PUBLISHER: MarketsandMarkets | PRODUCT CODE: 2151262
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 2151262
The waste heat recovery system market is projected to reach USD 135.33 billion in 2031 from USD 92.99 billion in 2026, at a CAGR of 7.8%.
| Scope of the Report | |
|---|---|
| Years Considered for the Study | 2022-2031 |
| Base Year | 2025 |
| Forecast Period | 2026-2031 |
| Units Considered | Value (USD Million/Billion) and Volume (Ton) |
| Segments | Type, End-use Industry, and Region |
| Regions covered | Type, Composition, Application, and Region |
The increasing demand is attributed to compounding global pressures from skyrocketing industrial energy tariffs and strict Scope 1 emission penalties, which force factories to treat thermal recycling as a survival necessity for protecting operational margins.

"The preheating application segment is projected to account for the second-largest market share throughout the forecast period"
The preheating application segment is projected to account for the second-largest share of the waste heat recovery systems market during the forecast period due to its wide usage in energy-intensive manufacturing activities. Preheating utilizes the energy extracted from flue gases generated by furnaces, exhaust emissions, and kiln smoke, along with other high-temperature sources, to elevate the temperature of combustion air, feed water, raw materials, and other inputs prior to their progression to subsequent stages in the production process. This recovery process enhances overall system efficiency by maximizing heat utilization and reducing energy consumption in subsequent operations. This will reduce the need for primary fuel for achieving temperature for the operation, which results in greater thermal efficiency of the process in general. Industrial facilities engaged in cement, steel production, oil refining, chemical processing, glass manufacturing, and non-ferrous metal processing have significant potential for integrating preheating technologies. These operations consistently generate high-temperature emissions, creating opportunities to capture and utilize this thermal energy. Various advanced technologies are available for preheating, enabling effective solutions for both retrofitting existing systems and designing new installations. Since it does not contribute energy back to the system that has been expended, it has a reduced reliance on supplementary devices.
"The chemicals industry is projected to capture the second-largest market share over the forecast period."
The chemicals industry is projected to secure the second-largest share of the waste heat recovery systems market during the forecast period, due to the ongoing nature and resource-intensive characteristics of chemical production processes. Chemical production facilities are able to produce large amounts of heat that can be recovered from engines, reactors, furnaces, crackers, boilers, and exhaust systems. The recovered thermal energy can be harnessed with the help of economizers, heat recovery boilers, heat exchangers, and steam generators and utilized for pre-heating of raw materials, generating steam, heating processes or generating electricity in the future. The operations of petrol products manufacturing plants can be seen as an ideal match for WHR systems, since such facilities provide constant availability of heat flow and high effectiveness of equipment. Another significant aspect of this segment is that the possibility of heat integration allows recovered thermal energy from one unit to be used in other production units, leading to lower fuel costs. In addition, some existing facilities have become highly energy-efficient recently and reduced operational costs with minimum changes to their production processes. The complex of continuously running production processes with high process temperatures, continuous production, and multiple internal heat-demand points is expected to sustain significant WHR deployment, supporting the segment's position as the second-largest end-use industry.
"Asia Pacific is projected to be the second-largest market for heat recovery systems during the forecast period."
Asia Pacific is expected to hold the second-largest share of the waste heat recovery systems market during the evaluation period due to its large manufacturing base and energy-intensive industries. Countries such as China, India, Japan, South Korea, and Southeast Asia have capable production of cement, steel, chemicals, and petroleum products, along with the production of paper that results in the realization of a large amount of heat. The continuous operation of kilns, furnaces, boilers, and processes provides enough heat for the waste heat boilers, heat exchangers, economizers, and organic Rankine cycle systems. Further increasing production in the region encourages manufacturers to enhance their fuel consumption and lower their energy losses. Moreover, the modernization of old production facilities creates possibilities for retrofitting installations, while new plants have opportunities to utilize WHR in their design. Cement and metal industries are especially essential due to the temperature profile of exhaust gases. Increasing electricity requirements result in a growing need to use waste heat to generate electricity and steam. These trends will keep the deployment of WHR systems across Asia Pacific.
By Company Type: Tier 1: 25%, Tier 2: 42%, and Tier 3: 33%
By Designation: C-level Executives: 20%, Directors: 30%, and Others: 50%
By Region: North America: 20%, Europe: 10%, Asia Pacific: 40%, South America: 10%, and Middle East & Africa: 20%
Notes: Other designations include sales, marketing, and product managers.
Tier 1: >USD 1 billion; Tier 2: USD 500 million-1 billion; and Tier 3: <USD 500 million
Companies Covered: Siemens Energy AG (Germany), GE Vernova Inc. (US), Mitsubishi Heavy Industries, Ltd. (Japan), ABB Ltd. (Switzerland), Shanghai Electric Group Co., Ltd. (China), Kawasaki Heavy Industries, Ltd. (Japan), Doosan Enerbility Co., Ltd. (South Korea), IHI Corporation (Japan), Wartsila Corporation (Finland), Bharat Heavy Electricals Limited (BHEL) (India), among others, are covered in the report.
The study includes an in-depth competitive analysis of these key players in the waste heat recovery system market, with their company profiles, recent developments, and key market strategies.
Research Coverage
This research report categorizes the waste heat recovery system market based on application (preheating, steam & electricity generation, other applications), end-use industry (petroleum refining, metal production, cement, chemical, paper & pulp, other end-use industries), region (North America, Europe, Asia Pacific, Middle East & Africa, and South America). The report's scope covers detailed information regarding the drivers, restraints, challenges, and opportunities influencing the growth of the waste heat recovery system market. A detailed analysis of the key industry players has been done to provide insights into their business overview, products offered, and key strategies, such as partnerships, collaborations, product launches, expansions, and acquisitions, associated with the waste heat recovery system market. This report covers a competitive analysis of upcoming startups in the waste heat recovery system ecosystem.
Reasons to Buy the Report
The report will offer market leaders/new entrants information on the closest approximations of the revenue numbers for the overall waste heat recovery system market and the subsegments. This report will help stakeholders understand the competitive landscape, gain more insights into positioning their businesses better, and plan suitable go-to-market strategies. The report will help stakeholders understand the pulse of the market and provide them with information on key market drivers, restraints, challenges, and opportunities.
Analysis of key drivers (rising energy costs across energy-intensive industries, increasing recovery from steel furnace and reheating operations, increasing focus of cement and metals producers on emission reduction), restraints (high capital requirement for installing waste heat recovery systems, complex integration of waste heat recovery systems with existing plant infrastructure), opportunities (increasing integration of waste heat recovery systems with data center cooling infrastructure, growing deployment of industrial heat pumps for waste heat valorization, rising deployment of orc systems for low- and medium-temperature waste heat recovery), and challenges (corrosion and fouling risks in high-temperature waste heat recovery equipment, fluctuating production loads causing variations in waste heat generation).
Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the waste heat recovery system market.