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Waste Heat to Power System Market

The market for Waste Heat to Power System was estimated at $31.8 billion in 2025; it is anticipated to increase to $54.6 billion by 2030, with projections indicating growth to around $93.7 billion by 2035.

Report ID:DS2410007
Author:Chandra Mohan - Sr. Industry Consultant
Published Date:
Datatree
Energy & Power
Energy Transition
Waste Heat to Power System
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Report Summary
Market Data
Methodology
Table of Contents

Global Waste Heat to Power System Market Outlook

Revenue, 2025

$31.8B

Forecast, 2035

$93.7B

CAGR, 2026 - 2035

11.4%

The Waste Heat to Power System (WHP System) industry revenue is expected to be around $31.8 billion in 2026 and expected to showcase growth with 11.4% CAGR between 2026 and 2035. Building on this trajectory, the Waste Heat To Power System market has evolved into a critical enabler of industrial energy efficiency and decarbonization, as energy-intensive sectors seek to cut operating costs, reduce greenhouse gas emissions, and comply with tightening environmental regulations. Petroleum refining and cement end-user industries together account for 49.9% of market demand, underscoring the strong fit of waste heat recovery solutions with high-temperature process environments and continuous operations. In 2025, ORC technology type dominated the Waste Heat To Power System industry with $18.55 billion in sales, reflecting the commercial strength of organic Rankine cycle (ORC) systems for power generation from waste heat and reinforcing their role as a preferred choice for low- and medium-grade heat utilization. Alongside these structural drivers, volatile energy prices, expanding policy support for clean energy, and corporate net-zero commitments continue to anchor the market’s strategic relevance across both mature and emerging industrial economies.

A Waste Heat To Power System is an integrated waste heat recovery solution that captures unused thermal energy from exhaust gases, industrial boilers, kilns, and process streams and converts it into electricity using technologies such as organic Rankine cycle, steam Rankine, and related thermodynamic cycles. Key features include modular and scalable system architecture, compatibility with a broad range of temperature levels, high reliability with minimal impact on core process operations, and the ability to deliver baseload-quality on-site power or export electricity to the grid. Major applications span petroleum refining, cement production, iron and steel, chemicals, glass manufacturing, and other heavy industries, where WHP System deployments support emissions reduction, energy cost optimization, and resilience of industrial power supply. Recent trends driving demand include digitalized monitoring and control for performance optimization, advanced heat-exchanger and working-fluid designs, compact ORC packages tailored for low-grade heat recovery, and integration with microgrids and distributed generation, which together are expanding the addressable use cases and accelerating adoption across global process industries.

Waste Heat to Power System market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Waste Heat to Power System Market Outlook

Market Key Insights

  • The Waste Heat to Power System market is projected to grow from $31.8 billion in 2025 to $93.7 billion in 2035. This represents a CAGR of 11.4%, reflecting rising demand across Industrial Sector, Automotive Industry, and Power Plants.

  • Siemens Energy, General Electric, and Mitsubishi Heavy Industries are among the leading players in this market, shaping its competitive landscape.

  • U.S. and China are the top markets within the Waste Heat to Power System market and are expected to observe the growth CAGR of 8.3% to 12.0% between 2025 and 2030.

  • Emerging markets including Brazil, Malaysia and South Africa are expected to observe highest growth with CAGR ranging between 10.9% to 14.3%.

  • Transition like Rising Emphasis on Energy Efficiency is expected to add $6 billion to the Waste Heat to Power System market growth by 2030.

  • The Waste Heat to Power System market is set to add $61.8 billion between 2025 and 2035, with manufacturer targeting Cement & Chemical Application projected to gain a larger market share.

  • With

    rising industrial energy demand and growing focus on energy efficiency in manufacturing facilities, and

    Advancements in Thermoelectric and Organic Rankine Cycle Technologies Boost Waste Heat Recovery, Waste Heat to Power System market to expand 194% between 2025 and 2035.

waste heat to power system market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Waste Heat to Power System - Country Share Analysis

Opportunities in the Waste Heat to Power System

Integrated and mini‑mill steel producers in the United States and Canada emit high‑temperature flue gases from blast furnaces, basic oxygen furnaces, and reheating lines, where few plants have a waste heat recovery system. Decarbonization policies and rising electricity prices are also reviving interest in Steam Rankine Cycle based WHP System solutions. SRC revenues are projected to increase from 10.69 billion in 2025 to 16.53 billion by 2030 at 9.1% CAGR. Growth will be strongest from retrofits on large steel mills signing power contracts.

Growth Opportunities in Asia-Pacific and Europe

Asia-Pacific is emerging as a core market for Waste Heat To Power System deployments across energy-intensive industries, with particularly strong traction in cement, petroleum refining, and large-scale chemical complexes where industrial waste heat recovery can significantly reduce fuel consumption. Top opportunities lie in modular organic Rankine cycle systems for medium-temperature process streams, CAPEX optimization through standardized skid-mounted units, and long-term service agreements for process optimization in integrated industrial parks. Competition is defined by aggressive regional EPC contractors and local turbine manufacturers leveraging cost advantages, while drivers include tightening emissions norms, grid stability requirements in fast-growing economies, and national decarbonization technology roadmaps that favor high-efficiency power generation from existing assets.
Europe represents a mature but expanding landscape for Waste Heat To Power System solutions, with strongest relevance in chemical, paper, and food & beverage plants that seek to combine thermal power plant retrofits with advanced waste heat recovery solutions under stringent climate and energy-efficiency regulations. The most attractive opportunities center on high-efficiency organic Rankine cycle and steam-based systems integrated with digital performance monitoring, enabling flexible output to support grid stability and on-site cogeneration strategies. Competition is shaped by technologically advanced OEMs, niche ORC specialists, and engineering firms focused on custom integration, while key drivers include carbon pricing, mandatory efficiency audits, green financing frameworks, and corporate net-zero commitments that prioritize industrial waste heat recovery over new-build generation capacity.

Market Dynamics and Supply Chain

01

Driver: Rising Industrial Energy Demand and Growing Focus on Energy Efficiency in Manufacturing Facilities

A major driver for the waste heat to power system market is also the combination of rising industrial energy demand and increased focus on energy efficiency in manufacturing facilities. On one hand, industries such as steel, cement, and chemical production consume vast amounts of energy, creating significant opportunities to recover waste heat. On the other hand, tightening regulations and rising electricity costs are also pushing manufacturers to adopt energy efficiency measures, including WHP systems. Technological advancements like Organic Rankine Cycle and Kalina Cycle systems allow effective conversion of medium to high temperature heat into electricity. Together, higher energy demand and efficiency imperatives drive investment in WHP, helping industrial end-users reduce operational costs, lower carbon footprint, and achieve sustainable production goals while enhancing overall energy management.
A key driver is also the rapid advancement of thermoelectric generators and ORC technologies that improve energy conversion efficiency. Modern thermoelectric modules allow small-scale applications such as vehicle exhaust heat recovery, while ORC systems enable large-scale industrial and power plant installations. These technologies optimize the conversion of low- to medium-temperature waste heat into usable electricity, increasing system performance and reliability. Improved materials, modular designs, and digital monitoring further enhance operational efficiency, reduce maintenance, and extend system lifespan. These advancements make WHP systems economically viable for a wider range of industries, supporting adoption in automotive, industrial, and energy sectors globally.
02

Restraint: High Initial Capital Costs and Long Payback Periods Limit Waste Heat to Power Adoption

One of the key restraints for the waste heat to power system market is the high upfront capital investment required and long payback periods. Installing ORC, steam Rankine, or thermoelectric systems often demands significant engineering, equipment, and integration costs. This limits adoption in price‑sensitive industries and small‑to‑medium enterprises that lack access to financing. For example, many manufacturers delay or cancel WHP projects because expected savings may not justify initial expenditure within typical investment windows. Consequently, slower deployment reduces market revenue growth and discourages new entrants from scaling production capacity.
03

Opportunity: Organic Rankine Waste Heat to Power in Asian Cement Sector and Kalina Cycle Waste Heat To Power in Chemical Manufacturing

Rapid cement capacity additions in India and Southeast Asia are creating an untapped market for Waste Heat To Power System deployments on preheater towers and clinker coolers. Many mid‑size cement kilns lack waste heat recovery, despite tightening decarbonization policies. Organic Rankine cycle technology dominates this low‑to‑medium temperature segment, with global ORC revenues forecast to rise from 18.55 billion in 2025 to 33.58 billion by 2030 at 12.6% CAGR. Growth will be strongest for modular ORC units integrated with industrial boilers and existing cogeneration plant infrastructure.
Ammonia, methanol, and petrochemical complexes in Europe and East Asia discharge low‑grade heat from distillation columns and gas turbines that remains unused. Upgrading this waste heat recovery offers clear energy efficiency gains. This creates a niche for Kalina cycle based Waste Heat To Power System projects tailored to process streams with fluctuating temperatures. Kalina cycle revenues are forecast to rise from 2.58 billion in 2025 to 4.49 billion by 2030, an 11.73% CAGR. Growth will be strongest in integrated chemical parks partnering licensors and utilities.
04

Challenge: Inconsistent Waste Heat Availability and Site Specificity Restrict System Deployment Opportunities

Another major restraint is the inconsistent availability of waste heat and the site‑specific nature of WHP system design. Waste heat profiles vary greatly by industry, process, and operating conditions, requiring custom solutions rather than standardized systems. Facilities with fluctuating heat streams may not generate enough consistent energy to justify WHP investment, weakening demand. Power plants with variable loads, for instance, often underutilize installed WHP equipment. This constraint limits scalability, increases design complexity, and lowers overall market momentum by discouraging broader adoption beyond high‑temperature, continuous‑process industries.

Supply Chain Landscape

1

Waste Heat-to-Power System

Siemens EnergyGeneral Electric
2

Waste Heat Recovery

Mitsubishi Heavy IndustriesIHI Corporation
3

Power Generation Projects

Ormat TechnologiesSiemens Energy
4

Industrial Applications

Large petrochemical refineriesCement and glassSteel and metal production
Waste Heat to Power System - Supply Chain

Use Cases of Waste Heat to Power System in Industrial Sector & Plants

Industrial Sector : The industrial sector is a primary adopter of waste heat to power systems, leveraging excess thermal energy from processes such as steel production, cement manufacturing, and chemical processing. Organic Rankine Cycle and steam Rankine Cycle based systems are widely deployed in this sector due to their ability to efficiently convert medium to high temperature waste heat into electricity. These systems reduce operational costs by lowering energy consumption and enhancing overall plant efficiency. Industrial end-users benefit from reduced carbon emissions, compliance with energy regulations, and improved sustainability credentials, making WHP integration a key component of modern energy management strategies.
Automotive Industry : In the automotive industry, waste heat to power systems are increasingly applied to improve fuel efficiency and reduce emissions in commercial vehicles and hybrid/electric platforms. Thermoelectric generators (TEGs) and small-scale ORC systems are most commonly used, capturing heat from exhaust gases and engine components to produce electricity for vehicle auxiliaries. By converting otherwise lost thermal energy into usable power, manufacturers can lower fuel consumption and decrease greenhouse gas emissions. This technology enhances overall vehicle efficiency, supports regulatory compliance with emission standards, and provides a competitive advantage for automotive OEMs focusing on sustainability and energy optimization.
Power Plants : Power plants, including thermal and combined cycle facilities, utilize waste heat to power systems to improve net energy output and reduce fuel costs. Steam Rankine Cycle and ORC systems are typically integrated to recover residual heat from flue gases, turbine exhaust, or cooling water streams. These systems allow plants to convert otherwise wasted heat into additional electricity, enhancing overall thermal efficiency. End-users benefit from higher energy yield, improved return on investment, and reduced environmental footprint. WHP deployment in power generation also supports grid stability by providing supplemental energy without additional fuel input, aligning with clean energy initiatives.

Recent Developments

Recent developments in the waste heat to power system market show stronger focus on energy efficiency improvements and technology innovation to expand industrial and power plant deployments. Organic Rankine Cycle solutions are becoming more efficient and adaptable to lower temperature streams, opening new applications and improving heat recovery performance across sectors. Modular and digital WHP systems with IoT‑enabled monitoring are gaining traction, enabling real‑time optimization and predictive maintenance. These trends support reduced fuel costs, enhanced carbon emission reduction, and wider adoption in manufacturing and energy‑intensive operations.

October 2025 : Turboden, part of Mitsubishi Heavy Industries Group, commissioned its first Organic Rankine Cycle waste heat to power plant at Strathcona’s Orion steam‑assisted gravity drainage facility in Alberta, Canada, converting previously wasted heat into electricity and marking the first large‑scale WHP deployment for that site. This project showcases expanding deployment of Turboden ORC systems in industrial energy recovery applications.
June 2024 : Turboden S.p.A. highlighted its strategic synergy with Mitsubishi Heavy Industries to advance industrial decarbonization via integrated waste heat recovery and large‑scale heat pump technologies. The collaboration leverages Turboden’s ORC systems with MHI’s engineering capabilities to deliver scalable WHP and thermal energy solutions that reduce carbon footprints across heavy industries such as paper and cement production.
October 2024 : Turboden secured its first waste heat to power project in Saudi Arabia at Riyadh Cement Company, deploying an ORC system to capture industrial heat and generate electricity onsite, reinforcing the company’s presence in Middle East industrial sectors where energy efficiency solutions are gaining traction.

Impact of Industry Transitions on the Waste Heat to Power System Market

As a core segment of the Energy Transition industry, the Waste Heat to Power System market develops in line with broader industry shifts. Over recent years, transitions such as Rising Emphasis on Energy Efficiency and Adoption of advanced heat recovery technologies have redefined priorities across the Energy Transition sector, influencing how the Waste Heat to Power System market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Rising Emphasis on Energy Efficiency

The rising emphasis on energy efficiency is reshaping the WHP System market from a niche efficiency tool into a core lever of industrial decarbonization, with this transition alone expected to add about $6 billion to market growth by 2030. As regulators tighten standards on greenhouse gas emissions and large energy users commit to ambitious sustainability goals, waste heat recovery solutions are increasingly embedded in the manufacturing sector’s long-term capital planning. By converting previously lost thermal energy into low-carbon power generation, WHP System deployments deliver measurable operational cost savings while supporting regulatory compliance and carbon footprint reduction. This combination of policy pressure, economic returns, and strategic resilience is accelerating large-scale adoption across energy-intensive industries worldwide.
02

Adoption of advanced heat recovery technologies

The continuous evolution of WHP System is another significant industry transition. This transition highlights the adoption of advanced heat recovery technologies such as Organic Rankine Cycle and Kalina Cycle. These technologies enable the extraction and conversion of lowgrade waste heat into power, thereby optimizing the energy utilization process. The dominance of these technologies has expanded the practical applications of waste heat recovery beyond traditional industries, including chemical processes, cement production, and metal manufacturing, among others.