Waste heat to power: Global market outlook

By BCC Publishing Staff

The global market for waste heat recovery systems was estimated to be $57.7 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 8.0% to reach $89.0 billion by 2027.

It is estimated that as much as 20–50% of industrial energy consumption is ultimately discharged as waste heat. Waste heat recovery systems can capture and reuse this waste heat to power numerous processes, including preheating combustion air, electricity generation, preheating furnace loads, absorption cooling, and space heating.

The increasing need for energy security is a main driver of the waste heat recovery market. Concerns about energy affordability, greenhouse gas emissions, as well as the predicted rise in global energy demand by 2030 have increased interest in energy efficiency. According to the U.S. Department of Energy, 280,000 MW of waste heat that is released annually in the U.S. could be recycled to meet 20% of the country’s electricity demands, reduce greenhouse gas emissions by 20%, and save $70–$150 billion in annual energy expenses.

There are several restraints on the market, though, as described below.

Technical barriers. The heat recovery process itself is the main challenge for waste heat recovery systems. Each heat recovery scenario poses a different set of difficulties, even though power-producing equipment is commercially established and generally standardized. Examples of technological difficulties include

• Waste heat sources at a plant are dispersed, challenging to gather, or come from batch or noncontinuous processes.
• Low volume and seasonal operations minimize waste heat recovery systems’ economic advantages.
• Chemical and/or mechanical impurities found in waste heat sources frequently affect the complexity, expense, and effectiveness of the heat recovery process.
• It is challenging or impossible to economically site waste heat recovery systems due to equipment designs and space constraints.

Business barriers. Companies can be hesitant to undertake projects with a reputation for risk, including energy recovery projects that fall outside of their core competencies. For capital-intensive waste heat recovery projects, these worries frequently result in project hurdle rates that are excessively high. Because the expenditures of due diligence, permitting, and siting frequently diminish the returns, small projects (defined as those costing less than $5 million) can be extremely challenging to build.

The waste heat recovery systems market is consolidated, with major players contributing over one-third of the total industry share. Most companies have adopted either a strategy of product differentiation via unique processing technologies or a strategy of focus that is established on a product-type basis. Examples of these strategies can be seen in Table 1, which lists several recent patents related to waste heat recovery systems.

About the author
BCC Publishing Staff provides comprehensive analyses of global market sizing, forecasting, and industry intelligence, covering markets where advances in science and technology are improving the quality, standard, and sustainability of businesses, economies, and lives. Contact the Staff at Helia.Jalili@bccresearch.com.