Organic Rankine Cycle Market Size, Share, Growth & Industry Analysis, By Application (Solar Thermal, Geothermal, Biomass, Waste Heat Recovery), and Regional Analysis, 2024-2031

Organic Rankine Cycle Market Size

The global Organic Rankine Cycle (ORC) Market size was valued at USD 800 million in 2023 and is projected to reach USD 1500 million by 2031, exhibiting a CAGR of 9.5%, driven by advancements in ORC technology, such as improved efficiency and cost-effectiveness, which are making these systems more accessible and attractive to a large number of industries.

This growth is mainly due to the rising demand for renewable energy and the need for energy efficiency in many industries. ORC systems excel at converting low-grade heat into electricity. So, they are a top choice for power generation in industries with plenty of waste heat. Also, the increased focus on cutting carbon emissions is boosting ORC technology.

Organic Rankine Cycle or ORC power systems are a reliable, efficient solution for generating electricity in the low to medium power range. This technology mainly applies to biomass thermal conversion, waste-to-heat recovery, geothermal heat, and solar energy.

Organic Rankine Cycle Market Size, 2024-2031

Organic Rankine Cycle Market Trends

Three major trends are currently shaping the Organic Rankine Cycle Market. They are: integration of ORC systems with renewable energy sources, technological advancements in ORC systems, and growing focus on waste heat recovery.

Various industries are witnessing a significant shift towards integrating ORC systems with renewable sources of energy, such as geothermal and biomass, to enhance efficiency and carbon neutrality. Governments are supporting this trend by introducing incentives and policies to promote the use of renewables. Such developments are expected to drive the ORC market growth by 10% over the next 10 years.

Organic Rankine Cycle technology is currently undergoing extensive technological upgrades for improved efficiency and cost reductions. Manufacturers and researchers are invested in making ORC systems more competitive with traditional power generation methods. studies have shown that new working fluids and advanced turbines can increase system efficiency by 15%. Such scientific breakthroughs are attracting more investments in this technology.

Energy-intensive industries are extensively focusing on recovering waste heat. Major companies in manufacturing and chemical processing are looking to opt for advanced solutions to increase their process efficiencies. This is expected to further drive the adoption of ORC systems.

Waste heat recovery applications currently account for nearly 40% of the ORC market. This segment is expected to grow at a CAGR of 8% over the forecast period. These trends highlight the growing role of ORC tech in the global drive for energy sustainability and efficiency.

Organic Rankine Cycle Market Growth Factors

The Organic Rankine Cycle Market is driven by several key growth factors. A main driver is the push for energy efficiency and lower greenhouse gas emissions. Governments and regulators worldwide are enforcing strict environmental rules. They are pushing industries to adopt cleaner, more efficient energy solutions. ORC systems can turn low-temperature heat into electricity, and, therefore, are gaining popularity in industries that must meet new regulations.

Another growth factor is the rising demand for renewable energy, like geothermal and biomass. ORC technology plays a crucial role in this. In 2023, renewable energy applications were about 35% of the ORC market. Projections suggest growth as more countries invest in sustainable energy. Also, advances in ORC technology are reducing costs.

New, efficient turbines and working fluids are behind this. As a result, ORC systems are now more accessible to many industries. These technological improvements are expected to drive the market at a CAGR of 9.5% through 2031. Also, the rising focus on waste heat recovery creates new opportunities for ORC systems which can cater to companies looking to maximize energy use and reduce costs.

Segmentation Analysis

The Organic Rankine Cycle (ORC) market is growing by generating electricity from low-temperature heat sources. Many industries are adopting this technology as it is efficient and uses waste heat. This helps conserve energy and supports sustainability. The Organic Rankine Cycle (ORC) market has been segmented based on application into solar thermal, geothermal, biomass, and waste heat recovery.

By Application

In 2023, the industrial waste heat recovery segment held over 40% of the ORC market, being the largest segment. Cement, steel, and glass industries produce a lot of waste heat. ORC systems can convert this heat into electricity. A focus on cutting carbon emissions and energy costs is driving ORC technology adoption in the abovementioned segments. By 2031, this segment is expected to grow at a CAGR of 6.5% as more and more industries will see the benefits of using ORC systems.

Biomass power generation is a key use of ORC technology. This segment had a 25% market share in 2023. Using ORC systems in biomass plants boosts power generation. They convert low-temperature heat from burning biomass into electricity. The demand for renewable energy is rising. Therefore, biomass power is expected to grow at 7% by 2031. This is due to government incentives and a global shift to sustainable energy.

Geothermal power is a major segment of the ORC market. It had a 20% market share in 2023. ORC technology is ideal for harnessing low-temperature geothermal resources which adds to its popularity in regions with abundant geothermal potential. The segment is expected to grow at a CAGR of 7.8% by 2031. This is due to rising investments in geothermal energy and a need for clean, renewable energy.

Regional Analysis

The Organic Rankine Cycle Market is seeing varied growth across regions. This is due to differences in industrialization, energy policies, and renewable energy use. In North America, the market is expected to grow at a CAGR of 8.7% from 2024 to 2031. This growth is due to a focus on energy efficiency and waste heat recovery in the U.S. and Canada. The region's strong industry and pro-renewable policies are boosting ORC tech. In 2023, North America had about 30% of the global ORC market. The U.S. led in deploying ORC systems in industrial and geothermal uses.

Organic Rankine Cycle Market Size & Share, By Region, 2024-2031

Europe is another significant market for ORC technology, with a market share of around 35% in 2023. The region's strict environmental rules and EU renewable energy goals are driving the market. Germany, Italy, and France lead in adopting ORC systems. They focus on waste heat recovery and biomass power generation. The European market is expected to grow 9% a year. This is due to the region's investment in sustainable energy.

The Asia-Pacific region will grow the fastest in the ORC market. It is expected to register an 11% CAGR over the forecast period. This rapid growth is mainly due to rising industrialization and urbanization in China, India, and Japan. These countries face a surge in energy demand. This is boosting the use of ORC systems for waste heat recovery and geothermal power. In 2023, Asia-Pacific held 25% of the global ORC market. China led the region due to its large investments in renewable energy.

Latin America and the Middle East & Africa (MEA) are emerging markets for ORC technology. There is a growing interest in renewable energy and waste heat recovery. These regions hold a small share of the global market. In 2023, Latin America and MEA accounted for about 10%. However, they should see growth as governments encourage clean energy adoption.

Competitive Landscape in Organic Rankine Cycle Market

The Organic Rankine Cycle Market has many key, innovative players who focus on partnerships. Ormat Technologies, Enogia, and Turboden dominate the market. They have a large share due to their broad product lines and global presence. These companies are investing in R&D to improve ORC systems. They want them to be more efficient and cost-effective. For instance, Turboden recently launched a new range of ORC systems for more efficient waste heat recovery. This has helped the company win contracts in Europe and Asia. Also, partnerships between tech providers and industrial firms are rising. They help develop customized ORC solutions for specific industry needs.

List of Key Players in Organic Rankine Cycle Market

ABB
Air Squared, Inc.
CLEAN ENERGY TECHNOLOGIES, INC.
Dürr Group
ENOGIA
Enertime
EXERGY INTERNATIONAL SRL
GENERAL ELECTRIC
Opcon Energy Systems
ORCAN ENERGY AG

Key Industry Developments

The Organic Rankine Cycle Market has seen several significant developments recently.

In 2023, Ormat Technologies won a USD 50 million contract to install ORC systems in a geothermal power plant in Indonesia. This marks the company's expansion into the Southeast Asian market.
Another notable development is Turboden's partnership with a top Indian steelmaker. They will use ORC technology for waste heat recovery. It should generate an extra 10 MW of electricity each year.
Enogia secured a USD 20 million investment in 2024. It will use the money to improve its ORC systems for industrial applications. These events highlight the rising importance of ORC technology in global energy.

The global Organic Rankine Cycle Market has been segmented:

By Application

Solar Thermal
Geothermal
Biomass
Waste Heat Recovery

By Region

North America

U.S.
Canada
Mexico

Europe

Germany
UK
France
Italy
Spain
Russia
Rest of Europe

Asia-Pacific

China
Japan
India
South Korea
Rest of Asia-Pacific

Middle East & Africa

GCC
South Africa
North America
Rest of Middle East & Africa

Latin America

Brazil
Argentina
Rest of Latin America

FAQ

+ What is the total CAGR expected to be recorded for the organic rankine cycle market during the forecast period?

The global market is projected to reach USD 1500 million by 2031, growing at a CAGR of 9.5% from 2024 to 2031.

+ How big was the organic rankine cycle industry in 2023?

The global market was valued at USD 800 million in 2023.

+ What are the major driving factors for the market?

key growth driver is the advancements in ORC technology, such as improved efficiency and cost-effectiveness, which are making these systems more accessible and attractive to a large number of industries.

+ Who are the top key players in the market?

Top key players in the market are ABB, Air Squared, Inc., CLEAN ENERGY TECHNOLOGIES, INC., Dürr Group, ENOGIA, Enertime, EXERGY INTERNATIONAL SRL, GENERAL ELECTRIC, Opcon Energy Systems, ORCAN ENERGY AG, and others.

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