Global Organic Rankine Cycle Market Grows at a Staggering CAGR of 7.3%

Introduction

The global organic Rankine cycle (ORC) market is set for substantial growth, driven by increasing demand for renewable energy sources, rigorous government regulations supporting sustainable energy technology, and notable advancements in geothermal energy sectors.  ORC systems, recognised for transforming low-grade heat into electricity, are progressively being implemented in diverse sectors, such as waste heat recovery, biomass, and geothermal power generation.  The incorporation of ORC systems in industrial operations improves energy efficiency and aids in the reduction of greenhouse gas emissions, which is in line with global sustainability objectives.  Moreover, technical progress and the creation of more efficient and economical ORC systems are anticipated to facilitate market growth, especially in emerging markets experiencing increased industrialisation.

Market Dynamics

Governmental incentives and assistance for renewable energy drive market growth

Government actions and incentives are essential for advancing the ORC market.  Policies that advocate for renewable energy adoption, including tax incentives, subsidies, and advantageous regulatory frameworks, have markedly facilitated the implementation of ORC systems.  Countries have instituted feed-in tariffs and renewable energy certificates to promote clean energy production.

• In July 2024, the Indian government implemented augmented feed-in tariffs and renewable energy credits to encourage clean energy production, including ORC systems. These measures have catalysed research and development endeavours in the domain.
• Similarly, the UK's Energy Technology List (ETL) 2024 incorporates ORC heat recovery technology, promoting investment in high-efficiency products by enterprises. Inclusion in the ETL enables enterprises to capitalise on tax benefits, encouraging the adoption of ORC systems for waste heat recovery.

These approaches enhance the financial viability of ORC programs and promote research and development initiatives in the domain.  As worldwide focus on sustainable energy escalates, ongoing governmental assistance is expected to be a pivotal factor in the growth of the ORC market.

Technological innovations and nascent applications create tremendous opportunities

Technological improvements are creating new chances for the ORC market, especially in broadening its usage across various sectors.  Advancements in working fluids, system components, and control technologies are improving the efficiency and versatility of ORC systems.  These advancements facilitate the implementation of ORC technology in atypical environments, including distant off-grid areas and small-scale energy production.  A study examined the function of solar ORC-based power generation facilities in peer-to-peer energy trading within renewable community microgrids. Incorporating solar ORC with storage systems improved predictability and competitiveness against conventional energy plants, resulting in a 16% decrease in operational costs.

• Enogia obtained a USD 20 million investment to further its ORC systems for industrial applications, emphasising improvements in efficiency and cost-effectiveness. This initiative aims to advance ORC systems, transforming low-grade heat sources into electricity, making them appealing for sustainable energy solutions and waste heat recovery.

Furthermore, integrating ORC systems with additional renewable energy sources, such as solar thermal and biomass, results in hybrid solutions that enhance reliability and performance.  As research propels technological advancement, the ORC market is positioned to leverage these nascent applications, broadening its influence and significance in the worldwide energy sector.

Regional Analysis

North America dominates the worldwide ORC market, propelled by a robust emphasis on energy efficiency and extensive waste heat recovery programs, especially in the United States and Canada.  This dominance is reinforced by strong government policies, such as tax incentives and favourable regulatory frameworks, alongside a rapidly increasing demand for sustainable energy solutions across multiple industrial sectors.  Canada is anticipated to exhibit the largest compound annual growth rate (CAGR) throughout the forecast period, driven by emerging initiatives in waste heat recovery and increasing recognition of organic Rankine cycle (ORC) advantages in the oil and gas and manufacturing sectors.

Key Highlights

• The global organic Rankine cycle market size was valued at USD 0.70 billion in 2024 and is projected to grow from USD 0.75 billion in 2025 to USD 1.30 billion in 2033, exhibiting a CAGR of 7.3% during the forecast period (2025-2033).
• By Application, the market is segmented into waste heat recovery, biomass, geothermal, solar thermal, oil & gas (gas pipeline pressure stations), and waste-to-energy. Geothermal applications dominate the ORC market, leveraging Earth's consistent natural heat for stable, baseload electricity generation.
• By Capacity, the market is segmented into below 1 MW, 1 MW – 5 MW, 5 MW – 10 MW, and above 10 MW. The 1 MW – 5 MW capacity segment is dominant, capturing over 41.2% market share in 2024.
• By End-Use, the market is segmented into Gas Turbines, Metals, Cement & Lime, Oil & Gas, and Others. Gas turbines lead the end-use segment, accounting for more than 65% market share in 2024.
• Based on region, the global organic rankine cycle market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. North America dominates the global market.

Competitive Players

1. Ormat Technologies
2. Turboden (Mitsubishi Heavy Industries)
3. Exergy S.p.A
4. Electratherm
5. ABB Ltd
6. Dresser-Rand (Siemens Energy)
7. Kalina Power
8. Enogia
9. Atlas Copco
10. Siemens Energy
11. GE Power
12. ThermoEnergy Corporation
13. Universal Pressure Pump
14. others.

Recent Developments

• In February 2025, Electratherm signed a strategic partnership agreement with a major Asian utility company to supply ORC units for waste heat recovery at multiple cement plants across India and Southeast Asia. This move strengthens Electratherm’s market presence in emerging economies focused on decarbonisation and energy efficiency.
• In December 2024, Turboden launched a new high-efficiency ORC module designed for combined heat and power (CHP) applications, increasing electrical efficiency by 7% compared to previous models. The product targets industrial sectors requiring modular and scalable ORC solutions and has already secured contracts in Germany and Italy.

Segmentation

1. By Application:
   1. Waste Heat Recovery
   2. Biomass
   3. Geothermal
   4. Solar Thermal
   5. Oil & Gas (Gas Pipeline Pressure Stations)
   6. Waste to Energy
2. By Capacity:
   1. Below 1 MW
   2. 1 MW – 5 MW
   3. 5 MW – 10 MW
   4. Above 10 MW
3. By End-Use:
   1. Gas Turbines
   2. Metals
   3. Cement & Lime
   4. Oil & Gas
   5. Others
4. By Region:
   1. North America
   2. Europe
   3. Asia-Pacific
   4. Latin America
   5. Middle East & Africa