PUBLISHER: The Business Research Company | PRODUCT CODE: 1932580
PUBLISHER: The Business Research Company | PRODUCT CODE: 1932580
A heat recovery steam generator (HRSG) is a device designed to recover waste heat from exhaust gases, often from gas turbines or other industrial processes, and convert it into steam. This steam can then be used to drive a steam turbine for electricity generation or for industrial heating. HRSGs are crucial in combined cycle power plants, as they enhance overall efficiency by utilizing heat that would otherwise be wasted.
HRSGs come in several design types such as modular construction, c-section construction, bundle construction, and fully assembled. In modular construction, HRSGs are built in prefabricated modules that are assembled on-site. The configurations include horizontal drum units, vertical drum units, and horizontal-once through units. They are available in power outputs ranging from 0 to 60 megawatts (MW), 60 to 100 megawatts (MW), and above 100 megawatts (MW). Applications for HRSGs include co-generation (process heating), combined cycle, and combined heat and power (CHP) systems. They are used by a variety of industries, including utilities, chemicals, refineries, and pulp and paper, among others.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs are impacting the heat recovery steam generator market by increasing the cost of imported alloy steels, pressure components, heat exchanger tubes, and fabricated modules used in large-scale HRSG systems. Power utilities and industrial operators in North America and Europe are most affected due to reliance on imported high-grade materials and specialized fabrication, while Asia-Pacific exporters face pricing pressure in global projects. These tariffs are raising project capital costs and extending procurement timelines for combined cycle plants. However, they are also encouraging localization of fabrication facilities, regional sourcing of pressure components, and innovation in modular and cost-optimized HRSG designs.
The heat recovery steam generator market research report is one of a series of new reports from The Business Research Company that provides heat recovery steam generator market statistics, including heat recovery steam generator industry global market size, regional shares, competitors with a heat recovery steam generator market share, detailed heat recovery steam generator market segments, market trends and opportunities, and any further data you may need to thrive in the heat recovery steam generator industry. This heat recovery steam generator market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The heat recovery steam generator market size has grown strongly in recent years. It will grow from $1.79 billion in 2025 to $1.89 billion in 2026 at a compound annual growth rate (CAGR) of 5.5%. The growth in the historic period can be attributed to expansion of gas-based power generation, need for improved plant efficiency, growth of industrial steam demand, replacement of conventional boilers, investment in large-scale power infrastructure.
The heat recovery steam generator market size is expected to see strong growth in the next few years. It will grow to $2.34 billion in 2030 at a compound annual growth rate (CAGR) of 5.5%. The growth in the forecast period can be attributed to decarbonization of power sector, expansion of combined heat and power plants, investments in flexible power generation, demand for high-efficiency thermal systems, growth in industrial energy recovery. Major trends in the forecast period include expansion of combined cycle power plants, increasing focus on waste heat utilization, demand for high-efficiency steam generation systems, adoption of modular hrsg designs, growth in industrial co-generation projects.
The expansion of the industrial sector is expected to drive the growth of the heat recovery steam generator (HRSG) market going forward. The industrial sector encompasses economic activities involved in producing goods through manufacturing, construction, and related industries. Its growth is fueled by rising demand for manufactured products and technological advancements that improve efficiency and production. HRSGs in the industrial sector capture and convert waste heat from industrial processes into steam, enhancing energy efficiency and reducing fuel consumption. For instance, in July 2023, according to Eurostat, a Luxembourg-based government statistical agency, seasonally adjusted industrial production in the Euro area increased by 0.2% in May 2023, while production in the European Union rose by 0.1% compared to April 2023. Therefore, industrial sector growth is boosting the HRSG market.
Major companies in the HRSG market are developing innovative solutions, such as hydrogen-ready HRSG systems, to support the transition to zero-carbon power generation. Hydrogen-ready HRSGs are conventional heat recovery steam generators adapted to operate using hydrogen instead of fossil fuels, with design, safety, and combustion modifications that allow turbine exhaust heat to be converted to steam while accommodating hydrogen's combustion characteristics. For instance, in January 2025, John Cockerill, a Belgium-based power equipment manufacturer, received a "Concept Certificate" from TUV-SUD for the H2-readiness of its HRSGs, including drum-type and once-through boiler variants. The design includes controls for ventilation, purging, fire/explosion protection, and safety analyses to ensure safe operation under hydrogen combustion. These hydrogen-ready HRSGs can be deployed in combined-cycle or cogeneration plants, delivering power and/or steam output comparable to traditional HRSGs while supporting decarbonization and future-fuel flexibility.
In March 2025, Bharat Heavy Electricals Limited (BHEL), an India-based power equipment manufacturer, partnered with Vogt Power International Inc. (VPI) to strengthen its HRSG capabilities. Through this collaboration, BHEL aims to enhance its technological expertise in HRSG design and supply, maintaining competitiveness in combined-cycle and cogeneration power projects. Vogt Power International Inc., a US-based company, specializes in HRSG designs, engineering services, and components for efficient steam-generation systems used in power and industrial applications.
Major companies operating in the heat recovery steam generator market are General Electric Company, Siemens Energy AG, Mitsubishi Heavy Industries Ltd., Hitachi Ltd., Alstom SA, Kawasaki Heavy Industries Ltd., Sumitomo Heavy Industries Ltd., Bharat Heavy Electricals Limited, John Wood Group PLC, Babcock & Wilcox Enterprises Inc., Nooter/Eriksen Inc., Thermax Limited, Hamon & Cie International, Rentech Boiler Systems Inc., Clyde Bergemann Power Group, Bosch Industriekessel GmbH, Doosan Heavy Industries & Construction, John Cockerill, Aalborg Industries, and CMI Energy
North America was the largest region in the heat recovery steam generator market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the heat recovery steam generator market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the heat recovery steam generator market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The heat recovery steam generator market consists of sales of natural circulation heat recovery steam generators, dual pressure heat recovery steam generators, triple pressure heat recovery steam generators, modular heat recovery steam generators, and forced circulation heat recovery steam generators. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Heat Recovery Steam Generator Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses heat recovery steam generator market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for heat recovery steam generator ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The heat recovery steam generator market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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