Global Organic Rankine Cycle Market By Application(Waste Heat Recovery, Combined Heat and Power (CHP), Geothermal, Biomass, Solar Power, Others), By Capacity(Below 1 MW, 1 MW - 5 MW, 5 MW - 10 MW, Above 10 MW), By End-Use(Gas Turbine, Waste to Energy, Metals, Cement & Lime, Oil & Gas, Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2024-2033

Report Overview

The Global Organic Rankine Cycle Market size is expected to be worth around USD 859.7 Million by 2033, From USD 575.2 Million by 2023, growing at a CAGR of 4.1% during the forecast period from 2024 to 2033.

The Organic Rankine Cycle (ORC) Market encompasses technologies and systems that convert thermal energy into electrical power using organic fluids with low boiling points. This process is crucial for exploiting low-to-medium temperature heat sources, such as biomass combustion, industrial waste heat, and geothermal energy.

The ORC Market is pivotal for industries aiming to enhance energy efficiency and reduce carbon footprints, offering scalable solutions across various sectors, including renewable energy, manufacturing, and power generation. Key market participants focus on technological advancements, cost efficiency, and operational reliability to meet the strategic energy objectives of businesses globally.

The Organic Rankine Cycle (ORC) market is witnessing substantial growth driven by its efficacy in low-temperature heat recovery and the escalating demand for sustainable energy solutions. This technology, renowned for converting waste heat into power, particularly in industries such as manufacturing and power plants, is aligning with global energy efficiency goals.

As industries continue to pursue operational efficiency, the integration of ORC systems is becoming increasingly prevalent. These systems are not only enhancing thermal efficiency but are also contributing to the reduction of carbon emissions, a crucial factor given the current environmental regulatory landscape.

The recent data indicating the performance of refineries underscores the potential impact on the ORC market. In March 2023, crude oil processed by Central Public Sector Enterprise (CPSE) refineries was 14,826.08 thousand metric tonnes (TMT), exceeding the target for the month by 5.57%. Similarly, private and joint venture refineries processed 8,177.53 TMT, surpassing their monthly target by 4.98%. This performance is reflective of the energy sector’s resilience and its capacity to meet rising demands.

The cumulative crude throughput from April 2022 to March 2023, though slightly below the yearly target and the previous year’s production, still represents a significant industrial activity that could necessitate enhanced energy recovery solutions like ORC systems. Therefore, this sector’s robust throughput figures could signal a growing reliance on advanced energy recovery technologies, potentially expanding the ORC market’s scope and application.

Key Takeaways

• Market Growth:  The Global Organic Rankine Cycle Market size is expected to be worth around USD 859.7 Million by 2033, From USD 575.2 Million by 2023, growing at a CAGR of 4.1% during the forecast period from 2024 to 2033.
  
• Regional Dominance: The Organic Rankine Cycle Market in North America holds 45.2%, valued at USD 260.0 million.
  
• Segmentation Insights:
  • By Application: Geothermal energy dominates the market with a significant 62.4% share.
  • By Capacity: Systems with a capacity of 1 MW – 5 MW hold 41.2%.
  • By End-Use: Gas turbines are the leading end-use segment, accounting for 65%.
• Growth Opportunities: The 2023 Organic Rankine Cycle (ORC) market growth is driven by technological advancements enhancing efficiency and expansion into new regions with high thermal loss industries.
  

Driving Factors

Increasing Demand for Renewable Energy Sources

The surge in demand for renewable energy sources is a pivotal driver for the growth of the Organic Rankine Cycle (ORC) market. As the world increasingly shifts towards sustainable energy solutions, ORC technology, known for converting thermal energy into electrical power, becomes critical. This technology leverages waste heat from various sources, making it an attractive option for renewable energy projects.

The global renewable energy market is projected to grow significantly, with ORC playing a substantial role by enhancing the efficiency of power generation from renewable sources such as geothermal and biomass. For instance, the geothermal power market, where ORC systems are extensively used, is expected to grow by 5-7% annually, highlighting the increasing adoption of ORC systems.

Growth in Industrialization and Energy Needs in Emerging Economies

Emerging economies are experiencing rapid industrial growth, which in turn escalates the demand for energy. Countries such as India, China, and Brazil are investing heavily in infrastructure and industrial sectors, increasing their energy consumption. The ORC market benefits from this trend as it provides efficient and cost-effective solutions for energy recovery in industrial processes.

By converting waste heat into electricity, ORC systems reduce the energy cost and carbon footprint of industrial activities. The International Energy Agency reports that emerging economies will account for the majority of the world’s total energy demand growth by 2040, making them crucial markets for ORC technology deployment.

Government Incentives for Sustainable Energy Technologies

Government policies and incentives are significant catalysts for the ORC market. Many governments worldwide are implementing schemes like tax rebates, subsidies, and grants to encourage the adoption of sustainable energy technologies. These incentives make ORC systems more financially viable for energy producers and industrial users.

For example, the U.S. government offers Investment Tax Credits (ITC) for the installation of ORC systems in geothermal and biomass power projects, reducing the initial capital expenditure and boosting market growth. This governmental support not only drives the ORC market but also aligns with global efforts to reduce carbon emissions and promote renewable energy use.

Restraining Factors

High Initial Investment and Installation Costs

The growth of the Organic Rankine Cycle (ORC) market is significantly restrained by the high initial investment and installation costs associated with these systems. ORC technology, while beneficial for long-term energy saving and efficiency, requires substantial upfront capital which can deter potential adopters. The installation involves not just the cost of the system but also the infrastructure needed to integrate it into existing facilities, especially in industries that deal with large-scale thermal and energy processes.

According to industry analyses, the initial cost can be a critical barrier, particularly for small and medium enterprises (SMEs) or regions with limited financial resources. The economic feasibility becomes even more challenging without subsidies or financial incentives from governments, impacting the rate of adoption and expansion of the ORC market.

Complexity in Maintenance and Operation of ORC Systems

The complexity in the maintenance and operation of ORC systems further hampers their market growth. These systems, sophisticated in their design to convert low-grade heat to electricity, require skilled technicians for operation and regular maintenance. The technical expertise needed is not always readily available, particularly in remote or less developed regions.

Additionally, the specialized nature of the maintenance can lead to higher operational costs over the lifecycle of the system. This complexity not only affects the initial decision to invest in ORC technology but also impacts the long-term sustainability and attractiveness of ORC systems in competitive energy markets. Combining high initial costs and operational complexities, these factors collectively slow down the wider adoption and scalability of ORC solutions in global markets.

By Application Analysis

Geothermal power commands a 62.4% share, showcasing its dominance in sustainable energy applications.

In 2023, Geothermal held a dominant market position in the By Application segment of the Organic Rankine Cycle (ORC) Market, capturing more than a 62.4% share. The Organic Rankine Cycle Market is categorized into several applications, namely Waste Heat Recovery, Combined Heat and Power (CHP), Geothermal, Biomass, Solar Power, and Others. Geothermal applications are particularly notable for their substantial market share and growth potential.

The significant share of geothermal applications can be attributed to the increasing focus on renewable energy sources and the growing adoption of sustainable practices. Geothermal energy’s capability to provide a constant and reliable power output, unlike intermittent sources such as solar and wind, has made it a preferred choice in the ORC market. Additionally, technological advancements and government incentives supporting the development and deployment of geothermal energy projects have further driven its market dominance.

The Waste Heat Recovery segment also contributes significantly to the ORC market. Industries with high energy consumption are increasingly adopting waste heat recovery systems to improve energy efficiency and reduce operational costs. Combined Heat and Power (CHP) systems, another vital segment, are gaining traction due to their ability to simultaneously generate electricity and useful thermal energy, leading to enhanced overall efficiency.

Biomass and Solar Power applications, while not as dominant as geothermal, are experiencing steady growth. Biomass ORC systems are being utilized in regions with abundant agricultural and forestry residues, while solar power ORC systems are being integrated with concentrated solar power (CSP) technologies to enhance their efficiency.

Other applications in the ORC market, though currently holding a smaller share, are expected to grow as technological advancements and innovative applications emerge. Overall, the ORC market’s growth is driven by the increasing demand for clean and efficient energy solutions across various applications, with geothermal energy leading the way due to its reliability and consistent output.

By Capacity Analysis

Systems ranging from 1 MW to 5 MW account for 41.2% of the market capacity.

In 2023, the 1 MW – 5 MW segment held a dominant market position in the By Capacity segment of the Organic Rankine Cycle (ORC) Market, capturing more than a 41.2% share. The ORC Market is divided into various capacity segments, namely Below 1 MW, 1 MW – 5 MW, 5 MW – 10 MW, and Above 10 MW. The 1 MW – 5 MW segment has emerged as a key contributor to market growth, driven by its suitability for diverse applications and optimal balance between cost and performance.

The substantial market share of the 1 MW – 5 MW capacity segment can be attributed to its versatility and widespread adoption in various industries. This capacity range is particularly favored for small to medium-scale applications, including waste heat recovery, combined heat and power (CHP) systems, and renewable energy projects such as geothermal and biomass. The flexibility of this capacity range makes it ideal for industrial and commercial settings, where space and budget constraints often dictate the choice of energy solutions.

The Below 1 MW segment, while smaller in market share, plays a crucial role in niche applications. These include small-scale waste heat recovery systems in manufacturing processes and micro-CHP systems in residential and small commercial buildings. The demand for these smaller capacity ORC systems is growing, particularly in regions with stringent energy efficiency regulations and incentives for decentralized energy generation.

The 5 MW – 10 MW and Above 10 MW segments cater to larger industrial and utility-scale applications. These include large geothermal plants, biomass power stations, and substantial waste heat recovery projects in heavy industries. Although these segments capture a smaller share compared to the 1 MW – 5 MW segment, they are essential for meeting the energy needs of large-scale operations and contribute significantly to overall market growth.

By End-Use Analysis

Gas turbines lead the end-use segment with a significant 65% market share in deployment.

In 2023, Gas Turbines held a dominant market position in the By End-Use segment of the Organic Rankine Cycle (ORC) Market, capturing more than a 65% share. The ORC market is segmented by end-use into Gas Turbine, Waste to Energy, Metals, Cement & Lime, Oil & Gas, and Others. The Gas Turbine segment has established itself as the primary contributor to the market, driven by its critical role in enhancing energy efficiency and reducing emissions in power generation.

The substantial market share of the Gas Turbine segment can be attributed to the widespread adoption of ORC systems in industrial gas turbine power plants. These systems effectively utilize the waste heat generated during power production, converting it into additional electricity, thereby increasing the overall efficiency of the power plant. The integration of ORC technology in gas turbines is particularly valuable in regions with stringent environmental regulations and a growing focus on sustainable energy practices.

The Waste to Energy segment also plays a significant role in the ORC market. This segment involves converting municipal and industrial waste into usable energy, contributing to waste management and renewable energy production. The adoption of ORC systems in waste-to-energy plants enhances the efficiency of the conversion process, making it a viable solution for sustainable waste disposal and energy generation.

The Metals and Cement & Lime segments, while holding smaller shares, are crucial for industrial applications. ORC systems in these industries recover waste heat from high-temperature processes, improving energy efficiency and reducing operational costs. The Oil & Gas segment benefits from ORC technology by recovering waste heat from various processes, contributing to energy conservation and emission reduction.

Other applications, encompassing diverse industries, also contribute to the ORC market’s growth. These applications benefit from the flexibility and efficiency of ORC systems, making them suitable for various industrial processes.

Key Market Segments

By Application

• Waste Heat Recovery
• Combined Heat and Power (CHP)
• Geothermal
• Biomass
• Solar Power
• Others

By Capacity

• Below 1 MW
• 1 MW – 5 MW
• 5 MW – 10 MW
• Above 10 MW

By End-Use

• Gas Turbine
• Waste to Energy
• Metals
• Cement & Lime
• Oil & Gas
• Others

Growth Opportunities

Advancements in ORC Technology to Enhance Efficiency

The global Organic Rankine Cycle (ORC) market is poised for significant expansion, primarily driven by technological advancements aimed at enhancing system efficiency. In 2023, the focus has increasingly shifted toward optimizing the thermal-to-electrical energy conversion process. Innovations in turbine design, the use of superior working fluids, and improvements in heat exchanger materials have collectively contributed to higher efficiency rates.

These enhancements not only promise better performance but also extend the lifespan and reduce the maintenance needs of ORC systems. As industries continually seek sustainable and cost-effective energy solutions, the advanced ORC technology aligns perfectly with the growing emphasis on renewable energy and efficiency optimization. This trend is expected to catalyze market growth, providing substantial opportunities for both existing players and new entrants.

Expansion into Untapped Markets with High Thermal Loss Industries

Another significant growth opportunity for the ORC market in 2023 lies in its expansion into untapped geographical regions and industries characterized by high thermal losses. Regions with substantial industrial activities, particularly in manufacturing and chemical processing, where waste heat recovery can transform operational efficiency, present fertile grounds for ORC deployment.

Moreover, developing countries that are now focusing on industrial efficiency and sustainable practices are increasingly adopting ORC systems. This expansion is supported by local governments promoting green energy technologies through incentives and subsidies. By tapping into these new markets, the ORC industry can achieve broader deployment, thereby accelerating its growth trajectory and reinforcing its role in global energy sustainability efforts.

Latest Trends

Integration of ORC Systems with Waste Heat Recovery

In 2023, the integration of Organic Rankine Cycle (ORC) systems with waste heat recovery mechanisms represents a pivotal trend in the global ORC market. This approach capitalizes on the untapped potential of residual heat from industrial processes, significantly enhancing energy efficiency and reducing environmental impact. Industries such as cement, steel, and glass manufacturing, which generate substantial amounts of waste heat, are increasingly adopting ORC systems to convert this byproduct into valuable electricity.

This not only maximizes resource utilization but also aligns with global sustainability goals by lowering carbon emissions. The trend towards integrating ORC with waste heat recovery is expected to accelerate market growth, as it offers a dual benefit of energy conservation and cost savings, making it an attractive investment for energy-intensive industries.

Development of Small-Scale ORC Units for Localized Energy Generation

The development of small-scale ORC units marks another significant trend in the ORC market in 2023, aimed at facilitating localized energy generation. These compact units are designed to be deployed in small to medium-sized enterprises (SMEs) and remote locations, providing a decentralized energy solution that enhances accessibility and reliability.

The adaptability of small-scale ORC systems to various heat sources, including solar, geothermal, and biomass, broadens their applicability across different sectors and geographic areas. This scalability and versatility are crucial for driving the adoption of ORC technology in regions lacking extensive industrial infrastructure or grid connectivity, thereby promoting energy independence and supporting local economies.

Regional Analysis

The North American Organic Rankine Cycle Market holds a 45.2% share, valued at USD 260.0 million.

The Organic Rankine Cycle (ORC) market demonstrates robust growth across various regions, characterized by distinct trends and opportunities. In North America, the market is notable for its maturity and holds a dominant share of 45.2%, valued at USD 260.0 million.

The region’s leadership in the ORC market is largely driven by stringent environmental regulations and the presence of advanced technological infrastructure, particularly in the United States and Canada, which facilitate the adoption of renewable energy technologies.

Moving to Europe, the market is fueled by aggressive renewable energy targets and supportive government policies. European countries, particularly Germany, the United Kingdom, and Scandinavia, exhibit significant investments in ORC technology to enhance energy efficiency and reduce carbon footprints in industrial sectors. The integration of ORC systems with biomass, geothermal, and waste heat recovery applications further accelerates market growth in this region.

In the Asia Pacific, rapid industrialization, increasing energy demand, and abundant availability of renewable resources are key drivers. Countries like China, Japan, and India are aggressively investing in renewable energy projects, which include ORC systems to leverage low-grade heat sources, significantly contributing to the regional market expansion.

The Middle East & Africa show emerging market potential, with increasing initiatives to diversify energy sources. The adoption of ORC systems in the Middle East is particularly tied to the oil and gas industry, aiming to enhance energy efficiency and sustainability in operations.

Latin America is gradually recognizing the benefits of ORC technology amidst growing industrial activities. Countries such as Brazil and Argentina are exploring renewable energy integrations with ORC to sustain their energy needs and support environmental sustainability efforts.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates

Key Players Analysis

In the Global Organic Rankine Cycle (ORC) Market in 2023, key players have exhibited noteworthy advancements and strategic initiatives that significantly influence market dynamics. Among these, Ormat Technologies stands out due to its extensive experience and innovation in geothermal and recovered energy generation. The company has capitalized on its robust technological capabilities to enhance the efficiency and environmental compatibility of ORC solutions, addressing the growing demand for sustainable energy solutions.

INTEC GMK and Enorgia have also been pivotal, focusing on tailoring ORC systems for niche markets and specific industrial needs. Their efforts in customizing solutions to maximize thermal efficiency demonstrate a keen insight into customer-specific requirements, which is crucial for maintaining a competitive edge.

Calnetix Technologies, LLC and Atlas Copco AB have emphasized the integration of advanced control systems and high-efficiency components. Their contributions to improving the operational flexibility and cost-effectiveness of ORC systems resonate well with industries looking to optimize energy consumption and reduce carbon footprints.

Additionally, companies like Triogen and Alfa Laval have focused on expanding their product offerings and enhancing after-sales services to strengthen their market presence. Triogen’s innovative approach to ORC system design and Alfa Laval’s advancements in heat exchange solutions highlight their commitment to technological excellence and customer satisfaction.

Mitsubishi Heavy Industries and General Electric, with their vast industrial expertise, have been instrumental in driving large-scale ORC projects, showcasing their ability to handle diverse industrial applications and reinforcing the potential of ORC technology in major energy-intensive industries.

Market Key Players

• Ormat Technologies
• INTEC GMK
• Enorgia
• Calnetix Technologies, LLC
• Atlas Copco AB
• Triogen
• Alfa Laval
• Kaishan USA
• General Electric
• Exergy International Srl.
• Enotime
• ABB
• ORCHAN ENERGY AG
• Turboden S.p.a
• Mitsubishi Heavy Industries
• Elvosolar, a.s.

Recent Development

• In May 2024, ENERTIME ranks 5th in “The Innovation Leaders” in France, top in the energy sector. Specializing in CleanTech, they innovate in high-power turbomachinery and thermodynamic machines for energy efficiency, focusing on global markets with ORC modules.
• In April 2024, Turboden and Fervo Energy partnered for geothermal innovation, launching the Cape Station project in Utah, aiming for 400 MW capacity. Turboden provides ORC technology for the initial 90 MW phase, supporting 24/7 carbon-free energy.

Report Scope