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Organic Rankine Cycle Market

The market for Organic Rankine Cycle was estimated at $1.1 billion in 2025; it is anticipated to increase to $1.8 billion by 2030, with projections indicating growth to around $2.8 billion by 2035.

Report ID:DS2410006
Author:Chandra Mohan - Sr. Industry Consultant
Published Date:
Datatree
Energy & Power
Energy Transition
Organic Rankine Cycle
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Report Summary
Market Data
Methodology
Table of Contents

Global Organic Rankine Cycle Market Outlook

Revenue, 2025

$1.1B

Forecast, 2035

$2.8B

CAGR, 2026 - 2035

9.5%

The Organic Rankine Cycle (ORC) industry revenue is expected to be around $1.1 billion in 2026 and expected to showcase growth with 9.5% CAGR between 2026 and 2035. Building on this trajectory, the Organic Rankine Cycle market is consolidating its position as a critical enabler of energy efficiency and low-temperature heat-to-power conversion across industrial and utility sectors, supported by tightening emissions regulations and the global shift toward renewable energy integration. Waste Heat Recovery and Geothermal Power together account for 70.0% of Organic Rankine Cycle deployments, underlining their role as anchor applications for decarbonizing hard-to-abate industries and baseload clean generation. Indirect Technology Type, which generated approximately $0.54 billion in revenue in 2025, continues to dominate industry adoption by offering higher operational reliability and better compatibility with challenging heat sources, thereby strengthening the business case for long-term investment. These dynamics, combined with corporate net-zero commitments and rising electricity prices, are ensuring sustained relevance of Organic Rankine Cycle solutions in industrial decarbonization strategies and distributed power generation portfolios.

The Organic Rankine Cycle is a closed-loop thermodynamic system that uses organic working fluids with low boiling points to convert low-grade heat into electricity, enabling efficient power generation from heat sources that are unsuitable for conventional steam Rankine systems. Key features such as high part-load efficiency, modularity, and the ability to integrate with existing process equipment make ORC units attractive for geothermal power plants, industrial waste heat recovery systems, biomass and biogas facilities, and combined heat and power configurations in commercial and district energy networks. Recent market trends include wider deployment of indirect ORC architectures and advanced binary cycle technology, which improve flexibility and fluid stability, alongside the adoption of digital monitoring and predictive maintenance to maximize uptime. Growing investment in modular power plants for off-grid and microgrid applications, plus the integration of ORC systems with solar thermal fields and other hybrid renewable assets, is further accelerating demand and broadening the technology’s application base.

Organic Rankine Cycle market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Organic Rankine Cycle Market Outlook

Market Key Insights

  • The Organic Rankine Cycle market is projected to grow from $1.1 billion in 2025 to $2.8 billion in 2035. This represents a CAGR of 9.5%, reflecting rising demand across Waste Heat Recovery, Geothermal Power, and Biomass Power Generation.

  • Mitsubishi Power, Ormat Technologies Inc., and Enogia are among the leading players in this market, shaping its competitive landscape.

  • U.S. and Germany are the top markets within the Organic Rankine Cycle market and are expected to observe the growth CAGR of 6.9% to 10.0% between 2025 and 2030.

  • Emerging markets including India, Brazil and South Africa are expected to observe highest growth with CAGR ranging between 9.1% to 11.9%.

  • Transition like Transition Towards Green Energy is expected to add $163 million to the Organic Rankine Cycle market growth by 2030.

  • The Organic Rankine Cycle market is set to add $1.7 billion between 2025 and 2035, with manufacturer targeting Geothermal Power & Biomass Power Generation Application projected to gain a larger market share.

  • With

    increasing environmental awareness, and

    Technological Advancements in Heat Recovery Systems, Organic Rankine Cycle market to expand 148% between 2025 and 2035.

organic rankine cycle market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Organic Rankine Cycle - Country Share Analysis

Opportunities in the Organic Rankine Cycle

Latin American agro-industrial clusters, especially sugar and pulp producers, are also expanding high-efficiency biomass boilers that can integrate cascaded ORC solutions. Cascaded configurations, rising from roughly $0.23 billion in 2025 to $0.39 billion by 2030 at about 11.07% CAGR, maximize electricity yield from flue gases and low-temperature condensers. The strongest upside lies in biomass power plants and cogeneration facilities seeking flexible, modular ORC systems for distributed energy systems, driving the fastest growth of cascaded technology in this region.

Growth Opportunities in Europe and Asia-Pacific

In Europe, Waste Heat Recovery is expected to remain the most relevant application for Organic Rankine Cycle solutions, driven by strict industrial decarbonization policies, carbon pricing, and efficiency mandates that reward low-grade heat utilization in cement, steel, glass, and chemicals. Top opportunities center on retrofitting existing plants with modular ORC systems that enhance power plant efficiency while enabling renewable energy integration with district heating and biomass power generation assets, especially in highly industrialized corridors of Western and Central Europe. Competitive dynamics are defined by technologically mature ORC manufacturers, engineering firms, and utility-affiliated developers, pushing differentiation through higher turbine efficiency, compact skid-mounted designs, and optimized heat-to-power conversion for small and medium industrial sites. Additional drivers include volatility in electricity prices, grid congestion that favors on-site distributed power generation, and incentives for coupling Organic Rankine Cycle units with solar thermal and other hybrid configurations to stabilize energy costs and reduce emissions compliance risk.
In Asia-Pacific, Waste Heat Recovery is also poised to be the dominant Organic Rankine Cycle application, supported by rapid industrialization and energy-intensive sectors in China, India, Southeast Asia, and developed economies that generate abundant low-grade waste heat from kilns, furnaces, and refineries. The strongest opportunities arise from large-scale ORC deployment in heavy industry clusters, complemented by geothermal power projects in volcanic regions and emerging biomass power generation corridors where ORC technology can unlock higher efficiency from variable heat sources. Competition is intensifying as regional turbine and boiler manufacturers, local EPC contractors, and international ORC technology providers compete on cost, localization, and project financing, leading to partnerships for local assembly and long-term service agreements. Key drivers include government policies promoting energy efficiency, rising fuel and electricity costs, pressure to cut industrial emissions without disrupting production, and the need for flexible, modular ORC systems that deliver distributed power generation, enhance grid stability, and integrate with solar thermal and other clean energy assets across rapidly growing industrial zones.

Market Dynamics and Supply Chain

01

Driver: Rising Demand for Industrial Waste Heat Recovery Coupled with Renewable Energy Integration

The organic rankine cycle market is also primarily driven by the simultaneous rise in industrial waste heat recovery and the push for renewable energy integration. On one hand, industries such as cement, steel, and chemical manufacturing generate large amounts of low-to-medium temperature waste heat that often goes unused. ORC systems efficiently convert this waste heat into electricity, improving energy efficiency and reducing operational costs. On the other hand, growing global emphasis on renewable energy adoption encourages utilities and independent power producers to deploy ORC technology with geothermal and biomass sources. These systems can also operate effectively at lower temperatures, enabling the exploitation of previously untapped energy resources. By combining industrial energy efficiency with renewable integration, ORC installations help reduce carbon emissions, support sustainability initiatives, and open new revenue streams for companies investing in energy optimization technologies.
Technological improvements in working fluids and ORC system design are also a key driver for market growth. Advanced organic fluids such as R245fa, isobutane, and n-pentane allow higher thermal efficiency at low-to-medium temperatures, making ORC systems suitable for waste heat, geothermal, and biomass applications. Innovations in turbine design, heat exchangers, and modular configurations reduce operational losses, enhance reliability, and lower maintenance requirements. These advancements allow operators to achieve greater electricity output from the same heat source, improve economic feasibility, and accelerate adoption across small and medium-scale renewable and industrial energy projects globally.
02

Restraint: High Initial Capital Costs and Complex Project Economics Limit Organic Rankine Cycle Adoption

Despite long‑term energy savings, the high upfront investment required for ORC systems remains a key restraint. Procurement of specialized equipment, bespoke engineering, and installation can be costly compared with conventional power generation, especially in small and medium‑sized enterprises. For example, waste heat recovery projects may be deferred because companies face extended payback periods that deter investment. This slows market revenue growth and reduces demand in sectors where financing options or incentives are limited, particularly in developing economies with tight capital budgets for energy infrastructure upgrades.
03

Opportunity: Geothermal Organic Rankine Cycle expansion across emerging Eastern European markets and Industrial waste-heat Organic Rankine Cycle projects in Asia-Pacific manufacturing

Emerging Eastern European countries hold significant low-to-medium enthalpy geothermal resources that are still underexploited for power generation. Direct Organic Rankine Cycle plants can efficiently convert these reservoirs into baseload renewable electricity and district heating, complementing national energy-transition plans. The direct technology segment, worth around $0.35 billion in 2025 and expected to hit $0.57 billion by 2030 with about 10.1% CAGR, will see its fastest growth in geothermal power generation projects tied to municipal utilities and regional heating networks across the region.
Asia-Pacific heavy industry is under pressure to cut energy costs and emissions, creating strong demand for Organic Rankine Cycle systems in high-temperature waste heat recovery from steel, cement, glass, and chemical plants. Indirect ORC technology, already generating $0.54 billion globally in 2025 and projected to reach $0.81 billion by 2030 at 8.4% CAGR, is best positioned here. Untapped brownfield retrofits and strategic partnerships with boiler OEMs across Asia-Pacific will drive fastest growth for indirect ORC decarbonization applications in the region.
04

Challenge: Limited Availability of Skilled Workforce and Technical Expertise Slows Implementation Rates

ORC deployment requires specialized engineering knowledge for proper design, operation, and maintenance. A shortage of trained professionals and technical expertise restricts the pace of adoption, particularly in regions with emerging renewable markets. For instance, geothermal ORC projects can be delayed due to a lack of local technicians familiar with organic working fluids and heat exchanger optimization. This labor gap increases project risk, raises operational costs, and can deter potential investors, ultimately dampening market momentum and inhibiting broader integration into industrial and renewable energy portfolios.

Supply Chain Landscape

1

Heat Recovery Components

EnogiaBono Sistemi S.p.A
2

Organic Rankine Cycle

Ormat Technologies Inc.Exergy International S.p.A.Turboden
3

Project Development

Mitsubishi PowerOrmat Technologies Inc.Exergy International S.p.A
4

End Users

Geothermal power plantsIndustrial waste heatBiomass cogeneration plants
Organic Rankine Cycle - Supply Chain

Use Cases of Organic Rankine Cycle in Waste Heat Recovery & Geothermal Power

Waste Heat Recovery : Organic Rankine Cycle systems are widely used in waste heat recovery applications to convert low-to-medium temperature heat from industrial processes into electricity. Typically, subcritical ORC units with organic working fluids like R245fa or n-pentane are employed due to their ability to efficiently extract energy from heat sources between 80°C and 350°C. These systems are adopted by industries such as steel, cement, and chemical manufacturing, where exhaust gases or hot fluids are abundant. By recovering energy that would otherwise be lost, ORC installations reduce operational costs, improve energy efficiency, and lower greenhouse gas emissions, offering both economic and environmental advantages.
Geothermal Power : In geothermal power generation, ORC technology is predominantly applied to low-enthalpy geothermal resources, where the fluid temperatures range from 80°C to 200°C. ORC units using working fluids like isobutane or butane efficiently convert geothermal heat into electricity. Small- to medium-scale geothermal plants, particularly in regions with moderate geothermal gradients, rely on ORC systems for reliable and continuous power output. Their compact design, minimal water requirement, and ability to operate at lower temperatures make them ideal for sustainable energy production, enabling the utilization of previously untapped geothermal resources.
Biomass Power Generation : Organic Rankine Cycle technology is increasingly adopted in biomass power generation plants to harness energy from combustion or gasification of organic materials such as wood chips, agricultural residues, and municipal solid waste. Subcritical and supercritical ORC systems with organic working fluids allow efficient energy extraction from medium-temperature heat streams. These systems improve the overall efficiency of biomass plants by converting residual heat into electricity, complementing direct steam cycles. ORC-based biomass power solutions provide a sustainable route to renewable energy generation, reduce reliance on fossil fuels, and support circular economy practices by utilizing waste biomass effectively.

Recent Developments

Recent developments in the organic rankine cycle market highlight expanded use in waste heat recovery, geothermal power, and biomass energy as industries pursue energy efficiency and low‑carbon solutions. A key trend is digital optimization, where advanced control systems and predictive analytics improve system performance and reliability. Enhanced working fluids and modular ORC designs also support scalable deployment in small and medium‑scale facilities. These advances strengthen ORC’s role in renewable energy integration and cost‑effective power generation strategies.

February 2025 : ElectraTherm Inc. signed a strategic partnership agreement with a major Asian utility to supply Organic Rankine Cycle units for waste heat recovery projects at multiple cement plants in India and Southeast Asia. This collaboration expands ElectraTherm’s footprint in emerging markets focused on decarbonization and energy efficiency and represents a significant supply agreement in the ORC waste heat segment.
July 2024 : Ormat Technologies Inc. secured a contract to supply a 20 MW Organic Rankine Cycle system for a geothermal project in Indonesia. This contract enhances Ormat’s presence in Asia‑Pacific renewable energy markets by expanding its ORC deployment for geothermal power generation.

Impact of Industry Transitions on the Organic Rankine Cycle Market

As a core segment of the Energy Transition industry, the Organic Rankine Cycle market develops in line with broader industry shifts. Over recent years, transitions such as Transition Towards Green Energy and Digitalization and Advanced Controls Impact have redefined priorities across the Energy Transition sector, influencing how the Organic Rankine Cycle market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Transition Towards Green Energy

The accelerating transition towards green energy is becoming a defining growth catalyst for the ORC market, with this shift alone projected to contribute an additional $163 million to market expansion by 2030. As policy pressure, corporate decarbonization targets, and rising energy costs converge, ORC systems are increasingly deployed for renewable power generation, waste heat recovery, and bioenergy applications, particularly in industrial waste heat and low-temperature heat recovery settings. This trend is not only expanding the addressable market but also repositioning ORC technologies as strategic enablers of the clean energy transition, supporting carbon emissions reduction and sustainable power solutions. Consequently, vendors that align portfolios with green energy use cases are poised to capture disproportionate value and strengthen competitive differentiation in the ORC market.
02

Digitalization and Advanced Controls Impact

The ORC market is increasingly influenced by digitalization and advanced control system integration, transforming how systems are monitored and operated. Modern ORC units equipped with real-time sensors, predictive analytics, and automated control platforms enable operators to optimize performance, adjust to variable heat sources, and reduce downtime. In industrial waste heat recovery, these enhancements allow continuous monitoring of exhaust streams, improving energy capture and efficiency. In geothermal and biomass power plants, advanced controls support load balancing and reduce wear on turbines and heat exchangers, extending system lifespan. Overall, digitalization improves operational reliability, lowers maintenance costs, and allows companies to maximize energy output, making ORC adoption more economically and technically viable across industrial and renewable energy sectors.