Market Overview

The heat recovery steam generator market was estimated at USD 1.3 billion in 2022 and is likely to grow at a CAGR of 4.7% during 2023–2028 to reach USD 1.8 billion in 2028.

The transition toward more efficient and sustainable energy systems is expected to influence future industry development. The heat recovery steam generator market forecast reflects growing demand for technologies that recover and utilize waste heat effectively. Expanding generation capacity, coupled with ongoing modernization of industrial facilities, is anticipated to support steady adoption of HRSG solutions throughout the forecast period.

The market is witnessing steady growth as industries increasingly focus on energy efficiency and sustainable power generation solutions. Heat recovery steam generators play a crucial role in recovering waste heat from gas streams and converting it into useful steam, helping improve overall plant efficiency. Growing investments in power generation infrastructure and the increasing adoption of cogeneration technology are creating favorable conditions for market expansion during the forecast period.

What is Heat Recovery Steam Generator Market?

A heat recovery steam generator (HRSG) is an energy recovery heat exchanger used to recover heat from a hot gas stream, such as a combustion turbine or waste gas stream. The recovered thermal energy is utilized to generate steam, which can then be used for power generation or industrial processes.

Heat recovery steam generators are widely used across utilities, chemicals, refineries, pulp & paper facilities, and other industrial sectors. These systems help maximize energy utilization, improve operational efficiency, and support sustainable energy practices. The market includes various design configurations, rated power categories, modes of operation, and application areas that cater to diverse industrial requirements.

Market Growth Drivers

The primary driver of the heat recovery steam generator market is the surge in utilization of cogeneration technology. Cogeneration systems simultaneously produce electricity and useful thermal energy, enabling industries to improve efficiency and reduce energy losses.

Another key factor driving market growth is the increasing investment toward generation capacity expansion. Rising electricity demand, industrial development, and growing focus on energy optimization are encouraging investments in advanced power generation infrastructure.

Furthermore, the increasing emphasis on sustainable energy sources and efficient utilization of available resources is contributing to the adoption of heat recovery steam generators across multiple industries. These systems help organizations improve energy performance while supporting environmental objectives.

Key Challenges

The report does not explicitly identify specific market challenges. However, market participants continue to focus on technological development, operational efficiency improvements, and integration with evolving power generation systems to maintain competitiveness and meet changing industry requirements.

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Market Segmentation

By Design Type

The heat recovery steam generator market is segmented into:

• Horizontal Drum
• Vertical Drum

The vertical drum design is projected to be the largest segment with a CAGR of nearly 5.8% during the forecast period. Growth is driven by ease of compatibility and lower capital expenditure. Continuous technological development and healthy growth in combined cycle plants are expected to support the market for horizontal drum systems as well.

By Rated Power Type

The market is segmented into:

• 0-30 MW
•  

30-50 MW

50-100 MW

100-200 MW

200 MW

By Mode of Operation Type

The market is segmented into:

• Cogeneration
• Combined Cycle

By Application Type

The market is segmented into:

• Utilities
• Chemical
• Refineries
• Pulp & Paper
• Others

The utilities segment is projected to remain the largest application segment during the forecast period. Growth is supported by the development of thermal power generating stations and an increased focus on sustainable energy sources.

Regional Analysis

The market is analyzed across the following regions:

• North America
• Europe
• Asia-Pacific
• Rest of the World

Asia-Pacific is estimated to be the most lucrative market with a CAGR of more than 5.4% during the forecast period. The region's growth is supported by an expanding industrial sector, rapid urbanization, significant economic development, and increasing focus on sustainable sources of energy.

China, Japan, India, and South Korea are among the key countries contributing to regional growth. North America and Europe are also expected to offer substantial growth opportunities during the forecast period due to ongoing industrial activities and investments in power generation infrastructure.

Key Companies

The following are the key players operating in the heat recovery steam generator market:

• John Wood
• Kawasaki
• B&W
• Larsen & Turbo
• BHEL
• Cleaver-Brooks
• Clayton
• John Cockerill
• Mitsubishi
• GE
• Siemens
• AC Boilers
• Rentech
• Thermax
• Kelvion
• Hamon

These companies are actively involved in providing heat recovery steam generator solutions and supporting energy efficiency initiatives across various industrial sectors.

FAQ

What is the heat recovery steam generator market size in 2022?

The heat recovery steam generator market was estimated at USD 1.3 billion in 2022.

What is the forecasted value of the market by 2028?

The market is expected to reach USD 1.8 billion in 2028.

What will be the market growth rate during the forecast period?

The market is likely to grow at a CAGR of 4.7% during 2023–2028.

Which region is expected to be the most lucrative market?

Asia-Pacific is estimated to be the most lucrative market, with a CAGR of more than 5.4% during the forecast period.

Conclusion

The heat recovery steam generator market is expected to witness steady growth through 2028, driven by increasing adoption of cogeneration technology and rising investments in generation capacity expansion. The utilities segment continues to dominate application demand, while vertical drum systems are projected to lead the design segment. With Asia-Pacific emerging as the most lucrative regional market and key industry participants focusing on efficient energy recovery solutions, the market is well-positioned for sustainable long-term growth.