Waste Heat Recovery Market

Waste Heat Recovery Market: Overview

The market size for waste heat recoverywas USD 59.2 billion in 2021, and it is projected to grow at a CAGR of 8.5 percent during the forecast period. Increasing concerns about Greenhouse Gas (GHG) emissions and strict regulations to reduce carbon footprint is projected to be the key driving factors for the growth of the global waste heat recovery system (WHRS) market.These systems are positively energy-efficient and can generate onsite electricity, as well as decrease overall operational costs. These factors are also likely to increase their demand over the forecast period. Energy-intensive industries, including heavy metal manufacturing, chemical, cement, glass, and petroleum refining, are some key application areas with substantial waste heat recovery potential.

Domestic demand for WHR systems in North America is experiencing robust growth due to the upgrade in the severity of global energy efficiency regulations. U.S. is the largest supporter of North America's market revenue owing to the advanced use of WHRS for optimization of exhaust gas in coal power plants and the provision of emission-free electricity.Such systems allow the reuse of chimney gases for pre-drying and co-generation in thermal power plants, which improves the system's thermal efficiency, thereby fueling the product demand. The presence of major industry participants, such as General Electric and Terrapin, in this region, will additionally boost the market growth.

The upcoming evolution of the industry will be boosted by investments in several enterprises such as refineries, heavy metals, paper & pulp, petrochemicals and chemicals. Major manufacturing industries are actively embracing WHRS to reduce their dependence on conventional energy and deliver in-house power to decrease working costs. Moreover, constant technological inventions such as WHR with organic Rankine cycle will further boost the market growth.

WHRS have been successfully utilized in the chemical industry for processes such as industrial gases, alkalis and chlorine, cyclic crudes, and intermediates, including ethylene, synthetic rubber,  propylene, plastics materials, benzene/toluene, synthetic organic fibers, and agricultural chemicals. Increased efficiency, working productivity, and utilization of technological and customized equipment have made WHRS an important element in chemical production processes. Therefore, growth in the chemical industry is one of the driving factors of the global WHRS market.

Waste Heat Recovery Market: COVID-19 Impact

The coronavirus outbreak in Wuhan City triggered a global pandemic, affecting different businesses. As a result, demand for the Waste Heat Recovery industry has declined. The adoption of different limitations and lockdowns to stop the spread of the virus has inhibited the growth of the Waste Heat Recovery market. Covid-19 has halted the presentation of several products, which has greatly affected the Waste Heat Recovery business. The pandemic has negatively influenced the sale of machines and equipment, as well as the Waste Heat Recovery sector. The pandemic has hit significant countries with large manufacturing divisions, including the United Kingdom, Germany, the United States, and China. Aside from that, the lockdown has damaged the companies' financial status, driving them to refrain from supporting machinery and equipment. The leading players are donating to the stability of the Waste Heat Recovery market trends, and the market is projected to return to normal after the COVID-19 situation.

Waste Heat Recovery Market: Drivers

Miscellaneous Strategies by Key Playersto Drive Market Growth

The key companies operating in the industry are favorably inclined towards adopting various growth strategies, including capacity expansion, partnerships, mergers and acquisitions, geographical expansion, new product launches, and product invention to remain competitive in the marketplace. This is expected to positively impact significant market growth. Hence owing to the development and manufacturing of creative solutions, the waste heat recovery market is augmenting its growth over the forecast period. For instance, in May 2022, Alfa Laval established E-PowerPack to convert waste heat into power, allowing energy savings and compliance. The Alfa Laval E PowerPack is a game-changing advance in maritime sustainability by converting waste heat directly into electrical power. An all-in-one unit for improving a vessel's Energy Efficiency Index (EEDI/EEXI) and Carbon Intensity Indicator (CII), it withdraws many tonnes of CO2 per year – and significantly lowers fuel costs. Furthermore, in May 2019, Clean Energy Technologies Inc. established two power generators in the Marshalls Energy Company that develop power from the heat source. The system installed traps the waste heat from various sources and transforms it into electricity.

Increase in Demand for Petroleum Refining Drives Market Growth

WHRSs are widely employed in petroleum refining processes such as distillation (fractionation), thermal cracking, catalytic, and treatment. The thermal effectiveness of these energy-intensive operations is essential to the petroleum refining industry, and hence, highly energy-efficient WHRS are utilized for such applications. Many exothermic reactions happen in the refineries that also deliver waste heat. Some modern refineries have highly integrated systems that rescue heat from one process to operate in other processes. However, numerous refineries and their operations still release high-temperature waste heat but lack efficient WHRS to retrieve it for different applications. The growing oil & gas industries in the Asia-Pacific region and growing oil production in the Middle East & Africa are driving the demand for WHRS in the petroleum refining industry globally.

Waste Heat Recovery Market: Restraints

Rising Energy & Electricity Prices in Emerging Economiesto Hamper Market Growth

The high cost of the waste heat recovery system and the complexity associated with the temperature is anticipated to inhibit the market growth in the mentioned forecast period.A large amount of heat is created from the exhaust manufacturing facilities, improving the carbon footprint and constructing serious environmental impacts. Waste heat recovery systems are a valuable alternative for enhancing the overall energy efficiency of industrial manufacturing processes, which also boosts their demand.

Waste Heat Recovery Market: Segment Overview

Preheating to Dominate Market due to its Utilization in Combustion Air, Furnace Loads, Boiler Feed Water

Preheating is anticipated to be the fastest-growing application segment in the global waste heat recovery forecast period. Waste heat recuperation systems are majorly used for preheating discharge air, furnace loads, boiler feed water, and space heating. The Cascade system of WHR supports the product demand. The system utilizes a high-temperature stage for air pre-heating and a low-temperature setting for processing feedwater heating, thereby underestimating operational costs and increasing the overall efficiency. According to the U.S. Department of Energy, combustion air preheating can improve furnace efficiency by as much as 50%. Moreover, preheating combustion exhaust gases can potentially destroy the market for additional space heating equipment, thereby diminishing capital and overhead costs. These trends present a potential growth landscape for the waste heat retrieval system market.

Manufacturing and Refining of Metal, Metal Production Category Dominated Market

Heavy metals manufacturing and refining involve many high-temperature processes from which waste heat can be recovered. Heavy metal foundries generally recover clean gaseous streams. However, healing waste heat from heavily contaminated exhaust gas sources such as coke ovens, blast furnaces, basic oxygen furnaces, and electric arc furnaces continues to offer a challenge for the economical functioning of WHRS. Other waste heat sources include melting furnace exhaust, core baking, ladle preheating, pouring, shot blasting, cooling castings, heat treating, and quenching. The heat retrieved from these sources is used in steam and electricity generation and is further utilized as a fuel in other processes. This allows the low revenue-generating metal industry to raise its energy efficiency and reduce operating costs. The demand for WHRS is growing in the metal production segment, as the industry is expanding heavily in all regions.

Waste Heat Recovery Market: Regional Landscape

Asia Pacific to Dominate Market due to Growing Government Regulations and Foreign Direct Investment

The Asia Pacificregion is expected to record significant growthdue to government regulations and foreign direct investment in the region. The waste heat recovery systems market is anticipated to grow at a higher rate for appearing economies such as India and China as compared to formed economical regions such as North America and Europe. Large-scale economic development, increasing population, presence of strict emission regulations and quick industrialization are the major growth drivers for the Asia Pacificwaste heat retrieval systems market. Apart from these, the requirement for efficient fuel systems and growing environment security awareness are other long-term growth drivers that are donating towards the growth of the waste heat recovery market in the Asia Pacificregion.

Europe is anticipated to be the second-largest regional market in the future. A growing understanding of WHR systems and initiatives undertaken by the European Union to deliver energy through waste have been key driving factors for the market growth in this region.Germany is the biggest contributor in the Europe WHRS market owing to strict emission standards to lower GHG emissions. Technical innovations, declining costs, and a supportive policy environment are some underlying elements that will fuel product demand over the coming years.

Global Waste Heat Recovery Market: Competitive Landscape

In June 2019, Ultratech Cement Limited announced its plan to develop around 25% of its required energy from renewable sources. To accomplish the target, the company has planned to expand the waste heat recovery system.Moreover, In December 2018, Raysut Cement, a cement manufacturer based in Oman, awarded a contract to Simona Overseas Development Co to install a waste heat recuperation system. Installation of the new system is anticipated to save up to 30% of the energy loss of the company.  

Few of the players in the Waste Heat Recovery Market include Siemens AG; Mitsubishi Heavy Industries, Ltd.; General Electric; ABB; Boustead International Heaters; Forbes Marshall; Promec Engineering; Terrapin; Wood Plc (Amec Foster Wheeler); Climeon; Bosch Industriekessel GmbH; AURA GmbH & Co.; ExergyS.p.A.; IHI Corporation

Regional Classification of the Global Waste Heat Recovery Market is Described Below:

North America

• U.S.
• Canada

Europe

• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East and Africa

*Regions and countries are subject to change based on data availability

Key Elements Included In The Study: Global Waste Heat Recovery Market

• Waste Heat Recovery Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value and Volume, 2018 - 2022
• Volume Consumption at Regional and Country Level, 2023 - 2030
• Market Dynamics and Economic Overview
• Market Size in Value and Volume, Growth Rates, and Forecast Figures, 2023 - 2030
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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