Organic Rankine Cycle Market Size, Market Share, Application Analysis, Regional Outlook, Growth Trends, Key Players, Competitive Strategies and Forecasts, 2023 to 2031

The global organic Rankine cycle market has been witnessing significant growth over the years. The market is expected to grow at a CAGR of 10% during the forecast period of 2023 to 2031.

The organic Rankine cycle (ORC) is a thermodynamic process that converts waste heat into usable electricity, providing an eco-friendly solution for power generation. The increasing demand for clean and renewable energy sources, government initiatives to reduce carbon emissions, and the rising adoption of ORC in various end-use industries are some of the key drivers contributing to the growth of the organic Rankine cycle market. One of the major drivers for the organic Rankine cycle market is the growing demand for clean energy sources. The need to reduce carbon emissions and dependence on fossil fuels has led to the adoption of renewable energy sources such as ORC. The ORC technology can harness waste heat from various sources like geothermal wells, biomass, and exhaust gases, providing an efficient and cost-effective way to generate power. Several governments worldwide are introducing various initiatives and policies to reduce carbon emissions and promote the adoption of clean energy sources. For instance, the European Union has set a target of producing 20% of its energy from renewable sources by 2020, creating a significant demand for ORC technology. In contrast, the high installation and maintenance costs of ORC systems could act as a restraint for market growth. Additionally, the lack of awareness about ORC technology and the availability of alternative technologies could also hinder the adoption of ORC systems in some regions. Nevertheless, ongoing research and development activities to reduce the cost and enhance the efficiency of ORC systems are expected to create opportunities for market growth in the coming years.

Increasing Demand for Clean Energy

The increasing demand for clean energy and rising environmental concerns are driving the growth of the organic Rankine cycle (ORC) market. The ORC technology is considered a highly efficient and cost-effective solution for converting low-temperature waste heat into electricity, which can be used for various applications. As per the International Energy Agency (IEA) report, waste heat accounts for more than 50% of industrial energy consumption, and ORC systems have the potential to recover up to 80% of this waste heat. Furthermore, government initiatives to promote clean energy and reduce greenhouse gas emissions are also supporting the growth of the ORC market. For instance, in the European Union, the Energy Efficiency Directive has set a target of 32.5% energy savings by 2030, and ORC technology is seen as an important tool to achieve this target.

Increasing Adoption in Geothermal Power Generation

Geothermal energy is becoming increasingly popular due to its low cost, high efficiency, and low carbon emissions. The ORC technology is being widely adopted in geothermal power generation to harness this renewable energy source. The ORC system is capable of generating electricity from geothermal resources with low-temperature water or steam, which was previously considered unusable. The increasing adoption of ORC systems in geothermal power generation is expected to drive the growth of the ORC market. For instance, according to the International Geothermal Association (IGA), the installed capacity of geothermal power generation reached 15.4 GW in 2020, and it is expected to reach 18.4 GW by 2025.

Growing Demand from Industrial Applications

ORC technology is being widely used in various industrial applications such as waste heat recovery, biomass power generation, and combined heat and power (CHP) systems. The growing demand for energy-efficient solutions in the industrial sector is driving the growth of the ORC market. ORC systems are being used to recover waste heat from various industrial processes, such as steel production, cement production, and glass manufacturing, to generate electricity. According to a report by the International Renewable Energy Agency (IRENA), the industrial sector is responsible for approximately 37% of global energy consumption, and the potential for waste heat recovery in this sector is significant. The increasing demand for energy-efficient solutions in the industrial sector is expected to drive the growth of the ORC market.

High Initial Investment Costs

One of the main restraints for the organic Rankine cycle (ORC) market is the high initial investment costs. The ORC systems require specialized equipment and technology, such as a turbine or an expander, a pump, and a heat exchanger, among others, which can be costly to install and maintain. Additionally, the complexity of the ORC systems requires skilled and experienced professionals to design, install and operate them, which also adds to the overall investment cost. For instance, according to a report by the International Energy Agency, the initial investment cost of an ORC system ranges from €2,000 to €4,000 per kW of installed capacity, which can be a significant investment for many small and medium-sized enterprises. Furthermore, high capital costs may deter potential investors from entering the market and could limit the growth of the ORC market. However, recent advancements in technology have helped to reduce the initial costs of ORC systems. For example, the development of modular and standardized ORC systems has reduced installation time and costs, and the integration of control systems has increased the efficiency of the systems, reducing maintenance and operating costs. Despite these advancements, high initial investment costs remain a challenge for the growth of the ORC market.

Waste Heat Recovery Segment Dominating the Market by Application

The application segment of the organic Rankine cycle (ORC) market includes waste heat recovery, biomass, geothermal, solar thermal, oil & gas (gas pipeline pressure stations), and waste to energy. Among these applications, the waste heat recovery segment held the highest market share in revenue in 2022 due to the increasing demand for ORC systems for energy recovery from industrial waste heat. The waste heat recovery application segment is expected to grow at the highest CAGR during the forecast period of 2023-2031. The report further indicates that the waste-to-energy application segment is also expected to witness significant growth during the same period, driven by the increasing demand for renewable energy sources and the adoption of sustainable waste management practices.

The > 1 - 5 MWe Segment Dominating the Market by Power Output

The organic Rankine cycle (ORC) market can be segmented based on power output capacity, with four categories: ≤ 1 MWe, > 1 - 5 MWe, > 5 - 10 MWe, and > 10 MWe. The ≤ 1 MWe segment is expected to hold the highest CAGR during the forecast period of 2023 to 2031.

Due to the increasing demand for small-scale ORC systems in the geothermal and waste heat recovery applications. These systems are being widely adopted by small and medium-scale industries, as they provide an efficient way to generate power from low-temperature heat sources. The > 1 - 5 MWe segment held the largest revenue share in 2022 due to the increasing installation of ORC systems in biomass, waste heat recovery, and solar thermal applications. The > 5 - 10 MWe segment is also expected to witness significant growth due to the increasing demand for ORC systems in large-scale geothermal and waste heat recovery applications. The > 10 MWe segment is expected to witness moderate growth during the forecast period due to the limited number of installations in this category, mainly in the geothermal and biomass applications. With the increasing focus on reducing greenhouse gas emissions and increasing renewable energy generation, the demand for ORC systems is expected to increase in all power output segments, with the highest growth expected in the ≤ 1 MWe and > 1 - 5 MWe segments.

APAC Emerges as the Global Growth Leader

The Asia-Pacific region is expected to witness the highest CAGR during the forecast period owing to the increasing demand for electricity and the rising need for sustainable energy sources. The Asia-Pacific organic Rankine cycle market is projected to grow at a CAGR of 13.5% during the forecast period of 2023 to 2031.

The region's market growth can be attributed to favorable government initiatives, increasing investments in renewable energy, and the presence of several key players. North America and Europe are also significant contributors to the global organic Rankine cycle market. In North America, the United States dominates the market due to the increasing demand for renewable energy sources and the rising focus on reducing carbon emissions. Europe is also witnessing significant growth, with countries like Germany, France, and the United Kingdom leading the market.

Market Competition to Intensify During the Forecast Period

The global organic Rankine cycle market is highly competitive and fragmented, with several key players operating in the market. The major players are focused on strategic partnerships, collaborations, and mergers and acquisitions to expand their product offerings and increase their market presence. One of the key players in the market is Turboden S.p.A., which has a strong presence in Europe and Asia-Pacific regions. The company offers a range of organic Rankine cycle systems for various applications, including geothermal, biomass, and waste heat recovery. In 2020, the company announced a strategic partnership with Nippon Steel Engineering Co., Ltd. to develop organic Rankine cycle power plants for the Japanese market. In conclusion, the global organic Rankine cycle market is witnessing significant growth due to the increasing demand for renewable energy sources and the rising focus on reducing carbon emissions. The market is highly competitive, with key players adopting various strategies such as partnerships, collaborations, and product development to increase their market presence and revenue.

Historical & Forecast Period

This study report represents analysis of each segment from 2021 to 2031 considering 2022 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2022 to 2031.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Organic Rankine Cycle market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Organic Rankine Cycle market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Market Segmentation

Application

• Waste Heat Recovery
• Petroleum Refinery
• Chemical
• Glass
• Cement
• Metal Production and Casting (Iron & Steel)
• Biomass
• Geothermal
• Solar Thermal
• Oil & Gas (Gas Pipeline Pressure Stations)
• Waste to Energy

Power Output

• ≤ 1 MWe
• > 1 - 5 MWe
• > 5 - 10 MWe
• > 10 MWe

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Organic Rankine Cycle market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2031.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Organic Rankine Cycle market?
• Which is the largest regional market for Organic Rankine Cycle market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Organic Rankine Cycle market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Organic Rankine Cycle market worldwide?

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