Organic Rankine Cycle Market size is poised to cross USD 800 Million by the end of 2035, expanding at a CAGR of approximately 4% during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of the organic rankine cycle was USD 500 Million. The growing adoption of renewable energy is the main driving factor of the market. The amount of global renewable capacity installed between 2021 and 2026 is estimated to be 50% more than between 2015 and 2020. Moreover, renewables will likely be responsible for about 95% of the increase in worldwide power capacity by 2026. The organic rankine cycle, is a thermodynamic cycle used in renewable energy systems to convert low-temperature heat, such as geothermal heat, or solar thermal energy into useful power.
Additionally, the growing demand for electricity is increasing the need for ORC systems. In the future, the globe will require much more energy supply, particularly cleanly generated electricity. Global electricity demand is expanding roughly twice as quickly as overall energy consumption and is expected to increase by over fifty percent by 2040. The ability of ORC systems to provide electricity from clean energy sources augments the overall industry growth. Furthermore, there are many patents for solar-based OCR systems, which is likely to bring more opportunities for the market. Presently there are more than 100 offices and over 120 million patents of solar-based ORC systems in the world.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~4% |
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Base Year Market Size (2022) |
~ USD 500 Million |
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Forecast Year Market Size (2035) |
~ USD 800 Million |
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Regional Scope |
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Power Output (<1MWe, >1-5MWe, >5-20MWe, >10MWe)
The <1 Mwe segment was responsible for 23% of the global organic rankine cycle market share in 2022. It is further expected to grow at a significant CAGR over the forecasted period and is estimated to gain the largest market share of about 50% in the year 2035. The rising production of electrical power of 1 Mwe with the use of ORC will significantly propel the segment’s expansion. For instance, a UK-based power generation company, Padd Energy announced the opening of 1 MW woodboring CHP that employs ORC to produce the 1Mwe of electrical power. The facility was set up in North Wales in 2022. Furthermore, the rate of emission in generation 1 or less than 1 Mwe power is much lower than that of high megawatt electrical output. Therefore, from the sustainable point of view, the segment is to register significant growth.
Application (Waste Heat Recovery, Geothermal, Biomass, Oil & Gas, Waste to Energy, Solar Thermal)
The geothermal segment in the organic rankine cycle market is expected to hold around 47% of the revenue share by 2035. The development and deployment of huge geothermal facilities will primarily drive the segment’s growth. In 2022, Exergy International srl collaborated with Geothermal Development & Investment Inc. to use the ORC technology of high efficacy to deploy turnkey geothermal power plants in Japan. Moreover, the rising production of electricity from geothermal plants is also expected to boost the segment’s growth. Organic rankine cycle technology is employed in geothermal plants to generate electricity by harnessing the heat from geothermal sources. Geothermal energy output has expanded at a slow but steady 3.5% yearly rate, with an overall installed capacity of around 15.96 gigatonnes electric (GWe), worldwide in 2021.
Our in-depth analysis of the global organic rankine cycle market includes the following segments:
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Power Output |
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Model |
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Application |
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North American Market Forecast
The organic rankine cycle market in North America is projected to be the largest with a share of about 40% by the end of 2035. The growth of the market can be attributed majorly to the growing expansion of sustainable electrical networks will drive the region’s market growth. The Biden-Harris Administration unveiled new programs to link households to more reliable green energy, cut power costs by connecting them to solar power. Moreover, Washington DC and 5 states will also be supporting the Community Solar Subscription Platform that will aid the solar network scalability. Furthermore, the government’s goals to deploy a large-scale clean grid will also contribute to North America’s organic rankine cycle market growth. The Biden-Harris Administration has a goal of a 100% renewable electrical grid by 2035 and net-zero carbon emissions by 2050. For achieving the government invested USD 82 million to increase the solar energy capacity.
European Market Statistics
The Europe ORC market is estimated to be the second largest, registering a share of about 18% by the end of 2035. The rising installation of ORC capacity will boost Europe’s market growth. In collaboration with the energy firm E.ON, AGC's float glass facility in Seingbouse (France) will receive a new ORC unit for residual heat recovery. This heat recovery system (ORC) produced a total of 14,557 MWh. Apart from this, the European organic rankine cycle (ORC) market is further influenced by advantageous laws as well as encouragement mechanisms for the expansion of renewable energy and energy efficiency initiatives in the region.
Author Credits: Abhishek Verma, Hetal Singh
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