The massive unexplored waste heat recovery market across the globe has created abundant opportunities for the major players to exploit its potential. Although, there has been significant development in the developed economies of European Union and the U.S., the waste heat recovery market is still at its nascent form especially in the developing countries of Asia-Pacific, Latin America, and Africa. A high growth in the end-user industries has been witnessed in the developing countries of these regions, which is responsible for providing immense growth opportunities for the waste heat recovery market in these regions. Moreover, the increasing government initiatives and tax benefits are expected to attract major players to invest in the development of efficient waste heat management systems.
The petroleum refining segment held the largest share among the various end-users in the global waste heat recovery market in 2015, and it is also expected to retain its dominance during the forecast period.
The global waste heat recovery market is expected to grow at a CAGR of 6.8% during 2016-2022. The major factors driving the growth of the global market include increased government initiatives and stringent regulations, increasing energy and electricity cost, and technological advancements and increasing investment by large scale industries for the installation and development of waste heat recovery systems. The different governments across the globe have initiated several projects and schemes to promote and encourage the conservation and efficient utilization of energy lost in industrial sectors. Moreover, with the increasing demand for energy independence and energy security, international organizations and distinct governments are framing stringent regulations to recover and utilize waste heat. United Nations Industrial Development Organization (UNIDO) strongly advocates and runs several programs to promote efficient utilization of energy in industrial sector. Similarly, different governments, especially in developed economies have framed stringent regulations and guidelines for various industries to reduce energy or heat loss in the industry.
During 2012-2015, Europe held the largest share in the global waste heat recovery market. The European market is growing, due to early introduction of waste heat recovery technology and environmental policies regarding curbing the industrial harmful emissions. Moreover, the government initiatives are driving the growth of the European market. The European companies are investing huge capital for research and development in the waste heat recovery system sector, which is again fueling the growth of the waste heat recovery market in the region. The distinct governments and organizations in Europe are initiating projects to actively promote and encourage the adoption of waste heat recovery systems. Moreover, the high rate of depletion of fossil fuels in the region is creating ample growth opportunities for the European market. The focus of the government on reducing carbon emission is also creating ample opportunities for the growth of the European waste heat recovery market. The Asia-Pacific market is expected to witness the fastest growth at a CAGR of 9.8% during the forecast period.
Some of the key companies operating in the global waste heat recovery market include Siemens AG, General Electric Company, Amec Foster Wheeler PLC, Harbin Electric International Company Ltd., Dongfang Electric Corporation, Mitsubishi Hitachi Power Systems, ABB Group, China Energy Recovery, and Ormat Technologies.
News Courtesy: P&S Market Research