Heat recovery steam generator market seen reaching $2.68 billion by 2035

The global heat recovery steam generator market is projected to grow from $1.68 billion in 2026 to $2.68 billion by 2035, driven by combined-cycle power plant additions, industrial cogeneration demand, and the push for higher energy efficiency. Power plants accounted for 55.9% of the market in 2025, while Asia-Pacific is the fastest-growing region.

Why it matters: - HRSGs help power plants and industrial sites turn waste heat into steam, improving efficiency and lowering fuel use and emissions. - The market’s growth reflects continued investment in gas-fired combined-cycle plants as grids add more variable renewable power. - Industrial buyers are also using HRSGs to support cogeneration, waste heat recovery, and process heating.

What happened: - The heat recovery steam generator market was estimated at $1.60 billion in 2025. - The market is forecast to rise to $1.68 billion in 2026 and reach $2.68 billion by 2035. - The forecast implies a 5.28% compound annual growth rate through 2035. - Power plants held 55.9% of the market in 2025. - The report was published July 29, 2026.

The details: - HRSGs recover exhaust heat from gas turbines, diesel engines, and industrial processes and convert it into steam. - The equipment is used in combined-cycle power plants and industrial applications. - Typical HRSG systems include high-, intermediate-, and low-pressure sections with economizers, evaporators, and superheaters. - The market benefits from demand for efficient and lower-emission power generation. - Flexibly operated combined-cycle plants are gaining traction because they can ramp up and down to balance grid fluctuations. - Advanced designs with better heat transfer, improved materials, and digital controls are improving efficiency and reliability. - Enhanced finned tubes, compact modular designs, and corrosion-resistant materials are extending operating life and reducing maintenance needs. - Digital monitoring and predictive maintenance are becoming more common. - Government energy-efficiency policies, emissions rules, carbon pricing, and emissions trading schemes are supporting market growth. - A sample report is available at Get Free Sample Report for Detailed Market Insights. - The full report can be purchased at Buy the market report. - More market details are available in the report overview.

Between the lines: - The market sits at the intersection of power security and decarbonization, which keeps gas-based generation relevant even as renewable capacity grows. - Asia-Pacific is the fastest-growing region because of industrialization, urbanization, and new power capacity in China, India, and Southeast Asia. - North America and Europe are being shaped by plant replacement, coal retirements, and the need for grid flexibility. - Hydrogen-capable HRSGs and carbon-capture integration point to a longer-term shift toward lower-carbon gas infrastructure. - High upfront costs, engineering complexity, corrosion, erosion, and thermal fatigue remain meaningful barriers.

What's next: - Utilities are expected to keep investing in combined-cycle plants to replace aging infrastructure and support renewable integration. - Industrial users are likely to expand HRSG deployment in CHP and waste heat recovery projects. - Vendors are positioned to compete on efficiency, materials, digital controls, and project execution. - The market’s longer-term upside depends on hydrogen compatibility, retrofit demand, and modernization of existing plants.

The bottom line: - HRSG demand is set to keep rising as power markets prioritize efficiency, flexibility, and lower emissions without giving up reliable generation.