Delivering more actionable and strategically valuable research, The Business Research Company’s 2026 market reports feature market attractiveness analysis, total addressable market evaluation, company benchmarking matrices, interactive Excel dashboards, expanded supply chain intelligence, emerging startup coverage, and detailed product insights.
Exhaust Heat Recovery System Market Revenue Growth Supported By A CAGR Of 30.04% Through 2030
The exhaust heat recovery system market size has shown substantial growth in recent years. It is anticipated to expand from $20.79 billion in 2025 to $22.33 billion in 2026, achieving a compound annual growth rate (CAGR) of 7.4%. This historical growth can be attributed to factors like heightened fuel efficiency requirements, an increase in the production of heavy-duty vehicles, the expansion of industrial power generation, a growing emphasis on technologies for emission reduction, and the accessibility of advanced heat exchangers.
The exhaust heat recovery system market is projected to experience substantial expansion over the upcoming years. This market is anticipated to reach $30.04 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 7.7%. Factors contributing to this growth during the forecast period include the increasing electrification of powertrains, a rise in the adoption of hybrid systems, the broadening of industrial energy recovery solutions, heightened regulatory pressure concerning emissions, and greater investments in energy efficiency technologies. Key trends for the same period encompass the integration of waste heat recovery technologies, an increase in the utilization of thermoelectric generators, the extension of exhaust heat recovery applications in commercial vehicles, expanding adoption within industrial engines, and improved system efficiency designs.
Download A Free Sample Report For Comprehensive Market Insights:
Exhaust Heat Recovery System Market Demand Drivers: What Is Fueling Industry Growth?
Future expansion of the exhaust heat recovery system market is anticipated to be driven by more stringent emission regulations. These regulations represent official standards and directives from governmental and supervisory bodies, designed to manage and restrict the discharge of damaging pollutants and greenhouse gases from various origins like industrial operations and transport, ultimately safeguarding public health and the environment. The main impetus behind stricter emission rules stems from a growing focus on environmental sustainability, where a greater understanding of pollution’s lasting environmental and social consequences motivates regulators to implement policies promoting cleaner technologies. Exhaust heat recovery systems assist in complying with these rigorous demands by capturing and repurposing waste heat from exhaust, leading to enhanced energy efficiency, decreased fuel usage, and a reduction in detrimental emissions. As an illustration, in March 2024, the U.S. Environmental Protection Agency (EPA), a federal agency in the US, completed new national pollution standards for passenger cars, light-duty trucks, and medium-duty vehicles, applicable from model years 2027 through 2032 and extending further. These particular standards are projected to avert over 7 billion tons of carbon emissions and yield almost $100 billion in yearly net societal advantages. This includes $13 billion attributed to better public health from cleaner air, and $62 billion from savings on fuel, maintenance, and repair costs for motorists. Consequently, more stringent emission regulations are acting as a catalyst for the expansion of the exhaust heat recovery system market.
Exhaust Heat Recovery System Market Segment Analysis: What Are The Major Market Categories?
The exhaust heat recovery system market covered in this report is segmented –
1) By Type: Heat Recovery Steam Generators, Heat Exchangers, Steam Turbines, Condensing Units
2) By Component: Turbine, Thermoelectric Generator (TEG) Module, Evaporator, Condenser, Other Components
3) By Vehicle Type: Passenger Car, Light Commercial Vehicle (LCV), Heavy Commercial Vehicle (HCV)
4) By Application: Industrial, Power Generation, Automotive
5) By End-User: Manufacturing, Oil And Gas, Food And Beverage, Utility, Transportation
Subsegments:
1) By Heat Recovery Steam Generators: Waste Heat Boilers, Once-Through Steam Generators, Firetube Steam Generators, Watertube Steam Generators
2) By Heat Exchangers: Shell And Tube Heat Exchangers, Plate Heat Exchangers, Air Cooled Heat Exchangers, Finned Tube Heat Exchangers
3) By Steam Turbines: Back Pressure Steam Turbines, Condensing Steam Turbines, Extraction Steam Turbines, Reheat Steam Turbines
4) By Condensing Units: Air Cooled Condensers, Water Cooled Condensers, Evaporative Condensers, Hybrid Condensers
Exhaust Heat Recovery System Market Innovation Trends: Which Developments Are Transforming The Industry?
Leading firms within the exhaust heat recovery system market are concentrating on utilizing government programs like the Electric Program Investment Charge (EPIC) to boost sustainable energy integration and infrastructure growth. The Electric Program Investment Charge (EPIC) represents a government-backed initiative designed to fund the research, development, and demonstration of advanced clean energy technologies, aiming to speed up sustainable energy solutions and foster low-carbon progress. For example, in January 2025, the California Energy Commission (CEC), a state government agency in the US, implemented a low-temperature waste heat recovery system at Searles Valley Minerals in Trona, California. This system was designed to capture vented low-pressure steam for drying V-BOR, thereby decreasing natural gas consumption. Additionally, the project contributed to water conservation by recycling cold condensate via a storage tank, thereby addressing vital water-resource requirements. This particular system successfully reduced natural gas usage by 15%.
Exhaust Heat Recovery System Market Leading Companies Driving Competitive Growth
Major companies operating in the exhaust heat recovery system market are MAHLE GmbH, Denso Corporation, Forvia Faurecia SE, Continental AG, Robert Bosch GmbH, Mitsubishi Heavy Industries,Ltd., Valeo SE, Tenneco Inc., Eberspächer Gruppe GmbH & Co. KG, Schaeffler AG, Marelli Holdings Co.,Ltd., Siemens AG, Bosal International N.V., Dana Incorporated, GE Vernova, IHI Corporation, Schneider Electric SE, Viessmann Group, Babcock & Wilcox, Senior Flexonics, EnviroKinetics,Inc., Exergy International SRL, GEA Group, Anguil Environmental Systems, Ormat Technologies,Inc
Access The Complete Exhaust Heat Recovery System Market Report:
Exhaust Heat Recovery System Market Leading Geography: Which Region Generates The Most Revenue?
North America was the largest region in the exhaust heat recovery system market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the exhaust heat recovery system market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
Get in touch with us:
The Business Research Company: https://www.thebusinessresearchcompany.com/
Americas: +1 310-496-7795
Asia: +44 7882 955267 & +91 8897263534
Europe: +44 7882 955267
Email us at: marketing@tbrc.info
Follow us on:
LinkedIn: https://in.linkedin.com/company/the-business-research-company
YouTube: https://www.youtube.com/channel/UC24_fI0rV8cR5DxlCpgmyFQ
Global Market Model: https://www.thebusinessresearchcompany.com/global-market-model
Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
