Heat Recovery Steam Generator Market Growing at 3.2% CAGR Through 2032

Heat Recovery Steam Generator Market Overview

The Heat Recovery Steam Generator Market was valued at USD 1.50 Billion in 2024 and is projected to reach nearly USD 1.93 Billion by 2032, growing at a CAGR of 3.2% during 2025–2032. An HRSG is an energy-recovery heat exchanger that captures heat from combustion-turbine exhaust or another hot gas stream and converts water into steam. That steam can support industrial processes, cogeneration, district heating, or a steam turbine in a combined-cycle power plant.

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The system typically integrates an economizer, evaporator, water preheater, and superheater. Demand is being shaped by investment in generation capacity, expanding cogeneration, growth in power utilities and industrial operations, and the shift toward more efficient use of fuel and waste heat. High installation costs, substantial maintenance requirements, and limited availability of suitably skilled operators remain important barriers.

Key Growth Drivers Fueling the Heat Recovery Steam Generator Market

Expansion of cogeneration: Increasing use of combined heat and power allows facilities to produce electricity and useful thermal energy from the same fuel input. MMR identifies rising investment in generation capacity and wider cogeneration deployment as central growth catalysts.

Need for higher plant efficiency: HRSGs recover energy that would otherwise leave through turbine exhaust. This improves overall plant economics and supports the transition from simple-cycle assets toward combined-cycle configurations.

Industrial development: Power utilities, refineries, chemical plants, manufacturing facilities, and other industrial users require reliable steam and electricity. Growth in industrial activity and the shift toward non-conventional energy use support equipment demand.

Greenfield power projects: New combined heat and power and cogeneration facilities create opportunities for original equipment, engineering, installation, and long-term service. Public and private investment is particularly important across Asia-Pacific.

Modernization and digital control: Advanced monitoring, distributed control systems, data analytics, and predictive maintenance can improve reliability and operating flexibility. These technologies are becoming more relevant as plants respond to fluctuating renewable output and more complex fuel strategies.

Heat Recovery Steam Generator Market Segmentation By Power Rating and Application

By power rating, the industry includes below 100 MW, 101 MW to 200 MW, and above 201 MW systems. MMR reports a 33% CAGR for the below 100 MW category, while its revenue values remain unavailable placeholders. Demand is associated with cogeneration in small industries, commercial networks, and isolated grids.

By application, the industry is divided into power utility, industrial, and other uses. MMR expects power utility to register a 3% CAGR because HRSG systems are widely used in efficient generation configurations. The public summary provides no application-level shares.

The below 100 MW category is the clearest disclosed segment opportunity because it suits smaller cogeneration facilities and distributed networks. MMR does not publish the accompanying segment revenue values.

Regional Analysis Where Is the Heat Recovery Steam Generator Market Growing Fastest?

United States

The United States is included in North America. General Electric Company and Babcock & Wilcox are listed as key players, but MMR provides no U.S.-specific value, share, or CAGR.

United Kingdom

The United Kingdom is included in Europe, with Amec Foster Wheeler Plc. listed among key companies. MMR provides no separate UK value or CAGR.

Germany

Germany is covered within Europe and represented by Siemens AG. No Germany-specific value, CAGR, or dominant segment is disclosed.

Japan

Japan is included in Asia-Pacific, the expected leading region. No separate Japanese value or forecast rate is disclosed.

South Korea

South Korea is included in Asia-Pacific, with Doosan Engineering and Construction listed among key participants. No national statistic is disclosed.

China

China is included within Asia-Pacific. MMR links regional demand to greenfield cogeneration and combined heat and power projects but publishes no China-specific figure.

India

India is included in Asia-Pacific and represented by Larsen & Toubro, Thermax, and Bharat Heavy Electricals. No separate Indian value or CAGR is disclosed.

Asia-Pacific is expected to hold the largest share of the Heat Recovery Steam Generator Market and grow above the global CAGR, although the exact regional share is displayed only as “xx%.” MMR does not explicitly identify a single fastest-growing country. Asia-Pacific is therefore the strongest documented investment hotspot, particularly for new cogeneration and combined heat and power installations.

Competitive Landscape Leading Companies in the Heat Recovery Steam Generator Market

General Electric Company: GE is the first company listed by MMR. The summary does not disclose its individual market share.

Siemens AG: Siemens is listed as a key German participant, without a disclosed company-level share.

Amec Foster Wheeler Plc.: The company is listed among leading UK participants, without an individual share.

Babcock & Wilcox Company: MMR lists the U.S. company among key competitors; B&W offers HRSG systems, upgrades, and replacement components.

CMI Group: The Belgium-based company is among MMR’s first five key players, with no disclosed company-level share.

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Recent Developments & Strategic Moves

• In April 2025, GE Vernova announced commercial operation of Japan’s Goi Thermal Power Station, where it supplied three HRSGs assembled from prefabricated supermodules.
• In October 2025, GE Vernova and YTL PowerSeraya launched a post-combustion carbon-capture feasibility study for a Singapore CCGT project planned with a triple-pressure reheat HRSG. The study received co-funding through Singapore’s Energy Market Authority.
• In November 2025, GE Vernova received an order for two combined-cycle blocks at Poland’s Kozienice Power Station, each incorporating a three-pressure reheat HRSG and an integrated distributed control system.
• In October 2025, Mitsubishi Power and Jurong Engineering received an EPC contract for a hydrogen-ready CCGT plant in Singapore that will integrate large-scale battery storage.
• In December 2025, Mitsubishi Power and Mitsubishi Electric completed functional testing of a next-generation thermal-power control system designed for high-speed data processing, rapid load adjustment, and diversified fuels.

AI & Digital Transformation Impact on Heat Recovery Steam Generator Market

How is AI changing the Heat Recovery Steam Generator Market? AI and advanced analytics can assess temperature, pressure, steam conditions, turbine exhaust, vibration, and equipment-performance data to identify abnormal patterns and support predictive maintenance. Digital control systems can coordinate the gas turbine, HRSG, steam turbine, and balance-of-plant equipment, improving visibility and reducing avoidable downtime.

High-speed processing and automated control are also becoming important as combined-cycle plants adjust output around variable renewable generation. Mitsubishi Power’s next-generation control development and GE Vernova’s use of integrated distributed control systems illustrate the broader move toward digitally managed thermal assets. Human engineering oversight remains necessary for safety, materials integrity, water chemistry, and maintenance decisions.

Future Outlook  Investment Opportunities & Emerging Trends

The future of the Heat Recovery Steam Generator Market will be shaped by combined-cycle generation, cogeneration, industrial waste-heat utilization, plant modernization, carbon-capture integration, hydrogen-ready systems, and flexible operation alongside renewables. Investment opportunities will center on compact systems, below-100 MW installations, high-efficiency pressure configurations, retrofits, digital monitoring, and long-term maintenance. Asia-Pacific remains the strongest documented regional opportunity, while established suppliers can benefit from replacement equipment and service demand in mature power markets.

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Expert Commentary

According to Neha Nalawade, Research Manager at Maximize Market Research, “The Heat Recovery Steam Generator Market is projected to increase from USD 1.50 Billion in 2024 to nearly USD 1.93 Billion by 2032 at a CAGR of 3.2%, supported by cogeneration investment, power-utility demand, and industrial efficiency requirements. Strategic investment in digital controls, predictive maintenance, flexible combined-cycle systems, and lower-carbon power infrastructure is expected to define the next phase of competition.”

About Maximize Market Research

Maximize Market Research Pvt. Ltd. (MMR) is a global market research and consulting company that provides reliable, data-focused, and practical business insights. The firm serves a wide range of industries, including healthcare, pharmaceuticals, technology, automotive, electronics, chemicals, personal care, and consumer goods. Through market forecasts, competitive analysis, strategic consulting, and industry impact assessments, MMR helps organizations understand changing market conditions, identify growth opportunities, and make informed business decisions for long-term success.

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