Heat Recovery Steam Generator Global Market Opportunities And Strategies To 2035

Heat Recovery Steam Generator Market Definition

A heat recovery steam generator (HRSG) is a heat exchanger system used in power plants, particularly combined-cycle power plants, to recover waste heat from gas turbine exhaust gases and convert it into steam. This steam is then used to drive a steam turbine or for process heating, significantly improving overall plant efficiency. The primary purpose of an HRSG is to maximize energy efficiency by capturing and reusing exhaust heat that would otherwise be wasted. The heat recovery steam generator market consists of sales by entities (organizations, sole traders and partnerships) of heat recovery steam generator that are widely used by power producers and industrial operators seeking to improve energy efficiency, reduce fuel costs and lower greenhouse gas emissions by making productive use of heat that would otherwise be lost to the environment. The key users of HRSGs include utilities operating combined cycle power plants, industrial facilities in chemicals and refineries, pulp and paper mills and other large energy‑intensive manufacturing operations; these end users integrate HRSGs as part of their broader energy infrastructure where both electricity and steam are needed simultaneously.

Heat Recovery Steam Generator Market Segmentation

The heat recovery steam generator market is segmented by design type, by configuration type, by output power type, by application and by end user.

By Design Type –
The heat recovery steam generator market is segmented by design type into:

• a) Modular Construction
• b) C-Section Construction
• c) Bundle Construction
• d) Fully Assembled

The modular construction market was the largest segment of the heat recovery steam generator market segmented by design type, accounting for 40.1% or $719.2 million of the total in 2025. Going forward, the modular construction segment is expected to be the fastest growing segment in the heat recovery steam generator market segmented by design type, at a CAGR of 6.2% during 2025-2030.

By Configuration Type –
The heat recovery steam generator market is segmented by configuration type into:

• a) Horizontal Drum Units
• b) Vertical Drum Units
• c) Horizontal-Once Through Units

The horizontal drum units was the largest segment of the heat recovery steam generator market segmented by configuration type, accounting for 55.4% or $993.2 million of the total in 2025. Going forward, the horizontal-once through units segment is expected to be the fastest growing segment in the heat recovery steam generator market segmented by configuration type, at a CAGR of 6.3% during 2025-2030.

By Output Power Type –
The heat recovery steam generator market is segmented by output power type into:

• a) 0 To 60 Megawatt (MW)
• b) 60 To 100 Megawatt (MW)
• c) 100 Megawatt (MW) And Above

The 100 megawatt (MW) and above market was the largest segment of the heat recovery steam generator market segmented by output power type, accounting for 52.5% or $941.4 million of the total in 2025. Going forward, the 60 To 100 megawatt (MW) segment is expected to be the fastest growing segment in the heat recovery steam generator market segmented by output power type, at a CAGR of 5.9% during 2025-2030.

By Application –
The heat recovery steam generator market is segmented by application into:

1. a) Co-Generation (Process Heating)
2. b) Combined Cycle
3. c) Combined Heat And Power (CHP)

The co-generation (process heating) market was the largest segment of the heat recovery steam generator market segmented by application type, accounting for 63.8% or $1,142.8 million of the total in 2025. Going forward, the combined heat and power (CHP) segment is expected to be the fastest growing segment in the heat recovery steam generator market segmented by application type, at a CAGR of 6.1% during 2025-2030.

By End User –
The heat recovery steam generator market is segmented by end user into:

• a) Utility
• b) Chemicals
• c) Refineries
• d) Pulp And Paper
• e) Other End Users

The utility market was the largest segment of the heat recovery steam generator market segmented by end user, accounting for 51.8% or $928.8 million of the total in 2025. Going forward, the chemicals segment is expected to be the fastest growing segment in the heat recovery steam generator market segmented by end user, at a CAGR of 6.6% during 2025-2030.

By Geography - The heat recovery steam generator market is segmented by geography into:

o Asia Pacific
• China
• India
• Japan
• Australia
• Indonesia
• South Korea
o South East Asia
• Indonesia
o North America
• USA
• Canada
o South America
• Brazil
o Western Europe
• France
• Germany
• UK
• Italy
• Spain
o Eastern Europe
• Russia
o Middle East
o Africa

Asia Pacific was the largest region in the heat recovery steam generator market, accounting for 34.8% or $613.2 million of the total in 2025. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the heat recovery steam generator market will be Asia Pacific and South America where growth will be at CAGRs of 6.4% and 5.4% respectively. These will be followed by North America and Africa where the markets are expected to grow at CAGRs of 5.0% and 4.9% respectively.

Heat Recovery Steam Generator Market Competitive Landscape

Major Competitors are:

GE Vernova Inc.

Siemens Energy AG

Mitsubishi Heavy Industries Ltd.

Babcock & Wilcox Enterprises Inc.

Nooter/Eriksen Inc.

Other Competitors Include:

Thermax Limited

Doosan Heavy Industries & Construction

BHI Co. Ltd.

VOGT Power International Inc.

John Wood Group plc (Amec Foster Wheeler)

Hitachi, Ltd.

General Electric Company

Kawasaki Heavy Industries, Ltd.

Bharat Heavy Electricals Limited

Larsen & Toubro Limited

Isgec Heavy Engineering Ltd.

John Cockerill

Alstom

Aalborg Industries

Xizi Clean Energy Equipment Manufacturing Co., Ltd.

Qingdao Kaineng Environmental Protection Technology Co., Ltd.

Zhangjiagang Hua Dong Boiler Co., Ltd.

Harbin Electric Corporation

SNT Energy

DaeKyung Machinery & Engineering Co., Ltd.

Taiwan Heat Transfer Co., Ltd.

Worfin Engineering Co., Ltd.

NEM Energy Group

CN Co., Ltd.

Babcock & Wilcox

Technip Energies

John Cockerill Hamon

Bosch Industriekessel GmbH

Clyde Bergemann

STF Boilers

Polish Energy Group

RENTECH Boiler Systems

Kineticor Resource Inc

Lointek SL

Indeck Power Equipment Company

Thermal Tech Inc.

Cain Industries

Cerrey

Celepsa

Termochilca SA

CMI Group

Heat Recovery Steam Generator Market Drivers

The key drivers of the heat recovery steam generator market include: Increasing Carbon Emission Reduction Target During the forecast period, the increasing carbon emission reduction target will propel the growth of the heat recovery steam generator market. HRSGs enable the recovery of waste heat from gas turbines, significantly improving overall plant efficiency and reducing fuel consumption per unit of electricity generated. This efficiency enhancement directly supports decarbonization goals by lowering carbon dioxide emissions without compromising power output. As regulatory pressure intensifies to phase down coal-based generation and improve the environmental performance of thermal power assets, HRSG-equipped combined cycle plants are increasingly favored as a cleaner transitional solution, reinforcing sustained demand for advanced and high-performance HRSG technologies. The increasing carbon emission reduction target growth contribution during the forecast period in 2025 is 2.0 %.

Heat Recovery Steam Generator Market Restraints

The key restraints on the heat recovery steam generator market include: Long Project Development And Commissioning Timeline Long project development and commissioning timeline is restricting the growth of the heat recovery steam generator market during the forecast period. HRSG projects involve detailed engineering, customized design, manufacturing of large pressure components, complex logistics and careful on-site assembly, all of which contribute to extended execution schedules. These prolonged timelines increase project risk exposure, raise financing costs and reduce flexibility for power producers responding to rapidly changing energy market conditions. In markets where faster deployment is critical to meet demand or policy targets, lengthy HRSG project cycles can discourage investment and slow the pace of new installations. Growth affected by the long project development and commissioning timeline during the forecast period in 2025 is -2.0%.

Heat Recovery Steam Generator Market Trends

Major trends shaping the heat recovery steam generator market include: Integration Of Digital Monitoring And Performance Optimization Technologies Into The Market Systems Key players operating in the heat recovery steam generator market are focusing on integrating digital monitoring, advanced control and performance optimization technologies into HRSG-equipped combined cycle assets. These solutions typically use real-time data trending, analytics and artificial intelligence (AI) to optimize heat recovery performance, reduce unplanned outages and help operators maintain efficiency under flexible cycling and varying load conditions. For instance, in October 2025, Mitsubishi Power, a Japan-based power solutions brand of Mitsubishi Heavy Industries, Ltd. (MHI), a subsidiary that specializes in gas turbines, steam turbines, HRSGs, implemented its TOMONI remote monitoring solution at Thailand’s Sriracha and Pluak Daeng gas turbine combined cycle (GTCC) plants under a 25-year long-term service agreement (LTSA), where each power train includes an HRSG, highlighting how OEM service partnerships are increasingly bundling digital monitoring and optimization capabilities to enhance HRSG-based combined cycle performance. Development Of High-Efficiency And Low-Emission Designs For Decarbonization-Focused Power Generation Major companies in the heat recovery steam generator market are increasingly entering technology collaboration agreements that advance high-efficiency, low-emission HRSG design and manufacturing capabilities. These collaborations aim to enhance thermal performance, integrate cleaner combustion compatibility and improve steam generation efficiency while reducing greenhouse gas (GHG) emissions per unit of output, aligning with global sustainability and energy transition goals. For instance, in March 2025, Bharat Heavy Electricals Limited (BHEL), an India-based company designs, engineers, manufactures and services power generation equipment including turbines, boilers and HRSGs, extended its technology collaboration agreement with Vogt Power International Inc. (VPI), USA to jointly advance HRSG technologies that strengthen BHEL’s capability to offer high-efficiency solutions in both domestic and international markets, reflecting the industry’s push toward cleaner, performance-optimized HRSG systems. Vogt Power International Inc. (VPI) is a US-based company provides advanced HRSG solutions and aftermarket services.

Opportunities And Recommendations In The Heat Recovery Steam Generator Market

Opportunities – The top opportunities in the heat recovery steam generator market segmented by design type will arise in the modular construction segment, which will gain $250.4 million of global annual sales by 2030. The top opportunities in the heat recovery steam generator market segmented by configuration type will arise in the horizontal drum units segment, which will gain $281.5 million of global annual sales by 2030. The top opportunities in the heat recovery steam generator market segmented by output power type will arise in the 100 megawatt (MW) and above segment, which will gain $249.3 million of global annual sales by 2030. The top opportunities in the heat recovery steam generator market segmented by application type will arise in the co-generation (process heating) segment, which will gain $342.6 million of global annual sales by 2030. The top opportunities in the heat recovery steam generator market segmented by end user will arise in the utility segment, which will gain $250.2 million of global annual sales by 2030. The heat recovery steam generator market size will gain the most in the USA at $124.3 million. Recommendations- To take advantage of the opportunities, The Business Research Company recommends the heat recovery steam generator companies to focus on integrating digital monitoring and optimization solutions, focus on high-efficiency, low-emission HRSG Designs, focus on C-section HRSG designs for space-constrained projects, focus on expanding local HRSG manufacturing and supply capabilities, focus on expanding modular HRSG solutions for faster deployment, focus on expanding modular HRSG construction for faster deployment, focus on horizontal-once through HRSG units for flexible power generation, expand in emerging markets, continue to focus on developed markets, focus on expanding regional and local distribution channels, focus on value-based and flexible pricing strategies, focus on digital and technical thought leadership, focus on collaborative and incentive-based promotions, focus on 0 to 60-megawatt HRSG units for distributed and industrial power and focus on combined heat and power (CHP) HRSG applications.