Waste Heat Recovery Market Projected to Reach $135.33 Billion by 2031
The global waste heat recovery market is forecast to reach $135.33 billion by 2031, up from $92.99 billion in 2026. Growth is driven by rising energy costs and decarbonization efforts.
The global market for waste heat recovery systems is projected to reach USD 135.33 billion in 2031, an increase from USD 92.99 billion in 2026. The market is expected to grow at a compound annual growth rate of 7.8% from 2026 to 2031.
Growth drivers for the waste heat recovery market include increasing energy costs, stringent emission regulations, and industry-wide decarbonization initiatives. Energy-intensive sectors are increasingly adopting these systems to improve efficiency and reduce environmental impact. Technological advancements in heat recovery and digital control systems are also contributing to market expansion.
Geographically, Europe held a significant market share of 38.0% in 2025. By application, steam and electricity generation accounted for the largest segment at 57.0%. The petroleum refining sector was the leading end-use industry, capturing 28.8% of the market in 2025.
Key players identified in the market include Siemens Energy AG, GE Vernova Inc., and Mitsubishi Heavy Industries, Ltd. Companies such as IHI Corporation and Wärtsilä Corporation are noted for establishing strong footholds in niche areas.
The trend toward enhanced energy efficiency and reduced operating expenses across industries like cement, steel, and chemicals is fueling demand. These sectors are implementing waste heat recovery to reuse thermal energy, thereby lowering fuel consumption and operational costs.