Waste Heat Recovery Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

Waste Heat Recovery Market is estimated to reach USD 68.6 billion in 2022, and is projected to reach USD 127.8 billion by 2030. The CAGR is 9.2% from 2024 to 2030. The main reason for this growth is the increasing demand for energy efficiency and sustainable development in all industries. Waste heat recovery is becoming a strategic choice for companies to reduce their carbon footprint and operating costs. Technological advancements, such as the development of more efficient heat exchangers and thermoelectric materials, will also drive the market. The major players in the industry, such as Siemens AG, General Electric, and Mitsubishi Heavy Industries, are investing heavily in research and development to improve their products. Strategic alliances, such as the integration of waste heat recovery systems into existing industrial processes, will also boost the market. Regulations are increasingly encouraging sustainable practices, which will boost the waste heat recovery market.

Regional Market Size

Regional Deep Dive

Waste heat recovery is experiencing strong growth in various regions of the world, driven by increasing energy efficiency demands and stringent regulations. North America is characterized by advanced technology and a strong focus on sustainability, while Europe is the leader in terms of regulatory frameworks that promote the use of waste heat recovery. Asia-Pacific is experiencing rapid industrialization, which has created significant opportunities for waste heat recovery solutions. Meanwhile, the Middle East and Africa are adopting waste heat recovery slowly, driven by the need for energy diversification. Latin America, with its increasing awareness of the importance of energy efficiency and the environment, is also a promising market.

Europe

• The European Union's Green Deal aims to make Europe climate-neutral by 2050, which includes significant investments in waste heat recovery technologies as part of broader energy efficiency measures.
• Countries like Germany and the Netherlands are leading the way with stringent regulations that mandate the implementation of waste heat recovery systems in large industrial facilities, driving market growth.

Asia Pacific

• China's 14th Five-Year Plan emphasizes energy efficiency and the adoption of waste heat recovery technologies in heavy industries, positioning the country as a key player in the market.
• India is witnessing a surge in waste heat recovery projects, supported by government initiatives like the Perform, Achieve and Trade (PAT) scheme, which incentivizes energy efficiency improvements in energy-intensive sectors.

Latin America

• Brazil is increasingly focusing on energy efficiency, with government programs encouraging the adoption of waste heat recovery technologies in the manufacturing sector to reduce energy costs.
• Mexico's energy reform initiatives are paving the way for investments in waste heat recovery systems, particularly in the automotive and manufacturing industries, to enhance competitiveness.

North America

• The U.S. Department of Energy has launched initiatives to promote waste heat recovery technologies, providing funding for research and development projects aimed at enhancing energy efficiency in industrial processes.
• Companies like General Electric and Siemens are investing in innovative waste heat recovery systems, focusing on integrating these technologies into existing industrial setups to maximize energy savings.

Middle East And Africa

• The UAE is investing heavily in waste heat recovery technologies as part of its Vision 2021 initiative, aiming to enhance energy efficiency and reduce carbon emissions in industrial sectors.
• Saudi Arabia's National Industrial Development and Logistics Program is promoting the adoption of waste heat recovery systems to diversify its energy sources and improve industrial sustainability.

Did You Know?

“Approximately 20-50% of energy used in industrial processes is lost as waste heat, which presents a significant opportunity for recovery and reuse.” — International Energy Agency (IEA)

Segmental Market Size

Waste Heat Recovery (WHR) is a key energy-efficiency industry that has been growing steadily. It is driven by stricter regulations aimed at reducing CO2 emissions and rising energy prices, which are driving industries to seek cost-effective energy solutions. Furthermore, technological improvements in heat recovery systems, such as Organic Rankine Cycle (ORC) technology, have made WHR more accessible and efficient. Today, the WHR industry is in its implementation stage. For example, Siemens and GE have implemented WHR systems in their manufacturing and power generation operations. Among the main applications are cement and steelmaking, where heat is produced in excess and can be recovered. WHR is also a beneficiary of macro-level trends, such as the push for greater sustainability and energy-efficiency standards. Also, innovations in heat exchangers and thermal energy storage systems are shaping the industry’s evolution, allowing it to play a key role in the transition to greener energy solutions.

Future Outlook

Waste Heat Recovery Market will grow significantly from 2022 to 2030, with a CAGR of 9.2%. This growth is mainly driven by the increasing demand for energy efficiency and environmental protection in all industries, especially in the fields of manufacturing, power generation and transportation. The rising energy demand in the world and the increasingly strict energy conservation policy have prompted companies to adopt waste heat recovery technology to optimize energy use and reduce operating costs. By 2030, the penetration of waste heat recovery equipment in the key industrial sectors will reach about 27%, which will play a decisive role in the energy efficiency of the industry. Waste heat recovery solutions will also be able to take advantage of the development of heat exchangers, organic Rankine cycles, and the like. The market will continue to grow with the support of government policies to promote the development of clean energy and reduce carbon emissions. In the future, the combination of waste heat recovery with other clean energy and the rise of smart manufacturing will also make a big difference in the market. Waste heat recovery will be the foundation of the global energy transition.