Waste Heat Recovery Market worth $135.33 billion by 2031 - Exclusive Report by MarketsandMarkets™

DELRAY BEACH, Fla., Oct. 1, 2026 /PRNewswire/ -- According to MarketsandMarkets™, the Waste Heat Recovery Market is projected to reach USD 135.33 billion in 2031 from USD 92.99 billion in 2026, at a CAGR of 7.8%.

Browse 370 market data Tables and 70 Figures spread through 300 Pages and in-depth TOC on "Waste Heat Recovery Market - Global Forecast to 2031"

Waste Heat Recovery Market Size & Forecast:

• Market Size Available for Years: 2021-2031
• 2026 Market Size: USD 92.99 billion
• 2031 Projected Market Size: USD 135.33 billion
• CAGR (2026-2031): 7.8%

Waste Heat Recovery Market Trends & Insights:

• The waste heat recovery system market is fueled by rising energy costs, decarbonization efforts, and stricter emissions norms. Growing adoption across energy-intensive industries, coupled with advances in heat recovery technologies and digital controls, is enhancing energy savings, plant efficiency, and system performance.
• By region, Europe accounted for a significant share of 38.0% of the waste heat recovery system market in 2025.
• By application, the steam & electricity generation segment held a majority market share of 57.0% in 2025.
• By end-use industry, the petroleum refining segment captured the largest market share of 28.8% in 2025.
• Siemens Energy AG (Germany), GE Vernova Inc. (US), Mitsubishi Heavy Industries, Ltd. (Japan), ABB Ltd. (Switzerland), Shanghai Electric Group Co., Ltd. (China) were identified as key players in the waste heat recovery system market (global), given their strong market share and product footprint.
• IHI Corporation (Japan), Wärtsilä Corporation (Finland), Bharat Heavy Electricals Limited (BHEL) (India) have distinguished themselves among startups and SMEs by securing strong footholds in specialized niche areas, underscoring their potential as emerging market leaders.

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The growing emphasis on energy efficiency, industrial decarbonization, and operating cost reduction across energy-intensive industries drives the waste heat recovery system market. Rising energy costs and stringent emissions regulations are encouraging industries such as cement, steel, chemicals, refining, and power generation to recover and reuse waste heat that would otherwise be released into the environment. Increasing deployment of combined-cycle and cogeneration systems, along with advancements in heat exchangers, waste heat boilers, organic Rankine cycle systems, and supercritical CO₂ technologies, is further expanding opportunities for waste heat recovery. In addition, the integration of digital monitoring and advanced control technologies is enabling real-time optimization of heat recovery systems, improving thermal efficiency, reliability, and overall plant performance.

By application, the preheating segment is expected to record the highest CAGR during the forecast period

The preheating segment is set to witness the fastest growth rate in the waste heat recovery system market during the forecast period, with the increasing incorporation of recovered thermal energy into the upstream industrial processes as the main driver. The preheating process relies on the thermal energy captured from the furnace exhaust, kiln gases, flue gases, and other high-temperature streams to be used for preheating air, feed water, raw materials, or other feedstocks, thereby minimizing the consumption of primary fuel for heating purposes. Cement, steel, glass, chemical processing and petroleum refining industries, among others, present good prospects due to the high heat being generated by the continuous processes employed in these industries. This process relies on relatively easy integration of the various equipment used for waste heat recovery, unlike the electricity generation processes that involve capital-intensive infrastructure in the form of additional power generation equipment. Therefore, as industrial operators aim to save fuel and improve the efficiency of their processes and equipment, the adoption of preheating waste heat recovery systems is likely to increase.

By end-use industry, the cement segment is likely to exhibit the fastest growth rate during the forecast period

The cement industry is projected to record the fastest CAGR in the waste heat recovery system industry over the forecast period, supported by the high-temperature nature of clinker production and the continuous availability of recoverable thermal energy. The cement production process employs a considerable amount of heat released from preheater and precalciner gases and the clinker cooler atmosphere, which can be recovered by waste heat boilers and heat exchangers. Recovered energy can be converted into steam and electricity, preheated combustion air, and used for other operations in the manufacturing plant. Besides, the permanent heat demand allows maximizing the use of installed recovery facilities. Moreover, increasing pressure to lower energy consumption and carbon emissions from clinkers produced propels the demand for optimal fuel and heat consumption by cement producers. The introduction of waste heat recovery systems in established kiln production is not going to require the replacement of baseline processes, which shows the importance of modernization of existing facilities for the improvement of their effectiveness.

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Asia Pacific region is likely to be the fastest-growing market for waste heat recovery systems during the forecast period

The Asia Pacific region is expected to register the highest CAGR in the waste heat recovery system market during the forecast period, primarily due to the presence of energy-intensive industries, particularly in China, India, Japan, South Korea, and Southeast Asia. The region is home to several industries such as cement, steel, chemicals, refining, glass, and non-ferrous metals with the potential for high-temperature waste and by-product heat that could be recovered. The rapid industrialization in the region and new manufacturing facilities have created opportunities for the installation of waste heat recovery systems in new plants, while modernization of existing plants has created the need for retrofitting. The cement and steel industries are significant due to the availability of waste heat streams such as gases from kilns, cooling kilns, and furnaces. Other than that, the growing energy demands and fuel consumption in the industries paved the way for more systems to harness waste energy for heat and electricity. This can be interpreted as a booming investment in energy efficiency and emission reduction, which will encourage stakeholders to adopt the technology in the future.

Key Players

Leading players in the waste heat recovery companies include Siemens Energy AG (Germany), GE Vernova Inc. (US), Mitsubishi Heavy Industries, Ltd. (Japan), ABB Ltd (Switzerland), Shanghai Electric Group Co., Ltd. (China), Kawasaki Heavy Industries, Ltd. (Japan), Doosan Enerbility Co., Ltd. (South Korea), IHI Corporation (Japan), Wärtsilä Corporation (Finland), Bharat Heavy Electricals Limited (BHEL) (India), among others.

Investment Funding

Investment activity in the waste heat recovery system market is increasingly focused on expanding high-temperature manufacturing capacity, improving thermodynamic automation, and strengthening high-efficiency material processing capabilities. Manufacturer disclosures indicate that capital deployment has been directed toward factory expansion, specialized waste-heat boiler and turbine-forming equipment, automated robotic welding systems, computer-controlled assembly lines, and integrated thermal-insulation operations. In recent financial disclosures, Siemens Energy AG announced an expansion of its high-efficiency industrial compression and gas power operations, together with upgrades to its thermodynamic automation infrastructure and the integration of advanced robotic handling systems to improve manufacturing line throughput and maintain pristine structural integrity. During the same fiscal period, GE Vernova Inc. reported that its targeted investment in precision engineering and high-speed production lines directly increased internal material production capacity, supporting the commercial launch of next-generation, high-efficiency heat recovery steam configurations serving utility networks, steam plants, and gas-turbine loops. Furthermore, Mitsubishi Heavy Industries, Ltd. has announced major capital investments in additional production facilities, specialist Organic Rankine Cycle machinery, high-definition thermal testing infrastructure, and customized digital layout software to support rising industrial sales and increasingly complex multi-pressure thermal loop structural barrier requirements. These global developments strongly suggest that capital investment is moving toward highly scalable, technology-enabled thermal manufacturing models rather than conventional, non-automated heat exchanger fabrication capacity alone. The main structural areas attracting funding include automated orbital welding, prefabricated modular system integration, smart software-driven controls, advanced metallurgy R&D, and inline pressure-testing mechanisms. Manufacturers equipped with modern automated production facilities, specialized structural hardware, automated digital workflows, and the ability to supply both high-temperature gas and low-grade liquid systems seamlessly are demonstrably better positioned to attract strategic corporate investment and expand their active customer base. This dynamic financing environment is directly supported by the growing market adoption of zero-emission "captive power" setups, strict environmental regulatory frameworks, rising industrial utility tariffs, and localized production networks that collectively emphasize longer plant lifecycle, lower primary fuel costs, and total elimination of thermal grid dependencies.

Revenue Shift

The revenue profile of the selected waste heat recovery system providers indicates market development through both specialist thermodynamic machinery manufacturers and diversified industrial technology, automation, and infrastructure groups. Specialized market participants are focused on high-efficiency recovery systems, structural heat exchangers, waste heat boilers, and advanced turbine configuration portfolios. Their portfolios include multi-pressure heat recovery steam generators (HRSGs), organic Rankine cycle (ORC) skids, economizer tube bundles, and project-specific engineering support. Diversified participants are extending their existing core capabilities into automated thermal processing and integrated fluid-handling loops. These conglomerates combine basic raw alloy fabrications, smart sensor architectures, variable speed drives, and complete downstream electrical generation lines. Other massively diversified industrial groups incorporate advanced automation suites into broader power grid distribution, industrial propulsion infrastructure, and global supply-chain portfolios. Specialty engineering firms represent the technology-led segment, seamlessly combining specialized thermal components, design simulation software, digital process automation, rotating machinery production, and commercial industrial facility design. Consequently, revenue generation is shifting beyond basic non-structural piping, generic single-stage boilers, and low-efficiency commodity economizers toward digital thermal design, custom thermodynamic engineering, working fluid innovations, automated control architectures, and total turnkey waste-to-power plant preservation solutions. Companies with highly integrated factory assembly facilities, strong manufacturer or processing plant OEM relationships, and multi-segment operational capabilities are successfully capturing a much greater share of total project value. This structural trend reflects the rising demand for self-generation networks, captive power utility protection, and highly efficient transportable skids. However, combined revenue comparisons should be avoided because these companies operate under completely different business models and generate significant streams of revenue from commercial activities completely beyond waste heat recovery systems.

Mergers and Acquisitions

Acquisition activity among the selected waste heat recovery system providers remained limited and selective between January 2026 and September 2026. The assessment uses official company disclosures and distinguishes direct waste heat recovery system deals from broader corporate transactions. It excludes pending agreements, joint ventures, and divestments from the completed-deal count presented in the table.

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