Organic Rankine Cycle Market Size, Share & Trends Analysis Report By Application (Waste Heat Recovery, Biomass, Geothermal, Solar Thermal, Oil & Gas (Gas Pipeline Pressure Stations), Waste to Energy), By Capacity (Below 1 MW, 1 MW – 5 MW, 5 MW – 10 MW, Above 10 MW), By (Gas Turbines, Metals, Cement & Lime, Oil & Gas, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2025-2033

Organic Rankine Cycle Market Size

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).

The global organic rankine cycle (ORC) market is poised for robust growth, fueled by the escalating demand for renewable energy sources, stringent government policies promoting sustainable energy technologies, and significant advancements in geothermal energy sectors. ORC systems, known for converting low-grade heat into electricity, are increasingly being adopted across various industries, including waste heat recovery, biomass, and geothermal power generation. The integration of ORC systems in industrial processes enhances energy efficiency and contributes to reducing greenhouse gas emissions, aligning with global sustainability goals. Furthermore, technological advancements and the development of more efficient and cost-effective ORC systems are expected to open new avenues for market expansion, particularly in emerging economies with rising industrialisation.

Market Trend

Integration of ORC systems in waste heat recovery

The integration of ORC systems in waste heat recovery processes is a significant trend in the energy sector. Industries are increasingly recognising the potential of ORC technology to convert low-temperature waste heat into usable electricity, thereby enhancing overall energy efficiency. This trend is particularly prominent in sectors such as manufacturing, where substantial amounts of waste heat are generated. The adoption of ORC systems in these settings not only aids in reducing energy costs but also aligns with environmental sustainability objectives by minimising carbon emissions.

• For instance, in 2024, Heidelberger Zement AG Plant, Germany, implemented an ORC system to recover unused grate cooler heat, generating electricity continuously without interfering with clinker production. This initiative displaces approximately 7,000 tons of CO₂ annually.
• Additionally, in September 2024, an article in Chemical Processing highlighted the adoption of ORC systems in chemical plants to recover low-grade waste heat. For instance, polyester production sites have successfully used ORC systems to recover energy from 120°C sources, producing 6.4 MWe of electricity and reducing carbon emissions.

As industries continue to seek innovative energy optimisation solutions, ORC systems' role in waste heat recovery is expected to become increasingly pivotal.

Organic Rankine Cycle Market  Growth Factor

Government incentives and support for renewable energy

Government initiatives and incentives are crucial in propelling the ORC market forward. Policies promoting renewable energy adoption, such as tax credits, subsidies, and favourable regulatory frameworks, have significantly encouraged the deployment of ORC systems. For instance, various governments have implemented feed-in tariffs and renewable energy certificates to incentivise clean energy generation.

• For example, in July 2024, the Indian government introduced enhanced feed-in tariffs and renewable energy certificates to promote clean energy generation, including ORC systems. These measures have stimulated research and development activities in the field.
• Additionally, the UK's Energy Technology List (ETL) 2024 includes ORC heat recovery equipment, encouraging businesses to invest in high-efficiency products. Inclusion in the ETL allows companies to benefit from tax incentives, promoting adopting ORC systems for waste heat recovery.

These measures make ORC projects more financially viable and stimulate research and development activities in the field. As global emphasis on sustainable energy intensifies, continued governmental support is anticipated to be a key driver in the expansion of the ORC market.

Market Restraint

High initial investment costs

Despite the long-term benefits of ORC systems, the high initial capital investment required for their installation and integration poses a significant barrier to market growth. These costs encompass equipment purchase (e.g., expanders, heat exchangers, pumps, condensers) and complex system design and integration, which can be particularly challenging for smaller enterprises. The expander alone can account for a substantial portion of the total cost, depending on the system's scale. While ORC systems offer long-term operational savings by converting waste heat or low-grade renewable sources into electricity, the payback period can extend over several years, deterring potential adopters.

To overcome this, strategies are crucial, including developing more cost-effective ORC technologies, implementing innovative financing models (like third-party financing or energy-as-a-service), and raising awareness about the substantial long-term economic and environmental benefits. Government incentives such as subsidies, tax credits, and favourable feed-in tariffs also play a vital role in de-risking these investments and accelerating broader adoption.

Market Opportunity

Technological advancements and emerging applications

Technological advancements are opening new opportunities for the ORC market, particularly in expanding its applicability across diverse sectors. Innovations in working fluids, system components, and control technologies are enhancing the efficiency and adaptability of ORC systems. These developments enable the deployment of ORC technology in unconventional settings, such as remote off-grid locations and small-scale power generation. A study explored the role of solar ORC-based power generation plants in peer-to-peer energy trading within renewable-based community microgrids. The integration of solar ORC with storage systems enhanced predictability and competitiveness with conventional energy plants, demonstrating a 16% reduction in operational costs.

• For instance, Enogia secured a USD 20 million investment to improve its ORC systems for industrial applications, focusing on enhancing efficiency and cost-effectiveness. This investment is intended to develop further ORC systems, which are used to convert low-grade heat sources into electricity, making them attractive for sustainable energy solutions and waste heat recovery

Moreover, integrating ORC systems with other renewable energy sources, like solar thermal and biomass, creates hybrid solutions offering improved reliability and performance. As research drives technological progress, the ORC market is poised to capitalise on these emerging applications, expanding its reach and impact in the global energy landscape.

Regional Analysis

North America leads the global ORC market, driven by a strong regional focus on energy efficiency and comprehensive waste heat recovery initiatives, particularly in the United States and Canada. This dominance is bolstered by robust, supportive government policies, including tax incentives and favourable regulatory frameworks, and a rapidly escalating demand for sustainable energy solutions across various industrial sectors. Canada is specifically projected to register the highest CAGR over the forecast period, propelled by new projects in waste heat recovery and growing awareness of ORC benefits in the oil and gas and manufacturing industries.

• The U.S. dominates the global ORC market due to its robust industrial base and focus on waste heat recovery to improve energy efficiency. The government actively supports clean energy projects via incentives such as the Inflation Reduction Act (IRA) 2022, which extends tax credits for renewable and energy-efficient technologies, boosting ORC adoption. Major industrial sectors such as oil & gas, manufacturing, and power generation increasingly integrate ORC systems to reduce emissions and operational costs. Companies like Ormat Technologies are expanding projects for geothermal and waste heat recovery.
• Canada’s ORC market is growing rapidly, driven by its geothermal potential and heavy industry focus on decarbonisation. The Canadian government promotes clean energy through programs like the Clean Growth Program and provincial incentives for renewable energy projects. Canadian companies are collaborating internationally to develop modular ORC units for remote and off-grid applications, leveraging the country’s abundant renewable resources and cold climate advantages.

Asia-Pacific Market Trends

The Asia-Pacific region is projected to be the fastest-growing ORC market, with an anticipated CAGR of 11% over the forecast period. This remarkable growth is primarily attributable to rapid industrialisation and urbanisation in economic powerhouses like China, India, and Japan, leading to an unprecedented increase in energy demand. China, in particular, leads the regional growth due to substantial governmental investments in renewable energy infrastructure and aggressive targets for reducing industrial emissions. The region's concerted focus on harnessing vast waste heat resources from industries and developing new geothermal power projects further propels the adoption of ORC systems.

• China is the fastest-growing ORC market globally, fueled by its large industrial base and ambitious climate goals. The country’s 14th Five-Year Plan emphasises energy efficiency and renewable energy, including geothermal and waste heat recovery projects utilising ORC technology. China leads in geothermal ORC installations, particularly in western provinces like Sichuan and Yunnan. Industrial zones benefit from government grants supporting the retrofit of ORC systems to recover waste heat from cement, steel, and chemical plants. State-owned enterprises like China Energy Engineering Corporation (CEEC) drive large-scale ORC adoption.
• India’s ORC market is emerging rapidly as part of its renewable energy expansion and industrial energy efficiency programs. The government’s Perform, Achieve and Trade (PAT) scheme encourages industries to adopt waste heat recovery solutions like ORC to meet emissions targets. India’s geothermal resources remain underdeveloped but show promising potential for ORC. The Ministry of New and Renewable Energy (MNRE) has launched pilot projects integrating ORC with biomass and municipal solid waste plants. Additionally, industrial clusters in states like Maharashtra and Gujarat are adopting ORC technology to reduce energy costs. Public-private partnerships are increasing to commercialise ORC systems for distributed power generation.

Europe Market Trends

Europe holds a substantial and significantly growing share of the ORC market. Stringent environmental regulations, ambitious EU renewable energy targets, and a strong commitment to decarbonisation primarily drive its market expansion. Countries like Germany, Italy, and France are at the forefront of adopting ORC systems, particularly for geothermal, biomass, and industrial waste heat recovery applications. The European market is expected to grow at a CAGR of 9%, underpinned by continuous investments in sustainable energy infrastructure. Supportive government incentives and subsidies, aimed at boosting renewable energy generation and energy efficiency, have further accelerated the growth of the ORC industry across the continent.

• The UK ORC market is expanding under the country’s commitment to Net Zero by 2050, emphasising renewable energy and energy efficiency. The government’s Renewable Heat Incentive and Industrial Energy Transformation Fund have subsidised ORC installations in waste heat recovery and biomass sectors. The UK also focuses on marine and geothermal energy projects employing ORC technology. Recent investments in smart grid integration have created opportunities for distributed ORC units in industrial parks.
• Germany market is driven by its leadership in industrial automation and renewable energy integration. The country’s ambitious Energiewende policy promotes energy transition through subsidies for waste heat recovery, geothermal, and biomass power projects. German manufacturing companies increasingly implement ORC systems to comply with strict emissions regulations. Siemens Energy and other local firms are advancing high-efficiency ORC technologies for heavy industries and combined heat and power (CHP) plants.

Application Insight

Geothermal applications dominate the ORC market, leveraging Earth's consistent natural heat for stable, baseload electricity generation. This segment's significant share is driven by aggressive investments in geothermal power plants by nations like the U.S., New Zealand, Turkey, Indonesia, and Kenya, responding to increasing global energy demands. The inherent reliability and continuous operation of geothermal sources make ORC systems ideal for large-capacity installations. Beyond direct geothermal, ORC is also increasingly applied in biomass, solar thermal, and industrial waste heat recovery, diversifying its utility beyond conventional thermal power.

Capacity Insight

The 1 MW – 5 MW capacity segment is dominant, capturing over 41.2% market share in 2024. This range is favoured for its versatility, striking an optimal balance between cost-effectiveness and performance for various small to medium-scale applications. It's ideal for distributed power generation, including industrial waste heat recovery from sources like engine exhaust or furnace flue gases, combined heat and power (CHP) systems, and smaller-scale renewable energy projects such as biomass combustion or moderate-temperature geothermal sites. Its suitability for diverse industrial and commercial settings with varying space and budget constraints further solidifies its market leadership.

End-Use Insight

Gas turbines lead the end-use segment, accounting for more than 65% market share in 2024. The integration of ORC systems with industrial gas turbines is a highly effective method for enhancing overall energy efficiency by converting substantial amounts of exhaust waste heat, which would otherwise be lost, into valuable additional electricity. This waste heat recovery is particularly critical in industries facing stringent environmental regulations and mounting pressure to reduce carbon emissions and improve energy sustainability. The synergy between gas turbines and ORCs offers a compelling solution for optimising power generation in industrial processes and power plants.

Company Market Share

The global ORC market is highly competitive with diverse players focusing on innovation, strategic partnerships, and expanding their product portfolios to cater to various applications like geothermal, biomass, and waste heat recovery. Key companies emphasise R&D to improve system efficiency and reliability, often collaborating with industrial clients and government programs. There is also a rising trend of offering turnkey ORC solutions, including design, installation, and maintenance services, to strengthen customer relationships.

Ormat Technologies: Ormat Technologies is a market leader known for its innovative ORC solutions, primarily focusing on the geothermal and waste heat recovery sectors. The company leverages its vertically integrated model, handling project development, manufacturing, and operations, strengthening its market position. Ormat's global footprint spans North America, Europe, and Asia-Pacific, where it collaborates with governments and industries to enhance energy efficiency and sustainability. The company consistently invests in R&D to improve system performance and cost-effectiveness, enabling it to maintain a competitive edge.

Latest News:

• In March 2025, Ormat Technologies announced the commissioning of a 10 MW ORC plant in Nevada, USA, utilising waste heat from a nearby manufacturing facility, expected to reduce carbon emissions by 15,000 tons annually.

Recent Developments

• 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.
• 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.