Market overview:
The global waste heat recovery system (WHRS) industry is set for steady growth through 2035, supported by rising energy costs, strict emission norms, and the global push toward energy efficiency. The market is expected to expand at a healthy CAGR over the forecast period, with future opportunities emerging across power generation, cement, steel, oil & gas, and chemical industries. As industries look to cut operational costs and carbon emissions, recovering unused heat is becoming a strategic priority rather than an optional upgrade.
Market growth is driven by tightening environmental regulations, increasing focus on decarbonization, and growing adoption of sustainable industrial practices. Governments worldwide are promoting energy-efficient technologies through incentives and policy frameworks, accelerating WHRS deployment. A major trend shaping the market is the integration of waste heat recovery with digital monitoring and automation systems, improving efficiency and system reliability. Industries are also investing in modular and customized recovery solutions to suit diverse operating conditions.
Region and countries to watch:
Asia Pacific is the leading region, driven by rapid industrialization, large manufacturing bases, and strong government support for energy efficiency.
- China is a key market due to its massive cement, steel, and power sectors. National energy-saving targets and emission reduction policies are pushing industries to adopt waste heat recovery at scale.
- India is another country to watch, supported by expanding infrastructure, rising energy demand, and government-led initiatives promoting industrial efficiency and sustainability.
Segemention
By Industry: This segment includes Chemical & Petroleum Refining, Heavy Metal Manufacturing, Pulp & Paper, Food & Beverage, Other Industries. In terms of waste heat recycling operating income, Food and beverage make up most of the application segments.
By Technique: This segment includes By Technique, Heat Exchangers, Thermal Wheels, Recuperators, Regenerators. The heat exchangers segment had the largest market share in 2020 and is expected to record a 6.8% CAGR during the forecast period.
Competition & Industry Landscape
The market shows a moderate level of competition, with a mix of global engineering firms and regional solution providers. Companies focus on technology upgrades, long-term service contracts, and project-based partnerships to strengthen market presence.
Key Players
• ABB Ltd. (Switzerland)
• Wood (John Wood Group Plc) (UK)
• Ormat Technologies Inc. (US)
• General Electric Co. (US)
• Mitsubishi Heavy Industries Ltd
