The North America Heat Recovery Steam Generator (HRSG) market is projected to witness robust growth from 2024 to 2035 driven by increasing adoption of combined cycle power plants, stringent emission norms, and a strong push for energy efficiency. The market size was valued at USD 1,450 Million in 2025 and is expected to reach USD 3,280 Million by 2035, growing at a CAGR of 7.7% during the forecast period.
The economic impact of tariffs on "North America Heat Recovery Steam Generator Market".
Market Growth Drivers
Transition to cleaner power generation: The North American energy sector is experiencing a paradigm shift from coal-fired plants to more efficient and environmentally friendly combined cycle gas turbines. This shift is heavily reliant on Heat Recovery Steam Generators which capture waste heat from gas turbines and improve overall plant efficiency. For instance, General Electric (GE) has reported an uptick in demand for its HRSG units as utilities move towards flexible, low-emission power generation facilities.
Expanding industrial cogeneration applications: Growing industrialization across sectors such as chemicals, refining, and food processing is resulting in increased demand for onsite steam production. HRSGs are being increasingly adopted by major manufacturing outfits like Siemens Energy and Mitsubishi Power, who provide custom solutions enabling industrial facilities to reuse waste heat, reduce energy costs and lower their carbon footprint.
Market Trends
Integration of digital monitoring & predictive maintenance: The adoption of IoT-enabled monitoring solutions and AI-driven predictive maintenance is rising among HRSG operators. Companies such as Siemens Energy are deploying advanced sensors and data analytics to optimize HRSG performance, reduce downtime, and extend asset life. This digitization trend minimizes unexpected failures and supports more efficient plant management.
Modular HRSG design adoption: The market is witnessing increased preference for modular and pre-assembled HRSG units that allow for faster onsite installation and scalability. Babcock & Wilcox, for example, is delivering modular HRSG systems that address the growing project timelines and labor constraints in North America. This trend is also enhancing project flexibility and reducing overall capital expenditure for utilities and industrial end-users.
Market Opportunities
Development of hybrid power plants: There is a significant opportunity for HRSG integration in hybrid power plants that combine renewables and gas turbines to ensure grid reliability. Companies like GE and Mitsubishi Power are exploring projects that integrate HRSGs for efficient load balancing.
Retrofitting legacy power infrastructure: A large portion of North America's existing power generation infrastructure is aging. This opens avenues for retrofitting older plants with advanced HRSG systems to enhance output efficiency and comply with tightened emission regulations.
North America Heat Recovery Steam Generator Market Revenue (USD Million), 2020-2035
The chart illustrates consistent growth in the North America HRSG market revenue from 2020 to 2035. Starting at USD 910 Million in 2020, the market exhibits a steady upward trajectory with accelerated growth from 2024 onwards due to increasing utility upgrades, stricter emission compliance, and the transition to combined cycle technologies. By 2025, the market is expected to reach USD 1,450 Million and rise further to USD 3,280 Million by 2035, indicating the expanding role of HRSGs in advancing energy efficiency and renewable integration in the regional power sector.
North America Heat Recovery Steam Generator Market by Region Share (%) - 2025
The 2025 regional market share pie chart shows the United States as the dominant market, holding 62% of the North America HRSG market. Canada follows with a 22% share, driven by investments in power infrastructure modernization and increased demand for cogeneration applications. Mexico accounts for 10%, largely propelled by its expanding natural gas power sector. The rest of North America (including Bermuda and Caribbean regions) collectively constitutes 6%. This distribution highlights the strong market influence of the U.S., but also emphasizes emerging opportunities across Canada and Mexico.
Recent Developments in North America HRSG Market (Past 6 Months)
In April 2024, Mitsubishi Power Americas secured an order to supply advanced HRSG systems for a new 700 MW combined cycle gas turbine plant in Texas. The project will incorporate cutting-edge heat recovery and emission reduction technologies, aiming to set new benchmarks for plant efficiency and environmental performance in the region.
General Electric (GE) announced in February 2024 a partnership with a major Canadian utility to retrofit aging power plants with digital-ready HRSG systems. This collaboration focuses on improving operational flexibility, reducing carbon emissions through increased heat recovery, and integrating digital predictive maintenance tools.
Siemens Energy unveiled a line of modular HRSG systems in March 2024 tailored for distributed generation and combined heat and power (CHP) applications. The new product series features enhanced transportability, quick installation capabilities, and IoT-enabled monitoring solutions to address the dynamic needs of industrial customers in North America.
Press Releases