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Heat Recovery Steam Generator Market Size And Revenue Outlook Through 2030
The heat recovery steam generator market size has demonstrated significant expansion in recent years. It is anticipated to increase from $1.79 billion in 2025 to $1.89 billion in 2026, exhibiting a compound annual growth rate (CAGR) of 5.5%. The expansion witnessed in prior periods is attributable to elements such as the increased deployment of gas-based power generation, the requirement for better plant efficiency, the rising demand for industrial steam, the substitution of conventional boilers, and investments in major power infrastructure projects.
The heat recovery steam generator market is projected to experience substantial expansion in the coming years, with its value anticipated to reach $2.34 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 5.5%. This market’s growth during the projected timeframe is driven by factors such as the decarbonization of the power sector, the increased presence of combined heat and power plants, investments directed towards flexible power generation, the need for highly efficient thermal systems, and the rise in industrial energy recovery initiatives. Key trends expected during the forecast period encompass the enlargement of combined cycle power plants, a heightened emphasis on utilizing waste heat, the requirement for high-efficiency steam generation setups, the integration of modular HRSG designs, and an increase in industrial co-generation ventures.
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Heat Recovery Steam Generator Market Industry Drivers: What’s Behind The Revenue Growth?
The growth of the industrial sector is anticipated to propel the heat recovery steam generator market moving forward. This sector refers to the segment 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 that enhance efficiency and production. A heat recovery steam generator (HRSG) in the industrial sector serves to capture and convert waste heat from industrial processes into steam, thereby 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 market.
Heat Recovery Steam Generator Market Segmentation: How Does The Market Break Down By Category?
The 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
#Heat Recovery Steam Generator Market Growth Trends: What’s Shaping The Future Outlook?
Leading firms within the heat-recovery steam generator sector are creating cutting-edge products, specifically hydrogen-compatible heat recovery steam generator (HRSG) systems, to aid the shift towards carbon-neutral electricity production. A hydrogen-ready HRSG represents a standard heat-recovery steam generator that has been adapted to function with hydrogen (rather than fossil fuels). This involves modifications in its design, safety features, and combustion processes, enabling it to capture turbine exhaust heat and convert it into steam while accommodating the distinct combustion properties of hydrogen. As an example, in January 2025, John Cockerill, a power-equipment manufacturer based in Belgium, revealed it received a “Concept Certificate” from TÜV-SÜD confirming the H2-readiness of its HRSGs (encompassing both drum-type and once-through boiler designs). This certification verifies that its heat-recovery boilers can operate with as much as 100% hydrogen. This redesigned HRSG incorporates controls for ventilation, purging, and protection against fire and explosion, alongside thorough safety analyses, all designed to ensure secure operation when combusting hydrogen. Such hydrogen-ready HRSGs are suitable for deployment in combined-cycle or cogeneration facilities, providing comparable power and/or steam output to conventional HRSGs, yet aligning with decarbonization goals and offering adaptability for future fuels.
Heat Recovery Steam Generator Market Competitive Overview And Top Companies
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
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Heat Recovery Steam Generator Market Top Region By Revenue And Market Share
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 the heat recovery steam generator market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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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.
