Waste Heat Recovery Market Reaching USD 142.9 Bn by 2034

Overview

New York, NY – April 02, 2025 – The Waste Heat Recovery Market is set to see significant growth in the coming years, presenting a wealth of opportunities for various industries. As we look ahead, the market size is projected to nearly double, from USD 68.7 billion in 2024 to around USD 142.9 billion by 2034, with a steady CAGR of 7.6%.

This surge in market size is driven by increasing awareness about the benefits of energy efficiency and sustainable practices across multiple sectors. Industries are recognizing the potential of utilizing waste heat recovery systems to reduce energy costs and carbon footprints, which is boosting the market’s popularity and demand. Technological advancements are opening new avenues for applications in energy-intensive industries, expanding the market’s scope.

The global push for greener technologies and government incentives are also key factors propelling market expansion, providing ample opportunities for growth and innovation. As more companies invest in waste heat recovery technologies, we can expect a broader adoption and refinement of these systems, making them more accessible and effective across different applications.

Key Takeaways

• The global Waste Heat Recovery Market is expected to be worth around USD 142.9 billion by 2034, up from USD 68.7 billion in 2024, and grow at a CAGR of 7.6% from 2025 to 2034.
• Exhaust gases contribute 37.50% to the Waste Heat Recovery Market growth.
• Boilers hold a 32.40% share in Waste Heat Recovery adoption worldwide.
• Pre-heating systems account for 31.20% in Waste Heat Recovery utilization globally.
• The oil and gas sector dominates 34.10% of WHR market demand.
• The Waste Heat Recovery Market in Asia-Pacific reached USD 32.4 billion, accounting for 47.30% of global revenue.

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Report Scope

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Key Market Segments

By Source Analysis

• Exhaust gases are a cornerstone of the Waste Heat Recovery Market, contributing 37.50% to its overall share and spearheading efficiency gains across global industrial sectors. In 2024, exhaust gases maintained a leading position within the source segment, commanding a 37.50% market share.
• Originating from high-heat industries like cement, steel, and petrochemicals, these gases offer a substantial reservoir of recoverable energy, cementing their dominance. The elevated temperatures of exhaust gases make them ideal for energy recovery applications, such as power generation and process heating, particularly as industries face mounting regulatory demands to curb emissions.

By Technique Analysis

• Boilers lead the charge in the Waste Heat Recovery Market’s technique segment, holding a 32.40% share by efficiently transforming waste heat into usable energy, cutting costs, and mitigating environmental impact. In 2024, boilers secured a commanding 32.40% of the market, driven by their extensive use in power generation, cement, and chemical industries.
• These systems excel at capturing waste heat from exhaust gases and industrial processes, generating steam for electricity or heating purposes. The push for energy efficiency and reduced fuel reliance has accelerated their adoption in energy-heavy sectors.

By Application Analysis

• Pre-heating systems anchor the application segment of the Waste Heat Recovery Market, capturing a 31.20% share by optimizing energy use and boosting productivity across manufacturing, power, and process industries. In 2024, preheating systems led with a 31.20% market share, leveraging waste heat to preheat combustion air, feedwater, or raw materials in industrial workflows. Sectors like cement, steel, and petrochemicals increasingly rely on these systems to slash fuel use and operational costs, spurred by sustainability goals and stringent efficiency regulations.

By End-Use Analysis

• The oil and gas sector reigns supreme in the end-use segment of the Waste Heat Recovery Market, commanding a 34.10% share by harnessing waste heat for sustainability and energy savings. In 2024, oil and gas led with a 34.10% market share, reflecting the sector’s energy-intensive operations in refining, gas processing, and petrochemical production. Waste heat recovery systems capture excess heat from exhaust gases, process heaters, and compressors, enhancing efficiency and reducing fuel needs.

Regional Analysis

• Asia-Pacific emerged as the powerhouse of the Waste Heat Recovery Market, securing a commanding 47.30% share and a valuation of USD 32.4 billion. The region’s dominance stems from its robust industrial landscape, with countries like China, India, and Japan leading the charge in adopting waste heat recovery systems across sectors such as cement, chemicals, and oil and gas.
• North America holds a prominent position in the market, fueled by rigorous emission regulations and elevated energy costs. The United States and Canada are channeling investments into cutting-edge waste heat recovery technologies, enhancing energy efficiency in manufacturing and power generation sectors, and reinforcing the region’s competitive standing.
• Europe, meanwhile, is experiencing consistent growth, underpinned by stringent EU energy efficiency directives. The region’s industries, particularly steel and petrochemicals, are increasingly integrating waste heat recovery solutions, aligning with broader sustainability goals, and driving steady market expansion.
• The Middle East & Africa are carving out a role as an emerging market, with oil-rich nations prioritizing industrial energy optimization. This focus is gradually elevating the region’s presence in the waste heat recovery landscape. Similarly, Latin America is witnessing a slow but steady uptake as industrial growth in countries like Brazil and Mexico opens new avenues for integrating waste heat recovery systems, signaling promising potential for future development.

Top Use Cases

• Industrial Power Generation: Many industries generate significant amounts of waste heat, which can be converted into electricity using technologies like the Organic Rankine Cycle (ORC). This process is especially beneficial in sectors where heat and power demands fluctuate, allowing for the effective cogeneration of heat and power.
• Enhanced Oil Recovery: In oil refineries, waste heat can be repurposed to improve the efficiency of processes like the vacuum gas oil hydrotreating. This not only saves on energy costs but also boosts the overall output by generating additional steam for use in various operations.
• District Heating: Waste heat from industrial processes is increasingly being used to supply heat to residential and commercial buildings through district heating systems. This method efficiently utilizes energy that would otherwise be lost, contributing to sustainability goals.
• Recuperation in Gas Turbines: Recuperators are employed to recover heat from exhaust gases in gas turbines, improving thermal efficiency. The heat captured is used to preheat the air entering the combustion chamber, significantly optimizing the energy consumption of the system.
• Thermoelectric Power Generation: Thermoelectric generators transform waste heat directly into electrical energy, providing a practical solution for remote or smaller-scale applications where traditional heat recovery systems are not viable.

Recent Developments

• ABB has advanced WHR solutions using digitalization and AI to optimize industrial energy efficiency. Their ABB Ability OPTIMAX platform enhances WHR system performance in sectors like cement and steel. ABB also partnered with Aker Solutions to integrate WHR in offshore platforms, reducing emissions. Their ORC (Organic Rankine Cycle) technology is being deployed in European industries for low-grade heat recovery.
• Wood Group has developed WHR systems for oil & gas and heavy industries, focusing on carbon reduction. Their eXergy WHR solution uses the Organic Rankine Cycle (ORC) to convert waste heat into power. Recently, Wood partnered with BP to implement WHR in refineries, improving energy efficiency. They also work on modular WHR units for remote locations.
• Boustead specializes in waste heat boilers for chemical and refining industries. Their recent projects include high-pressure WHR systems for Middle Eastern oil refineries, recovering heat from flue gases. They also introduced compact heat exchangers for marine WHR applications, reducing fuel consumption in ships.
• Doosan has expanded WHR in gas turbines and power plants, integrating steam-based WHR for combined-cycle efficiency. Their Eco-Titan WHR system was recently deployed in South Korean industrial complexes, cutting CO₂ emissions. Doosan also collaborates with Siemens on hybrid WHR solutions.
• Echogen is a leader in supercritical CO₂-based WHR, with their EPS250 system converting industrial waste heat into power. Recently, they partnered with Southwest Research Institute to enhance WHR for geothermal applications. Their Heat Engine technology is being tested in US steel plants for efficiency gains.

Conclusion

Waste Heat Recovery is transforming industries by turning wasted energy into cost savings and emissions cuts. Sectors like cement, oil & gas, and shipping are leading adoption. Technologies like ORC, heat exchangers, and sCO₂ systems are making WHR more efficient. As carbon regulations tighten, WHR will play a key role in net-zero strategies, helping industries meet sustainability goals while boosting profitability. The future is bright.

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