modified Accelerated Cost-Recovery System.
Apart from this, grants and loans are available from other government agencies including the U.S. Department of Energy (DOE), the U.S. Department of Agriculture, and the U.S. Department of Interior. Further, several U.S. states also offer financial incentives to support and subsidize the installation of renewable energy equipment.
Aforementioned factors are anticipated to bode well for the heat recovery steam generator market in the U.S.
Will the U.K. Continue Dominating the Heat Recovery Steam Generator Market?
The European heat recovery steam generator market is poised to expand at a 4.6% CAGR, with increasing applications of heat recovery steam generators in the U.K.
The European Union has pledged to reduce carbon emission by at least 40% by 2030, as a part of the EU's 2030 climate and energy framework with contributions to the Paris Agreement. 20% of the U.K.'s electricity is derived from renewables, and owing to these targets, renewable energy will be an integral part of the strategy to reduce carbon emissions in the forthcoming years.
To achieve the target, a wide range of technologies such as onshore and offshore wind farms, hydropower systems and biomass power stations are currently being used. These developments are indicative of high demand for heat recovery steam generators during the assessment period.
In addition, the U.K. has several schemes that offer financial support for renewable energy. These schemes encourage technological advancements and wider adoption of renewables, which in turn leads to reductions in costs.
For instance, the Renewable Obligation is intended to promote renewable energy production for large-scale installations, which rewards renewable electricity output over the lifetime of a project. Along with this, the Feed-in Tariff (FiT) is designed to support small and medium-scale renewable installations, through which generators are paid for every unit of electricity produced.
Why China is Considered an Attractive Heat recovery Generator Market?
Increasing population and rapid growth in economy, combined with vast manufacturing industry and mass migration to centrally heated cities have propelled the consumption of electricity in China.
Recognizing the growing need for electricity generation and its long-term dependence on fossil fuels, the Chinese government has made plans to source energy from renewables. Improvements in battery technologies, photovoltaics, and energy management are kept at the forefront of these plans.
These factors are encouraging global heat recovery steam generator market players to tap into the Chinese market with new and technologically advanced solutions. For instance, Mitsubishi Power, a global leader, signed an agreement to supply a 180-MW gas-fired turbine for Chinese steel-producing corporation.
Jiangsu Shagang Group has contracted Mitsubishi to deliver the M701SDAX gas turbine for its combined cycle power plant. The M701-class turbine is fueled by blast furnace gas, and the plant is expected to enter operation by 2023. The facility will comprise a heat recovery steam generator, gas turbine, steam turbine, gas compressor, and auxiliary equipment.
Will India Emerge as a Lucrative Market?
The energy sector in India has witnessed major transformations in response to growing demand and strategic measures to promote renewable energy. Burgeoning electricity demand can be attributed to high economic growth, rapid urbanization through Smart City projects, and industrialization strategies such as 'Make in India'.
Apart from this, the Government of India's plan is to provide 24x7 electricity to all rural and urban households, with 600 million new electricity consumers added by 2040. This, in turn, will lead to a significant increase in demand.
Further, expansion of numerous manufacturing industries in the country, along with government-backed initiatives to promote green energy will continue driving sales of heat recovery steam generators in India.
Demand for Fully Assembled Heat Recovery Steam Generators To Remain High
Based on design type, fully assembled heat recovery steam generators are anticipated to dominate the segment.
Growth can be attributed to increasing investments in renewable energy solutions, along with product developments and customization offered by OEMs. Additionally, technological advancements in fully assembled heat recovery steam generators will continue augmenting market growth.
Horizontal Drum Units to Account for Maximum Sales
In terms of configuration, horizontal drums unit type of heat recovery steam generators is projected to record maximum sales during the forecast period. Horizontal drums are made of titanium, clad steel, and carbon steel, which facilitate a natural and cost-effective circulation effect.
As compared to other configurations, horizontal drums provide extra tensile strength and require less space. Owing to these factors, horizontal drums will emerge as the most preferred configuration type during the assessment period.
0-60 MW Capacity Heat Recovery Steam Generators To Remain Highly Sought-After
Based on output power type, the 0-60 MW segment is poised to experience high demand during the forecast period. Increasing adoption of co-generating units to counter heat ingestion in small-scale industries and grid networks will continue driving sales.
Additionally, ongoing innovations and developments in the heat recovery steam generators will result in more efficient products, which will further enhance growth prospects of the market.
Applications in Combined Heat and Power Plants to Continue Rising
In terms of applications, the combined heat and power plant segment is estimated to emerge as a key user of heat recovery steam generators through 2031.
Government initiatives encouraging renewable energy production will lead to construction of more combined heat and power plants, resulting in high sales of heat recovery steam generators in the upcoming years.
Top 5 players operating in the heat recovery steam generator market comprise General Electric, Siemens AG, CMI Group, John Wood Group plc, and Mitsubishi Hitachi Power Systems Ltd., accounting for approximately 75.5% of the total market share.
As a part of their growth strategies, prominent players are focusing on strategic collaborations, deal renewals, acquisitions, and mergers to improve sales. Apart from this, product innovations and customization will remain highly sought-after growth strategies during the assessment period. For instance:
- In August 2021, Mitsubishi Power, a subsidiary of Mitsubishi Heavy Industries (MHI) Group, announced its plans to develop combustion burners that can utilize ammonia (NH3) as fuel and eliminate the chances of carbon emission when used for power generation. By using ammonia as opposed to other fossil fuels, this system will facilitate decarbonization in thermal power generation.
- In July 2021, John Wood Group PLC announced a partnership with AIG, a leading insurance organization and the University of Strathclyde's Institute of Future Cities, to help businesses and cities to adapt to the impacts of fluctuating climate changes and achieve decarbonization. The three organizations will work together to create a roadmap to build more sustainable infrastructure to drive down carbon emissions.
Scope of Report
Historical Data Available for
USD Million for Value
Key Regions Covered
North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa
Key Countries Covered
US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, and South Africa
Key Segments Covered
Design Type, Configuration Type, Output Power Type, Application Type, and Regions
Key Companies Profiled
Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing
Available upon Request
Key Questions Answered in the Report
What is the current heat recovery steam generator market value?
The heat recovery steam generator market will reach US$ 1.1 Bn in 2021.
At what rate did the heat recovery steam generator market grow between 2016 and 2020?
The heat recovery steam generator market experience sluggish growth at a 3.9% CAGR between 2016 and 2020.
What are the key trends driving heat recovery steam generator sales?
Growing demand for cost-effective energy production solutions, coupled with increasing product developments and customization offered by OEMs will continue driving heat recovery steam generator sales.
Who are the leading players in the heat recovery steam generator market?
General Electric, Siemens AG, CMI Group, John Wood Group plc, and Mitsubishi Hitachi Power Systems Ltd. are the leading players operating in the heat recovery steam generator market.
What will be the demand outlook for North America heat recovery steam generator market?
The North American heat recovery steam generator market is poised to expand at a 4.4% CAGR.
What is the market share of leading players in the heat recovery steam generator market?
Leading heat recovery steam generator market players are estimated to account for 75.5% of the total market share.
What will be the heat recovery steam generator market share in Europe?
The European heat recovery steam generator market is projected to grow at a 4.6% CAGR through 2031.
What is the current market share of Japan and South Korea in the global heat recovery steam generator market?
Japan and South Korea will account for 5% of the total market share collectively.
Heat Recovery Steam Generator Market by Category
By Design Type:
- Modular Construction
- C-Section Construction
- Bundle Construction
- Fully Assembled
By Configuration Type:
- Horizontal Drum Units
- Vertical Drum Units
- Horizontal-Once Through Units
By Output Power Type:
- 0-60 MW
- 60-100 MW
- 100 MW & Above
By Application Type:
- Co-generation (Process Heating)
- Combined Cycle
- Combined Heat & Power (CHP)
By Region, Heat Recovery Steam Generator Market is segmented as:
- North America
- Latin America
- Western Europe
- Eastern Europe
- South East Asia & Others (SEA)
- Middle East & Africa (MEA)