Heat Recovery Steam Generator Market Report Scope & Overview:

The heat recovery steam generator market size was valued at USD 2.68 billion in 2025 and is expected to reach USD 4.41 billion by 2035, growing at a CAGR of 5.15% from 2026–2035.

The growth in heat recovery steam generator (hrsg) market is attributed to an increase in installation of combined cycle plants, an increase in industrial waste heat recovery systems, and increased demand for efficient energy generation systems. Adoption of heat recovery steam generator systems has seen a positive trend as businesses are concentrating on making their processes more energy-efficient by increasing the efficiency of the process, reducing fuel consumption, and minimizing carbon emissions. The construction of gas-fired power stations, refinery modernization projects, and cogeneration plants will drive market growth over the next two years. Increased investment in innovative steam recovery systems and efficient industrial energy infrastructure is contributing to rapid growth in the industry.

GE Vernova supplied advanced HRSG systems for YTL PowerSeraya’s new 600 MW hydrogen-capable combined cycle power plant in Singapore during 2025. The project integrated triple-pressure reheat HRSG technology designed to improve steam recovery efficiency, reduce emissions, and support high-capacity electricity generation operations across Southeast Asia.

HRSG Market Size and Forecast

• Market Size 2026E: USD 2.81 Billion

• Market Size 2035: USD 4.41 Billion

• CAGR (2026 – 2035): 5.15%

• Fastest Growing Region: Asia-Pacific

• Largest Region: North-America

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Heat Recovery Steam Generator Market Trends

• Rising deployment of combined cycle gas power plants is significantly increasing demand for advanced heat recovery steam generator systems across utility infrastructure projects globally.

• Industrial manufacturers are increasingly adopting waste heat recovery technologies and modular HRSG systems to improve thermal efficiency and reduce operational fuel consumption.

• Growing investments in refinery modernization and industrial cogeneration facilities are accelerating deployment of automated steam recovery and thermal monitoring technologies during 2025–2026.

• Expansion of decentralized power generation projects and district heating infrastructure is creating strong demand for compact modular HRSG systems across industrial and utility applications worldwide.

• Utilities and industrial operators are increasingly integrating digital monitoring systems and automated thermal optimization technologies to improve steam recovery efficiency and reduce industrial emissions globally.

U.S. Heat Recovery Steam Generator (HRSG) Market Size Outlook:

The U.S. Heat Recovery Steam Generator (HRSG) Market was valued at USD 0.78 billion in 2025 and is expected to reach USD 1.19 billion by 2035 at a CAGR of 4.29%. The growth of the U.S. heat recovery steam generator market can be attributed to increasing investments made in combined cycle gas power plants, industrial waste heat recovery solutions, and power generation equipment infrastructure within the country. Growth of the U.S. heat recovery steam generator market is being driven by increased adoption among utilities and industrial users who are increasingly becoming interested in adopting strategies that minimize their fuel use, increase their thermal efficiencies, and reduce their operating emissions in power generation facilities. Construction of natural gas-fired power plants, refinery modernization efforts, and cogeneration systems will play a pivotal role in driving market growth during 2025-2026. Growing need for electricity in industries and data centers is further fueling installations of heat recovery steam generators in the United States.

More than 60% of electricity generated from utility-scale natural gas facilities in the United States during 2025 involved combined cycle operations utilizing heat recovery steam generator technologies for improving thermal efficiency and reducing fuel wastage across power plants.

Heat Recovery Steam Generator (HRSG) Market Segment Analysis

• By Design Type, horizontal HRSG dominated with approximately 52.36% revenue share in 2025; modular HRSG are expected to be the fastest-growing type segment at approximately 6.91% CAGR from 2026 to 2035.

• By Application, combined cycle power plants dominated with approximately 58.44% revenue share in 2025; industrial processing plants is expected to be the fastest-growing type segment at approximately 6.75% CAGR from 2026 to 2035.

• By End User Industry, utilities dominated with approximately 49.18% revenue share in 2025; manufacturing industries are expected to be the fastest-growing type segment at approximately 6.56% CAGR from 2026 to 2035.

By Design Type, horizontal HRSG dominating while modular HRSG emerging as the fastest-growing

The revenue contribution of the horizontal HRSG was projected to be about 52.36% in 2025 due to the preference for the use of high capacity steam generators that would enable the generation of electricity through large combined cycle power plants. Horizontal HRSGs were highly adopted because of their high efficiency in thermal management, ease of access for maintenance, and installation in large capacity gas turbine plants. The heat recovery steam generator market increased use of horizontal HRSGs within natural gas plants, refineries, and other utility installations in 2025. Investments in electricity generation plants and adoption of energy-efficient thermal recovery systems played an important role in making the segment dominant.

The segment for the modular HRSG is likely to experience the highest CAGR of around 6.91% during the review period (2026-2035) on account of the growing demand for flexible, space-saving, and quick-deployed steam recovery solutions in industrial applications and decentralized power generation plants. There has been an increase in the use of modular HRSGs in applications such as industrial waste heat recovery, mobile power generating plants, and small cogeneration plants due to their quicker installation process. The rise in investments in modular energy infrastructure, distributed power generation, and industrial efficiency programs is driving the adoption of modular HRSGs.

By Application, combined cycle power plants dominating while industrial processing plants emerging as the fastest-growing

The combined cycle power plants segment contributed about 58.44% of revenue share in 2025 since utilities have been increasingly incorporating HRSG systems into their natural gas combined cycle plants to boost thermal efficiency, cut down fuel utilization, and enhance electricity production. There was tremendous growth in heat recovery steam generator market due to increased demand from major combined cycles due to rising electricity consumption, construction of gas-fired electricity generation capacity, and the growing emphasis on lowering emission levels globally. There has been an increasing trend toward utilizing advanced heat recovery steam generators that were complemented by efficient steam turbines and thermal monitoring devices during 2025.

The market for industrial processing plants is anticipated to record the fastest growth rate of around 6.75% during 2026–2035 owing to rising installations of waste heat recovery systems in refineries, chemical plants, metal processing units, and various other manufacturing industries. There has been an increasing trend among industrial players to adopt heat recovery steam generator market systems to enhance energy efficiency, minimize operational costs, and recover thermal energy from high-temperature exhaust systems of the industry. Rising industrial manufacturing activities and emphasis on sustainable industrial operations have increased the demand for HRSGs in recent times.

By End User Industry, utilities dominating while manufacturing industries emerging as the fastest-growing

The utilities segment represented about 49.18% of the revenue share in 2025 due to the growing usage of sophisticated HRSG equipment by utilities across integrated cycle power plants and high-capacity electrical generating units to enhance their efficiency and minimize wastages of fuel. The heat recovery steam generator market experienced high demand from utilities due to an increase in the consumption of electricity, growth in natural gas power plants, and rising investments in power production through efficient technologies. There was growing use of automated steam recovery technologies, thermal monitoring technologies, and sophisticated technologies for emissions reduction by utilities in 2025.

Manufacturing industry segment is anticipated to record the highest growth rate at CAGR of about 6.56% during 2026-2035 on account of rise in the use of industrial waste heat recovery equipment and cogeneration facilities among heavy manufacturing plants. Manufacturers are extensively utilizing the HRSG systems in order to boost thermal efficiency and minimize cost of production among other manufacturing benefits. Investments in industrialization, automation and energy efficient production equipment are fueling the installation of highly advanced heat recovery steam generator market systems in manufacturing industries around the world.

Regional Insights:

North America Heat Recovery Steam Generator (HRSG) Market Insights

North America dominated the global market for heat recovery steam generators with a market share of 36.42% in 2025 due to the growth in the usage of combined cycle gas power generation plants, industrial cogeneration systems, and refinery upgrades in the U.S. and Canada. The combined-cycle use accounted for more than 60% of natural gas generation of electricity in the U.S. in 2025 that makes use of the HRSG system to optimize the thermal efficiency and save on the wastage of fuels used in the production process. Several industrial sites in the states of Texas and Louisiana underwent renovation to enhance steam recovery systems along with the installation of modular HRSGs fitted with pollution control equipment.

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Europe Heat Recovery Steam Generator (HRSG) Market Insights

The share of heat recovery steam generator market in Europe was estimated at approximately 24.18% in 2025 due to investments being made in industrial energy efficiency solutions, district heating networks, and combined heat and power generation plants in countries like Germany, France, Italy, and the United Kingdom. There was an increase in the use of industrial cogeneration plants of more than 18% in 2025 in Germany, along with increased installations of sophisticated HRSGs linked with the operation of gas turbines. Europe also saw significant investments in the modernization of outdated thermal power plants and energy-efficient industrial steam recovery plants in manufacturing sites.

Asia Pacific Heat Recovery Steam Generator (HRSG) Market Insights

The Asian-Pacific region is projected to have the fastest rate of growth in the heat recovery steam generator market with a CAGR of around 6.85% over the period from 2026 to 2035 due to the fast development of industrial manufacturing facilities, combined cycle power plants, and refining capacity upgrades in China, India, Japan, and Southeast Asian countries. China invested heavily in combined cycle thermal power plants in 2025, resulting in the adoption of advanced HRSG systems in both utility and industrial applications. On the other hand, India increased investment in cogeneration plants in industries and natural gas-fired power generation facilities, while some manufacturing companies adopted waste heat recovery techniques for efficiency gains.

Middle East & Africa and Latin America Heat Recovery Steam Generator (HRSG) Market Insights

The Middle East & Africa heat recovery steam generator market had a share of around 5.32% in 2025, whereas the Latin American region recorded almost 6.22% due to growing investments in refining units’ modernization projects, energy recovery processes in industries, and combined cycle power plants in both markets. Natural gas power generation and industrial cogeneration capacities were upgraded in the Gulf region throughout 2025, resulting in greater adoption of sophisticated HRSGs along with utility applications. In addition, Brazil installed more industrial steam recovery units at various manufacturing units and petrochemical plants by approximately 16% in 2025.

Market Dynamics:

Growth Drivers: Rising deployment of combined cycle power plants and industrial waste heat recovery systems accelerating industry growth

The heat recovery steam generator market will experience growth owing to rising investments in the installation of combined cycle power plants, industrial facilities for waste heat recovery, and energy efficient steam generator systems. Adoption rate of heat recovery steam generator market is high because of the growing efforts taken by companies to improve their thermal efficiency, reduce fuel usage, and decrease their emissions. Growing development of power plants based on natural gas, refinery upgradation, and cogen plant will drive the market over the period of 2025–2026. Deployment of modular heat recovery steam generators and automated systems for thermal monitoring will also contribute to growth.

More than 60% of utility-scale electricity generated from natural gas facilities in the United States during 2025 involved combined cycle operations utilizing heat recovery steam generator technologies for improving thermal performance and operational efficiency across large-scale power plants.

Restraints: High installation costs and operational complexity limiting industry expansion

This heat recovery steam generator market will have difficulties in view of the capital intensive nature of combined cycle power generation stations, sophisticated steam recovery equipment, and industrial thermal systems construction projects. The increased complexity, maintenance issues, and reliance on natural gas power generation plants could make the use of heat recovery steam generator systems less feasible for small industrial operations. Besides that, variations in the price of industrial fuels, lengthy project authorization processes, and the difficulty of integrating with older industrial thermal system installations could also contribute to inefficiency in the industry. Lastly, environmental compliance costs and competition from renewables technology could inhibit the growth of heat recovery steam generators within the industry by 2025–2026.

Opportunities: Expansion of modular steam recovery systems and industrial cogeneration projects creating new opportunities

There are various opportunities within the heat recovery steam generator market due to increased use of modular heat recovery steam generators, cogeneration plants in the industrial sector, and efficient thermal recovery techniques in utilities and manufacturing organizations worldwide. The heat recovery steam generator market is benefiting considerably from the increased number of investments made for the modernization of refineries, energy efficiency initiatives in industrial sectors, and incorporation of steam recovery mechanisms into smart grid monitoring systems. The increased uptake of automated thermal management technologies and modular HRSG equipment is driving innovation in the heat recovery steam generator market between 2025 and 2026.

South Korea expanded deployment of district heating and cogeneration infrastructure during 2025, with advanced HRSG-equipped facilities supplying steam and electricity services to more than 100,000 residential and commercial users across urban energy distribution networks.

Recent Developments:

• January, 2025: General Electric Company: GE Vernova expanded deployment of advanced HRSG systems for combined cycle gas turbine projects across Asia and North America, focusing on high-efficiency steam recovery technologies integrated with H-Class gas turbines for utility-scale power generation applications.

• September, 2025: Mitsubishi Heavy Industries, Ltd.: Mitsubishi Power announced development of a large-scale 2,800 MW combined cycle power project utilizing advanced M501JAC gas turbines and integrated HRSG systems designed to improve thermal efficiency and reduce operational emissions across utility power generation infrastructure.

• 2026, General Electric Company: GE Vernova supported recommissioning of Japan’s Goi Thermal Power Station using advanced H-Class turbine and HRSG technologies, contributing approximately 2.3 GW of additional electricity generation capacity to Japan’s utility infrastructure.

Heat Recovery Steam Generator (HRSG) Companies are:

• General Electric Company

• Siemens Energy AG

• Mitsubishi Heavy Industries, Ltd.

• Babcock & Wilcox Enterprises, Inc.

• John Wood Group PLC

• Thermax Limited

• Nooter/Eriksen Inc.

• Bharat Heavy Electricals Limited (BHEL)

• Doosan Enerbility Co., Ltd.

• CMI Group

• Clayton Industries

• AC Boilers S.p.A.

• Rentech Boilers

• Aalborg Engineering A/S

• Siemens AG

• Cleaver-Brooks, Inc.

• Vogt Power International Inc.

• Hangzhou Boiler Group Co., Ltd.

• Harbin Electric Corporation

• Ansaldo Energia S.p.A.

Heat Recovery Steam Generator Market Report Scope: