Organic Rankine Cycle Market Size, Share & Industry Analysis, By Heat Source (Geothermal Energy, Waste Heat Recovery, Biomass, and Others), and Regional Forecast, 2025-2032

The global organic rankine cycle market size was valued at USD 840.77 million in 2024. The market is projected to grow from USD 887.35 million in 2025 to USD 1,254.86 million by 2032, exhibiting a CAGR of 5.08% during the forecast period.

The Organic Rankine Cycle (ORC) is a form of energy production that applies to geothermal, biomass, and waste heat recovery applications. One of the most essential features of the ORC is utilizing low-temperature heat sources for low to moderate power generation. The market is expected to grow over the coming years owing to the increasing focus on geothermal energy as a sustainable power generation solution.

Ormat Technologies is one of the leading players in the market. It is engaged in the geothermal energy power business. The company offers renewable power solutions based on the ORMAT® Energy Converter (OEC), a power generation unit that converts low, medium, and high-temperature heat into electrical energy.

MARKET DYNAMICS

Market Drivers

Growing Demand for Renewable Energy to Drive Market Growth

The increasing emphasis on the adoption of renewable energy resources to mitigate climate change and reduce dependency on fossil fuel is anticipated to drive the adoption of organic rankine cycle technology. ORC is well-suited for renewable energy applications owing to its ability to convert power from sources such as geothermal energy and waste heat recovery methods.

As global businesses and governments focus more on sustainable technologies, they can support the wide scale implementation of ORC technology in power generation owing to its associated benefits.

Growing Focus on Geothermal Energy for Sustainable Power Generation to Drive Market Expansion

The growing interest in geothermal energy as a sustainable power source drives the market. ORC systems provide an efficient and effective method to convert low-temperature heat into power. The U.S., Indonesia, Philippines, and others with significant geothermal resources are leading in the adoption of ORC technology to enhance the efficiency and output of geothermal power plants.

Additionally, various financial incentives such as subsidies and tax benefits play a crucial role in propelling the implementation of renewable energy for electricity generation. Such aspects develop a supportive environment for businesses in the renewable energy sector, boosting the market expansion

Market Restraints

High Initial Investment Cost May Limit Market Growth

One of the critical challenges the market faces is the high initial investment cost associated with projects. Installation of the ORC system requires significant capital expenditure for equipment, installation, and maintenance. The upfront costs may deter the potential buyers from adopting ORC technology due to budget constraints.

Additionally, the cost of replacing or retrofitting existing infrastructure to integrate ORC technology can be challenging. The capital-intensive nature can limit the business potential in developing regions and may limit the organic rankine cycle market growth.

Market Opportunities

Growing Adoption of Renewable Energy Technologies Anticipated to Encourage Market Expansion

The ORC market presents an opportunity for growth in renewable energy sources such as geothermal energy, waste heat recovery, and others. The technology is well suited for low-temperature heat from renewable energy sources to electricity, making it suitable for expanding green energy initiatives.

Further, global efforts to limit carbon emissions and strict government environmental regulations are anticipated to support and develop the need for clean and sustainable technologies such as ORC.

Market Challenges

Limited Technology Awareness May Hinder Market Growth

The limited awareness of the ORC, particularly in the industrial sector, can benefit from waste heat recovery and renewable energy integration. ORC systems can improve energy efficiency, reduce operational costs, and contribute to sustainability goals across industries. Additionally, small companies may lack the technical expertise or financial resources to explore ORC solutions and rely more on conventional technologies. Limited government support and initiatives for the development of ORC technology may further limit the market growth.

ORGANIC RANKINE CYCLE MARKET TRENDS

Technological Advancements to Fuel Market Growth

The ongoing advancements in ORC technology are increasing its application across various industries. For instance, in September 2023, Salgenx, a provider of renewable energy solutions, introduced an innovative heat pump technology for RO desalination systems. The technology has been claimed to have integrated ORC to power the pressurization pumps, enabling a more energy-efficient and cost-effective method. In addition, the market is expected to grow over the forecast period owing to the government's rising energy efficiency efforts.

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IMPACT OF COVID-19 ON THE GLOBAL MARKET

The outbreak of the COVID-19 pandemic created significant challenges for the market. Lockdowns and travel restrictions resulted in supply chain difficulties, leading to limited development of projects and affecting the expected growth of the market.

Despite these obstacles, the stable increase in geothermal energy capacity during the COVID-19 pandemic supported the market growth. However, the growth would have been higher if not for the disruptions caused by COVID-19.

SEGMENTATION ANALYSIS

By Heat Source

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Continued Growth in Geothermal Energy Installations to Propel the Market

By heat source, the market is segmented into geothermal energy, waste heat recovery, biomass, and others.

Geothermal energy segment dominates the market. The organic rankine cycle technology is highly applicable in geothermal energy projects as it enables efficient utilization and operates on low-temperature heat. Globally, governments and businesses are prioritizing the adoption of renewable energy, which is expected to increase the use of geothermal energy as it is a clean and reliable energy source.

Waste heat recovery segment holds a significant market share. The application of ORC technology in waste heat recovery has also supported market growth. The increasing focus on energy efficiency by the industrial sector with the aim of lowering energy costs by utilizing ORC systems for energy generation using waste heat recovery has also contributed to market growth.

ORGANIC RANKINE CYCLE MARKET REGIONAL OUTLOOK

The market has been studied geographically across five main regions: North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America

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Focus on Waste Heat Recovery and Geothermal Energy to Foster Market Growth

In North America, the market is anticipated to gradually grow owing to the increasing adoption of geothermal energy sources. Government incentives and policies supporting energy efficiency and emission reductions are aiding the growth of the ORC market. The push toward decarbonization and increased focus on renewable energy sources plays a significant role in market expansion.

U.S.

High Geothermal Installed Capacity to Drive Market Growth

According to IRENA, in 2023, the U.S. approximately had 2,679 MW of geothermal energy installation. The country’s abundant geothermal resources, particularly in California, Nevada, and other states, further fuel the market’s growth. In August 2024, the U.S. Department of Energy announced an approximate investment of USD 31 million to support six renewable geothermal energy projects nationwide. The investment aims at expanding the use of geothermal technologies for effective and sustainable energy solutions and is also anticipated to support North America’s organic rankine cycle market share.

Europe

Growing Emphasis on Renewable Energy Sources Implementation to Support Market Growth

In Europe, Italy and Germany are leading the adoption of ORC technology, mainly for geothermal energy applications. The region’s focus on reducing carbon emissions and enhancing energy efficiency across various industries is anticipated to support the growth of organic rankine cycle. Additionally, the market’s robust growth is supported by The European Union’s goal to achieve net-zero emissions and support for the geothermal sector in the European Green Deal.

Asia Pacific

Growing Industrialization and Energy Demand to Drive Market Growth

Asia Pacific is anticipated to grow fastest over the coming years, driven by rapid industrialization and the presence of several fast-growing economies. The increase in energy demand is driving the need for energy-efficiency technologies such as ORC to limit greenhouse gas emissions.

Indonesia

Abundance of Geothermal Resources to Support Regional Market Growth

Indonesia has great potential for geothermal energy resources. According to IRENA’s Renewable Capacity Statistics report, in 2023, Indonesia held a capacity of more than 2500 MW of geothermal energy generation. This illustrates the country’s immense potential to implement the ORC technology, which is suitable for geothermal applications.

Latin America

Expanding Geothermal Energy Projects to Propel Regional Market Growth

Latin America holds abundant geothermal energy resources, presenting an opportunity for clean energy production, decarbonizing industrial processes, and bolstering energy security. Mexico, Costa Rica, and few other countries hold significant geothermal energy capacities. The region’s untapped potential owing to financial constraints could limit its growth; however, increasing foreign investments is anticipated to support market growth.

Middle East & Africa

Significant Geothermal Energy Capacity in Turkey and Kenya to Influence Market Growth

While geothermal resources are limited in the region, countries such as Turkey and Kenya hold the majority of the market share and influence market direction. These countries' significant geothermal energy capacity supports the adoption of ORC technology in the region.

COMPETITIVE LANDSCAPE

Key Industry Players

Installation of ORC Systems for Enabling Clients in Reducing Emissions

Globally, Ormat Technologies, Turboden S.p.A, Calnetix Technologies LLC, and others are some of the dominating players in the market. For instance, in July 2023, Turboden S.p.A., a Mitsubishi Heavy Industries Group Company, including ENGIE Solutions GCC, was chosen by LEC, a member of Holcim Group, for the production and installation of a 10MWe WHR Organic Rankine Cycle system at the Fujairah cement plant in UAE. Turboden S.p.A. will enable LEC to capture low-temperature waste heat and achieve a reduction of 28% in power-related emissions.

List of Key Organic Rankine Cycle Companies Profiled

• TURBODEN S.p.A. (Italy)


• ALFA LAVAL (Sweden)


• Exergy International srl (Italy)


• ENOGIA (France)


• Triogen (Netherlands)


• Calnetix Technologies, LLC (U.S.)


• Kaishan USA (U.S.)


• INTEC Engineering GmbH (Germany)


• Zuccato Energia srl. (Italy)


• Dürr Group (Germany)


• Kaga Electronics (Japan)


• Orcan Energy AG (Germany)


• ORMAT Technologies (U.S.)

KEY INDUSTRY DEVELOPMENTS

• October 2024 - Turboden announced the first project in the Kingdom of Saudi Arabia: a 13 MWe ORC power plant at Riyadh Cement Company. In alignment with the nation’s ambitious Vision 2030, the project is pivotal in advancing the Kingdom’s decarbonization agenda.


• February 2024 - Orcan Energy increased its production capacity by establishing a production unit in Kiel, Germany. The expansion will enable the company to manufacture modular systems and cater to customers globally completely.


• January 2024 - Turboden S.p.A. was awarded a contract by Strathcona Resources Ltd. to design and manufacture a single-shaft turbine Organic Rankine Cycle (ORC) system with a gross nameplate capacity of up to 19 megawatts.


• May 2023 - Turboden S.p.A. provided 2 ORC systems of 13.6 MWe each to Wood Based Panels facilities in Turkey, which will enable the generation of electricity from wood waste and residuals from the production processes.


• September 2022 - Mitsubishi Heavy Industries announced the development of a state-of-the-art binary power generation system based on Organic Rankine Cycle technology (WHR-ORC system) mainly for recovering waste heat from sulfur-free fuel-burning engines.

REPORT COVERAGE

The report delivers a detailed insight and focuses on key aspects such as leading companies in the market. Besides, the report offers insights into the market trends and technology and highlights key industry developments. In addition to the factors above, the report encompasses several factors and challenges that contributed to the growth and downfall of the market in recent years.

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REPORT SCOPE & SEGMENTATION