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Heat Recovery Steam Generator Market Size Outlook: How Fast Will Revenue Grow Through 2030?
The heat recovery steam generator market has demonstrated significant expansion in recent years. Its value is anticipated to rise from $1.79 billion in 2025 to $1.89 billion in 2026, advancing at a compound annual growth rate (CAGR) of 5.5%. The expansion observed in prior periods can be attributed to factors like the proliferation of gas-based power generation, the imperative for better plant efficiency, the rising demand for industrial steam, the adoption of replacements for conventional boilers, and investments in major power infrastructure projects.
The heat recovery steam generator market is projected to experience substantial growth over the coming years. This market is forecast to reach $2.34 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 5.5%. Key factors driving this expansion during the forecast period include the decarbonization of the power sector, the increase in combined heat and power plants, investments in adaptable power generation, the need for highly efficient thermal systems, and the rise in industrial energy recovery initiatives. Significant trends anticipated in this period encompass the broadening of combined cycle power plants, an intensified emphasis on utilizing waste heat, the requirement for high-efficiency steam generation setups, the implementation of modular HRSG designs, and an increase in industrial co-generation ventures.
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Heat Recovery Steam Generator Market Opportunity Drivers: What Is Creating New Revenue Potential?
The growth of the industrial sector is projected to propel the heat recovery steam generator market forward. This sector refers to the segment of the economy involved in producing goods through manufacturing, construction, and related industries. The industrial sector’s expansion stems from increased demand for manufactured goods and advancements in technology that boost efficiency and production. In this sector, a heat recovery steam generator (HRSG) is utilized to capture and convert waste heat from industrial processes into steam, which enhances energy efficiency and decreases 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 Segment Breakdown: Which Categories Generate The Most Revenue?
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 Innovation Trends: Which Developments Are Transforming The Industry?
Leading companies in the heat-recovery steam generator market are developing advanced products, such as hydrogen-ready heat recovery steam generator (HRSG) systems, to facilitate the shift towards zero-carbon power generation. A hydrogen-ready HRSG is a conventional heat-recovery steam generator that has been modified to run on hydrogen (instead of fossil fuels), featuring design, safety, and combustion modifications to allow it to recover turbine exhaust-heat and convert it to steam while accommodating hydrogen’s specific combustion characteristics. For example, in January 2025, John Cockerill, a Belgium-based power-equipment manufacturer, announced it had received a “Concept Certificate” from TÜV-SÜD for the H2-readiness of its HRSGs (including both drum-type and once-through boiler variants), confirming that its heat-recovery boilers are capable of operating with up to 100% hydrogen. The adapted HRSG design incorporates controls for ventilation, purging, fire/explosion protection, and safety analyses to ensure secure operation under hydrogen combustion. This hydrogen-ready HRSG can be utilized in combined-cycle or cogeneration plants, delivering power and/or steam output comparable to traditional HRSGs, while aligning with decarbonization goals and offering flexibility for future fuels.
Heat Recovery Steam Generator Market Key Players And Strategic Industry Positioning
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 Global Footprint: Which Region Holds Market Leadership?
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.