Global Waste Heat Recovery System Market Insights Forecasts to 2032

• The Waste Heat Recovery System Market Size was valued at USD 58.2 Billion in 2022.
• The Market Size is Growing at a CAGR of 10.4% from 2022 to 2032
• The Worldwide Waste Heat Recovery System Market Size is expected to reach USD 81.3 Billion by 2032
• Asia Pacific is expected To Grow the fastest during the forecast period

The Global Waste Heat Recovery System Market Size is expected to reach USD 81.3 Billion by 2032, at a CAGR of 10.4% during the forecast period 2022 to 2032.

In order to increase overall efficiency and decrease energy waste, a Waste Heat Recovery System (WHRS) collects and uses waste heat produced during various industrial operations or energy generation. A substantial quantity of heat is produced as a consequence of many industrial activities, including the creation of electricity, goods, and chemicals, and it is frequently released into the environment. Systems for recovering waste heat are designed to take this heat and turn it into useable energy, increasing the process' overall energy efficiency. Systems for recovering waste heat from industrial processes greatly increase the processes' overall energy efficiency by allowing energy that would otherwise be lost to be captured and used again. Industries can lessen their dependency on external energy sources and, over time, save money by using captured waste heat to generate energy or heat.

Impact of COVID 19 On Global Waste Heat Recovery System Market

In reaction to the pandemic, lockdowns, travel bans, and quarantine measures may have affected international supply chains, delaying the production and transportation of parts needed for waste heat recovery systems. Timelines for projects and installation schedules may have been impacted. Projects involving the deployment of waste heat recovery systems may have been delayed or cancelled as a result of the pandemic's reduced industrial activity and economic unpredictability. To save money, businesses might have postponed capital investments. Due of the pandemic, many industry saw slowdowns or brief shutdowns. Due to the fact that these systems typically recover heat from industrial operations, this directly influences waste heat generation. Lower waste heat availability might have been caused by decreased industrial activity. The pandemic's economic hardships and income losses may have made it more difficult for certain sectors to engage in energy-efficient initiatives like waste heat recovery systems. The pandemic might have led to a higher focus on sustainability and renewable energy, which could have a beneficial effect on the market for waste heat recovery systems because they help achieve targets for energy efficiency and emission reduction.

Key Market Drivers

Industries are adopting more energy-efficient practises as a result of the worldwide push for sustainability and the reduction of carbon emissions. Systems for recovering waste heat from industrial processes are in line with sustainability objectives because they enable industries to use waste heat that would otherwise be lost, hence lowering energy usage and the environmental effect of industrial processes. Companies are being pushed to embrace technology that increase energy efficiency and lower greenhouse gas emissions by more stringent environmental rules and emission requirements in a variety of industries. Companies can achieve these standards with the aid of waste heat recovery technologies. Industries are looking for strategies to optimise their energy use and cut costs as energy costs climb further. By using waste heat to produce more power or provide heating, waste heat recovery systems can help reduce costs. Waste heat recovery systems have a chance to be incorporated during the design phase when industries grow and new industrial facilities are constructed. This strategy may result in more effective use of energy right away. Systems for recovering waste heat can be used in a variety of sectors, such as chemical production, manufacturing, and power generation. The potential market size and growth opportunities are increased by this broad application.

Key Market Challenges

Waste heat recovery system implementation sometimes necessitates a substantial upfront investment in hardware, software, and installation. Although these systems can reduce costs over the long run by improving energy efficiency, some companies, especially small and medium-sized businesses, may find the initial capital expense to be prohibitive.  It can be challenging to integrate waste heat recovery systems into current industrial processes and may call for alterations to existing machinery and systems. It can be difficult to guarantee seamless integration without interfering with ongoing operations. Waste heat availability and temperature might change depending on things like production levels, weather, and equipment usage. It can be difficult to design systems that effectively capture and use changeable waste heat sources. 

Market Segmentation

Application Insights

Power and steam generation segment is dominating the market over the forecast period

On the basis of application, the global waste heat recovery system market is segmented into Pre Heating, Steam & Power Generation. Among these, the power and steam generation segment is dominating the market with the largest market share over the forecast period. Industries can generate power from waste heat by using thermal energy that would otherwise be squandered. The recovered waste heat can result in significant energy cost savings because it eliminates the requirement for further fuel use for the production of power. The effectiveness of industrial processes that use steam, such as heating, drying, and other manufacturing processes, can be increased by including waste heat recovery devices for steam generation. The recovered heat can be used in addition to or instead of traditional energy sources. By using the power and steam produced by waste heat recovery systems for on-site consumption, less reliance is placed on external power plants and energy suppliers. Industries with high energy demands are particularly drawn to this level of energy self-sufficiency.

End Use Insights

Petroleum refinery segment holds the highest market share over the forecast period

Based on the end use, the global waste heat recovery system market is segmented into Petroleum Refinery, Chemical, Cement. Among these, the petroleum refinery segment holds the highest market share over the forecast period because refining procedures produce a lot of waste heat and use a lot of energy. Petroleum refineries are energy-intensive businesses that use a lot of energy for various processes including heating and distillation. A part of this heat can be captured and reused by waste heat recovery systems, improving energy efficiency and lowering costs.  Significant volumes of steam are needed in petroleum refineries for numerous operations. Systems for recovering waste heat can help generate steam, which will aid in supplying the refinery's high demand for steam. Large amounts of waste heat are produced throughout the refining process, frequently in the form of flue gases and hot process streams. By putting waste heat recovery systems in place, this surplus heat can be used to generate electricity or for other beneficial purposes.

Regional Insights

North America is dominating the market over the forecast period

North America holds the largest market share and is dominating the market over the forecast period. Waste heat recovery systems are being investigated by industries in North America as a means of reducing energy use and greenhouse gas emissions as a result of rising awareness about energy efficiency and sustainability.  The general trend of incorporating renewable energy sources into industrial processes is supported by waste heat recovery. Waste heat can be used to supplement the production of renewable energy, supplying steady energy even when renewable sources are seldom. Waste heat recovery systems can be incorporated into new businesses and industrial facilities as they are being developed or expanded in North America, maximising energy efficiency from the outset. Industries may look into alternative energy options like waste heat recovery to reduce the volatility of energy prices as a result of the shifting costs of conventional energy sources.

Asia Pacific is witnessing the fastest market growth over the forecast period. The manufacturing, power generating, and chemical industries are all increasing in the Asia-Pacific area, which is seeing significant industrial growth. Due to the large amount of waste heat produced by this growth, energy-efficient solutions such waste heat recovery systems are required. An emphasis has been placed on maximising energy consumption as a result of the rising energy demand in the Asia-Pacific area. Systems for recovering waste heat offer a way to increase energy efficiency and lower energy expenses. The need for electricity and other energy sources is being driven by the rapid urbanisation and population expansion. Systems for recovering waste heat provide a technique to produce extra electricity without exclusively using conventional energy sources.

Recent Market Developments

• In August 2022, Lafarge Emirates Cement announced plans to construct an organic Rankine cycle (ORC) waste heat recovery (WHR) plant at its cement manufacturing facility in Fujairah.  

List of Key Companies

• Alstom (France)
• ABB (Switzerland)
• John Wood Group PLC (U.K.)
• Ormat Technologies Inc. (U.S.)
• General Electric (U.S.)
• Mitsubishi Heavy Industries Ltd. (Japan)
• Echogen Power Systems Inc. (U.S.)
• Econotherm Limited (U.K.)
• Thermax Limited (India)
• Siemens (Germany)
• Cool Energy Inc. (U.S.)
• DEC (China)
• Harbin Electric Corporation co.,Ltd (China)
• BIHL (U.K.)
• AURA (Germany)
• Exergy International Srl (Italy)
• IHI Corporation (Japan)

Market Segment

This study forecasts revenue at global, regional, and country levels from 2019 to 2032. Spherical Insights has segmented the global Waste Heat Recovery System Market based on the below-mentioned segments:

Waste Heat Recovery System Market, Application Analysis

• Pre Heating
• Steam & Power Generation

Waste Heat Recovery System Market, End Use Analysis

• Petroleum Refinery
• Chemical
• Cement

Waste Heat Recovery System Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of Middle East & Africa