PUNE, India — The global waste heat recovery system market was valued at $44.14 billion in 2015, and is projected to reach $65.87 billion by 2021, increasing at a compound annual growth rate (CAGR) of 6.9 percent between 2016 and 2021, according to a new report published by MarketsandMarkets.
Rising energy and electricity prices coupled with stringent government regulations and incentives are expected to drive the market in the future.
The waste heat recovery market is segmented based on application into preheating, steam and electricity generation, and others. In 2015, the steam and electricity generation application segment captured the maximum share of the overall market; it is also expected to witness the highest CAGR during the forecast period. Steam and electricity generation is a significant application of recovered waste heat because of the growing demand for energy in both developed and developing economies. Steam generation from waste heat sources is crucial to several end-use industries and, thus, is a major waste heat recovery application.
The major end-use industries for waste heat recovery are petroleum refining, metal production, cement, chemical, paper and pulp, and others. Demand in the cement industry is projected to register the highest CAGR during the forecast period. The global cement industry is projected to register a CAGR of 9 percent from 2016 to 2021. The growth in this industry is backed by increasing investment in various developing countries worldwide, increasing per capita income, and economic growth. The construction sector of developing countries such as China, India, and Indonesia is growing rapidly, especially in terms of education, health care, retail, and residential construction. These factors will play an important role in driving the demand for waste heat recovery in the cement industry.
The waste heat recovery market is broadly segmented into five regions: North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. Europe is the largest waste heat recovery market, closely followed by North America, in terms of value. Government and environmental organizations in various countries such as the U.S. and European Union have adopted stringent regulations on energy efficiency. Even the governments in developing regions such as Asia-Pacific and South America are formulating stricter regulations for environmental protection. These energy efficiency regulations are driving the use of waste heat recovery in various manufacturing-oriented industries.
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Publication date: 10/19/2016