Heat recovery steam generator market size has been expanding over the last decade, due to industrial growth & mounting demand for energy efficiency across the various manufacturing sectors that require wide application of steam generators.
UK Heat Recovery Steam Generator Market Size, By Rated Power, 2018 & 2025 (USD Million)
Growth of heat recovery steam generators market can be cited through instances such as the recent bagging of a contract to deliver a power island for the new Yerevan 2 CCPP (Combined Cycle Power Plant) in Armenia by global technological company Siemens. The power island will include heat recovery steam generators. Siemens will ensure that the plant continues to produce electricity economically and reliably, for the long run.
A paradigm shift towards reduced operational cost & sustainable energy sources is contributing to heat recovery steam generator market growth. Moreover, stringent regulatory norms for emission control will also augment the product penetration.
The power generation industry is one of the prominent industries that is successfully leveraging the benefits of heat recovery steam generators. The power generation industry is demonstrating an increased preference for combined cycles, which are in high demand due to high efficiency & minimal delivery time. The most important component in combined cycle and cogeneration power plants is the heat recovery steam generator, which uses gas turbine & steam turbine for power generation thus resulting in improved efficiency which is beneficial in reducing fuel expanse.
For example, South Field Energy Partners, a US-base power generating company owns a 1,182 MW low-carbon natural gas-run combined cycle electric generating facility, presently under construction in Ohio, in which the company will deploy 2 General Electric 7HA gas turbines, each linked with a general electric steam turbine generator and heat recovery steam generator and will produce enough electricity to power approximately one million homes. More such initiatives will boost heat recovery steam generator market growth.
The oil & gas market has been expanding owing to higher-than-expected demand growth. As per an Oil & Gas survey, around 45% of contractors have increased investment spend in the UK Continental Shelf over the past one year. Volatile fossil fuel prices along with increased focus upon reducing dependence on the same are some of the major factors enhancing the demand for energy efficient systems. Vertical drum heat recovery stream generator is best suited for both gas and oil operations, especially for heavy fuel oil applications. The surge for cleaner & efficient modes of energy production will further increase the heat recovery steam generators market share.
The Asia-Pacific heat recovery stream generator market is anticipated to thrive due to the rise in population & living standards that has made electricity an important commodity for many countries in this region.
Emerging economies are not yet able to develop technologies that will make them fossil fuel independent. Instead they are still heavily dependent on fossil fuels which makes it imperative for these countries to establish a robust refineries industries. Considering that heat recovery steam generators find application in refineries, expansion of refineries will in turn lead to growth in heat recovery steam generators market.
Increased investments toward progress of industrial base coupled with government policies and regulations to minimize carbon emission will stimulate the heat recovery steam generator industry growth in the region. This is evident in the fact that Asia Pacific accounted for 50% of the global manufacturing value addition with increased inflows of FDI across the sector in 2018 and by 2025, Asia Pacific HRSG market is estimated to increase at 5% CAGR over 2019-2025.
As per Global Market Insights, Inc. estimates, HRSG market will exceed $1.8 billion by 2025.
Heat recovery steam generator systems has wide-ranging applications across refining, commercial, petrochemical industry, centralized heating & power generation. Increased magnitude of energy optimization across the manufacturing sector along with increasing infrastructure spending toward the refurbishment & development of various industries are expected to positively impact the heat recovery steam generator market share. Rapid technological advancements resulting in cost-effective & highly efficient heat recovery solutions will further supplement industry landscape.