Heat Recovery Steam Generator Market

Global Heat Recovery Steam Generator Market Size (2024-2032):

The size of the global heat recovery steam generator market was worth USD 1.50 billion in 2023. The global market is anticipated to grow at a CAGR of 4.48% from 2024 to 2032 and be worth USD 2.23 billion by 2032 from USD 1.57 billion in 2024.

Current Scenario of the Global Heat Recovery Steam Generator Market

Escalating Global calls for electricity, new Investments in power plants, increased efforts to reduce worldwide greenhouse gas emissions, and increased adoption of CCPP and CHP are the drivers of the market for heat recovery steam generators. Heat recovery steam generators transform water into superheated steam. The ever-escalating competitiveness between the different centralized electricity generation technologies and the growing concern for environmental problems are forcing all available generation technologies to improve their efficiency, thus reducing primary energy consumption. Heat recovery steam generators are a key element in the energy efficiency of power plants. These systems produce steam that is employed in combined cycle plants and for cogeneration. The growing manufacturing sector, coupled with continued technological advancements, has also provided favourable business opportunities for expansion for industry players.

MARKET TRENDS

Escalating the use of cogeneration technology and escalating investment in expanding production capacity will drive market expansion. For example, according to the US Energy Information Administration, Coal's contribution to total US energy consumption in 2023 decreased by 4% from 2022. Furthermore, the rapidly expanding industrial sector along with the changing trend toward unconventional energy use will positively influence the expansion of the industry.

MARKET DRIVERS

The growing call for green and clean energy sources, along with the growing pressures to generate electricity in urbanized areas of the world and the need to store electricity, are predicted to be the main drivers of the steam generator heat recovery market.

Furthermore, the increase in projects related to the electrification of rural areas in most developing economies would provide good opportunities for players operating in the market for heat recovery steam generators. The escalating application of the cogeneration technique in the expanding company towards the expansion of production capacity will stimulate the expansion of companies. Increased electricity costs, favourable administrative conditions, and decreasing resource costs in view of continuous technological advances are some of the main determinants that will expand the heat recovery steam generator exchange extent. These provisions reinforce the importance of cross-trade in green energy due to its ability to depreciate traces of carbon and promote orderly energy actions.

MARKET RESTRAINTS

The call for heat recovery steam generators may be directly related to the development of CCPP and CHP plants. However, some operators still prefer open-cycle or single-cycle plants because they are less complex, less expensive, and faster to build. They also require much less space and equipment to function compared to CCPP. More importantly, they do not require heat recovery steam generators. This is the main brake on market expansion

MARKET OPPORTUNITIES

Rising electricity costs, a favourable regulatory environment, and declining investment costs due to ongoing technological advancements are some of the main factors that will increase the expansion of the heat recovery steam generator market. These systems are gaining importance in energy-efficient industries due to their ability to minimize the carbon footprint and support clean energy initiatives.

MARKET CHALLENGES

Problems associated with accelerated flow corrosion in heat recovery steam generators are also limiting market expansion. The lack of technological knowledge of the operation of heat recovery steam generators and the complexity of the system of these instruments would challenge the expansion of the heat recovery steam generator market.

IMPACT OF COVID-19 ON THE HEAT RECOVERY STEAM GENERATOR MARKET

The call for electricity has dropped significantly due to the recent COVID-19 pandemic. Governments around the world were forced to reduce business activity in response to minimizing the threat of the coronavirus. This ongoing situation due to COVID-19 has changed lifestyles worldwide as most people stay home and work from home if possible. Therefore, there is a significant increase in the call for residential cargo, while there is a substantial decrease in commercial and industrial cargo. This heartbreaking situation creates the latest challenges in the technical and financial works of the energy fragment and hence the majority of utilities across the globe initiated a disaster management plan to get over these present challenges/threats. Hence, this study aims to investigate the worldwide power systems scenes throughout COVID-19 along with the socioeconomic and technical problems facing utilities. This study then further examined India's power system as a case study and explored scenarios, issues, and challenges currently faced in managing consumer load calls, including actions taken by the utility sector for the proper functioning of the energy system. Finally, a set of recommendations is presented to support governments, policymakers, and utilities around the world, not only to overcome the current crisis but also to overcome an unpredictable pandemic scenario in the future.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Heat Recovery Steam Generator Market Analysis By Design

The horizontal drum heat recovery steam generator market is predicted to grow due to its ease of compatibility and lower capital expenditures. These systems consist of horizontal exhaust fans with vertically arranged bundles of heat exchanger tubes.

Global Heat Recovery Steam Generator Market Analysis By Mode of Operation

The cogeneration heat recovery steam generator industry is projected to grow at a rate above 5% by 2025. The technology is widely employed with cogeneration applications in the United States and European countries due to the escalating adoption of cogeneration technology.

REGIONAL ANALYSIS 

Europe would continue to dominate the market, as it has the largest number of cogeneration plants in the world, and Asia-Pacific is predicted to grow at the fastest pace. Factors such as urbanization, industrialization, and rapid economic expansion call high call for electrical power in several countries in the Asia-Pacific region, requiring the development of new power plants, especially gas plants; this, in turn, would increase the call for heat recovery steam generators. Escalating investments throughout the oil and gas industry after the oil price drop, mainly in the Asia Pacific and the Middle East, is certainly affecting the call for HRSG systems. In addition, ongoing expansion plans for the refinery and petrochemical plant due to the escalating call for hydrocarbon products are anticipated to further boost HRSG's market expansion. In the US, the HRSG market will exceed USD 253.3 million by 2026. The accumulated emphasis on using energy-efficient systems coupled with the growing need to change old coal power plants to improve emissions has significantly expanded the HRSG facility.

The federal and state governments offer various incentives and strategies to reduce operating costs along with combined heat and power and utility guidelines. This, in turn, is predicted to drive the expansion of the segment in the region. Acceleration of thermal capacity additions, expansion in industrialization, and an optimistic outlook toward the combined cycle power plant are anticipated to boost the heat recovery steam generator market in China. Increased investments for rebuilding infrastructure by spending on distributed energy sources coupled with the growing acceptance of combined cycle power plants (CCPPs) are likely to drive expansion in the industry.

KEY PLAYERS IN THE GLOBAL HEAT RECOVERY STEAM GENERATOR MARKET

Companies playing a prominent role in the global heat recovery steam generator market include General Electric Company (U.S.), Siemens AG (Germany), Amec Foster Wheeler plc. (U.K.), Babcock & Wilcox Company (U.S.), CMI Group (Belgium), Doosan Engineering & Construction Co., Ltd., and Others.

RECENT HAPPENINGS IN THE GLOBAL HEAT RECOVERY STEAM GENERATOR MARKET

• ALSTOM announces the launch of the Next Generation Heat Recovery Steam Generator (HRSG), a combination of the OCCTM design with Siemens-developed single-pass evaporator technology. Through this development, ALSTOM can continue to provide the most technologically advanced HRSGs with high efficiency, superior performance in high-cycle applications, and ease of field mounting at a competitive price.

DETAILED SEGMENTATION OF THE GLOBAL HEAT RECOVERY STEAM GENERATOR MARKET INCLUDED IN THIS REPORT

This global heat recovery steam generator market research report has been segmented and sub-segmented based on design, mode of operation, application and region.

By Design:

• Horizontal drum
• Vertical drum

By Mode of Operation:

• Cogeneration
• Combined cycle

By Application:

• Utilities
• Chemical
• Refineries
• Pulp and paper

By Region

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa