Oil And Gas Waste Heat Recovery Market | Acumen Research and Consulting

Oil and Gas Waste Heat Recovery Market Highlights

• Global oil and gas waste heat recovery market revenue is poised to garner USD 18.9 billion by 2032 with a CAGR of 6.6% from 2024 to 2032
• North America oil and gas waste heat recovery market value occupied around USD 3.4 billion in 2023
• Asia-Pacific oil and gas waste heat recovery market growth will record a CAGR of more than 7.3% from 2024 to 2032
• Among sector, the downstream sub-segment generated over noteworthy revenue in 2023
• Based on end-user, the commercial sub-segment generated significant oil and gas waste heat recovery market share in 2023
• Integration of waste heat recovery with renewable energy sources for hybrid energy systems is a popular oil and gas waste heat recovery market trend that fuels the industry demand

Waste heat recovery is an energy alteration recovery process where the heat energy from the exhaust is recovered and used in other industrial processes. The processes comprise regenerators, heat pipe exchangers, power generation, and other applications in diverse industries. Approximately 20%-50% of industrial energy usage is primarily released as waste heat. The waste heat sources comprise hot incineration gases from exhaust and heat transmission from hot apparatus exteriors. The waste heat recovery unit is primarily a heat exchanger wherein the heat is recuperated from hot tributaries with great energy content. The primarily used waste heat recovery apparatus is turbines, industrial heating boilers, and HRSGs.

Global Oil and Gas Waste Heat Recovery Market Dynamics

Market Drivers

• Growing emphasis on energy efficiency drives adoption of waste heat recovery technologies
• Stringent environmental regulations push companies to reduce emissions
• Waste heat recovery systems offer potential cost savings
• Recovering waste heat minimizes resource wastage

Market Restraints

• Initial investment required for waste heat recovery systems is substantial
• Integrating waste heat recovery systems with existing infrastructure is complex
• Availability and quality of waste heat sources is inconsistent

Market Opportunities

• Development of advanced waste heat recovery technologies
• Adoption of smaller-scale waste heat recovery systems in remote or off-grid oil and gas facilities
• Exploration of waste heat recovery applications in related industries like petrochemicals and refineries

Oil and Gas Waste Heat Recovery Market Report Coverage

Oil and Gas Waste Heat Recovery Market Insights

Stringent regulations, increased government initiatives, growing environmental concerns, increasing energy and electricity cost, and growing unconventional oil and gas resources are some of the major factors driving the growth of this market. However, growth in process complexity and an upsurge in initial capital project cost are deterring the growth of the oil and gas waste heat recovery market. Some of the trends associated are the decline of carbon footprint, the oil and gas industry's emphasis on energy recovery procedures, and increasing investments from developing economies in the waste heat recovery process. In addition, technological innovations in process and equipment design and building of integrated petrochemical complexes are expected to provide future opportunities to this market, thus expected to propel the growth of this market in the near future. Rising worldwide environmental concerns will drive the growth of the market. In recent years due to rising emissions, this waste heat recovery market will reduce emissions and improve energy efficiency. Adoption of waste heat recovery systems in oil and gas industries Governments are providing incentives and support for the adoption of waste heat recovery systems. These factors will encourage industries for increasing the adoption of oil and gas waste heat recovery systems. Therefore due to these important factors the market will increase in the oil and gas waste heat recovery industry forecast period.

Oil and Gas Waste Heat Recovery Market Segmentation

The worldwide market for oil and gas waste heat recovery is split based on sector, equipment, application, end-user, and geography.

Oil and Gas Waste Heat Recovery Sectors

• Upstream
• Midstream
• Downstream
• Refinery
• Petrochemical Complex
• Others

According to the oil and gas waste heat recovery industry analysis, based on sectors, the market is segmented into upstream, midstream, and downstream. In recent years, the downstream segment has been the largest market segment in the oil and gas waste heat recovery market. Within the downstream sector, Greenfield projects are expected to drive the demand for waste heat recovery processes. Downstream segments include refineries, petrochemical complexes, and others, which generate the maximum amount of exhaust power and also offer benefits from utilizing this exhaust power. 

Oil and Gas Waste Heat Recovery Equipment

• Heat Exchangers
• Boilers
• Heat Recovery
• Steam Generators
• Turbines
• Others

The equipment segment includes heat exchangers, boilers, heat recovery units, steam generators, turbines, and other types of equipment. In the past year, steam generators led the oil and gas waste heat recovery market, holding the maximum share of the market. The expansion of oil and gas activities into both developed and undeveloped countries is expected to increase the market in this segment. Additionally, the rising adoption of waste heat recovery systems by industries will drive growth in the equipment segment of the market.

Oil and Gas Waste Heat Recovery Applications

• Thermal
• Pre Heating
• Steam Generation
• Others
• Electricity Power Generation
• Others

The thermal segment, based on application, is anticipated to lead the industry throughout the oil and gas waste heat recovery market forecast period. This segment is divided into pre-heating, steam generation, and others, and it is expected to experience the fastest growth during the forecast period. Another prominent application segment is electricity power generation, which significantly holds the second-largest market share after thermal. The electricity power generation segment is expected to exhibit the highest compound annual growth rate (CAGR) during the forecast period. In this segment, waste heat is converted into electricity to meet on-site power needs or sold back to the grid, and it is anticipated to significantly contribute to the market's growth in the coming years.

Oil and Gas Waste Heat Recovery End-Users

• Residential
• Commercial
• Others

In terms of the end-user segment, the market is categorized into commercial, residential, and other end users. The commercial end-user segment is expected to offer key business opportunities in the coming years. according to the oil and gas waste heat recovery market analysis, the commercial segments have dominated the market share and are likely to continue their dominance throughout the forecasted timeframe from 2024 to 2032. Regarding growth rate, the residential segment is experiencing the fastest revenue growth, with a high compound annual growth rate (CAGR) during the forecast period due to the rising adoption of waste heat recovery systems.

Oil and Gas Waste Heat Recovery Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of LATAM

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

Oil and Gas Waste Heat Recovery Market Regional Analysis

Geographically, North America leads the oil and gas waste heat recovery market and is anticipated to continue its domination throughout the forecast period. The new offshore and shale boom projects will increase the demand for waste heat recovery units in the region. Additionally, Asia-Pacific is expected to grow at a noteworthy rate throughout the forecast period, with China anticipated to hold the highest market share in the region. The rise in natural gas infrastructure and the development of manufacturing companies will contribute to the growing oil and gas waste heat recovery market in Asia-Pacific. This region is expected to grow at the highest compound annual growth rate (CAGR) over the forecast period from 2024 to 2032, driven by increasing demand for refineries, strengthening power generation, and oil and gas extraction.

On the other hand, the Europe region is experiencing the moderate growth in the oil and gas waste heat recovery market. Increasing fuel prices and rising awareness about WHR systems are anticipated to be key drivers for market growth in the Europe region.

Oil and Gas Waste Heat Recovery Industry Players

Some of the top oil and gas waste heat recovery companies offered in our report include ABB Ltd., Ormat Technologies, General Electric Company, China Energy Recovery, Bono Energia, Dongfang Electric Corporation, Amec Foster Wheeler, Siemens AG, Mitsubishi Heavy Industries Ltd., Echogen Power Systems Inc., and Econotherm Ltd.