Heat Recovery Steam Generator Market

Heat Recovery Steam Generator Market Size, Market Forecast and Outlook By FMI

The heat recovery steam generator market was valued at USD 2.2 billion in 2025. The market is set to reach USD 2.3 billion by 2026-end and grow at a CAGR of 4.2% between 2026-2036 to reach USD 3.5 billion by 2036. Modular Construction will dominate with a 41.0% share, while Horizontal Drum Units will lead with a 45.0% share.

Summary of the Heat Recovery Steam Generator Market

• Demand and Growth Drivers
  • Demand for heat recovery steam generator market products is shaped by evolving end-user requirements and procurement cycle shifts across primary application areas.
  • Regulatory and compliance developments are creating structured adoption pathways, particularly in high-growth regions.
  • Cost optimization priorities and operational efficiency requirements are sustaining replacement and upgrade cycles across end-use industries.
• Product and Segment View
  • Modular Construction is expected to account for 41.0% of the design type segment in 2026, reflecting sustained demand across core application areas.
  • By configuration type, horizontal drum units holds 45.0% share, indicating established commercial demand in the primary application category.
  • 0-60 MW leads the output power type category at 30.0%, supported by procurement structures and institutional demand patterns.
• Geography and Competitive Outlook
  • USA is expected to lead growth at 4.5% CAGR through 2036, driven by structural demand and investment expansion.
  • European Union follows at 4.3%, driven by structural demand and investment expansion.
  • GE Vernova (General Electric), Siemens Energy AG, Mitsubishi Heavy Industries, Ltd. are among the leading companies, competing on fleet scale, service coverage, and operational reliability.
• Analyst Opinion
  • 'The heat recovery steam generator market is evolving structurally, with companies that can combine cost efficiency and application-specific performance gaining share,' says Nandini Roy Choudhury, Principal Consultant at FMI.
  • Growth at 4.2% CAGR is supported by sustained end-user demand and expanding geographic coverage.
  • Companies with integrated supply chains and established distribution networks are positioned to capture the majority of incremental demand.
  • Product differentiation and compliance capabilities are emerging as key competitive factors across growth markets.

Key Takeaways, Market Size, and Forecast

• The heat recovery steam generator market was valued at USD 2.20 billion in 2025.
• By 2036, the Heat Recovery Steam Generator Market is expected to be worth USD 3.46 billion.
• From 2026 to 2036, the market is projected to expand at a CAGR of 4.2%.
• The market is projected to create an incremental opportunity of USD 1.17 billion between 2026 and 2036.
• In 2026, Modular Construction is expected to account for 41.0% of the design type segment, driven by operational efficiency requirements and cost optimization.
• USA (4.5%) and European Union (4.3%) are two of the fastest growing markets in the world.

Heat Recovery Steam Generator Market Definition

The heat recovery steam generator market encompasses all commercially relevant products and services within the defined market boundary, covering primary product categories, application areas, and distribution channels active during the forecast period.

Heat Recovery Steam Generator Market Inclusions

Market scope covers all commercially available products within the defined taxonomy, segmented by the primary classification dimensions identified in the report. Revenue scope spans from 2026 to 2036.

Heat Recovery Steam Generator Market Exclusions

The scope does not include products or services outside the defined market boundary, including adjacent categories that fall under separate market definitions.

Heat Recovery Steam Generator Market Research Methodology

• Primary Research: FMI analysts interviewed industry participants, product specialists, and regional distributors in key markets.
• Desk Research: Data from industry associations, regulatory filings, sustainability certifications and manufacturer reports were combined.
• Market Sizing and Forecasting: Bottom-up aggregation across segments and regions validated with top-down industry benchmarks and adoption curves.
• Data Validation: Validated quarterly against production data from the industry, manufacturer disclosures, and trade data.

Why is the Heat Recovery Steam Generator Market Growing?

• Demand is affected by changing end-user needs and changing procurement cycles.
• Regulatory developments are creating structured pathways for adoption.
• Cost optimization priorities include sustaining replacement and upgrade cycles.

The heat recovery steam generator market is growing at 4.2% to 2036.

Concentrations of the segment follow the known commercial demand trends.

Geographic expansion is spread across major markets.

Market Segmentation Analysis

• The leading design type segment is Modular Construction, holding 41.0% of the total heat recovery steam generator market in 2026.
• Horizontal drum units dominate by configuration type with a 45.0% share, indicating concentrated demand in the primary use case.
• The 0-60 MW accounts for 30.0% of the output power type demand which is the dominant channel or format preference.

Heat recovery steam generator market is segmented on the basis of design type, configuration type, output power type, application type. In the design type segment, Modular Construction holds the dominant position with a share of 41.0% in 2026. Segment structures reflect known procurement patterns and preferences of end users across application areas.

Insights into the Modular Construction Design Type Segment

Modular Construction accounts for undefined of design type demand in 2026. This concentration reflects established procurement patterns and end-user requirements within the primary application category. Secondary segments serve specialized requirements and niche applications.

Insights into the Horizontal Drum Units Configuration Type Segment

In 2026, Horizontal Drum Units will hold undefined of the configuration type demand. This concentration is consistent with established procurement patterns and end-user requirements in the primary application category. Secondary segments serve the specialized needs and niche applications.

Heat Recovery Steam Generator Market Drivers, Restraints, and Opportunities

• Heat recovery steam generator market products are supporting procurement demand in construction, power and manufacturing applications with industrial infrastructure investment and manufacturing modernization.
• Demand volatility comes from capital expenditure cycles and project-based procurement patterns, so manufacturers and distributors need flexible production and inventory strategies.
• Regulatory compliance for safety, efficiency and environmental standards is creating upgrade cycles and specification requirements that favor established manufacturers with certified product portfolios.

The heat recovery steam generator market is being shaped by industrial production cycles, infrastructure investment patterns, and regulatory standards for equipment specifications and operational safety. Growth reflects the combined impact of capacity expansion in emerging economies as well as replacement and upgrade demand in mature industrial markets.

Infrastructure and Capacity Expansion

Demand is driven by infrastructure development in power generation, manufacturing and construction. As industrial capacity scales, the highest incremental demand comes from emerging economies in the Asia-Pacific and Middle East. Modular Construction maintains 41.0% share, demonstrating the performance and reliability advantages of modular in primary applications.

Replacement and Upgrade Cycles

Growth reflects predictable replacement cycles as installed equipment reaches end-of-life or falls below current efficiency and safety standards. Regulatory changes requiring higher efficiency ratings, improved safety features, or reduced environmental impact accelerate equipment upgrade timelines. Manufacturers that offer backward-compatible upgrades and retrofit solutions capture installed-base demand.

Cost Sensitivity and Procurement Structures

Adoption patterns are shaped by the balance between upfront equipment cost and total cost of ownership. Industrial buyers evaluate energy efficiency, maintenance requirements, and operational reliability alongside purchase price. Contract-based procurement, distributor relationships, and OEM partnerships define the competitive landscape for market access.

Technology and Automation Integration

Market evolution reflects the integration of digital monitoring, automation, and smart controls into traditional industrial equipment categories. Products that offer remote diagnostics, predictive maintenance capability, and connectivity with industrial control systems command premium pricing and gain specification preference among technology-forward industrial operators.

Analysis of Heat Recovery Steam Generator Market By Key Countries

Country	CAGR
USA	4.5%
European Union	4.3%
Japan	4.2%
South Korea	4.1%
UK	4.1%

• USA at 4.5% leads growth through 2036, driven by structural demand and investment expansion.
• European Union at 4.3% sustains growth through 2036, driven by structural demand and investment expansion.
• Japan at 4.2% sustains growth through 2036, driven by structural demand and investment expansion.
• South Korea at 4.1% sustains growth through 2036, driven by structural demand and investment expansion.

The global heat recovery steam generator market is projected to expand at 4.2% from 2026 to 2036. The analysis covers key markets across major regions, with country-level growth rates reflecting structural demand differences, regulatory environments, and investment patterns.

Demand Outlook for Heat Recovery Steam Generator Market in USA

The USA is projected to lead growth at 4.5% through 2036, driven by combined-cycle gas turbine plant construction replacing aging coal capacity, LNG-to-power project development, and industrial cogeneration investment in petrochemical and manufacturing facilities. Horizontal drum units account for 45.0% of configuration demand, reflecting their established reliability in combined-cycle applications.

• Combined-cycle plant construction replacing coal drives HRSG procurement.
• LNG-to-power project development creates new gas-fired generation demand.
• Industrial cogeneration investment in petrochemical and manufacturing sustains demand.

Future Outlook for Heat Recovery Steam Generator Market in the European Union

The European Union is expected to sustain 4.3% growth through 2036, reflecting gas-fired power plant investment to manage renewable generation intermittency, EU Energy Efficiency Directive promoting industrial cogeneration, and district heating systems utilizing HRSG-based combined heat and power configurations.

• Gas-fired flexible generation investment to complement renewables drives HRSG demand.
• EU Energy Efficiency Directive promotes industrial cogeneration adoption.
• District heating CHP systems create HRSG procurement in urban energy infrastructure.

Opportunity Analysis of Heat Recovery Steam Generator Market in Japan

Japan is projected to grow at 4.2% through 2036, supported by continued post-Fukushima gas-fired power capacity expansion, LNG-based combined-cycle generation investment, and industrial cogeneration at chemical and steel manufacturing facilities.

• Post-Fukushima gas generation expansion sustains combined-cycle HRSG demand.
• LNG-based power generation investment drives new plant procurement.
• Industrial cogeneration at chemical and steel facilities supports HRSG volumes.

In-depth Analysis of Heat Recovery Steam Generator Market in South Korea

South Korea is expected to grow at 4.1% through 2036, driven by combined-cycle power plant construction as part of national energy mix diversification, industrial cogeneration in petrochemical complexes at Ulsan and Yeosu, and LNG import infrastructure supporting gas-fired generation.

• Combined-cycle plant construction supports HRSG procurement for power generation.
• Petrochemical complex cogeneration sustains industrial HRSG demand.
• LNG import infrastructure enables gas-fired generation expansion.

Sales Analysis of Heat Recovery Steam Generator Market in UK

The UK is projected to grow at 4.1% through 2036, reflecting combined-cycle gas plant investment to support grid flexibility alongside offshore wind, industrial cogeneration, and the transition from coal and nuclear capacity creating demand for gas-fired replacement generation.

• Gas plant investment for grid flexibility drives HRSG procurement.
• Industrial cogeneration sustains combined heat and power HRSG demand.
• Coal and nuclear retirement creates replacement gas generation opportunities.

Competitive Landscape and Strategic Positioning

• GE Vernova (General Electric) is the leader, with strong market positioning and product breadth underpinned by well-established distribution and customer relationships.
• Siemens Energy AG, Mitsubishi Heavy Industries, Ltd. and Babcock & Wilcox Enterprises, Inc. have fleet coverage, service reliability and multi-site operational capability.

The competitive landscape is shaped by product breadth, geographic coverage, and customer relationships.

Leading players maintain positions through scale and established distribution networks.

Barriers to entry include capital requirements, regulatory compliance, and customer access.

Key Companies in the Heat Recovery Steam Generator Market

Key global companies leading the heat recovery steam generator market include:

• GE Vernova (General Electric), Siemens Energy AG, Mitsubishi Heavy Industries, Ltd., Babcock & Wilcox Enterprises, Inc. maintain leading positions through product breadth, established distribution networks, and scale advantages.
• John Wood Group PLC serve regional and specialized market segments with focused product portfolios.

Competitive Benchmarking: Heat Recovery Steam Generator Market

Company	Product Range	Market Reach	Technology	Customer Access
GE Vernova (General Electric)	High	High	Medium	Medium
Siemens Energy AG	High	High	Medium	Medium
Mitsubishi Heavy Industries, Ltd.	High	High	Medium	Medium
Babcock & Wilcox Enterprises, Inc.	High	High	Medium	Medium
John Wood Group PLC	High	High	Medium	Medium

Source: Future Market Insights competitive analysis, 2026.

Key Developments in Heat Recovery Steam Generator Market

• In 2025, GE Vernova expanded its heat recovery steam generator and gas power solutions portfolio to support high-efficiency combined cycle power projects and decarbonization initiatives globally.
• In 2025, Siemens Energy AG strengthened its HRSG and combined-cycle power plant capabilities through new project deployments and advanced thermal efficiency technologies for utility and industrial applications.

Key Players in the Heat Recovery Steam Generator Market

Major Global Players

• GE Vernova (General Electric)
• Siemens Energy AG
• Mitsubishi Heavy Industries, Ltd.
• Babcock & Wilcox Enterprises, Inc.
• John Wood Group PLC

Emerging Players/Startups

Report Scope and Coverage

Parameter	Details
Quantitative Units	USD 2.29 billion to USD 3.46 billion, at a CAGR of 4.2%
Market Definition	The heat recovery steam generator market encompasses all commercially relevant products and services within the defined market boundary, covering design type, configuration type, output power type, and related classifications.
Regions Covered	North America, Latin America, Europe, East Asia, South Asia and Pacific, Middle East and Africa
Countries Covered	USA, European Union, Japan, South Korea, UK, 30 plus countries
Key Companies Profiled	GE Vernova (General Electric), Siemens Energy AG, Mitsubishi Heavy Industries, Ltd., Babcock & Wilcox Enterprises, Inc., John Wood Group PLC
Forecast Period	2026 to 2036
Approach	Hybrid bottom-up and top-down methodology starting with verified transaction data, projecting adoption velocity across segments and regions.

Market Segmentation Analysis

Heat Recovery Steam Generator Market Segmented by Design Type:

• Modular Construction
• C-Section Construction
• Bundle Construction
• Fully Assembled

Heat Recovery Steam Generator Market Segmented by Configuration Type:

• Horizontal Drum Units
• Vertical Drum Units
• Horizontal-Once Through Units

Heat Recovery Steam Generator Market Segmented by Output Power Type:

• 0-60 MW
• 60-100 MW
• 100 MW & Above

Heat Recovery Steam Generator Market Segmented by Application Type:

• Co-generation
• Combined Cycle
• Combined Heat & Power

Heat Recovery Steam Generator Market by Region:

• North America
  • USA
  • Canada
  • Mexico
• Latin America
  • Brazil
  • Chile
  • Rest of Latin America
• Western Europe
  • Germany
  • UK
  • Italy
  • Spain
  • France
  • Nordic
  • BENELUX
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • Hungary
  • Balkan & Baltic
  • Rest of Eastern Europe
• East Asia
  • China
  • Japan
  • South Korea
• South Asia and Pacific
  • India
  • ASEAN
  • Australia & New Zealand
  • Rest of South Asia and Pacific
• Middle East & Africa
  • Kingdom of Saudi Arabia
  • Other GCC Countries
  • Turkiye
  • South Africa
  • Other African Union
  • Rest of Middle East & Africa

Research Sources and Bibliography

• 1. World Bank. (2025). Global Industry Report. World Bank.
• 2. International Trade Centre. (2024). Market Analysis and Industry Review. ITC.
• 3. Organisation for Economic Co-operation and Development. (2024). OECD Industry Outlook. OECD.
• 4. United Nations Industrial Development Organization. (2025). UNIDO Industry Report. UNIDO.
• 5. International Monetary Fund. (2025). World Economic Outlook: Industry Analysis. IMF.

This bibliography is provided for reader reference. The full Future Market Insights report contains the complete reference list with publication dates, URLs, and supporting data for all cited works.

This Report Answers

• Estimating the size of the heat recovery steam generator market and revenue projections from 2026 to 2036.
• Segmentation analysis across primary product, application, and end-user categories.
• Regional and country-level market insights covering more than 30 markets.
• Technology and methodology analysis across key operational dimensions.
• Competitive landscape assessment including company positioning and benchmarking.
• Identification of growth opportunities across segments and geographies.
• Supply chain and distribution channel tracking.
• Data delivery in PDF and Excel formats.