Global Waste Heat Recovery System Market - 2022-2029

Market Overview

The global Waste heat recovery system market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).

A waste heat recovery system is a heat exchanger used for the energy recovery process. The heat exchanger transfers heat from process outputs at high temperatures to another part of the process, usually for increasing efficiency. The waste heat recovery system is a tool used for cogeneration, a combined generation of electricity and mechanical power from a single energy source. Waste heat is extracted from sources like hot flue gases from a diesel generator, steam from cooling towers, or even wastewater from cooling processes such as steel cooling.

The waste heat of the low-temperature range (0 to 120℃) is not used for heat recovery applications since many thermal cycles cannot run efficiently at these low temperatures. The waste heat of the medium temperature range (120 to 650℃) is used for electricity generation and mechanical work production. The waste heat of the high-temperature range is the most beneficial and has the widest range of applications.

The use of waste heat recovery systems confers many direct benefits such as reduced thermal and air pollution, reduced equipment sizes and reduced energy consumption. High costs of waste heat recovery systems, increasing maintenance costs and increasing overall complexity of equipment are some of the major disadvantages of the waste heat recovery system. The high costs of heat recovery systems are a key impediment to the market's growth.

Market Dynamics

The waste heat recovery systems demand is mainly driven by the increasing global drive for energy efficiency. The high costs involved in waste heat recovery systems are a key factor in limiting the growth of this market.

The increasing global drive for energy efficiency

Energy efficiency refers to reducing the amount of energy required to produce goods and services. Using energy-efficient processes confers numerous benefits, such as reduced energy usage and costs, leading to financial savings for industries and consumers. Reducing energy usage is also essential for combating climate change and global warming since industrial processes and transportation are the largest energy users globally.

Many companies are now adopting energy-efficient processes to take advantage of the numerous benefits and comply with government regulations. Many governments have mandated energy-efficient processes to achieve net-zero carbon emissions by 2050. Global investors are also increasingly relying on ESG (Environmental, Social and Governance) metrics to make investment decisions. Waste heat recovery systems are crucial for increasing energy efficiency. Therefore, the global drive for energy efficiency is a key driver for the global waste heat recovery system market.

High costs of waste heat recovery systems

Despite having numerous benefits, waste heat recovery systems also come with various challenges and disadvantages. The price of waste heat recovery systems is a major disadvantage. The average price of a waste heat recovery system ranges from US$3,000 for smaller units to US$100,000 for large complex systems. Furthermore, installing waste heat recovery systems requires extensive modifications to the existing setup, which requires a halt to production and downtime. Maintenance of the systems is also complex and requires high expenditure.

Therefore, installing the system requires extensive capital expenditure, which large industries can only afford. Small and medium industries cannot afford to bear such large expenditures. The recovered heat, in most cases, may be of poor quality and unable to increase the energy efficiency of the process. The high costs with minimal benefits may skew the cost-benefit process. The high costs of waste heat recovery systems are a key challenge for the market's growth.

COVID-19 impact analysis

The global waste heat recovery system market experienced uneven impacts on value chains in production and sales in 2021 due to the COVID-19 pandemic. Food processing and pulp and paper applications saw steep declines since government-imposed lockdowns and restrictions brought a prolonged halt to manufacturing globally.

Petroleum refining went largely uninterrupted during the initial lockdown period in early 2020. Demand from oil and gas saw a decline, as consumption of petroleum fuels experienced relatively steep declines due to lockdowns and restrictions on the movement of people. Chemical and pharmaceutical applications also sustained declines as lockdown restrictions led to scaling back of operations. Most industrial plants were back running in late 2020 and some overall improvement in the market was observed.

China, a major industrial powerhouse, lifted various restrictions in July 2020 and overall demand recovered slightly towards the end of 2020. However, other regions like North America and Europe were hit with the second wave of the pandemic, thereby depressing demand. Global demand is expected to recover by the end of 2021.

The impact of the pandemic has been severe on the waste heat recovery system market. Energy-intensive industries have cut operating expenses and capital expenditure due to the economic uncertainty of the pandemic. The pandemic will not significantly impact the long-term growth prospects of the global waste heat recovery system market since energy efficiency is expected to become a key operational metric for industries. The demand for waste heat recovery systems remains strong and is expected to grow gradually in the coming years.

Segment Analysis

The global waste heat recovery system market is segmented into type, end-user and region. The waste heat recovery system market by type is further segmented into preheating, steam and electricity generation and others based on type. The pre-heating is leading in this segmentation since it is the most widely used waste heat recovery system. Pre-heating recovers heat from waste gases and reuses them, thereby increasing the thermal efficiency of the process.

Geographical Analysis

Asia-Pacific is leading in the global waste heat recovery system market. The region accounts for the largest market share due to a large concentration of energy-intensive industries. The Asia-Pacific region constitutes approximately 61.0% of the world's population and the manufacturing and other industrial sectors are growing rapidly in the region.

Countries such as Bangladesh, India, China, Vietnam, Thailand, Indonesia and Malaysia are experiencing rapid industrialization and urbanization. Developed countries such as Japan, South Korea and Taiwan also have large chemical and pharmaceutical industries. The chemical and pharmaceutical industries are large users of energy. Therefore, this region generates the largest demand for waste heat recovery systems.

Steel production is one of the largest end-users of waste heat recovery systems. China, Japan, India and South Korea are some of the largest steel producers in the world. India and China are also significant consumers of oil and gas due to their large populations. Both countries have a well-developed petroleum refining industry. Petroleum refining is another major end-user for waste heat recovery systems. Therefore, some of the major end-user industries for waste heat recovery systems are located in the region. The Asia-Pacific region will continue to have the largest market share in the global Waste heat recovery system market in the coming years.

Competitive Landscape

The global Waste heat recovery system market is competitive due to the availability of a wide variety of waste heat recovery systems that cater to different end-use applications. Some of the major players contributing to growth in the market are ABB, John Wood Group PLC, Bechtel Corporation, Ormat Technologies, Mitsubishi Heavy Industries Ltd., Econotherm Limited, Thermax Limited, Siemens, Cool Energy, Inc., Echogen Power Systems LLC. The major players in the market adopt several growth strategies such as new product launches, joint ventures, collaborations and government tie-ups to contribute to growth in the industry.

ABB

Overview: ASEA Brown Boveri, abbreviated to ABB, is a major multinational conglomerate specializing in robotics, power, heavy electrical machinery,, and automation technology. It has manufacturing operations in 12 countries and its products are sold in more than 150 countries globally through a network of 16 subsidiaries and hundreds of distributors. ABB was founded in 1883 and is headquartered in Zurich, Switzerland.

Product Portfolio

Waste Heat Recovery System (WHRS) is the company's proprietary waste heat recovery system for marine applications. It is primarily intended for vessels with engines producing more than 20MW. The process of recovering waste heat begins in the exhaust boiler. The dual pressure exhaust gas boiler at WHRS efficiently generates steam for electricity generation. It generates steam at both high and low pressures for maximum efficiency. The high and low-pressure steam flows are routed through the ship's steam piping system to a condensing steam turbine linked to a generator. The turbine converts thermal steam energy into mechanical energy, which is used to power the generator connected to the propeller shaft.

Key Developments:

In 2019, ABB installed a waste heat recovery system at the German brewery Erdinger Weissbrau. The system generates electricity while regulating steam pressure during the brewing process.

Why Purchase the Report?

Visualize the composition of the waste heat recovery system market segmentation by the type, end-user, and region, highlighting the critical commercial assets and players.

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Excel data sheet with thousands of global Waste heat recovery system market-level 4/5 segmentation data points.

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The global waste heat recovery system market report would provide approximately 51 market data tables, 53 figures, and 186 pages.

Target Audience 2022

Waste heat recovery system manufacturers

Wastewater treatment service providers

Oil and gas companies

Industry Investors/Investment Bankers

Education & Research Institutes

Research Professionals