Waste Heat Recovery Global Market Report 2026

Waste heat recovery is the practice of capturing and utilizing heat produced by industrial processes, engines, or equipment that would otherwise be released into the environment. It improves energy efficiency, reduces fuel usage, and lowers greenhouse gas emissions by transforming unused thermal energy into useful power or heat for other applications. This approach also helps decrease operating costs and enhances the overall sustainability of industrial operations.

The main technologies in the waste heat recovery market include heat exchangers (recuperators and regenerators), waste heat boilers, organic Rankine cycle (ORC) systems, and turbocompounds. Heat exchangers, including recuperators and regenerators, are systems designed to capture and reuse surplus heat from industrial processes or exhaust gases by transferring thermal energy to incoming air, fluids, or process streams, thereby enhancing overall energy efficiency, reducing fuel consumption, and lowering operational emissions. The key applications include pre-heating, electricity and steam generation, and steam Rankine cycle processes, and these technologies are used across end-use industries such as petroleum refining, chemicals, and cement.

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 have influenced the waste heat recovery market by increasing the cost of imported heat exchangers, turbines, boilers, and control components used in large-scale recovery systems. Energy-intensive industries such as cement, petroleum refining, and chemicals are most affected, particularly in regions dependent on cross-border equipment supply such as Asia-Pacific and Europe. Higher costs have slowed some capital-intensive projects, while encouraging localization of manufacturing and sourcing. In the long term, tariffs have supported domestic production capabilities and driven innovation in cost-efficient and modular waste heat recovery solutions.

The waste heat recovery market research report is one of a series of new reports from The Business Research Company that provides waste heat recovery market statistics, including waste heat recovery industry global market size, regional shares, competitors with an waste heat recovery market share, detailed waste heat recovery market segments, market trends and opportunities, and any further data you may need to thrive in the waste heat recovery industry. The waste heat recovery 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 waste heat recovery market size has grown strongly in recent years. It will grow from $69.90 billion in 2025 to $76.31 billion in 2026 at a compound annual growth rate (CAGR) of 9.2%. The growth in the historic period can be attributed to escalating Fuel & Electricity Prices, Initial Environmental Policies, Cost-Saving Potential & Financial Incentives, Expansion of Heavy Industry (APAC), Demonstration of ORC Viability.

The waste heat recovery market size is expected to see strong growth in the next few years. It will grow to $107.31 billion in 2030 at a compound annual growth rate (CAGR) of 8.9%. The growth in the forecast period can be attributed to global Decarbonization Mandates, Technological Breakthroughs in Low-Grade Heat, Shift to Decentralized Power & Microgrids, Emergence of Energy-as-a-Service (EaaS) Models, Targeted Government Incentives. Major trends in the forecast period include advanced ORC Dominance, Adoption of Modular, Compact Units, Integration with District Heating, Focus on Supercritical $\text{CO}_2$ Cycles, Cascade Heat Recovery Systems.

The increasing demand for environmental sustainability is expected to drive the growth of the waste heat recovery market in the coming years. Environmental sustainability refers to the responsible use and management of natural resources to ensure long-term ecological balance for present and future generations. Growing awareness of environmental sustainability is primarily driven by stricter government regulations and policies that mandate recycling standards and environmentally responsible industrial practices. Waste heat recovery supports sustainability goals by capturing and reutilizing excess heat generated from industrial operations and power generation processes. This approach reduces fuel consumption, lowers greenhouse gas emissions, and improves overall energy efficiency. For instance, in October 2024, according to the United States Environmental Protection Agency, a US-based government agency, greenhouse gas emissions increased to 322 million metric tons in 2023, representing a 1.4% rise compared with 2022. Therefore, the rising emphasis on environmental sustainability is fueling the growth of the waste heat recovery market.

Major companies operating in the waste heat recovery market are focusing on developing advanced solutions, such as centrifugal heat pumps, to improve energy efficiency, enhance sustainability, and reduce operational costs and carbon emissions. Centrifugal heat pumps are advanced systems that use turbo-compressor technology to upgrade low-temperature waste heat into high-temperature thermal output suitable for industrial applications. For instance, in October 2025, Mitsubishi Heavy Industries Thermal Systems Ltd., a Japan-based heating, ventilation, and air-conditioning (HVAC) systems company, launched the ETI-W centrifugal heat pump for the Japanese market. This high-capacity, high-efficiency system can effectively utilize waste heat sources at approximately 65°C to generate hot water output at temperatures of up to 95°C. It features advanced operational capabilities that allow seamless integration into existing industrial processes without significant system modifications. Additionally, the ETI-W incorporates a single-stage compression cycle and uses a natural refrigerant, R-1233zd(E), significantly reducing electricity consumption and greenhouse gas emissions for industrial users.

In November 2023, BITZER Group, a Germany-based refrigeration and HVAC solutions company, acquired BPOWER for an undisclosed amount. Through this acquisition, BITZER expanded into high-efficiency energy systems by integrating BPOWER's modular power-generation expertise, enabling the company to offer organic Rankine cycle (ORC) waste-heat recovery solutions and strengthen its position in sustainable energy and industrial decarbonization. BPOWER is a Czech Republic-based energy technology company specializing in ORC systems that convert low-grade waste heat into usable electrical power.

Major companies operating in the waste heat recovery market are Siemens Energy AG, GE Vernova LLC, Mitsubishi Heavy Industries Ltd, Carrier Global Corporation, IHI Corporation, Spirax-Sarco Engineering plc, John Cockerill Group, Bitzer SE, Kelvion Holding GmbH, Thermax Limited, Forbes Marshall Pvt. Ltd., Ormat Technologies Inc., Nooter/Eriksen Inc., TICA Thermal Technology Co. Ltd., Exodraft A/S, Kawasaki Heavy Industries Ltd., Echogen Power Systems LLC, Climeon AB, Enertime SA, Exchanger Industries Limited, Heliex Power Ltd., Orcan Energy AG

North America was the largest region in the waste heat recovery market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the waste heat recovery market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the waste heat recovery market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The waste heat recovery market consists of sales of waste heat recovery systems, heat exchangers, boilers, thermoelectric generators, boilers, economizers, and thermoelectric 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.

Waste Heat Recovery 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 waste heat recovery 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.

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Where is the largest and fastest growing market for waste heat recovery ? 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 waste heat recovery 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.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Technology: Heat Exchangers (Recuperators, Regenerators); Waste Heat Boilers; Organic Rankine Cycles (ORC); Turbocompounds
• 2) By Application: Pre-Heating; Electricity And Steam Generation; Steam Rankine Cycle
• 3) By End-Use Industry: Petroleum Refining; Chemical; Cement
• Subsegments:
• 1) By Heat Exchangers: Shell & Tube; Plate Heat Exchangers; Plate-Fin Heat Exchangers; Air-Cooled Heat Exchangers; Heat Pipe Heat Exchangers
• 2) By Waste Heat Boilers: Fire-Tube; Water-Tube; Once-Through; Packaged Boilers
• 3) By Organic Rankine Cycle (ORC): Subcritical ORC; Supercritical ORC; Regenerative ORC; Two-Stage ORC
• 4) By Turbocompounds: Mechanical Turbocompound; Electrical Turbocompound; Hybrid Turbocompound
• Companies Mentioned: Siemens Energy AG; GE Vernova LLC; Mitsubishi Heavy Industries Ltd; Carrier Global Corporation; IHI Corporation; Spirax-Sarco Engineering plc; John Cockerill Group; Bitzer SE; Kelvion Holding GmbH; Thermax Limited; Forbes Marshall Pvt. Ltd.; Ormat Technologies Inc.; Nooter/Eriksen Inc.; TICA Thermal Technology Co. Ltd.; Exodraft A/S; Kawasaki Heavy Industries Ltd.; Echogen Power Systems LLC; Climeon AB; Enertime SA; Exchanger Industries Limited; Heliex Power Ltd.; Orcan Energy AG
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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