Oil Gas Waste Heat Recovery Market

Rising emphasis on reducing carbon footprint drives market growth.

Market CAGR for oil and gas waste heat recovery is being driven by the rising focus on reducing carbon footprint. The growing importance of energy conservation paired with severe environmental laws around the world will enhance market size. Only a few of the energy-intensive industries with significant waste heat recovery potential are petroleum refining, cement, glass, heavy metal processing, and chemical production. 

WHR systems are likely to become more important in the coming years due to their capacity to reduce running costs while also producing onsite energy and heat. Government regulations aiming at reducing carbon emissions while boosting energy efficiency will drive growth in the WHRS sector. Continuous technological developments have significantly enhanced productivity while decreasing device costs, imitating business growth. Furthermore, growing market awareness of environmental conservation and efficient waste heat utilisation will boost the industry's potential.

Waste heat recovery systems are used for plant process heating, combustion air pre-heating, boiler feed water pre-heating, steam ejectors, ORC generators, and building comfort heat. Waste heat is frequently inefficient in terms of temperature. Making the most of the available heat might be tough. In these cases, ORC technology may give an additional benefit by improving overall plant performance. This normally useless energy is converted into electricity by the ORC gadget. 

In addition, commercial and other businesses generate a significant amount of waste heat in the energy system. Many businesses are utilising heat recovery systems to recover this energy and reduce energy loss, and so the rising industrialisation is a major factor fueling the waste heat recovery system market demand. Thus, driving the oil and gas waste heat recovery market revenue.

The Global Oil and Gas Waste Heat Recovery Market Industry is poised for substantial growth, with projections indicating a market size of 12.6 USD Billion in 2024 and an anticipated increase to 25.1 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 6.49 percent from 2025 to 2035. Such projections highlight the increasing recognition of waste heat recovery as a viable solution for energy efficiency and sustainability in the oil and gas sector. The market's expansion reflects a broader trend towards optimizing energy use and reducing environmental impact across the industry.

Technological advancements are significantly impacting the Global Oil and Gas Waste Heat Recovery Market Industry. Innovations in heat recovery technologies, such as organic Rankine cycle systems and advanced heat exchangers, are enhancing the efficiency and effectiveness of waste heat recovery processes. These advancements not only improve the performance of existing systems but also reduce the costs associated with implementation. As companies seek to optimize their operations, the adoption of these cutting-edge technologies is likely to increase. This trend is expected to contribute to the market's growth trajectory, aligning with the overall increase in investment in waste heat recovery solutions.

The Global Oil and Gas Waste Heat Recovery Market Industry is driven by the pressing need for enhanced energy efficiency within the sector. Companies are increasingly recognizing the potential of waste heat recovery systems to capture and utilize excess heat generated during operations. This not only reduces energy consumption but also lowers operational costs. For instance, the implementation of waste heat recovery systems can lead to energy savings of up to 30 percent in some facilities. As the market is projected to reach 12.6 USD Billion in 2024, the focus on energy efficiency is likely to propel further investments in waste heat recovery technologies.

Growing environmental concerns are increasingly influencing the Global Oil and Gas Waste Heat Recovery Market Industry. As public awareness of climate change and environmental degradation rises, stakeholders are compelled to adopt cleaner technologies. Waste heat recovery systems offer a viable solution by reducing emissions and improving overall sustainability. For instance, the integration of these systems can lead to a reduction in carbon emissions by approximately 20 percent in certain operations. This shift towards sustainability is expected to drive market growth, with a projected compound annual growth rate of 6.49 percent from 2025 to 2035.

Government regulations and incentives play a crucial role in shaping the Global Oil and Gas Waste Heat Recovery Market Industry. Many countries are implementing stringent regulations aimed at reducing greenhouse gas emissions and promoting sustainable practices. For example, the introduction of tax credits and grants for companies investing in waste heat recovery technologies encourages adoption. This regulatory landscape not only fosters innovation but also enhances the economic viability of waste heat recovery projects. As a result, the market is expected to grow significantly, with projections indicating a rise to 25.1 USD Billion by 2035, driven by supportive policies.

The increasing demand for renewable energy sources is a significant driver of the Global Oil and Gas Waste Heat Recovery Market Industry. As the energy landscape shifts towards sustainability, the integration of waste heat recovery systems becomes essential in maximizing energy output from existing resources. These systems can complement renewable energy initiatives by providing additional energy without increasing fossil fuel consumption. The synergy between waste heat recovery and renewable energy projects is likely to enhance market growth, as stakeholders seek to optimize energy production while minimizing environmental impact.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Oil and Gas Waste Heat Recovery Market area will dominate this market, as fuel prices rise, government programmes and efforts to promote industrial energy efficiency all contribute to market growth in this area. Companies seek alternative energy sources in order to reduce their carbon footprint and accomplish sustainability goals. Furthermore, governments in North America are promoting the use of waste heat recovery through tax breaks, subsidies, and restrictions.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2: Oil And Gas Waste Heat Recovery Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Oil and Gas Waste Heat Recovery Market accounts for the second-largest market share due to the growing awareness of WHR systems, combined with European Union measures to generate energy from waste, has been a crucial driving factor for regional expansion. Further, the German Oil and Gas Waste Heat Recovery Market held the largest market share, and the UK Oil and Gas Waste Heat Recovery Market was the fastest growing market in the European region

The Asia-Pacific Oil and Gas Waste Heat Recovery Market are expected to grow at the fastest CAGR from 2023 to 2032. This is due to rising awareness of the benefits of waste heat recovery, such as cost savings and sustainability, as well as the increase of energy-intensive industries such as steel manufacture, are driving regional market growth. Moreover, China’s Oil and Gas Waste Heat Recovery Market held the largest market share, and the Indian Oil and Gas Waste Heat Recovery Market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Oil and Gas Waste Heat Recovery Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Oil and Gas Waste Heat Recovery industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Oil and Gas Waste Heat Recovery industry to benefit clients and increase the market sector. In recent years, the Oil and Gas Waste Heat Recovery industry has offered some of the most significant advantages to medicine. Major players in the Oil and Gas Waste Heat Recovery Market, including Siemens AG (Germany), Mitsubishi Heavy Industries Ltd. (Japan), Echogen Power Systems Inc. (U.S), Econotherm Ltd (U.K) and others, are attempting to increase market demand by investing in research and development operations.

ABB Ltd. is a Swedish-Swiss enterprise headquartered in Zürich, Switzerland. ASEA Brown Boveri was created in 1988 when Sweden's Allmänna Svenska Elektriska Aktiebolaget (ASEA) and Switzerland's Brown, Boveri & Cie amalgamated to form ASEA Brown Boveri, afterwards abbreviated to ABB. Both firms were founded in the late 1800s and were major makers of electrical equipment, a business in which ABB is still involved today. Since then, the company has grown into robotics and automation technology. In March 2020, ABB announced the sale of its solar inverter business to Fimer, an Italian solar inverter maker.

The purchase comprises all of ABB's production and research and development facilities in Finland, Italy, and India, as well as 800 people spread across 26 countries.

Siemens is a German multinational conglomerate and Europe's largest industrial manufacturing firm. Its headquarters are in Munich, and it has a number of foreign branch offices. The company's primary divisions are Digital Industries, Smart Infrastructure, Mobility, Healthcare (named Siemens Healthineers), and Financial Services. 

The firm is a notable manufacturer of medical diagnostics equipment; its medical health-care segment, which accounts for around 12% of total revenues, is the corporation's second-most lucrative unit after the industrial automation division. In October 2022, Siemens has established a strategic cooperation with Volta Trucks, a Swedish electric commercial vehicle manufacturer, to deploy and scale eMobility charging infrastructure in order to ease the transition to fleet electrification.