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The waste heat recovery market size is forecast to increase by USD 22.56 billion at a CAGR of 7.1% between 2023 and 2028. The market is experiencing significant growth due to several driving factors. Industrialization in BRICS countries is leading to an increase in demand for power generation and steam production, making waste heat recovery an attractive solution for energy storage efficiency and cost savings. The emergence of direct recovery using advanced thermoelectric materials is a notable trend, offering higher efficiency and reduced emissions compared to traditional systems. However, challenges persist, including concerns related to fouling in recovery systems, which can impact system performance and require frequent maintenance. Digital controls and real-time monitoring electronics and technologies are essential to optimizing system operations and mitigating fouling risks. In petroleum refineries, where large amounts are generated, the adoption of recovery systems is becoming increasingly important as energy costs rise and carbon dioxide emissions become a regulatory concern. The liquid-liquid phase system is a promising technology for recovery in such applications, enabling efficient heat transfer and reducing the environmental impact of industrial processes.
The global energy landscape is undergoing a significant transformation, with a growing emphasis on reducing greenhouse gas emissions and transitioning to cleaner, more sustainable energy sources. One area of focus is the recovery and utilization of waste heat, which can lead to substantial energy savings and carbon emission reduction. It is the thermal energy that is produced as a byproduct of various industrial processes and power generation. This heat, if not recovered and utilized, is often released into the environment as waste, contributing to increased greenhouse gas emissions. However, with the advancement of clean energy technologies and electric vehicle, this waste heat can be harnessed and transformed into valuable thermal energy, which can be used for space heating, power generation, and industrial processes. Heat exchanger technology plays a crucial role in recovery. These systems use sensors and digital controls to monitor the heat source temperature in real-time, ensuring optimal efficiency and energy transfer.
The heat exchanger can be integrated into a cascade system, where the waste heat from one process is used to preheat the feed water for another process, resulting in further energy savings. The construction sector, which is responsible for a significant portion of global energy consumption, can benefit greatly from recovery. For instance, in the cement industry, heat from the combustion process can be used for preheating applications, reducing the need for external energy sources and resulting in substantial cost savings. The Organic Rankine Cycle (ORC) is another technology that can be used for recovery. This technology converts low-temperature heat into electricity, making it an ideal solution for industries with low-grade. This not only reduces the carbon footprint of the industry but also generates additional revenue through the sale of electricity. Despite the numerous benefits, the implementation of recovery systems comes with its challenges. Installation costs and the complexity of the systems can be a deterrent for some industries.
However, the financial benefits of energy efficiency and carbon emission reduction far outweigh the initial investment. In the context of power generation, waste heat recovery can lead to significant energy savings. For instance, in combined heat and power (CHP) systems and EV batteries, waste heat from the power generation process is used for space heating and hot water production, resulting in improved energy efficiency and reduced reliance on external energy sources. The use of digital controls and real-time monitoring systems can help optimize the performance of waste heat recovery systems, ensuring maximum energy transfer and minimal heat loss. This not only results in increased energy savings but also reduces the carbon footprint of the industry. In conclusion, the market presents significant opportunities for industries looking to reduce their carbon emissions and improve energy efficiency. With the advancement of clean technologies and the growing emphasis on energy transition, the adoption of waste heat recovery systems is expected to increase in the coming years. The financial benefits of energy savings and carbon emission reduction make this an attractive investment for industries across various sectors.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The chemical segment is estimated to witness significant growth during the forecast period. The chemical industry encompasses the manufacturing of polymers, petrochemicals, agrochemicals, pharmaceuticals, fertilizers, and dyes, which typically involve high-temperature processes generating substantial waste heat. The energy-intensive nature of inorganic and organic chemical production processes necessitates vast thermal and electrical energy consumption. Waste heat recovery systems are increasingly in demand to conserve energy and reduce costs in chemical production plants.
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The chemical segment was the largest segment and was valued at USD 13.29 billion in 2018. These systems enable the utilization of recovered waste heat to preheat boiler feed water and mill water in chemical pulp mills, among other applications. The chemical sector is experiencing substantial expansion in countries like the US and China due to the rising demand for petrochemicals, pesticides and fertilizers, synthetic rubber, and other polyethylene chemical products. The growth of the chemical industry is expected to continue during the forecast period, making waste heat recovery a crucial consideration for energy efficiency and cost savings. Hence, such factors are fuelling the growth of this segment during the forecast period.
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North America is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The global waste heat recovery market is experiencing significant growth due to the increasing focus on heating and cooling applications, carbon emission reduction, and adherence to climate goals. In North America, the industrial sector is the largest consumer of energy, accounting for approximately 25% of the total energy usage and emitting around 25% of fossil fuel-based greenhouse gases. To mitigate these emissions, governments have imposed stringent regulations such as the Clean Air Act, which mandates the reduction of hazardous air pollutants including CO2, mercury, and particulate matter.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Rise in industrialization in BRICS is notably driving the market growth. The industrial sector in emerging economies, particularly Brazil, Russia, India, China, and South Africa (BRICS), has experienced significant growth due to increasing manufacturing activities. This trend has attracted investors to expand their market presence in these countries, making them crucial manufacturing hubs.
The abundance of natural resources, affordable labor, and favorable regulations in BRICS and other developing nations have enticed mining companies to establish operations there. China, in particular, holds a substantial manufacturing sector share, making it a significant contributor to the market's growth during the forecast period. These factors, coupled with the easy availability of raw materials and a business-friendly environment, are expected to drive the market's expansion in the coming years. Thus, such factors are driving the growth of the market during the forecast period.
Emergence of direct waste heat recovery using thermoelectric materials is the key trend in the market. Waste heat recovery is a significant issue in the power engineering sector, as traditional systems often have low efficiency and complex designs. To address this challenge, there has been increasing interest in using thermoelectric materials for efficient waste heat recovery.
Thermoelectric materials are capable of converting heat energy into electrical energy through the Seebeck and Peltier effects. This direct conversion eliminates the need for less efficient heat engines. These materials can be employed for waste heat recovery from various sources, including industrial processes, home heating, and automotive exhaust. Effective implementation of thermoelectric materials for waste heat recovery can lead to substantial energy cost savings and reduced CO2 emissions in power generation and petroleum refinery applications. Thus, such trends will shape the growth of the market during the forecast period.
Concerns related to fouling in waste heat recovery systems is the major challenge that affects the growth of the market. Waste heat recovery systems play a crucial role in reducing the carbon footprint of industries by capturing and utilizing thermal energy that would otherwise be lost in exhaust gases. However, fouling, or the deposition and accumulation of unwanted materials on equipment surfaces, can negatively impact the efficiency and reliability of these systems.
Industrial exhausts, which contain moisture and contaminants such as alumina particulates, can lead to fouling on heat transfer surfaces. Additionally, the waste heat stream at lower temperatures may contain significant amounts of water vapor and unpredictable fibers and contaminants, making it challenging to maintain optimal system performance. The buildup of solids on heat transfer surfaces and the plugging of gas passages can impact the energy transition towards clean technologies and increase greenhouse gas emissions. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd: The company offers waste heat recovery systems such as ABB Ability Energy Management, which helps optimize energy usage and recover waste heat in industrial processes.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth due to the increasing focus on reducing carbon footprint in various industrial sectors. With the global energy transition towards clean technologies, there is a growing demand for energy-efficient solutions that can help industries minimize their greenhouse gas emissions. Thermal energy, derived from the heat generated during industrial processes, is a valuable resource that can be harnessed for power generation and steam production.
Moreover, sensors and digital controls with real-time monitoring capabilities are essential for optimizing the heat source temperature and ensuring efficient energy utilization. Industrial sectors such as petroleum refining, metal production, chemical, and construction are major contributors to carbon emissions and high energy costs. Waste heat recovery systems using liquid-liquid and liquid-gas phase systems are gaining popularity for their ability to generate electricity and hot water from exhaust gases. The energy supply crisis and climate change are driving the adoption of on-site power generation and energy efficiency measures. Cascade systems, organic rankine cycles, and low-temperature heat recovery are some of the advanced technologies being used to maximize the utilization of waste heat. Installation challenges, such as combustion air requirements, space heating, furnace loads, and boiler feed water, are being addressed through innovative design solutions. Heat exchanger corrosion and carbon emissions are major concerns that need to be addressed to ensure the long-term viability of waste heat recovery systems. In conclusion, the market is poised for growth as industries seek to reduce their carbon emissions, conserve energy, and meet climate action plans. Smart technologies, such as IoT sensors and advanced control systems, are playing a crucial role in optimizing the performance of waste heat recovery systems and achieving carbon emission reduction goals.
Market Scope |
|
Report Coverage |
Details |
Page number |
160 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.1% |
Market growth 2024-2028 |
USD 22.56 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.5 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 33% |
Key countries |
US, China, Japan, Germany, and South Korea |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Alfa Laval AB, ALSTOM SA, Cannon Spa, Clean Energy Technologies Inc., Econotherm Ltd., Forbes Marshall Pvt. Ltd., GEA Group AG, General Electric Co., John Wood Group PLC, KNM Group Berhad, Mitsubishi Heavy Industries Ltd, Muhibbah Engineering M Bhd., Ormat Technologies Inc., Promec Engineering Ltd., Questor Technology Inc., Robert Bosch GmbH, Siemens AG, Thermax Ltd., and Transparent Energy Systems Pvt. Ltd. |
Market dynamics |
Parent market analysis, market report , market forecast , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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