The Heat Recovery System Generator Market is estimated to be valued at USD 9.4 billion in 2025 and is projected to reach USD 15.6 billion by 2035, registering a compound annual growth rate (CAGR) of 5.2% over the forecast period.
| Metric | Value |
|---|---|
| Heat Recovery System Generator Market Estimated Value in (2025 E) | USD 9.4 billion |
| Heat Recovery System Generator Market Forecast Value in (2035 F) | USD 15.6 billion |
| Forecast CAGR (2025 to 2035) | 5.2% |
The heat recovery system generator market is experiencing steady growth, driven by the increasing emphasis on energy efficiency and waste heat utilization across industrial and power generation sectors. Adoption of these systems is being encouraged by rising global energy costs and stricter environmental regulations targeting greenhouse gas emissions. Continuous innovations in generator efficiency, thermal energy recovery, and integration with combined heat and power systems are enhancing operational performance and reducing total energy consumption.
The growing industrialization and expansion of power generation capacity, particularly in emerging economies, is further supporting market growth. Increasing focus on sustainability and reduction of carbon footprints in large-scale facilities is promoting adoption of advanced heat recovery systems.
As industries and utilities seek to optimize energy utilization and reduce operational costs, demand for generators capable of capturing and converting waste heat into usable electricity is rising The market is expected to maintain a positive growth trajectory, fueled by continuous technological advancements, expanding end-user applications, and heightened awareness of energy efficiency benefits across regions globally.
The heat recovery system generator market is segmented by product type, application, end-user, component, and geographic regions. By product type, heat recovery system generator market is divided into Steam Turbine, Gas Turbine, Diesel Engine, and Others. In terms of application, heat recovery system generator market is classified into Power Generation, Chemical, Cement, Pulp & Paper, and Others. Based on end-user, heat recovery system generator market is segmented into Industrial, Commercial, and Residential. By component, heat recovery system generator market is segmented into Heat Exchangers, Turbines, Boilers, and Others. Regionally, the heat recovery system generator industry is classified into North America, Latin America, Western Europe, Eastern Europe, Balkan & Baltic Countries, Russia & Belarus, Central Asia, East Asia, South Asia & Pacific, and the Middle East & Africa.
The steam turbine product type segment is projected to hold 27.2% of the heat recovery system generator market revenue share in 2025, making it the leading product type. This segment’s dominance is being driven by the ability of steam turbines to efficiently convert recovered heat into electricity, providing reliable and continuous power output for large-scale operations. Steam turbines are preferred for their high thermal efficiency, durability under prolonged high-temperature conditions, and suitability for integration with combined heat and power plants.
The segment has benefited from improvements in turbine blade design, materials engineering, and control systems, which enhance performance and reduce maintenance requirements. Rising industrial energy consumption, particularly in heavy manufacturing and chemical processing, is further reinforcing adoption.
The modular nature of steam turbine systems allows them to be tailored to specific waste heat recovery needs, providing flexibility in deployment The segment’s proven track record of energy optimization and long operational life is positioning it as the primary choice for power recovery applications globally.
The power generation application segment is expected to account for 23.5% of the heat recovery system generator market revenue share in 2025, establishing itself as the leading application area. Its growth is being supported by the increasing integration of heat recovery systems in thermal power plants and renewable energy facilities, which improves overall energy efficiency and reduces fuel consumption.
The segment benefits from the ability of these systems to recover exhaust heat from turbines, engines, and industrial processes, converting it into supplemental electricity. Growing energy demand, coupled with regulatory incentives to reduce emissions, is encouraging utilities and independent power producers to adopt advanced heat recovery generators.
Continuous improvements in system design, including enhanced heat exchangers and automated monitoring, are further boosting efficiency and reliability As electricity generation capacity expands globally and the need for sustainable energy solutions intensifies, the adoption of heat recovery systems for power generation is expected to remain a critical factor driving segment growth in the market.
The industrial end-user segment is projected to hold 29.2% of the heat recovery system generator market revenue share in 2025, making it the dominant end-use category. This leadership is being driven by the high energy demands of manufacturing, chemical processing, and heavy industries, which benefit significantly from waste heat recovery to reduce operational costs and improve energy efficiency.
Industrial facilities are increasingly adopting heat recovery generators to capture exhaust heat from boilers, furnaces, and other equipment, converting it into electricity or thermal energy for internal processes. The segment is supported by government incentives, energy efficiency regulations, and rising operational cost pressures that make recovery systems economically attractive.
Additionally, the modularity and scalability of these systems allow them to be customized for varying industrial energy loads, ensuring optimal performance As sustainability initiatives and efficiency standards become more stringent, the industrial sector’s reliance on heat recovery system generators is expected to further strengthen, reinforcing its position as the largest end-use segment in the market.
The heat recovery system generator is an energy recovery heat exchanger designed to recover the waste or exhaust heat from any power generation plant. Heat recovery system generator produces steam by utilizing exhaust gas which can further be used for captive power generation or cogeneration.
Heat recovery steam generators improve the system efficiency from 35-40% when used in cogeneration, also called as simple cycle or open cycle. The efficiency improvement levels could also reach in between 55% and 60% when used in combined cycle.
Heat recovery steam generator market is witnessing significant growth since past few years due to increasing concerns over energy savings, carbon emissions reduction and improving process efficiencies.
Heat recovery steam generators find their major use in energy sector such as thermal power plants and industrial sector. Fundamental components of heat recovery steam generator are evaporators, economizer, superheaters or reheaters and preheaters.
On the basis of circulation types, the heat recovery steam generator market can be segmented into natural circulation, forced circulation and once through. Heat recovery steam generators are usually bulky and are typically complex in design and manufacturing which turns out to be a major challenge for its manufacturers in the global heat recovery steam generators market.
These generators are therefore supplied in different modulesto reduce shipping problems. However, packaged heat recovery system generators are supplied as fully assembled unit which are typically suited for 20MW applications.
The heat recovery system generator market can be segmented based on the direction of exhaust gas flow and the number of pressure levels. Based on the flow of exhaust gas heat recovery system generator market can be further categorized as vertical and horizontal types. Based on the number of pressure levels heat recovery system generator market can be categorised as single pressure and multiple pressure.
The key drivers identified in heat recovery steam generator market are the growing need for energy efficient sources, allocation of government incentives for achieving better energy efficiency levels, reduction in carbon emissions, proposed investment plans in energy sector by government and major companies. However, high capital cost and limited product differentiation are the key challenges faced by heat recovery steam generator manufacturers.
Developing countries are expected to show high demand in global heat recovery steam generator market.
Asia Pacific region, particularly India and China are expected to be high potential markets. Asia Pacific heat recovery steam generator market is marked with presence of number of market participants including component manufacturers, installers, designers, assemblers and end-to-end solution providers giving rise to high degree of fragmentation in the heat recovery steam generator market.
With rise in power consumption owing to infrastructure development and improving standard of living in Asia Pacific and Middle East & Africa the demand is expected to grow in these regions. Heavy investment in Middle East & Africa and investment in combined cycle power plants in Iran and UAE are some of the underlying drivers in heat recovery steam generators market.
Some of the examples of key market participants in global heat recovery steam generators market are Alstom SA, Thermax Ltd., Doosan Heavy Industries & Construction Co. Ltd., SofinterSpA, Technology Transfer Services, Foster Wheeler AG, CMI Group, Mitsubishi Heavy Industries, AE&E Australia Pvt Ltd. and Bharat Heavy Electricals Ltd.
This research report presents a comprehensive assessment of the heat recovery steam generators market and contains thoughtful insights, facts, historical data and statistically-supported and industry-validated market data and projections with a suitable set of assumptions and methodology. It provides analysis and information by categories such as market segments, regions, product type and distribution channels.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments.The report also maps the qualitative impact of various market factors on market segments and geographies.
| Country | CAGR |
|---|---|
| China | 7.0% |
| India | 6.5% |
| Germany | 6.0% |
| France | 5.5% |
| UK | 4.9% |
| USA | 4.4% |
| Brazil | 3.9% |
The Heat Recovery System Generator Market is expected to register a CAGR of 5.2% during the forecast period, exhibiting varied country level momentum. China leads with the highest CAGR of 7.0%, followed by India at 6.5%. Developed markets such as Germany, France, and the UK continue to expand steadily, while the USA is likely to grow at consistent rates. Brazil posts the lowest CAGR at 3.9%, yet still underscores a broadly positive trajectory for the global Heat Recovery System Generator Market. In 2024, Germany held a dominant revenue in the Western Europe market and is expected to grow with a CAGR of 6.0%. The USA Heat Recovery System Generator Market is estimated to be valued at USD 3.6 billion in 2025 and is anticipated to reach a valuation of USD 5.5 billion by 2035. Sales are projected to rise at a CAGR of 4.4% over the forecast period between 2025 and 2035. While Japan and South Korea markets are estimated to be valued at USD 515.5 million and USD 315.8 million respectively in 2025.
| Item | Value |
|---|---|
| Quantitative Units | USD 9.4 Billion |
| Product Type | Steam Turbine, Gas Turbine, Diesel Engine, and Others |
| Application | Power Generation, Chemical, Cement, Pulp & Paper, and Others |
| End-User | Industrial, Commercial, and Residential |
| Component | Heat Exchangers, Turbines, Boilers, and Others |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, Middle East & Africa |
| Country Covered | United States, Canada, Germany, France, United Kingdom, China, Japan, India, Brazil, South Africa |
| Key Companies Profiled | General Electric, Siemens AG, Mitsubishi Hitachi Power Systems, ABB Ltd., Alstom SA, Amec Foster Wheeler, Babcock & Wilcox Enterprises, Doosan Heavy Industries & Construction, Foster Wheeler AG, Thermax Limited, CMI Group, and Nooter/Eriksen |
The global heat recovery system generator market is estimated to be valued at USD 9.4 billion in 2025.
The market size for the heat recovery system generator market is projected to reach USD 15.6 billion by 2035.
The heat recovery system generator market is expected to grow at a 5.2% CAGR between 2025 and 2035.
The key product types in heat recovery system generator market are steam turbine, gas turbine, diesel engine and others.
In terms of application, power generation segment to command 23.5% share in the heat recovery system generator market in 2025.
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Heat Recovery System Generator Market
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