The global Heat Recovery Steam Generator Market is anticipated at USD 1.25 billion in 2022. Demand is likely to remain high for heat recovery steam generators during the assessment period. This is due to the increased demand for energy-efficient systems in various end-use industries, garnering USD 2.03 billion in 2033, recording a CAGR of 4.5% from 2023 to 2033. The market is likely to secure USD 1.31 billion in 2023.
| Data Points | Key Statistics |
|---|---|
| Heat Recovery Steam Generator Market Size Value in 2023 | USD 1.31 billion |
| Heat Recovery Steam Generator Market Forecast Value in 2033 | USD 2.03 billion |
| Global Growth Rate | 4.5% CAGR |
| Forecast Period | 2023 to 2033 |
Key Factors Shaping the Demand Outlook of the Heat Recovery Steam Generator Industry:
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| Attributes | Details |
|---|---|
| Historical CAGR (2018 to 2022) | 4.1% |
| Forecasted CAGR (2023 to 2033) | 4.5% |
Heat Recovery Steam Generator Market Historic Sales Compared to 2021 to 2031 Forecast Outlook
The global heat recovery steam generator market grew at a sluggish 4.0% CAGR between 2018 and 2022. The unprecedented impacts of the COVID-19 outbreak further caused a sharp decline in sales of heat recovery steam generators.
The sales of heat recovery steam generators are anticipated to recover during the assessment period, with a year-over-year growth projection of 4.5% from 2021 to 2022.
In the view of energy crisis, heat recovery steam generators are vital in the field of energy conservation. These systems are integral components in the combined cycle (gas turbine and steam power cycle) and are emerging as the most efficient energy conservation methods in recent trends.
Heat recovery steam generators also termed waste heat boilers, recover the waste heat present in the exhaust gases of the gas turbine cycle to generate steam which is used to run a steam power cycle.
Using these systems can significantly cut down greenhouse gas emissions and increase the efficacy of power plants, which in turn is driving their sales across various energy-producing industries. Product customizations in heat recovery steam generators offered by OEMs and increasing investments in clean energy generating sources will continue augmenting market growth through 2033.
Rising Adoption of Combined Cycle Power Plants Influence Heat Recovery Steam Generator Demand
Growing energy demand and an alarming increase in greenhouse gas emissions have encouraged the development of advanced energy systems that potentially increase efficiency and enhance sustainability by reducing environmental impact.
Renewable energy utilization, waste heat recovery, and combined cycle power generation have attracted immense interest in recent years. Waste heat is derived from many industrial operations, which can be used for power generation by leveraging a heat recovery steam generator system.
Heat recovery steam generators have a myriad of applications, out of which, combined cycles are gaining significant traction. In combined cycles, waste heat is transferred from gas turbine exhaust gases to water for generating steam for power production in the Rankine cycle.
In basic forms of combined cycles, a gas turbine exhausting into a heat recovery steam generator is used. The heat recovery steam generator supplies steam to steam turbine cycles to generate electricity, which is the most efficient way of power generation today.
It has been found that combine cycles can improve efficiency, economic and environmental aspects of power production through gas turbine cycles, and heat recovery steam generators significantly affect the economic and technical operation of combined cycles.
High overall plant efficacy, low investment costs, better operational flexibility, and phased installation are among the numerous advantages of combined cycles that are driving their adoption as compared to traditional fossil-fired power stations.
The gas-burning combined cycle plants are ideal for use in heavily populated regions due to their high efficacy and low emission levels, making them a great source of clean energy. Good thermodynamic properties of combined cycle plants facilitate the cogeneration of heat electricity. Increased output, coupled with high cycle efficiency, low emission levels, and lower investment costs are prominent attractive features of combined cycle power generation.
Increasing adoption of combined cycles for energy generation will translate into lucrative sales prospects for heat recovery steam generators in forthcoming years as heat recovery steam generators are vital components in combined cycles.
Oxy-Fuel Applications Improve Heat Recovery Steam Generator Sales
In renewable energy generation, air is a common oxidant that is used in various combustion processes. Combustion can be improved by using an oxidant that comprises high levels of oxygen found in atmospheric air. The process of utilizing pure oxygen as an oxidant is known as oxyfuel combustion.
Oxy-fuel combustion offers numerous advantages, including reduced carbon dioxide emissions from combustion, reduced requirement for emission control equipment, and increased potential for carbon capture. The process also potentially increases output rates, reduces fuel consumption, and enhances sustainability in gas power plant settings.
In applications of heat recovery steam generators, using oxy-fuel has been shown to improve efficiency drastically. Increased energy transfer from oxy-fuel via heat recovery steam generators enables increased output in comparison with systems using air-fuel combustion.
Favorable results are mainly attributed to higher heat associated with oxy-fuel combustion exhaust gas. Using oxy-fuel combustion is beneficial for heat recovery steam generators and steam power plant performance in combined cycle arrangements, further contributing to sustainable development.
With increased efficacy, oxy-fuel combustion is also beneficial for other components and operations in combined cycles, such as the functioning of the combustion chamber and expansion in gas turbines.
Its applications are increasing at a high pace in heat recovery steam generators since oxy-fuel requires the use of oxygen as an oxidant, which is abundant in atmospheric air. These trends are anticipated to further strengthen growth prospects in the global heat recovery steam generator market.
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High Installation Costs Might Stunt Heat Recovery Steam Generator Market Growth
Although heat recovery steam generators have cost-effective benefits, the installation of the same can incur high costs, which may hamper the growth prospects of the market.
Waste heat derived from industrial processes is of low quality, and it can be difficult to effectively utilize the quantity of low-quality heat contained in the waste heat medium. This results in additional equipment requirements, which increases costs to a great extent.
Heat recovery steam generators are not suitable for every kind of industry. For instance, the chemical industry, cabin rotary kiln industry, cement kiln industry, and sulfuric acid industry produce high quantities of high-temperature waste heat in the process. Here, heat recovery steam generators can be used to their full potential to improve energy savings.
For industries that produce low quantities of waste heat, the cost of equipment and installation can outweigh the benefits of heat recovery steam generators.
Increasing Demand for Energy-Efficient and Cost-Effective Green Energy Solutions to Drive Market Growth in The Region
As per FMI’s market survey, the United States is anticipated to witness high demand for heat recovery steam generators in the forthcoming years, with the North American market growing at a modest 4.4% CAGR.
Robust renewable energy infrastructure, coupled with demand for energy-efficient and cost-effective green energy solutions will continue boosting sales of heat recovery steam generators in the United States
Several government-backed initiatives to promote the usage of renewable energy will enhance growth prospects in the heat recovery steam generators market. The United States federal government offers tax credits, grants, and loan schemes for qualifying renewable energy technology and projects.
These incentives include Renewable Electricity Production Tax Credit (PTC), the Residential Energy Credit (REC), the Investment Tax Credit (ITC), and the Modified Accelerated Cost-Recovery System.
Grants and loans are available from other government agencies including the United States Department of Energy (DOE), the United States Department of Agriculture, and the United States Department of Interior. Several United States also offer financial incentives to support and subsidize the installation of renewable energy equipment.
The aforementioned factors are anticipated to bode well for the heat recovery steam generator market in the United States.
Increased Government Emphasis On Carbon Reduction Drives the Market Demand
The European heat recovery steam generator market is poised to expand at a 4.3% CAGR, with increasing applications of heat recovery steam generators in the United Kingdom.
The European Union has pledged to reduce carbon emissions by at least 40% by 2030, as a part of Europe's 2030 climate and energy framework with contributions to the Paris Agreement. 20% of the United Kingdom’s electricity is derived from renewables, and owing to these targets, renewable energy will be an integral part of the strategy to reduce carbon emissions in the forthcoming years.
A wide range of technologies such as onshore and offshore wind farms, hydropower systems and biomass power stations are currently being used to achieve the target. These developments are indicative of the high demand for heat recovery steam generators during the assessment period.
The United Kingdom has several schemes that offer financial support for renewable energy. These schemes encourage technological advancements and wider adoption of renewables, which in turn leads to reductions in costs.
For instance, the Renewable Obligation is intended to promote renewable energy production for large-scale installations, which rewards renewable electricity output over the lifetime of a project. The Feed-in Tariff (FiT) is designed to support small and medium-scale renewable installations, through which generators are paid for every unit of electricity produced.
Presence of Leading Market Players in The Region offers Opportunity for Market Growth
The increasing population and rapid growth in the economy, combined with the vast manufacturing industry and mass migration to centrally heated cities have propelled the consumption of electricity in China.
Recognizing the growing need for electricity generation and its long-term dependence on fossil fuels, the Chinese government has made plans to source energy from renewables. Improvements in battery technologies, photovoltaics, and energy management are kept at the forefront of these plans.
These factors are encouraging global heat recovery steam generator market players to tap into the Chinese market with new and technologically advanced solutions. For instance, Mitsubishi Power, a global leader, signed an agreement to supply an 180-MW gas-fired turbine for a Chinese steel-producing corporation.
Jiangsu Shagang Group has contracted Mitsubishi to deliver the M701SDAX gas turbine for its combined cycle power plant. The M701-class turbine is fueled by blast furnace gas, and the plant is expected to enter operation by 2023. The facility will comprise a heat recovery steam generator, gas turbine, steam turbine, gas compressor, and auxiliary equipment.
Growing Electricity Demand in The Nation to Drive the Market Growth
The energy sector in India has witnessed major transformations in response to growing demand and strategic measures to promote renewable energy. Burgeoning electricity demand can be attributed to high economic growth, rapid urbanization through Smart City projects, and industrialization strategies such as 'Make in India'.
The government of India's plan is to provide 24x7 electricity to all rural and urban households, with 600 million new electricity consumers added by 2040. This, in turn, will lead to a significant increase in demand.
The expansion of numerous manufacturing industries in the country, along with government-backed initiatives to promote green energy will continue driving sales of heat recovery steam generators in India.
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Demand for Fully Assembled Heat Recovery Steam Generators to Remain High
Based on design type, fully assembled heat recovery steam generators are anticipated to dominate the segment.
Growth can be attributed to increasing investments in renewable energy solutions, along with product developments and customization offered by OEMs. The advancements in fully assembled heat recovery steam generators will continue augmenting market growth.
Horizontal Drum Units to Account for Maximum Sales
In terms of configuration, horizontal drums unit type of heat recovery steam generators is projected to record maximum sales during the forecast period. Horizontal drums are made of titanium, clad steel, and carbon steel, which facilitate a natural and cost-effective circulation effect.
Horizontal drums provide extra tensile strength and require less space. Horizontal drums, thus, will emerge as the most preferred configuration type during the assessment period.
0-60 MW Capacity Heat Recovery Steam Generators to Remain Highly Sought-After
Based on output power type, the 0-60 MW segment is poised to experience high demand during the forecast period. Increasing adoption of co-generating units to counter heat ingestion in small-scale industries and grid networks will continue driving sales.
The ongoing innovations and developments in heat recovery steam generators will result in more efficient products, which will further enhance the growth prospects of the market.
Applications in Combined Heat and Power Plants to Continue Rising
In terms of applications, the combined heat and power plant segment is estimated to emerge as a key user of heat recovery steam generators through 2033.
Government initiatives encouraging renewable energy production will lead to the construction of more combined heat and power plants, resulting in high sales of heat recovery steam generators in the upcoming years.
Some of the prominent players operating in heat recovery steam generator marker are Cleaver-Brooks, Siemens AG, General Electric, CMI Group, John Wood Group PLC, Cannon S.p.A., Mitsubishi Hitachi Power Systems, Ltd., Rentech Boilers Systems Inc., Hamon Deltak, Inc., AC BOILERS SpA, SES Tlmace, a.s., Xizi United Holdings Limited among others.
The top 5 players operating in the heat recovery steam generator market comprise General Electric, Siemens AG, CMI Group, John Wood Group plc, and Mitsubishi Hitachi Power Systems Ltd., accounting for approximately 75.5% of the total market share.
Prominent players are focusing on strategic collaborations, deal renewals, acquisitions, and mergers to improve sales as a part of their growth strategies. Product innovations and customization will remain highly sought-after growth strategies during the assessment period. For instance:
| Report Attributes | Details |
|---|---|
| Growth Rate | CAGR of 4.5 % from 2023 to 2033 |
| Market Value in 2023 | USD 1.31 billion |
| Market Value in 2033 | USD 2.03 billion |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD Billion and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | Design Type, Configuration Type, Output Power Type, Application Type, Region |
| Regions Covered | North America; Latin America; Europe; Asia Pacific; Middle East and Africa |
| Key Countries Profiled | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, China, Japan, South Korea, Singapore, Thailand, Indonesia, Australia, New Zealand, GCC, South Africa, Israel |
| Key Companies Profiled | Cleaver-Brooks; Siemens AG; General Electric; CMI Group; John Wood Group PLC; Cannon S.p.A.; Mitsubishi Hitachi Power Systems, Ltd.; Rentech Boilers Systems Inc.; Hamon Deltak, Inc.; AC BOILERS SpA; SES Tlmace, a.s.; Xizi United Holdings Limited |
The market is valued at USD 1.31 billion in 2023.
The market rose at a 4.1% CAGR from 2018 to 2022.
The market is anticipated to reach USD 2.03 billion by 2033.
The market’s CAGR from 2023 to 2033 is estimated to be 4.5%.
Siemens AG, General Electric, CMI Group are the leading market manufacturers.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2021 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2021 and Forecast 2023 to 2033, By Design Type 5.1. Modular Construction 5.2. C-Section Construction 5.3. Bundle Construction 5.4. Fully Assembled 6. Global Market Analysis 2018 to 2021 and Forecast 2023 to 2033, By Configuration Type 6.1. Horizontal Drum Value (USD Million) 6.2. Vertical Drum Value (USD Million) 6.3. Horizontal-Once Through Value (USD Million) 7. Global Market Analysis 2018 to 2021 and Forecast 2023 to 2033, By Output Power Type 7.1. 0-60 MW 7.2. 60-100 MW 7.3. 100 MW & Above 8. Global Market Analysis 2018 to 2021 and Forecast 2023 to 2033, By Application Type 8.1. Co-generation (Process Heating) 8.2. Combined Cycle 8.3. Combined Heat & Power (CHP) 9. Global Market Analysis 2018 to 2021 and Forecast 2023 to 2033, By Region 10. North America Market Analysis 2018 to 2021 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2021 and Forecast 2023 to 2033, By Country 12. Western Europe Market Analysis 2018 to 2021 and Forecast 2023 to 2033, By Country 13. Eastern Europe Market Analysis 2018 to 2021 and Forecast 2023 to 2033, By Country 14. South Asia and Pacific Market Analysis 2018 to 2021 and Forecast 2023 to 2033, By Country 15. East Asia Market Analysis 2018 to 2021 and Forecast 2023 to 2033, By Country 16. Middle East and Africa Market Analysis 2018 to 2021 and Forecast 2023 to 2033, By Country 17. Key Countries Market Analysis 18. Market Structure Analysis 19. Competition Analysis 19.1. Cleaver-Brooks 19.2. Siemens AG 19.3. General Electric 19.4. CMI Group 19.5. John Wood Group PLC 19.6. Cannon S.p.A. 19.7. Mitsubishi Hitachi Power Systems, Ltd. 19.8. Rentech Boilers Systems Inc. 19.9. Hamon Deltak, Inc. 19.10. AC BOILERS SpA 19.11. SES Tlmace, a.s. 19.12. Xizi Holdings Limited 20. Assumptions & Acronyms Used 21. Research Methodology
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Heat Recovery Steam Generator Market
