Heat Recovery Steam Generator Market Report 2026
Heat Recovery Steam Generator Market Report 2026
Global Outlook – By Design Type (Modular Construction, C-Section Construction, Bundle Construction, Fully Assembled), By Configuration Type (Horizontal Drum Units, Vertical Drum Units, Horizontal-Once Through Units), By Output Power Type (0 To 60 Megawatt (MW), 60 To 100 Megawatt (MW), 100 Megawatt (MW) And Above), By Application Type (Co-Generation (Process Heating), Combined Cycle, Combined Heat And Power (CHP)), By End User (Utility, Chemicals, Refineries, Pulp And Paper, Other End Users) – Market Size, Trends, Strategies, and Forecast to 2035
Heat Recovery Steam Generator Market Overview
• Heat Recovery Steam Generator market size has reached to $1.79 billion in 2025 • Expected to grow to $2.34 billion in 2030 at a compound annual growth rate (CAGR) of 5.5% • Growth Driver: Industrial Sector Expansion To Fuel Growth In Heat Recovery Steam Generator Market • Market Trend: Enhancing Power Generation Sustainability With Future-Fuel Flexibility • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.
What Is Covered Under Heat Recovery Steam Generator Market?
A heat recovery steam generator (HRSG) is an energy recovery device that captures waste heat from exhaust gases, typically from gas turbines or other industrial processes, and converts it into steam. This steam can then be used to drive a steam turbine for power generation or utilized in industrial heating processes. HRSGs are integral to combined cycle power plants, enhancing overall efficiency by utilizing otherwise wasted heat. The main design types of heat recovery steam generators are modular construction, c-section construction, bundle construction, and fully assembled. Modular construction refers to heat recovery steam generators (HRSGs) built in separate, prefabricated modules that are assembled on-site. The configuration is horizontal drum units, vertical drum units, and horizontal-once through units, and the output power is 0 to 60 megawatts (MW), 60 to 100 megawatts (MW), 100 megawatts (MW) and above. The application includes co-generation (process heating), combined cycle, and combined heat and power (CHP), and it is used by various end users such as utilities, chemicals, refineries, pulp and paper, and others.
What Is The Heat Recovery Steam Generator Market Size and Share 2026?
The heat recovery steam generator market size has grown strongly in recent years. It will grow from $1.79 billion in 2025 to $1.89 billion in 2026 at a compound annual growth rate (CAGR) of 5.5%. The growth in the historic period can be attributed to expansion of gas-based power generation, need for improved plant efficiency, growth of industrial steam demand, replacement of conventional boilers, investment in large-scale power infrastructure.What Is The Heat Recovery Steam Generator Market Growth Forecast?
The heat recovery steam generator market size is expected to see strong growth in the next few years. It will grow to $2.34 billion in 2030 at a compound annual growth rate (CAGR) of 5.5%. The growth in the forecast period can be attributed to decarbonization of power sector, expansion of combined heat and power plants, investments in flexible power generation, demand for high-efficiency thermal systems, growth in industrial energy recovery. Major trends in the forecast period include expansion of combined cycle power plants, increasing focus on waste heat utilization, demand for high-efficiency steam generation systems, adoption of modular hrsg designs, growth in industrial co-generation projects.Tariff Impact On Heat Recovery Steam Generator Market
Tariffs are impacting the heat recovery steam generator market by increasing the cost of imported alloy steels, pressure components, heat exchanger tubes, and fabricated modules used in large-scale HRSG systems. Power utilities and industrial operators in North America and Europe are most affected due to reliance on imported high-grade materials and specialized fabrication, while Asia-Pacific exporters face pricing pressure in global projects. These tariffs are raising project capital costs and extending procurement timelines for combined cycle plants. However, they are also encouraging localization of fabrication facilities, regional sourcing of pressure components, and innovation in modular and cost-optimized HRSG designs.Global Heat Recovery Steam Generator Market Segmentation
1) By Design Type: Modular Construction, C-Section Construction, Bundle Construction, Fully Assembled 2) By Configuration Type: Horizontal Drum Units, Vertical Drum Units, Horizontal-Once Through Units 3) By Output Power Type: 0 To 60 Megawatt (MW), 60 To 100 Megawatt (MW), 100 Megawatt (MW) And Above 4) By Application Type: Co-Generation (Process Heating), Combined Cycle, Combined Heat And Power (CHP) 5) By End User: Utility, Chemicals, Refineries, Pulp And Paper, Other End Users Subsegments: 1) By Modular Construction: Pre-Fabricated Modules, Skid-Mounted Modules, Compact Modular Systems 2) By C-Section Construction: Horizontal C-Section HRSGs, Vertical C-Section HRSGs, Single-Pressure C-Section HRSGs 3) By Bundle Construction: Horizontal Bundle HRSGs, Vertical Bundle HRSGs, Double Pressure Bundle HRSGs 4) By Fully Assembled: Factory-Assembled HRSGs, Site-Assembled HRSGs, Custom-Built Fully Assembled UnitsWhat Is The Driver Of The Heat Recovery Steam Generator Market?
The expansion of the industrial sector is expected to propel the heat recovery steam generator market going forward. The industrial sector refers to the part of the economy involved in producing goods through manufacturing, construction, and related industries. The industrial sector is expanding due to increased demand for manufactured goods and technological advancements driving efficiency and production. A heat recovery steam generator (HRSG) in the industrial sector is used to capture and convert waste heat from industrial processes into steam, improving energy efficiency and reducing fuel consumption. For instance, in July 2023, according to Eurostat, a Luxembourg-based government statistical agency, in May 2023, seasonally adjusted industrial production in the European area rose by 0.2%, while in the European Union, it increased by 0.1% compared to April 2023. Therefore, the expansion of the industrial sector is driving the heat recovery steam generator industry.What Is The Driver Of The Heat Recovery Steam Generator Market?
The expansion of the industrial sector is expected to propel the heat recovery steam generator market going forward. The industrial sector refers to the part of the economy involved in producing goods through manufacturing, construction, and related industries. The industrial sector is expanding due to increased demand for manufactured goods and technological advancements driving efficiency and production. A heat recovery steam generator (HRSG) in the industrial sector is used to capture and convert waste heat from industrial processes into steam, improving energy efficiency and reducing fuel consumption. For instance, in July 2023, according to Eurostat, a Luxembourg-based government statistical agency, in May 2023, seasonally adjusted industrial production in the European area rose by 0.2%, while in the European Union, it increased by 0.1% compared to April 2023. Therefore, the expansion of the industrial sector is driving the heat recovery steam generator industry.Global Heat Recovery Steam Generator Market Trends and Insights
Major companies operating in the heat‑recovery steam generator market are developing innovative products, such as hydrogen‑ready heat recovery steam generator (HRSG) systems, to support the transition to zero‑carbon power generation. A hydrogen‑ready HRSG is a conventional heat‑recovery steam generator modified to operate using hydrogen (instead of fossil fuels), incorporating design, safety and combustion adaptations so it can recover turbine exhaust‑heat and convert it to steam while supporting hydrogen’s combustion characteristics. For instance, in January 2025, John Cockerill a Belgium‑based power‑equipment manufacturer announced that it had been awarded a “Concept Certificate” by TÜV‑SÜD for the H₂‑readiness of its HRSGs (including both drum‑type and once‑through boiler variants), certifying that its heat‑recovery boilers are ready to operate with up to 100% hydrogen. The modified HRSG design includes controls for ventilation, purging, fire/explosion protection and safety analyses ensuring safe operation under hydrogen combustion. This hydrogen‑ready HRSG can be used in combined‑cycle or cogeneration plants, offering power and/or steam output similar to traditional HRSGs, but aligned with decarbonization targets and future‑fuel flexibility.What Are Latest Mergers And Acquisitions In The Heat Recovery Steam Generator Market?
In March 2025, Bharat Heavy Electricals Limited (BHEL), an India‑based power equipment manufacturing company, partnered with Vogt Power International Inc. (VPI) for heat recovery steam generators (HRSGs). With this collaboration, BHEL aims to strengthen its technological capabilities in HRSG design and supply, maintaining competitiveness in combined‑cycle and cogeneration power projects. Vogt Power International Inc. is a US–based boiler and HRSG technology company which specializes in providing HRSG designs, engineering expertise, and components for efficient steam-generation systems used in power and industrial applications.Regional Outlook
North America was the largest region in the heat recovery steam generator market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.What Defines the Heat Recovery Steam Generator Market?
The heat recovery steam generator market consists of sales of natural circulation heat recovery steam generators, dual pressure heat recovery steam generators, triple pressure heat recovery steam generators, modular heat recovery steam generators, and forced circulation heat recovery steam generators. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.How is Market Value Defined and Measured?
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.What Key Data and Analysis Are Included in the Heat Recovery Steam Generator Market Report 2026?
The heat recovery steam generator market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the heat recovery steam generator industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.Heat Recovery Steam Generator Market Report Forecast Analysis
| Report Attribute | Details |
|---|---|
| Market Size Value In 2026 | $1.89 billion |
| Revenue Forecast In 2035 | $2.34 billion |
| Growth Rate | CAGR of 5.5% from 2026 to 2035 |
| Base Year For Estimation | 2025 |
| Actual Estimates/Historical Data | 2020-2025 |
| Forecast Period | 2026 - 2030 - 2035 |
| Market Representation | Revenue in USD Billion and CAGR from 2026 to 2035 |
| Segments Covered | Design Type, Configuration Type, Output Power Type, Application Type, End User |
| Regional Scope | Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa |
| Country Scope | The countries covered in the report are Australia, Brazil, China, France, Germany, India, ... |
| Key Companies Profiled | General Electric Company, Siemens Energy AG, Mitsubishi Heavy Industries Ltd., Hitachi Ltd., Alstom SA, Kawasaki Heavy Industries Ltd., Sumitomo Heavy Industries Ltd., Bharat Heavy Electricals Limited, John Wood Group PLC, Babcock & Wilcox Enterprises Inc., Nooter/Eriksen Inc., Thermax Limited, Hamon & Cie International, Rentech Boiler Systems Inc., Clyde Bergemann Power Group, Bosch Industriekessel GmbH, Doosan Heavy Industries & Construction, John Cockerill, Aalborg Industries, and CMI Energy |
| Customization Scope | Request for Customization |
| Pricing And Purchase Options | Explore Purchase Options |
Frequently Asked Questions
The Heat Recovery Steam Generator market was valued at $ billion in 2025, increased to $ billion in 2026, and is projected to reach $ billion by 2030.
request a sample hereThe expected CAGR for the Heat Recovery Steam Generator market during the forecast period 2025–2030 is 5.5%.
request a sample hereMajor growth driver of the market includes: Industrial Sector Expansion To Fuel Growth In Heat Recovery Steam Generator Market in the Heat Recovery Steam Generator market. For further insights on this market,
request a sample hereThe heat recovery steam generator market covered in this report is segmented –
1) By Design Type: Modular Construction, C-Section Construction, Bundle Construction, Fully Assembled
2) By Configuration Type: Horizontal Drum Units, Vertical Drum Units, Horizontal-Once Through Units
3) By Output Power Type: 0 To 60 Megawatt (MW), 60 To 100 Megawatt (MW), 100 Megawatt (MW) And Above
4) By Application Type: Co-Generation (Process Heating), Combined Cycle, Combined Heat And Power (CHP)
5) By End User: Utility, Chemicals, Refineries, Pulp And Paper, Other End Users Subsegments:
1) By Modular Construction: Pre-Fabricated Modules, Skid-Mounted Modules, Compact Modular Systems
2) By C-Section Construction: Horizontal C-Section HRSGs, Vertical C-Section HRSGs, Single-Pressure C-Section HRSGs
3) By Bundle Construction: Horizontal Bundle HRSGs, Vertical Bundle HRSGs, Double Pressure Bundle HRSGs
4) By Fully Assembled: Factory-Assembled HRSGs, Site-Assembled HRSGs, Custom-Built Fully Assembled Units
request a sample here1) By Design Type: Modular Construction, C-Section Construction, Bundle Construction, Fully Assembled
2) By Configuration Type: Horizontal Drum Units, Vertical Drum Units, Horizontal-Once Through Units
3) By Output Power Type: 0 To 60 Megawatt (MW), 60 To 100 Megawatt (MW), 100 Megawatt (MW) And Above
4) By Application Type: Co-Generation (Process Heating), Combined Cycle, Combined Heat And Power (CHP)
5) By End User: Utility, Chemicals, Refineries, Pulp And Paper, Other End Users Subsegments:
1) By Modular Construction: Pre-Fabricated Modules, Skid-Mounted Modules, Compact Modular Systems
2) By C-Section Construction: Horizontal C-Section HRSGs, Vertical C-Section HRSGs, Single-Pressure C-Section HRSGs
3) By Bundle Construction: Horizontal Bundle HRSGs, Vertical Bundle HRSGs, Double Pressure Bundle HRSGs
4) By Fully Assembled: Factory-Assembled HRSGs, Site-Assembled HRSGs, Custom-Built Fully Assembled Units
Major trend in this market includes: Enhancing Power Generation Sustainability With Future-Fuel Flexibility For further insights on this market,
request a sample hereMajor companies operating in the Heat Recovery Steam Generator market are Major companies operating in the heat recovery steam generator market are General Electric Company, Siemens Energy AG, Mitsubishi Heavy Industries Ltd., Hitachi Ltd., Alstom SA, Kawasaki Heavy Industries Ltd., Sumitomo Heavy Industries Ltd., Bharat Heavy Electricals Limited, John Wood Group PLC, Babcock & Wilcox Enterprises Inc., Nooter/Eriksen Inc., Thermax Limited, Hamon & Cie International, Rentech Boiler Systems Inc., Clyde Bergemann Power Group, Bosch Industriekessel GmbH, Doosan Heavy Industries & Construction, John Cockerill, Aalborg Industries, and CMI Energy
request a sample hereMajor trends in this market include Major companies operating in the heat‑recovery steam generator market are developing innovative products, such as hydrogen‑ready heat recovery steam generator (HRSG) systems, to support the transition to zero‑carbon power generation. A hydrogen‑ready HRSG is a conventional heat‑recovery steam generator modified to operate using hydrogen (instead of fossil fuels), incorporating design, safety and combustion adaptations so it can recover turbine exhaust‑heat and convert it to steam while supporting hydrogen’s combustion characteristics. For instance, in January 2025, John Cockerill a Belgium‑based power‑equipment manufacturer announced that it had been awarded a “Concept Certificate” by TÜV‑SÜD for the H₂‑readiness of its HRSGs (including both drum‑type and once‑through boiler variants), certifying that its heat‑recovery boilers are ready to operate with up to 100% hydrogen. The modified HRSG design includes controls for ventilation, purging, fire/explosion protection and safety analyses ensuring safe operation under hydrogen combustion. This hydrogen‑ready HRSG can be used in combined‑cycle or cogeneration plants, offering power and/or steam output similar to traditional HRSGs, but aligned with decarbonization targets and future‑fuel flexibility.. For further insights on this market,
request a sample here