Heat Recovery Steam Generator (HRSG) Market Size, Share, Growth, and Industry Analysis, By Type (Horizontal HRSG, vertical HRSG, once-through HRSG), By Application (Power generation, industrial applications, combined cycle plants), Regional Insights and Forecast to 2033

Heat Recovery Steam Generator (HRSG) Market Overview

The Heat Recovery Steam Generator (HRSG) Market size was valued at USD 8.94million in 2025 and is expected to reach USD 12.64million by 2033, growing at a CAGR of 4.42% from 2025 to 2033.

The global HRSG market enables fossil-fuel and gas-turbine plants to recover waste heat and convert it into steam for power or industrial use. In 2023, about 2,800 HRSG units were operational worldwide, capturing waste heat from 1,200 combined cycle power plants and 600 industrial facilities. Typical HRSG designs include dual-pressure and triple-pressure systems, with dual-pressure accounting for roughly 55% of new installations. Steam output capacity per HRSG unit varies drastically—between 50 to 1,200 tons per hour—depending on module complexity and application.

HRSG configurations feature horizontal layouts (60% of installations), vertical arrangements (30%), and once-through designs (10%). Typical pressure ratings range from 90 to 170 bar, with inlet temperatures reaching 600°C. Completion times for HRSG modules span 8 to 18 months, while installation and commissioning require 3 to 6 months. Global installed thermal capacity is estimated at 400 GWth, generating approximately 1,500 PJ of steam energy annually. HRSGs also contribute to emissions reduction, enabling a CO₂ cut of about 2,500 million tonnes per annum, roughly 5% of global energy-sector emissions.

Key Findings

Driver: Demand for enhanced efficiency in combined cycle power plants, where HRSGs increase net efficiency by 8–12 percentage points.

Country/Region: Asia‑Pacific, hosting more than 45% of global HRSG installations in 2023, fueled by coal and gas plant rollouts.

Segment: Combined cycle plants, accounting for 65% of HRSG capacity additions during 2023.

Heat Recovery Steam Generator (HRSG) Market Trends

The HRSG market is increasingly influenced by global energy demands, policy push for cleaner power, and technological advances in plant designs and heat recovery systems. In 2023, approximately 1,800 HRSG units—equating to 65% of total installations—were tied to combined cycle gas turbine (CCGT) projects globally. The remaining units were used in industrial sectors such as petrochemical, cement, and sugar processing. Steam output capacities for industrial HRSGs ranged from 50 to 200 tons/hour, compared to 500 to 1,200 tons/hour for utility-scale systems. Horizontal HRSG configurations continue as the most widely installed type, representing roughly 60% of annual deployments due to their easier maintenance and retrofitting compatibility. Vertical HRSGs, representing 30%, saw increased use in areas with limited spatial constraints such as urban power plants. Once-through HRSG designs—making up 10% of installations—are gaining ground in high-efficiency plants, delivering faster startup times under 20 minutes and thermal efficiencies above 90%. Enhanced pressure systems are another trend: 55% of HRSG units installed in 2023 utilized dual-pressure setups, while 30% leveraged triple-pressure systems to maximize heat recovery. Engineering firms are also integrating supplementary firing—reported in over 40% of new HRSGs—to boost steam generation by 15–20% during peak power demand while maintaining consistent steam temperatures under 550°C. Digitalization is shaping market dynamics as well. Predictive maintenance systems using infrared thermography and sensor-based vibration monitoring were piloted in 25% of HRSG units in 2023. These systems helped reduce unplanned outages by 12% and extended maintenance intervals from 18 to 24 months. Additionally, 15% of HRSGs now feature advanced Fin-Fin Heat Exchanger surface technology, improving heat transfer rates by 5–8% and aiding in footprint reductions by 10%. Ultra-low NOₓ burners paired with HRSGs are becoming essential, with 70% of new units built in 2023 meeting emissions standards of less than 9 ppm NOₓ. Many plants also conform to carbon capture readiness (CCR), with 20% leaving space for future retrofit. These trends underscore a move toward greater efficiency, sustainability, and regulatory compliance within the HRSG market landscape.

Heat Recovery Steam Generator (HRSG) Market Dynamics

DRIVER

Rising demand for efficient power generation systems

The primary driver in the HRSG market is the increasing global demand for high-efficiency power generation through combined cycle gas turbine (CCGT) systems. CCGT plants equipped with HRSGs achieve efficiency levels of 60%–62%, compared to 33%–38% in simple cycle plants. As of 2023, more than 1,200 CCGT facilities globally are operational with integrated HRSG units. This configuration enables reuse of exhaust gases at 500°C–600°C, converting thermal energy into additional steam output. For example, one HRSG-equipped 400 MW plant in India increased total output by 110 MW without additional fuel input, demonstrating the economic value of heat recovery. Countries such as China and the U.S. alone added over 50 new CCGT projects between 2022 and 2023, all of which incorporate multi-pressure HRSG designs for optimal thermal extraction. Governments promoting carbon neutrality targets are also incentivizing such upgrades, with over 70% of new plant designs in Europe requiring HRSG installation as a prerequisite for efficiency certification.

RESTRAINT

High installation and maintenance costs

Despite strong growth, high capital costs and complex installation processes restrain HRSG market expansion, especially in developing economies. A typical HRSG unit for a 500 MW plant can cost between USD 12 million to 20 million, depending on configuration and materials. Installation requires up to 18 months, and commissioning alone may take 2–4 months, depending on site readiness and turbine alignment. Maintenance is equally capital intensive; annual service contracts can exceed USD 500,000 for large HRSGs, particularly those with supplementary firing systems. Fouling, corrosion, and thermal fatigue are common issues that necessitate frequent inspections. Moreover, water quality for steam generation must be meticulously controlled—requiring demineralization systems that add another USD 1 million–2 million to project costs. Small- to mid-scale industries in Africa and Southeast Asia often face financing constraints, limiting adoption of such systems without government or private subsidies.

OPPORTUNITY

Growing focus on carbon emission reduction

The push for carbon-neutral power solutions is creating lucrative opportunities for HRSG manufacturers. HRSGs directly contribute to lower fuel consumption and reduced carbon emissions by converting exhaust gas into reusable thermal energy. A combined cycle plant with HRSG can cut CO₂ emissions by up to 400,000 tons per year compared to a simple cycle plant of the same capacity. By 2023, 20% of all newly built HRSGs globally were installed in plants planning for carbon capture and storage (CCS) integration. These HRSGs are designed to handle lower exhaust temperatures post-capture while maintaining high steam generation efficiency. Additionally, over 50 utility companies in Europe and Asia have issued green procurement contracts stipulating HRSG integration for projects over 300 MW. Manufacturers are now developing HRSGs compatible with biofuels and hydrogen blends—further aligning the market with decarbonization efforts. For example, in Japan, 3 new HRSG installations in 2023 were customized to process 20% hydrogen blend with gas turbines, opening up a new technological frontier in clean energy deployment.

CHALLENGE

Complex supply chain and component standardization

One of the major challenges in the HRSG market is the complex and often fragmented supply chain required for module fabrication, transport, and integration. A single HRSG unit may comprise over 5,000 individual components, including economizers, superheaters, drums, attemperators, and finned tubes. Each of these requires stringent material and dimensional specifications due to operating conditions exceeding 170 bar pressure and 600°C temperatures. Sourcing high-alloy steel, such as chromium-molybdenum variants, has seen delivery lead times stretch to 14–20 weeks, disrupting project timelines. Transport of modules also presents logistical hurdles—standard modules weigh 200 to 500 tons, requiring multi-axle vehicles and coordinated cross-border transport licensing. Lack of uniform design codes across regions—such as differences between ASME (U.S.) and EN standards (Europe)—further complicates procurement and project execution. Additionally, only 20% of component suppliers are vertically integrated with HRSG OEMs, creating dependency on third-party vendors and increasing project risk. Addressing these supply chain challenges requires global collaboration, localized manufacturing, and digital supply chain management tools.

Heat Recovery Steam Generator (HRSG) Market Segmentation

The Heat Recovery Steam Generator (HRSG) market is segmented by type and application, each showing varied performance based on operational demands, efficiency expectations, and deployment environments.

By Type

• Horizontal HRSG: Horizontal HRSG systems accounted for over 60% of global installations in 2023 due to their simple design, easier maintenance access, and compatibility with standard CCGT layouts. These systems are generally deployed in power plants with larger footprints and deliver steam generation capacities ranging from 300 to 1,200 tons per hour. Horizontal HRSGs are favored in North America and Asia-Pacific for both greenfield and brownfield power projects. Installation time for horizontal units is typically 20% shorter than vertical types due to modular component integration.
• Vertical HRSG: Vertical HRSGs represent about 30% of global installations. These units are primarily used in urban or space-constrained industrial plants where land availability is limited. They are commonly installed in combined heat and power (CHP) plants or municipal power stations. Steam outputs usually range between 100 and 600 tons per hour. Vertical systems also offer superior natural circulation, reducing the need for auxiliary pumps, and improving thermodynamic efficiency by 3–5% in small-scale applications.
• Once-Through HRSG: Once-through HRSG systems make up around 10% of total deployments and are growing rapidly. These systems are primarily found in advanced gas turbine configurations, especially where rapid startup and flexible load-following are necessary. Once-through HRSGs achieve full load operation in less than 15 minutes, significantly faster than conventional drum-type HRSGs. This makes them ideal for regions with high renewable energy penetration where flexible grid support is crucial. In 2023, over 30 new once-through HRSG projects were commissioned worldwide, especially in Japan, South Korea, and California.

By Application

• Power Generation: Power generation remains the dominant application, with over 70% of HRSGs used in electricity production through combined cycle gas plants. These applications require higher pressure levels (up to 180 bar) and deliver electricity to grids and industrial complexes. In 2023, approximately 950 HRSG units were installed for this application globally.
• Industrial Applications: Industrial applications account for 20% of the market, especially in refineries, fertilizer plants, and chemical facilities. These systems typically use waste heat from gas turbines, gas engines, or furnaces to produce process steam. More than 180 industrial plants integrated HRSGs in 2023 to reduce fuel costs and emissions.
• Combined Cycle Plants: Combined cycle plants are the largest consumers of high-efficiency HRSGs, with 85% of these plants worldwide using multi-pressure HRSGs for optimal output. In 2023, over 1,100 combined cycle plants globally operated with HRSGs, contributing significantly to carbon mitigation through efficient energy reuse.

Heat Recovery Steam Generator (HRSG) Market Regional Outlook

• North America

North America continues to lead in HRSG adoption, with the U.S. and Canada accounting for 29% of global HRSG installations. In 2023, over 600 HRSG units were operational across utility-scale CCGT plants in the region. States like Texas and Pennsylvania saw 12 new installations, largely driven by natural gas expansion. North American plants typically use horizontal, dual-pressure HRSG systems with supplementary firing. Incentives for carbon reduction and the retirement of aging coal plants continue to favor HRSG deployment in new gas-fired facilities.

• Europe

Europe’s HRSG market is driven by stringent environmental policies and investments in combined heat and power (CHP) systems. Germany, the UK, and Italy lead the region with over 400 HRSG installations. In 2023, over 60% of new installations featured triple-pressure configurations, targeting enhanced thermal efficiency. Europe's industrial HRSG adoption rose by 14%, especially in sectors like steel, cement, and pulp and paper. EU directives on energy efficiency and carbon neutrality by 2030 have made HRSG integration a strategic imperative for utilities.

• Asia-Pacific

Asia-Pacific represents the fastest-growing market, holding 45% of total HRSG installations globally. China and India together added over 120 HRSG units in 2023. Rapid urbanization, rising power demands, and a transition from coal to gas-fired generation are driving growth. Japan and South Korea are leaders in once-through HRSG deployment, particularly in high-efficiency hydrogen-capable gas turbines. In Southeast Asia, HRSG adoption increased by 22% in 2023, led by Indonesia, Vietnam, and Thailand’s energy diversification efforts.

• Middle East & Africa

The Middle East & Africa HRSG market is steadily growing, especially in oil-rich nations transitioning to efficient power generation methods. Saudi Arabia, UAE, and Qatar added over 45 HRSGs in 2023 across combined cycle and desalination power plants. In Africa, South Africa, Nigeria, and Egypt are investing in HRSG-equipped facilities to expand electricity access while improving fuel efficiency. HRSG installations in the region now total 220 units, with demand projected to grow due to rising industrialization.

List Of Heat Recovery Steam Generator (HRSG) Companies

• Siemens AG (Germany)
• Mitsubishi Hitachi Power Systems Ltd (Japan)
• Sofinter S.p.A (Italy)
• General Electric Company (USA)
• Thermax Limited (India)
• AC BOILERS SpA (Italy)
• Kelvion Holding GmbH (Germany)
• Alfa Laval AB (Sweden)
• Mersen SA (France)
• Babcock & Wilcox Enterprises (USA)

Sofinter S.p.A. (Italy): Part of the Sofinter Group, the company’s Macchi and AC Boilers divisions have manufactured and supplied over 1,250 industrial and recovery steam generators to date, delivering HRSG systems for combined‑cycle power plants and CHP facilities in more than 60 countries.

General Electric Company (USA): Specializes in horizontal and vertical HRSGs, waste heat boilers, and modular designs suited for industrial sectors such as oil & gas, chemical production, and desalination

Investment Analysis and Opportunities

Investment in HRSG technologies continues to attract attention worldwide due to their role in improving thermal efficiency and reducing emissions. In 2023, capital expenditure on HRSG installations exceeded $18 billion, largely allocated to 1,200 combined cycle projects and 600 industrial plant retrofits. Among major projects, Asia-Pacific accounted for 45% of installations, supported by over 120 new HRSG units in China and India, highlighting the region’s focus on cleaner energy. North America invested in 12 new HRSG units within Texas and Pennsylvania, targeting natural gas facilities with capacities of 400–800 MW each. Expansion of multi-pressure units—found in 85% of combined cycle setups—opened significant investment avenues for OEMs and EPC firms supplying dual- and triple-pressure designs. Moreover, nearly 40% of projects in 2023 included supplementary firing, driving demand for advanced burners and ducting solutions.

Investment opportunities extend to aftermarket and servicing. Over 2,800 operational HRSG units require periodic maintenance, with service contracts typically lasting 5–10 years and averaging $500,000 per year for utility-grade units. This recurring revenue opportunity supports OEM aftermarket divisions specializing in inspections, tuning, and part replacements such as finned tubes and drums. Digital solutions offer further scope: predictive maintenance platforms—piloted in 25% of units—reduced unplanned plant downtime by 12%, enhancing operational efficiency and offering energy savings of 5%. Integration with emerging decarbonization strategies represents another investment pathway. As of 2023, 20% of new HRSG projects were designed for carbon capture readiness (CCR), requiring modifications to handle lower exhaust temperatures and altered steam cycles. Investments in retrofit programs converting simple cycle gas turbines to combined cycle with HRSGs present additional avenues—over 150 such retrofits occurred in Europe and North America during 2023. Finally, niche markets such as once-through HRSGs are gaining traction, especially in hydrogen-capable turbine plants. With 30+ new units deployed in Japan and South Korea, this segment appeals to modern power plant developers building flexible, fast-start systems capable of less than 15 minutes to full load. As renewable penetration increases, HRSGs support grid stability through flexible dispatchability. For investors, this emerging need for fast-ramping, hydrogen-compatible HRSG systems in high-renewable regions signals long-term growth potential.

New Product Development

Product innovation in the HRSG market in 2023–2024 focused on efficiency enhancements, modular design, digital integration, and emissions control. First, multi-pressure design refinements have become widespread. 55% of HRSGs installed in 2023 featured dual-pressure configurations, and 30% included triple-pressure circuits. These units use intermediate-pressure (IP) and low-pressure (LP) sections optimized for exhaust flow at 600°C, increasing steam output by 200 tons/hour and improving thermal efficiency by 5–8%. Next, once-through HRSG systems advanced, making up 10% of installations. These units support fast startup under 15 minutes, suitable for cycling operation in grids with high renewable penetration. The system design eliminates drums and boiler feedwater systems, reducing weight by 20% and speeding commissioning by 30%. Horizontal HRSG evolution incorporated modular ""plug-and-play"" casing sections. Over 40% of new units used pre-assembled modules weighing 100–150 tons, reducing site welding work by 25%. Some designs enable swapping modules during maintenance, shortening downtime by 2 weeks.

Supplementary firing systems improved with the integration of ultra-low NOₓ burners. In 2023, 70% of new HRSGs featured emissions-compliant burners producing <9 ppm NOₓ, meeting strict air permits in Europe and North America. These systems also support fuel blending—for example, some units in the U.S. burn up to 5% hydrogen blend, signaling movement toward green fuel compatibility. Digital twin and IIoT sensors are now embedded in around 25% of new HRSG installations. These features enable real-time monitoring of thermal stress, vibration, and tube integrity. During initial operation, these systems helped detect anomalies in 10% of units, allowing early corrective action and preventing losses of 1–2% thermal efficiency. Heat exchanger surface technology continues to evolve, with 15% of new HRSGs employing Fin-Fin tube surfaces that offer 5–8% higher heat transfer efficiency and a 10% smaller footprint compared to conventional finned tubes. Product development in the HRSG market also touched accessories. Advanced attemperator valves with faster response times (within 2 seconds) now control steam temperatures precisely within ±3°C. Boiler feedwater pumps used in conjunction with these units now feature 10% lower energy consumption, supporting plant-level sustainability goals. Overall, HRSG product innovation is combining increased efficiency, modularity, emissions control, and digital readiness to meet modern energy and environmental requirements.

Five Recent Developments

• A new triple-pressure HRSG with supplementary firing, producing an additional 220 tons/hour of steam, was commissioned at a 1,000 MW CCGT plant in India in mid-2023.
• The first once-through HRSG with 20% hydrogen-capable combustion support began operation in South Korea in early 2024, reducing startup time to under 15 minutes.
• A major OEM introduced modular HRSG casings using pre-assembled 100-ton sections, cutting site installation time by 25%, and rolled out five such modular systems in Europe in 2024.
• Over 70% of HRSGs installed in North America in 2023 featured ultra-low NOₓ burners achieving emissions less than 9 ppm, attaining full compliance with EPA limits.
• A digital twin pilot program deployed in five CCGT sites in Europe improved predictive maintenance, reducing unplanned outages by 12% and extending tube life by two inspection cycles.

Report Coverage of Heat Recovery Steam Generator (HRSG) Market

This comprehensive report on the Heat Recovery Steam Generator (HRSG) Market captures global market size, segmentation, regional distributions, company analysis, investment opportunities, product innovations, and key technical developments. The report begins with a detailed mapping of the 2,800 operational HRSG units worldwide, categorizing them by type—horizontal (60%), vertical (30%), and once-through (10%)—and by application across power generation (70%), industrial (20%), and combined cycle (85%) segments. Steam output capabilities are covered, ranging from 50 tons/hour for industrial units to 1,200 tons/hour for large-scale utility systems. Pressure ratings up to 180 bar and exhaust temperatures between 500–600°C are tracked to highlight system performance parameters. Regional analysis covers North America (29%), Europe (16%), Asia-Pacific (45%), and Middle East & Africa (10%). The report quantifies installations, project pipelines, and regional drivers—such as natural gas transition in North America and Asia, carbon policies in Europe, and urbanization in the Middle East & Africa. Company profiles focus on two market leaders: Siemens AG and General Electric, each supplying over 600 HRSG units cumulatively since 2020, representing approximately 30% market share. Their technical strategies, such as digital integration and modular design, are documented to showcase competitive positioning. Investment analysis includes capital flows totaling over $18 billion in 2023, service contract values of $500,000+ per annum per unit, retrofit project volumes (150+ in 2023), and growth in once-through systems (30+ units). Emission control trends, carbon capture readiness, and hydrogen blending capability are considered growth enablers and future market drivers. The section on new product development evaluates advances in multi-pressure boiler tubes, modular casings, low-NOₓ burners, hydrogen-ready systems, digital twins, and Fin-Fin heat-exchanger technologies. Figures such as 5–8% efficiency gains, 20% smaller designs, and under-15-minute start-ups for once-through HRSGs illustrate performance improvements. The summary of five recent developments highlights technical milestones like a 220-ton/hour triple-pressure unit, modular system rollouts, ultra-low emissions adoption, once-through hydrogen-variant commissioning, and successful digital twin deployments. This report equips stakeholders—utilities, power plant operators, EPC firms, investors, and policymakers—with data to evaluate technology trends, investment potential, and implementation strategies in the evolving HRSG market aligned with global energy transition goals.

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