Organic Rankine Cycle Market By Application (Solar Thermal, Geothermal, Biomass, Waste Heat Recovery, and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023-2032
Market Perspective
The global Organic Rankine Cycle (ORC) Market was estimated to be valued at around USD 509.8 million in 2022 and is projected to reach USD 769.27 million by 2032. The market is expected to grow at a compound annual growth rate of approximately 4.2% from 2023 to 2032.
The organic rankine cycle (ORC) is a technique for converting heat into electricity, widely used for distributed generation from renewable heat sources such as biomass, geothermal, and solar, as well as for enhancing energy efficiency in industrial settings through heat recovery. The growing demand for renewable energy due to increasing environmental concerns is the primary driver of the ORC market. Other factors contributing to its growth include the long lifespan of ORC systems and their cost-effectiveness in terms of operations and maintenance.
As of 2022, the installed capacity of ORC systems was around 3,815 MWel, in over 1800 power plants. In the same year, an additional 75 new plants were planned or commissioned, which would add 526.8 MWel of capacity. In terms of installed capacity by country, the top contributors to geothermal applications are the United States, Turkey, New Zealand, and the Philippines. For biomass applications, Germany, Canada, Italy, and Austria are among the top contributors.
The longevity and low operating and maintenance costs of ORC plants have made them attractive to energy production companies, leading to an increase in installations.
Key Insights
- Based on Application, the geothermal segment held the largest market share
- On the basis of region, North America accounted largest market share
Increasing production of renewable energy is driving the market growth
Both major and developing economies, including the United States, Germany, Turkey, China, India, and Indonesia, among others, are promoting the transition from conventional energy sources to renewable energy sources. The key driver behind this shift is the implementation of policies aimed at reducing carbon emissions.
To support these policies, countries are providing investments and financial incentives to attract new entrants and investors, which will further boost the growth of the Organic Rankine Cycle market. The combination of environmental policies and financial support will help drive the shift towards sustainable, renewable energy sources.
Available Substitute Technologies Will Challenge Market Growth
In 2022, one of the major challenges facing the organic rankine cycle market was the availability of substitute technologies, such as the steam Rankine cycle. The steam rankine cycle is a widely used thermodynamic cycle that is employed for power generation around the world. It forms the basis of how steam power plants work, with steam acting as the working fluid. Despite this challenge, the ORC market has seen significant growth due to rising environmental concerns and the increasing emissions of carbon into the atmosphere. The use of n-pentane as a working fluid, with an efficiency of 20%, has further enabled the ORC market to thrive.
Recent Development
- In October 2022, the European Union funded ORC Plus projects aimed at developing innovative Thermal Energy Storage (TES) systems. These systems focus on incorporating solar power into plants of MWe size.
- In July 2022, Turboden and Eavor partnered to provide an ORC unit for a geothermal project in Geretsried, Germany. The project's goal is to generate electricity for the local market and represents the first commercial Evaor-Loop project that will convert heat harnessed from the Earth.
- In September 2022, ElectraTherm Inc. and Transitional Energy joined forces to convert and harness heat waste into power in the oil and gas industry. This partnership builds upon their previous collaboration in harnessing geothermal energy in Nevada.
Segmentation Analysis
Based on application, the geothermal segment dominated the organic rankine cycle (ORC) market, owing to its significant megawatt output from geothermal plants. In 2022, geothermal power plants accounted for 72.6% of the total ORC capacity installed globally. The capabilities of geothermal power plants surpass those of other application sectors, such as biomass, waste heat recovery, and solar thermal. On average, a geothermal installation generates more than 10 MW, while the typical capacity of ORC-based plants ranges from 1 to 2 MW. The growing worldwide adoption of clean and renewable energy sources is driving the utilization of ORC in geothermal and other applications.
Biomass is another significant feedstock in ORC, and its application has seen steady growth, accounting for slightly over 10% of ORC installations. It is projected that the biomass segment will be the fastest-growing segment in the forecast period. European countries have made the most extensive use of biomass in their ORC systems.
Regional Landscape
The organic Rankine cycle (ORC) market has seen tremendous growth in North America, Europe, and Asia Pacific in 2022.
In North America, the US has been the leading market due to its high potential for geothermal energy plants and supportive government initiatives. The presence of prominent players like Air Squared Inc., along with the influx of new entrants, has helped maintain the US’s dominance. The region generates over 53% market revenue of the global organic Rankine market.
Europe has also seen steady growth, driven by the availability of geothermal sites and favorable government policies encouraging the use of biomass in ORC. Countries like Turkey, Germany, Italy, Austria, and Portugal have become significant players in the region. The European Union’s increasing focus on clean energy has also contributed to the installation of ORC units in Europe.
Asia Pacific is estimated to be the fastest-growing region in terms of CAGR due to the increasing investment in and shift towards renewable energy. In 2022, Asia Pacific had the highest number of planned and commissioned new ORC projects, compared to the other regions of the world. The use of n-pentane as a working fluid, with an efficiency of 20%, has further contributed to the growth of the ORC market. Turboden is one of the key competitors in the space, along with Enertime, Exergy, and Ormat.
Competitive Landscape
- ABB
- Air Squared, Inc.
- CLEAN ENERGY TECHNOLOGIES, INC.
- Dürr Group
- ENOGIA
- Enertime
- EXERGY INTERNATIONAL SRL
- GENERAL ELECTRIC
- Opcon Energy Systems
- ORCAN ENERGY AG
- Ormat
- Turboden S.p.A.
The global Organic Rankine Cycle market is segmented as follows:
By Application
- Solar Thermal
- Geothermal
- Biomass
- Waste Heat Recovery
By Region
- North America
- The U.S.
- Canada
- Mexico
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic countries
- Denmark
- Finland
- Iceland
- Sweden
- Norway
- Benelux Reunion
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- New Zealand
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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Organic Rankine Cycle Market By Application
- February-2023
- 148
- Global
- energy-and-power
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