Global Heat Recovery Steam Generator Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

The segment analysis based on design type focuses on two primary categories: horizontal drum and vertical drum systems. Horizontal drum systems are generally known for their compact design and efficient heat transfer capabilities, making them suitable for applications where space constraints are a concern. Vertical drum systems, on the other hand, are favored in scenarios where greater pressure is required, offering increased strength and durability for high-pressure operations. Each design serves specific operational needs depending on factors like the desired space utilization, pressure requirements, and efficiency targets.

From an application standpoint, cogeneration and combined cycle are two major segments. Cogeneration refers to the simultaneous production of electricity and useful heat, which is a highly efficient way to generate energy, particularly in industrial and large-scale power systems. This is ideal for applications where both power and thermal energy are needed, such as in oil refineries and chemical plants. Combined cycle systems, which involve using both gas and steam turbines to produce electricity, maximize energy efficiency by utilizing the waste heat from the gas turbine to power the steam turbine. This application is particularly beneficial in power plants aiming for high output and reduced environmental impact.

The end users, power plants, oil and gas facilities, chemical and fertilizer plants, and others represent key industries that rely on these technologies. Power plants are the largest consumers, given their need for high-efficiency systems to meet growing energy demands. Oil and gas facilities also make use of these systems to manage heat recovery and increase overall efficiency in production. Chemical and fertilizer plants rely on such systems to maintain optimal energy use, which is crucial for their energy-intensive operations. Other industries may also adopt these technologies based on specific operational requirements, emphasizing the versatility and adaptability of cogeneration and combined cycle systems across various sectors.

In North America, the HRSG market is driven by a combination of factors, including the presence of mature industries such as oil and gas, power generation, and manufacturing. Stringent environmental regulations, coupled with the emphasis on energy efficiency and emission reduction, stimulate demand for HRSG systems across various applications. Additionally, the growing adoption of combined cycle power plants and renewable energy integration initiatives further propels market growth in the region.In Europe, the HRSG market benefits from the region's commitment to sustainability, renewable energy, and energy transition. Countries like Germany, the United Kingdom, and Spain lead the way in renewable energy deployment and grid modernization efforts, creating opportunities for HRSG installations in conjunction with biomass, solar, and waste-to-energy projects. Moreover, the emphasis on district heating and cogeneration systems drives demand for HRSG solutions to optimize energy recovery and utilization.

Global Heat Recovery Steam Generator Segment Analysis

In this report, the Global Heat Recovery Steam Generator Market has been segmented by Design, Application, End User, and Geography.

Global Heat Recovery Steam Generator Market, Segmentation by Design

The Global Heat Recovery Steam Generator Market has been segmented by Design into Horizontal Drum and Vertical Drum.

The Global Heat Recovery Steam Generator (HRSG) Market has experienced significant growth, driven by the increasing demand for energy-efficient solutions across various industries. The market is segmented based on the design of the HRSG into Horizontal Drum and Vertical Drum configurations, each offering distinct advantages and catering to specific needs within the energy and power generation sectors.

The Horizontal Drum design is widely used in HRSGs due to its compact size and ease of installation. This configuration allows for better heat recovery efficiency, especially in systems where space constraints are less critical. The Horizontal Drum HRSG typically features a larger surface area for heat exchange, which enhances the efficiency of the steam generation process. This design is particularly popular in combined-cycle power plants, where the primary focus is on maximizing heat recovery and reducing operational costs. Its robustness and reliability make it a preferred choice for power plants with larger operational scales.

The Vertical Drum design is gaining traction in areas where space efficiency and vertical installation are crucial. This configuration is particularly suited for smaller-scale power plants and industries that require compact designs. The Vertical Drum HRSG offers better adaptability to tighter spaces and has a higher thermal efficiency in certain configurations, making it ideal for distributed energy generation. It is also beneficial in locations where the height of the plant is an advantage for steam generation and heat recovery. The compact design and efficient heat transfer mechanisms are key factors driving the adoption of Vertical Drum HRSGs in modern power and industrial plants.The both designs offer specific benefits depending on the operational needs and spatial constraints of the plants. The Horizontal Drum design remains the dominant choice in large-scale applications, while the Vertical Drum is becoming increasingly popular in smaller and more flexible installations. As industries continue to focus on reducing energy consumption and improving sustainability, both design types are expected to see continued demand in the HRSG market.

Global Heat Recovery Steam Generator Market, Segmentation by Application

The Global Heat Recovery Steam Generator Market has been segmented by Application into Cogeneration and Combined Cycle.

The Global Heat Recovery Steam Generator (HRSG) Market has seen significant growth due to its application in cogeneration and combined cycle power plants. The cogeneration segment is focused on the simultaneous production of electricity and useful heat, typically in industrial settings. By utilizing the waste heat from processes or combustion, HRSGs improve the overall efficiency of the system. This results in reduced fuel consumption and lowered emissions, making cogeneration an attractive option for industries seeking energy savings and sustainability. The increased demand for energy-efficient solutions in sectors like manufacturing, chemical processing, and district heating has driven growth in this application.

On the other hand, the combined cycle segment has benefited from the integration of HRSGs in power plants that combine gas and steam turbines for improved energy efficiency. In a combined cycle plant, the gas turbine produces electricity while the exhaust heat is recovered by the HRSG to generate steam, which drives a steam turbine. This combination leads to higher overall efficiency compared to traditional single-cycle power generation. The growing focus on reducing the environmental impact of power generation and maximizing efficiency in the energy sector has made combined cycle plants a popular choice worldwide. The HRSG plays a crucial role in ensuring that these plants operate at their optimal efficiency, further contributing to the increasing adoption of combined cycle technology in the market.

Global Heat Recovery Steam Generator Market, Segmentation by End User

The Global Heat Recovery Steam Generator Market has been segmented by End User Industry into Power Plants, Oil and Gas Facilities, Chemical and Fertilizer Plants, and Others.

Power Plants represent a significant segment for HRSGs, leveraging waste heat recovery from gas turbines or internal combustion engines to generate steam for electricity generation. The adoption of combined cycle power plants, which integrate HRSGs with gas turbines and steam turbines, drives demand for HRSG systems globally, enhancing energy efficiency and reducing emissions.

Oil and Gas Facilities constitute another key end-user segment for HRSGs, where these systems recover waste heat from exhaust gases or process streams in refineries, petrochemical plants, and upstream oil and gas production facilities. HRSGs play a vital role in enhancing energy efficiency, reducing fuel consumption, and lowering greenhouse gas emissions in the oil and gas industry, aligning with sustainability objectives and regulatory mandates.Chemical and Fertilizer Plants utilize HRSGs to recover waste heat from various industrial processes such as chemical reactions, combustion, and distillation. By capturing and utilizing waste heat, HRSG systems enable these facilities to optimize energy usage, improve process efficiency, and reduce operating costs. The integration of HRSGs with chemical and fertilizer plants enhances operational resilience and competitiveness in the global market.

Global Heat Recovery Steam Generator Market, Segmentation by Geography

In this report, the Global Heat Recovery Steam Generator Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

Global Heat Recovery Steam Generator Market Share (%), by Geographical Region, 2024

In North America, the HRSG market is driven by a combination of factors, including the presence of mature industries such as oil and gas, power generation, and manufacturing. Stringent environmental regulations, coupled with the emphasis on energy efficiency and emission reduction, stimulate demand for HRSG systems across various applications. Additionally, the growing adoption of combined cycle power plants and renewable energy integration initiatives further propels market growth in the region.

In Europe, the HRSG market benefits from the region's commitment to sustainability, renewable energy, and energy transition. Countries like Germany, the United Kingdom, and Spain lead the way in renewable energy deployment and grid modernization efforts, creating opportunities for HRSG installations in conjunction with biomass, solar, and waste-to-energy projects. Moreover, the emphasis on district heating and cogeneration systems drives demand for HRSG solutions to optimize energy recovery and utilization.The Asia Pacific region presents significant growth opportunities for the HRSG market, driven by rapid industrialization, urbanization, and infrastructure development. Countries like China, India, and Japan are investing in large-scale power generation projects, including combined cycle and cogeneration plants, to meet growing energy demand while reducing emissions. The proliferation of natural gas-based power generation and the expansion of industrial sectors further fuel demand for HRSG systems in the region.In the Middle East and Africa, the HRSG market is driven by the region's abundant oil and gas reserves, coupled with the growing emphasis on diversifying energy sources and enhancing energy efficiency. Investments in gas-fired power plants, desalination projects, and industrial facilities create opportunities for HRSG installations to recover waste heat and generate steam for power generation and process applications. Additionally, the adoption of renewable energy technologies such as concentrated solar power (CSP) presents opportunities for HRSG integration in solar thermal projects.Latin America exhibits a mix of opportunities and challenges for the HRSG market, influenced by factors such as economic volatility, political instability, and varying regulatory environments. Despite these challenges, countries like Brazil, Mexico, and Chile are investing in energy infrastructure upgrades, including combined cycle power plants and industrial cogeneration projects, driving demand for HRSG systems. Moreover, the region's abundant renewable energy resources, including solar and biomass, offer prospects for HRSG integration in renewable energy projects to enhance overall energy efficiency and sustainability.