Waste Heat Recovery System Market

Updated on : April 15, 2024

Waste Heat Recovery System Market

The global waste heat recovery system market was valued at USD 72.5 billion in 2022 and is projected to reach USD 102.1 billion by 2027, growing at 7.1% cagr from 2022 to 2027. The increase in demand for heat recovery systems is due to fast industrialization and growing awareness about attaining sustainable growth through energy efficiency. A significant drawback of waste heat recovery systems industry is their high cost. Additionally, the installation of waste heat recovery systems necessitates significant changes to the current setup, which results in a halt of production and downtime. Waste heat recovery systems are frequently used to preheat combustion air, space heating, furnace loads, and boiler feed water. The cascade system of waste heat recovery is bolstering the product demand which is an opportunity for the market. The industrial processes generating waste heat streams have variations in their temperatures. Many industrial facilities do not have onsite utilization of low-temperature heat. The heat exchanger surface corrodes as a result of low heat recovery is a challenge to the market.

Attractive Opportunities in the Waste Heat Recovery System Market

e- Estimated, p- Projected

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Waste Heat Recovery System Market Dynamics

Driver- Growing environmental concerns

Climate change is the greatest economic, political, developmental, and environmental challenge for countries worldwide. Enhancing energy efficiency is the cheapest and the most reliable method of curbing carbon emissions, thus saving costs. Supplying energy for sustainable economic development is a goal shared by both developed and developing countries. The exhaust manufacturing facilities generate a lot of heat, which raises the carbon footprint and has a negative impact on the environment. Waste heat recovery systems are useful for improving the overall energy efficiency of industrial manufacturing processes, thereby boosting their demand.

Restraint- High capital investment

The major restraints of waste heat recovery systems are their high cost. The waste heat recovery systems industry require complex maintenance, which is expensive. Because of this, installing such a system requires a significant capital investment, which only large industries can afford. Small and medium-sized businesses cannot afford to cover such high costs. In most cases, the recovered heat may not be of sufficient quality to improve the process's energy efficiency. The cost-benefit analysis may be skewed by high costs and little benefit. One of the obstacles to the market's expansion is the high cost of waste heat recovery systems.

Opportunity - Rise in government incentives and emerging waste heat recovery system technologies

The EU promotes best practices and incentivizes Member States to implement waste heat recovery measures. Countries have directly or indirectly supported the recovery and use of waste heat. In Denmark, there are several measures in place that support waste heat recovery systems, including heat planning regulation, taxation, subsidies, heat price regulation, a ban on electrical heating, and a law on district cooling. In Italy, since 2011, with the EEN 9-11, the Italian Energy Management Authority (ARERA) has introduced the eligibility of Waste Heat Recovery in the white certificate scheme, allowing a 5-year benefit. Since 2017, with Decree DM 11 Gennaio 2017, a specific incentive scheme for waste heat recovery with Organic Rankine Cycle systems has been introduced, allowing a 10-year benefit. To remain competitive in the market, key players are favorably inclined to pursue various growth strategies such as capacity expansions, product launches, and product innovations. This is expected to have a significant positive impact on market growth.

Challenge - Issues associated with waste heat recovery systems

The industrial processes generating waste heat streams have variations in their temperatures. Many industrial facilities do not have onsite utilization of low-temperature heat. The heat exchanger surface corrodes as a result of low heat recovery. Some of the cooling water vapor in exhaust gases condenses, depositing corrosive solids and liquids on the heat exchanger surface. It is necessary to build the heat exchanger to withstand contact with these corrosive deposits. Industrial facilities that generate high-temperature waste heat require expensive materials and mechanisms to retain that temperature for use in other applications. The temperature reduces fast when exposed to the outside environment. This temperature reduction may affect the quality of the energy available for recovery. These complexities in recovering the waste heat make waste heat recovery systems unsuitable for use in many applications.

Waste Heat Recovery System Market Ecosystem

By End-use industry, the Cement segment registered the highest CAGR during the forecast period.

The demand for waste heat recovery systems in the cement industry is driven by the rapid global growth of the construction sector. Increased investment in construction operations in numerous emerging economies and economic growth are driving the market in the cement industry. The industry is expected to be driven by the expansion of construction activities in emerging economies such as China, India, and Indonesia, particularly in social, educational, medical, retail, and residential construction.

By Application, the Preheating segment registers the highest cagr during the forecast period.

Due to its great efficiency and low fuel use, preheating is one of the most popular applications of waste heat in furnaces and kilns. Large boilers, metal-heating furnaces, high-temperature kilns, compact boilers, and compact industrial furnaces benefit from waste heat preheating. waste gases generated after recovery are utilized to preheat the stock in the aluminum and copper industries. This has the added benefit of reducing explosions caused by entrapped water vapor. As a result, the heat rejected by the process is utilized in the preheating application, resulting in increased energy efficiency and lower fuel costs.

China to register the highest CAGR during the forecast period.

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The key factor driving the installation of waste heat recovery systems in (China) country is its economic and industrial expansion. China is taking steps to boost growth in a variety of industries, including chemicals, food and beverage, and cement. The country's construction sector is developing rapidly, driving up the demand for waste heat recovery systems in the cement industry. Because of the availability of low-cost raw materials and labor, China has developed itself as a manufacturing hub in recent years. This has resulted in significant expenditures in the country's manufacturing sector, increasing the need for waste heat recovery systems.

Waste Heat Recovery System Market Players

Key players, ABB Ltd. (Switzerland), Wood (John Wood Group Plc) (UK), Ormat Technologies Inc. (US), General Electric Co. (US), Mitsubishi Heavy Industries Ltd. (Japan), Echogen Power Systems Inc. (US), Econotherm Ltd. (UK), Thermax Limited (India), Siemens AG (Germany), and Cool Energy Inc. (Colorado) have adopted various growth strategies, such as acquisitions, contracts, agreements, and new projects to increase their market shares and enhance their product portfolios.

Read More: Waste Heat Recovery System Companies

Waste Heat Recovery System Market Report Scope

This research report categorizes the global waste heat recovery system market on the basis of Application, End-Use Industry, and Region.

Waste Heat Recovery System Market by Application

• Steam & Electricity generation
• Preheating

Waste Heat Recovery System Market by End-use Industry

• Petroleum Refining
• Metal Production
• Chemical
• Cement
• Paper & Pulp
• Others

Waste Heat Recovery System Market by Region

• North America
• Europe
• Asia Pacific (APAC)
• Middle East and Africa
• South America

The market has been further analyzed for the key countries in each of these regions.

Recent Developments

• In January 2022, The Ormat Technologies Inc. completed the acquisition of a shovel-ready energy storage asset in Upton County, Texas, from Con Edison Development.
•  RBC acquired rival Asea Brown Boveri's (ABB) DODGE Mechanical Power Transmission business for USD 2.9 billion in cash in November 2022.
• WSP Global Inc. completed its previously announced acquisition of the environment and infrastructure business (E&I) of John Wood Group PLC through a sale and purchase agreement  in September 2022.
• Swiss industrial group ABB Ltd. acquired a minority stake in UK-based climate tech start-up Tallarna Ltd. in a push to expand its portfolio of user-friendly energy management technologies and strengthen the digital portfolio of its Smart Power division in November, 2022.

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