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Waste Heat Recovery Market Set to Exceed $135 Billion by 2031 as Industrial Efficiency Demand Grows

By MGN Editorial•October 1, 2026 at 10:51 AM

The global waste heat recovery market is forecast to reach $135.33 billion by 2031, presenting significant opportunities for the maritime sector as shipowners seek to reduce fuel consumption and meet tightening emissions regulations.

## Waste Heat Recovery Market Poised for Strong Growth Through 2031 The global waste heat recovery (WHR) market is projected to grow from USD 92.99 billion in 2026 to USD 135.33 billion by 2031, representing a compound annual growth rate (CAGR) of 7.8%, according to an exclusive report published by MarketsandMarkets™. The findings carry notable implications for the maritime industry, where waste heat recovery systems have emerged as a critical tool for improving vessel energy efficiency and reducing greenhouse gas emissions. As the International Maritime Organization (IMO) tightens its carbon intensity requirements under the Carbon Intensity Indicator (CII) framework and the Energy Efficiency Existing Ship Index (EEXI), shipowners and operators face mounting pressure to extract maximum value from every unit of fuel consumed. WHR systems aboard vessels typically capture thermal energy from main engine exhaust gases, jacket cooling water, and other heat sources, converting it into usable electrical power or steam. This recovered energy can offset auxiliary engine load, reducing overall fuel oil consumption and associated emissions — a dual benefit that aligns with both commercial and regulatory imperatives. The broader industrial WHR market's robust growth trajectory reflects accelerating investment across energy-intensive sectors, including power generation, oil and gas, cement, and marine transportation. Analysts point to rising energy costs, stricter environmental legislation, and corporate sustainability commitments as the primary drivers underpinning demand. For the shipping industry specifically, the economics of WHR technology have become increasingly compelling. With bunker fuel prices remaining volatile and the EU Emissions Trading System (ETS) now extending to maritime transport, the ability to reduce fuel burn through onboard heat recovery directly translates to lower operating costs and reduced carbon liability. Major marine equipment manufacturers, including Wärtsilä, MAN Energy Solutions, and Alfa Laval, have continued to develop and refine WHR solutions tailored to both newbuild vessels and retrofit applications. Industry observers note that the retrofit segment, in particular, is expected to see heightened activity as existing fleets seek cost-effective pathways to compliance without full vessel replacement. The MarketsandMarkets™ report spans 300 pages, incorporating 370 market data tables and 70 figures, offering a comprehensive analysis of technology segments, end-use industries, and regional market dynamics through 2031. As decarbonisation timelines grow shorter and the cost of inaction rises, waste heat recovery is increasingly viewed not as an optional upgrade but as a fundamental component of the energy-efficient vessel of the future.
#waste heat recovery#vessel efficiency#decarbonisation#IMO regulations#CII#EEXI#bunker fuel#marine technology#emissions reduction

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