Heat Recovery Steam Generator Market Growth at 5.4% CAGR

Introduction

New York, NY – March 17, 2025 – The Heat Recovery Steam Generator (HRSG) Market is poised for substantial growth in the coming years, projected to expand from USD 2.8 billion in 2024 to an estimated USD 4.7 billion by 2034, achieving a steady growth rate of 5.4% annually. This market’s expansion is driven by increasing demand for efficient and sustainable energy solutions across various industries.

Heat recovery steam generators play a crucial role in capturing excess heat from various processes and converting it into steam, which can then be used to generate power. This not only enhances energy efficiency but also supports environmental sustainability by reducing the reliance on fossil fuels and lowering emissions.

The growing popularity of combined heat and power systems, along with the rising industrialization in emerging economies, offers significant market opportunities. As industries continue to focus on maximizing energy efficiency and reducing operational costs, the demand for HRSG systems is expected to rise, presenting lucrative opportunities for market expansion and innovation.

Key Takeaways

• The Global Heat Recovery Steam Generator (HRSG) Market is projected to grow from USD 2.8 billion in 2024 to USD 4.7 billion by 2034, with a CAGR of 5.4% during the forecast period 2025–2034.
• The Horizontal Drum segment holds a 67.3% share, favored for its operational efficiency and ease of maintenance, particularly in large-scale power plants and industrial facilities.
• Cogeneration systems dominate with a 69.4% share, driven by their ability to simultaneously generate electricity and useful heat, widely used in industries like manufacturing, chemicals, and residential heating.
• Power generation accounts for 58.4% of the market, with HRSGs enhancing efficiency in combined cycle and cogeneration systems by converting exhaust heat into additional electrical power.
• Horizontal HRSGs hold a 57.6% share, preferred for easier maintenance and superior performance in handling high exhaust levels, especially in large power plants and industrial settings.
• Refineries hold a 36.3% share, leveraging HRSGs for waste heat recovery to improve thermal efficiency and meet environmental compliance requirements.
• The Asia-Pacific (APAC) region dominates with a 38.9% share, valued at USD 1.08 billion, fueled by industrial growth, urbanization, and investments in energy infrastructure.

➤ For a deeper understanding, click on the sample report link: https://market.us/report/global-heat-recovery-steam-generator-market/request-sample/

Report Scope

➤ Directly purchase a copy of the report – https://market.us/purchase-report/?report_id=142718

Emerging Trends

• Integration with Renewable Energy: HRSG technology is increasingly being combined with renewable energy sources to enhance efficiency and sustainability. This integration helps maximize energy output while reducing reliance on traditional fossil fuels.
• Advancements in Material and Design: The development of next-generation materials that can withstand higher temperatures is becoming crucial. Additionally, there’s a shift toward more compact and modular HRSG designs, making them suitable for a variety of industrial applications and easier to integrate into existing spaces.
• Digitalization and Smart Technologies: The adoption of digital twin technology and AI-driven maintenance strategies is on the rise. These technologies help optimize performance and predict maintenance needs, thereby reducing downtime and extending the lifespan of the equipment.
• Environmental Regulations and Carbon Reduction: As global environmental regulations tighten, there’s a significant push toward adopting HRSGs that can operate more cleanly and efficiently. Advanced emission control technologies are being developed to meet these stricter standards.
• Economic and Energy Efficiency: With rising energy costs, HRSGs play a pivotal role in capturing waste heat from various processes and converting it into additional energy, which can significantly reduce overall fuel consumption and operational costs.

Use Cases

• Power Generation: HRSGs are crucial in power plants, particularly in combined-cycle setups, where they improve overall plant efficiency by utilizing waste heat from gas turbines to generate additional electricity.
• Industrial Energy Efficiency: In industries, HRSGs capture waste heat from manufacturing processes, converting it into steam that can be used for heating, cooling, or additional power generation, thereby reducing overall energy consumption and operational costs.
• Environmental Impact Reduction: By improving energy efficiency and reducing reliance on fossil fuels, HRSGs help decrease greenhouse gas emissions and air pollutants, supporting environmental sustainability initiatives.
• Cogeneration Applications: HRSGs are extensively used in cogeneration or combined heat and power (CHP) systems, where they provide both electricity and thermal energy from a single fuel source, enhancing energy utilization and reducing waste.
• Desalination Processes: In regions with high water scarcity, HRSGs support desalination facilities by providing a reliable steam source necessary for water purification processes, thus contributing to water conservation efforts.

Major Challenges

• High Initial Investment: HRSG systems require a significant upfront cost, making it difficult for smaller operations or those looking to retrofit existing facilities to justify the investment. This financial barrier can hinder the broader adoption of HRSG technology.
• Complex Installation and Operation: The design, installation, and operation of HRSG systems are highly complex. This complexity demands specialized skills and can pose significant integration challenges, especially in facilities with outdated infrastructure.
• Ongoing Maintenance Demands: HRSGs need regular maintenance to perform optimally. This involves not only routine checks but also potential repairs and part replacements, which can be costly and require specialized knowledge.
• Material Durability Issues: The environments within HRSG systems can be extremely harsh, involving high temperatures and potential corrosion. This demands materials that can withstand these conditions, requiring ongoing advancements in materials science and engineering design to maintain efficiency and longevity.
• Regulatory Compliance: Compliance with environmental and safety regulations can be stringent and often involves costly modifications and technology upgrades. Staying compliant can add considerable ongoing costs and operational complexities for HRSG operators.

Market Growth Opportunities

• Rising Energy Demand: The global increase in energy consumption necessitates efficient power generation methods. HRSGs, by capturing waste heat to produce additional electricity, offer a solution to meet this growing demand effectively.​
• Environmental Regulations: Stricter environmental laws are pushing industries to adopt cleaner technologies. HRSGs help reduce emissions by improving energy efficiency, aligning with these regulatory requirements, and promoting sustainable practices.​
• Technological Advancements: Innovations in HRSG design and materials enhance performance and reliability. These advancements make HRSGs more appealing to industries seeking efficient and durable energy solutions.​
• Government Initiatives: Many governments are investing in energy-efficient infrastructure and offering incentives for adopting technologies like HRSGs. This support facilitates market growth and encourages wider implementation.​
• Integration with Renewable Energy: Combining HRSGs with renewable energy sources, such as solar or wind, can stabilize energy supply and improve overall efficiency. This integration supports the transition to a more sustainable energy landscape.

Recent Developments

1. ABB

• In September 2023, ABB announced a collaboration with a major European energy provider to integrate advanced digital solutions into HRSG systems. This initiative aims to improve operational efficiency and reduce emissions in combined-cycle power plants.

2. Alstom

• In August 2023, Alstom secured a contract to supply HRSG systems for a new combined-cycle power plant in the Middle East. The project focuses on enhancing energy efficiency and reducing carbon footprints.

3. Amec Foster Wheeler 

• In July 2023, Wood PLC (formerly Amec Foster Wheeler) announced the completion of an HRSG upgrade project for a power plant in the United States. The upgrade improved the plant’s efficiency and extended its operational life.

4. Babcock & Wilcox (B&W)

• In September 2023, B&W announced the launch of its new BrightGen HRSG technology, which incorporates advanced materials and design to improve thermal efficiency and reduce maintenance costs.

5. Bharat Heavy Electricals Limited (BHEL)

• In August 2023, BHEL commissioned a new HRSG unit at a combined-cycle power plant in India. The unit is designed to operate at higher efficiencies and lower emissions.

Conclusion

​The Heat Recovery Steam Generator (HRSG) market is poised for substantial growth, driven by the global emphasis on energy efficiency and the integration of renewable energy sources. This expansion is fueled by the increasing adoption of combined-cycle power plants, which utilize HRSGs to enhance efficiency by capturing waste heat for additional power generation. As industries and utilities strive to meet stringent environmental regulations and reduce operational costs, the demand for HRSGs is expected to rise, solidifying their role in the future energy landscape.

Discuss Your Needs With Our Analyst

Please share your requirements with more details so our analyst can check if they can solve your problem(s)

Request a Sample Download PDF