The global organic rankine cycle (ORC) market reached an estimated value of USD 830.19 million in 2022, and it is projected to experience a compound annual growth rate (CAGR) of 4.1% from 2023 to 2029. This growth can be attributed to the increasing consumer preference for renewable energy sources, driven by environmental concerns. Additionally, ORC systems are known for their durability and cost-effectiveness in terms of maintenance.
However, it's worth noting that the ORC technology faces stiff competition from Steam Rankine Cycle (SRC) technology. SRC is employed in similar applications as ORC, including geothermal energy, biomass, waste heat recovery, and solar thermal systems. This competition between ORC and SRC technologies could potentially slow down the market's growth in the coming years as both seek to establish their presence in various renewable energy sectors.
The United States has emerged as a global leader in the adoption and development of Organic Rankine Cycle (ORC) technology. This leadership position is primarily due to the abundance of geothermal reserves in the country, making it a significant region for the ORC market. ORMAT, a prominent player in the ORC sector, plays a pivotal role by providing ORC equipment and services for various geothermal projects. They are actively involved in managing a substantial number of geothermal and recovered energy projects across the United States.
In 2022, North America, with a notable focus on the U.S., led the global ORC market. Geothermal projects, in particular, constituted the largest share of the ORC market in that year. Geothermal projects tend to be larger in scale compared to biomass or waste heat recovery projects, contributing significantly to this trend. As the global emphasis on clean and renewable energy sources continues to grow, supported by favorable policies and increased financial backing, the demand for ORC installations is expected to experience substantial growth in North America.
Several countries, including the United States, China, Germany, and Canada, are actively embracing renewable energy sources. Government support and financial incentives are key drivers behind this adoption. These countries offer incentives such as tax reductions and subsidies to attract investments in renewable energy projects. These proactive measures are anticipated to further boost the ORC industry in the near future.
The geothermal segment emerged as the market leader, capturing the largest revenue share of 60.58% in 2022. This segment's dominance can be attributed to the substantial megawatt capacity of geothermal projects compared to other application segments like biomass, waste heat recovery, and solar thermal. Geothermal projects typically have a capacity exceeding 10 megawatts (MW), while ORC-based projects in other application areas often have lower capacities, typically ranging from 1 to 2 MW or less. This significant difference in project size contributes to the geothermal segment's leadership in the ORC market.
Countries with abundant geothermal potential, including the United States, Turkey, Kenya, New Zealand, and Indonesia, have made substantial efforts to tap into this potential. For instance, in November 2022, Orcan Energy and Baseload Capital launched a project aimed at harnessing waste heat produced during ongoing oilfield operations at the San Ardo gas and oil field in California, USA. This project serves as a prime example of how existing oil and gas wells can be repurposed to generate reliable and economically efficient renewable power.
North America dominated the market and accounted for the largest revenue share of 43.96% in 2022. Within this region, the U.S. dominated the ORC market, owing to the high geothermal potential in the country. Further, the U.S. has taken active steps to enhance the deployment of geothermal potential for power generation applications from the past. ORMAT has been the major company working in the U.S. to tap geothermal potential in the country by using its ORC technology.
The significant availability of large geothermal potential in Turkey is a major driving force for the ORC market in Europe. The European market for Organic Rankine Cycle (ORC) benefits from the implementation of favorable policies and support mechanisms aimed at promoting renewable energy and energy efficiency initiatives.
Moreover, the construction and upcoming commissioning of new ORC-based geothermal power projects, particularly in countries like Turkey and France, are expected to bolster the growth of the geothermal application segment in the European region. For example, Turboden is currently building an 11 MW ORC-based geothermal power project in France for Fonroche Geothermie, and this project is anticipated to become operational during the forecast period. Such developments are set to drive robust growth in the geothermal segment in the years ahead.
Key Companies and Market Development:
Key players in the ORC market include industry leaders such as Ormat, Turboden, and Exergy, alongside several medium- and small-sized regional players. These major market players engage in competitive strategies focused on product development and the adoption of innovative technologies to gain a competitive edge. Turboden, for example, is actively investing in the development of advanced ORC systems, positioning itself as an industry innovator.
In January 2023, Nikkiso Clean Energy & Industrial Gases Group expanded its service and sales presence in the Middle East, establishing operations in Qatar's Business Innovation Park in Ras Bufontas. This expansion reflects the growing importance of the Middle East market for ORC technologies.
Some of the prominent players operating in the global organic rankine cycle market include:
- Turboden S.p.A.
- Exergy International Srl
- Zhejiang Kaishan Compressor Co., Ltd.
- Enogia SAS
- Calnetix Technologies, LLC
- Atlas Copco AB
- TAS Energy Inc. (TAS)
- Elvosolar, a.s.
Market size value in 2023
USD 812.13 million
Revenue forecast in 2029
USD 1,073.24 million
CAGR of 4.1% from 2023 to 2029
Base year for estimation
2018 - 2021
2023 - 2029
Revenue in USD million, volume in MW, and CAGR from 2023 to 2029
Revenue forecast, volume forecast, company ranking, competitive landscape, growth factors, and trends
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa
U.S.; Canada; Germany; Turkey; Italy; China; Japan; Thailand
Key companies profiled
Turboden S.p.A.; Exergy International Srl; Zhejiang Kaishan Compressor Co., Ltd.; Enogia SAS; Triogen; Calnetix Technologies, LLC; ABB; Atlas Copco AB; TAS Energy Inc. (TAS); Elvosolar, a.s.; General Electric; INTEC GMK; SUMEC GeoPower AG; ORCAN ENERGY AG
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Global Organic Rankine Cycle Market Report Segmentation:
- Application Outlook (Volume, MW; Revenue, USD Million, 2018 - 2029)
- Waste Heat Recovery
- Petroleum Refinery
- Metal Production and Casting (Iron & Steel)
- Solar Thermal
- Oil & Gas (Gas pipeline pressure stations)
- Waste To Energy
- Regional Outlook (Volume, MW; Revenue, USD Million, 2018 - 2029)
- North America
- Asia Pacific
- Central & South America
- Middle East & Africa
1 Market Overview
1.2 Market Analysis by Type
1.2.1 Overview: Global Revenue by Type: 2022 Versus 2023 Versus 2029
1.3 Market Analysis by Application
1.3.1 Overview: Global Revenue by Application: 2022 Versus 2023 Versus 2029
1.4 Global Market Size & Forecast
1.4.1 Global Sales in Value (2017-2029))
1.4.2 Global Sales in Volume (2017-2029)
1.4.3 Global Price by Type (2017-2029) & (US$/Unit)
1.5 Global Production Capacity Analysis
1.5.1 Global Total Production Capacity (2017-2029)
1.5.2 Global Production Capacity by Geographic Region
1.6 Market Drivers, Restraints and Trends
1.6.1 Market Drivers
1.6.2 Market Restraints
1.6.3 Trends Analysis
2 Manufacturers Profiles
**This is for each company**
2.1.1 Company Details
2.1.2 Company Major Business
2.1.3 Company Product and Services
2.1.4 Company Sales, Price, Revenue, Gross Margin and Market Share (2019-2022)
3 Sales by Manufacturer
3.1 Global Sales in Volume by Manufacturer (2020-2022)
3.2 Global Revenue by Manufacturer (2020-2022)
3.3 Key Manufacturer Position in Market
3.4 Market Concentration Rate
3.4.1 Top 3 Manufacturer Market Share
3.4.2 Top 6 Manufacturer Market Share
3.5 Global Production Capacity by Company
3.6 Manufacturer by Geography: Head Office and Production Site
3.7 New Entrant and Capacity Expansion Plans
3.8 Mergers & Acquisitions
4 Market Analysis by Region
4.1 Global Market Size by Region
4.1.1 Global Sales in Volume by Region (2017-2029)
4.1.2 Global Revenue by Region (2017-2029)
4.2 North America Revenue (2017-2029)
4.3 Europe Revenue (2017-2029)
4.4 Asia-Pacific Revenue (2017-2029)
4.5 South America Revenue (2017-2029)
4.6 Middle East and Africa Revenue (2017-2029)
5 Market Segment by Type
5.1 Global Sales in Volume by Type (2017-2029)
5.2 Global Revenue by Type (2017-2029)
5.3 Global Price by Type (2017-2029)
6 Market Segment by Application
6.1 Global Sales in Volume by Application (2017-2029)
6.2 Global Revenue by Application (2017-2029)
6.3 Global Price by Application (2017-2029)
7 North America by Country, by Type, and by Application
7.1 North America Sales by Type (2017-2029)
7.2 North America Sales by Application (2017-2029)
7.3 North America Market Size by Country
7.3.1 North America Sales in Volume by Country (2017-2029)
7.3.2 North America Revenue by Country (2017-2029)
7.3.3 United States Market Size and Forecast (2017-2029)
7.3.4 Canada Market Size and Forecast (2017-2029)
7.3.5 Mexico Market Size and Forecast (2017-2029)
8 Europe by Country, by Type, and by Application
8.1 Europe Sales by Type (2017-2029)
8.2 Europe Sales by Application (2017-2029)
8.3 Europe Market Size by Country
8.3.1 Europe Sales in Volume by Country (2017-2029)
8.3.2 Europe Revenue by Country (2017-2029)
8.3.3 Germany Market Size and Forecast (2017-2029)
8.3.4 France Market Size and Forecast (2017-2029)
8.3.5 United Kingdom Market Size and Forecast (2017-2029)
8.3.6 Russia Market Size and Forecast (2017-2029)
8.3.7 Italy Market Size and Forecast (2017-2029)
9 Asia-Pacific by Country, by Type, and by Application
9.1 Asia-Pacific Sales by Type (2017-2029)
9.2 Asia-Pacific Sales by Application (2017-2029)
9.3 Asia-Pacific Market Size by Region
9.3.1 Asia-Pacific Sales in Volume by Region (2017-2029)
9.3.2 Asia-Pacific Revenue by Region (2017-2029)
9.3.3 China Market Size and Forecast (2017-2029)
9.3.4 Japan Market Size and Forecast (2017-2029)
9.3.5 Korea Market Size and Forecast (2017-2029)
9.3.6 India Market Size and Forecast (2017-2029)
9.3.7 Southeast Asia Market Size and Forecast (2017-2029)
9.3.8 Australia Market Size and Forecast (2017-2029)
10 South America by Country, by Type, and by Application
10.1 South America Sales by Type (2017-2029)
10.2 South America Sales by Application (2017-2029)
10.3 South America Market Size by Country
10.3.1 South America Sales in Volume by Country (2017-2029)
10.3.2 South America Revenue by Country (2017-2029)
10.3.3 Brazil Market Size and Forecast (2017-2029)
10.3.4 Argentina Market Size and Forecast (2017-2029)
11 Middle East & Africa by Country, by Type, and by Application
11.1 Middle East & Africa Sales by Type (2017-2029)
11.2 Middle East & Africa Sales by Application (2017-2029)
11.3 Middle East & Africa Market Size by Country
11.3.1 Middle East & Africa Sales in Volume by Country (2017-2029)
11.3.2 Middle East & Africa Revenue by Country (2017-2029)
11.3.3 Turkey Market Size and Forecast (2017-2029)
11.3.4 Egypt Market Size and Forecast (2017-2029)
11.3.5 Saudi Arabia Market Size and Forecast (2017-2029)
11.3.6 South Africa Market Size and Forecast (2017-2029)
12 Sales Channel, Distributors, Traders and Dealers
12.1 Sales Channel
12.1.1 Direct Marketing
12.1.2 Indirect Marketing
12.2 Typical Distributors
12.3 Typical Customers
13 Research Findings and Conclusion
14.2 Research Process and Data Source
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analysing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.