Waste Heat Recovery Market Size, Share, Trends, Growth and Forecast 2032

Waste Heat Recovery Industry Prospective:

The global waste heat recovery market size was evaluated at $67 billion in 2023 and is slated to hit $130 billion by the end of 2032 with a CAGR of nearly 7% between 2024 and 2032.

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Waste Heat Recovery Market: Overview

Waste heat recovery is a process that captures heat energy and reuses it; otherwise, it would be wasted. There are various sources of heat, including industrial processes and transport. Moreover, there are various kinds of waste heat recovery techniques, including thermoelectric generators, heat exchangers, and organic Rankine cycles.    

Key Insights

• As per the analysis shared by our research analyst, the global waste heat recovery market is projected to expand annually at the annual growth rate of around 7% over the forecast timespan (2024-2032)
• In terms of revenue, the global waste heat recovery market size was evaluated at nearly $67 billion in 2023 and is expected to reach $130 billion by 2032.
• he global waste heat recovery market is anticipated to grow rapidly over the forecast timespan owing to strict government laws regarding emission protocols and subsidies offered by the former to promote acceptance of power-efficient systems.
• In terms of technology, the heat exchangers segment is slated to register the highest CAGR over the forecast period.
• Based on application, the process heating segment is predicted to record immense growth in the upcoming years.
• On the basis of end-user, the power generation segment will record the highest gains in the coming years
• Region-wise, the European waste heat recovery industry is projected to register the fastest CAGR during the projected timespan.

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Waste Heat Recovery Market: Growth Factors

Growing environmental pollution and escalating energy costs can prop up the global market expansion by 2032

Surging environmental concerns and energy prices can promulgate the growth of the global waste heat recovery market. Furthermore, strict government laws regarding emission protocols, along with subsidies offered by the former for promoting acceptance of power-efficient systems, will drive global market trends. Apart from this, technological innovations, along with urbanization & industrialization, will steer the expansion of the global market. Additionally, waste heat recovery fulfills the principles of the circular economy of minimizing waste as well as optimizing resource utilization. An increase in energy costs, along with a huge focus on sustainable solutions, will multiply the size of the market globally.

Waste Heat Recovery Market: Restraints

Massive initial costs of the process and technological complicatedness can restrict the global industry surge by 2032

Huge preliminary investment costs and complexities in the installation of the product, along with an increase in the maintenance charges, can obstruct the growth of the global waste heat recovery industry. Furthermore, technical complexities involved in execution of waste heat recovery processes can hamper the global industry expansion.

Waste Heat Recovery Market: Opportunities

Favorable government policies and renewable energy trends can open a slew of growth facets for the global market

Rapidly expanding industrial segment, the launch of advanced materials for heat exchangers, and the use of innovative systems such as thermoelectric generators and Rankine cycles will generate new growth avenues for the global waste heat recovery market. Furthermore, supportive government incentives, along with demand for renewable energy, will prop up the market surge over the forecast period.

Waste Heat Recovery Market: Challenges

A rise in the operating costs of waste heat recovery processes can challenge the global industry surge by 2032

Technological challenges and economic downturns can challenge the growth of the global waste heat recovery industry. Furthermore, operational challenges and complexities involved in approving of waste heat recovery ventures can impede the global industry progression.  

Waste Heat Recovery Market: Segmentation

The global waste heat recovery market is divided into technology, application, end-use, and region.                                             

In terms of technology, the waste heat recovery market across the globe is segmented into heat exchangers, thermoelectric generators, and organic Rankine cycle systems segments. Apparently, the heat exchangers segment, which amassed nearly 56% of the global market revenue in 2023, is anticipated to record the fastest CAGR in the coming seven years due to huge demand for the heat exchanger technology owing to its reliability, reduced costs, and versatility.

Based on the application, the global waste heat recovery industry is segmented into power generation, space heating & cooling, and process heating segments. Apparently, the process heating segment, which accounted majorly to the global industry revenue in 2023, is anticipated to register lucrative growth in the ensuing years. This can be credited to an increase in energy efficacy, high productivity, and a rise in the application of preheating in various end-user industries such as power generation, manufacturing, and chemical processing.

On the basis of end-user, the global waste heat recovery market is divided into power generation, transport, and industrial manufacturing segments. Moreover, the power generation segment, which contributed sizably towards the global market size, is expected to account for the highest gains in the coming eight years owing to a rise in power consumption along with an increase in the production of waste heat.

With the help of waste heat recovery systems, factories & refineries can minimize power usage, reduce operating costs, and minimize the environmental effects of waste energy.

Waste Heat Recovery Market: Report Scope

Waste Heat Recovery Market: Regional Insights

Asia-Pacific is likely to maintain leading status in the global market over the analysis timeframe

Asia-Pacific, which contributed about 47% of the global waste heat recovery market earnings in 2023, is expected to establish a leading position in the global market in the coming eight years. Additionally, the regional market progression in the next couple of years can be credited to a humungous surge in the demand for energy in various end-use sectors in countries such as India and China.

Moreover, these countries are investing remarkably in power-efficient systems such as waste heat recovery systems. Swift industrialization and government aid will spur regional market expansion.

The European waste heat recovery industry is likely to record the fastest compound annual growth rate in the forecast timeline. The elevation of the industry in Europe can be a result of the presence of key players in European countries. Apart from this, matured industrial base in the continent and strict environmental laws levied by EU along with government support for renewable energy will drive the industry surge in the continent.

Key Developments

• In May 2024, Lesaffre commenced operations on the heat recovery division at Marcq-en-Baroeul. Two highly-powered heat pumps are projected to be commissioned in 2025 and will facilitate heat production through fermentation so that it can be reused.
• In September 2024, Heidelberg Materials introduced waste heat recovery technology at the Helwan Cement Unit in Egypt.
• In October 2022, Kawasaki Heavy Industries Limited delivered a new cement plant waste heat recovery power generation tool to the Saitama unit of Taiheiyo Cement Corporation in Japan.
• In September 2022, Climeon introduced a novel waste heat recovery system.

Waste Heat Recovery Market: Competitive Space

The global waste heat recovery market profiles key players such as:

• Climeon
• ABB Ltd.
• Kawasaki Heavy Industries Ltd.
• General Electric Co.
• Thermax Limited
• Siemens AG
• Echogen Power Systems Inc.
• Mitsubishi Heavy Industries Ltd.
• Ormat Technologies Inc.
• John Wood Group PLC
• Econotherm Limited
• Cool Energy Inc.
• DÜRR Group
• Turboden S.p.A.

The global waste heat recovery market is segmented as follows:

By Technology

• Heat Exchangers
• Thermoelectric Generators
• Organic Rankine Cycle Systems

By Application

• Power Generation
• Space Heating & Cooling
• Process Heating

By End-User

• Power Generation
• Transport
• Industrial Manufacturing

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa