PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1890744
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1890744
The global Organic Rankine Cycle (ORC) market is positioned for steady long-term growth as industries and governments accelerate the shift toward renewable energy and waste heat recovery solutions. According to the latest report, the market was valued at USD 840.77 million in 2024, supported by rising geothermal installations, improved waste heat recovery technologies, and increasing adoption of low-temperature power generation systems. In 2025, the market is projected to reach USD 887.35 million, driven by growing industrial energy efficiency initiatives and expanding renewable energy incentives. By 2032, the ORC market is expected to achieve USD 1,254.86 million, reflecting rising global investment in sustainable electricity generation and decarbonization strategies.
Rising Renewable Energy Adoption Driving Market Growth
The increasing global focus on renewable energy and reduced dependence on fossil fuels is one of the strongest drivers of ORC technology adoption. ORC systems are widely used in geothermal power plants, industrial waste heat recovery units, and biomass facilities due to their ability to convert low-temperature heat into electricity efficiently. As countries intensify climate action, ORC installations are gaining prominence, particularly in remote and industrial applications where sustainable, off-grid power generation is needed.
Geothermal-rich countries such as the U.S., Indonesia, and the Philippines are accelerating ORC adoption to enhance the performance and output of geothermal plants. Policy support, subsidies, and tax incentives for renewable power generation further strengthen market demand and provide a conducive environment for ORC project development.
Market Restraints: High Capital Investment Requirements
Despite strong interest, the ORC market faces challenges, primarily due to the high upfront investment required for equipment, installation, and system maintenance. Retrofitting existing industrial facilities to accommodate ORC technology can be technically complex and financially demanding. These economic constraints often slow adoption in developing countries or industries with limited capital access, affecting market penetration.
Opportunities: Waste Heat Recovery & Decarbonization Initiatives
Global emphasis on carbon reduction, energy efficiency, and industrial sustainability creates substantial opportunities for ORC deployment. Waste heat recovery is emerging as a high-growth segment, as industries seek to convert unused thermal energy into electricity. With stricter emissions regulations and rising energy costs, ORC systems offer a compelling solution for improving operational efficiency and lowering carbon footprints. The increasing demand for circular energy systems and enhanced heat utilization technologies positions ORC as a critical component of future renewable energy infrastructure.
Segment Analysis: Geothermal Energy Leads Market Share
By heat source, geothermal energy dominates the ORC market, driven by the technology's ability to utilize low-temperature heat sources effectively. In 2024, geothermal applications accounted for USD 155.79 million in market value. As countries expand geothermal exploration and invest in energy diversification, this segment is poised for sustained growth.
Waste heat recovery is the second-largest segment, supported by growing industrial energy-efficiency initiatives. Manufacturing, cement, and metal processing industries increasingly deploy ORC systems to reduce electricity consumption and generate on-site clean power.
Regional Outlook: Asia Pacific Leads Global Market
The Asia Pacific region dominated the ORC market in 2024 with a 41.08% share, valued at USD 345.46 million. Rapid industrialization, increasing energy demand, and large geothermal reserves in countries such as Indonesia, the Philippines, and New Zealand are key contributors to regional growth. Indonesia alone is projected to gain USD 165.82 million in 2025, supported by abundant geothermal capacity exceeding 2,500 MW.
North America is the second-largest market, expected to reach USD 155.79 million in 2025, driven by rising geothermal installations and strong policy support for energy efficiency. The U.S. Department of Energy's investment of USD 31 million in 2024 to support geothermal projects significantly bolsters the region's ORC development.
Europe continues to advance ORC adoption, particularly in Italy, Germany, and Russia, where geothermal and waste heat recovery projects support regional growth and align with EU decarbonization goals.
Competitive Landscape
Leading players include Ormat Technologies, Turboden S.p.A., Exergy International, ENOGIA, and Calnetix Technologies. These companies focus on expanding production capacity, advancing modular ORC systems, and partnering with industrial clients to reduce emissions and enhance energy efficiency.
Conclusion
The ORC market is set for sustained expansion, rising from USD 840.77 million in 2024 to USD 887.35 million in 2025, and expected to reach USD 1,254.86 million by 2032. Growing geothermal energy investments, increased focus on waste heat recovery, and global decarbonization efforts position ORC technology as a critical enabler of clean and efficient power generation.
Segmentation By Heat Source
By Region