Organic Rankine Cycle (ORC) Market Size & Share, by Power Output (<1MWe, >1-5MWe, >5-20MWe, >10MWe); Model (Dynamic, Steady-State); Application (Waste Heat Recovery, Geothermal, Biomass, Oil & Gas, Waste to Energy, Solar Thermal) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5068
  • Published Date: May 22, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Organic Rankine Cycle Market size was valued at USD 800 Million in 2023 and is poised to reach USD 1.14 Billion by the end of 2036, registering around 2.5% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of organic rankine cycle is evaluated at USD 841.3 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.


Organic Rankine Cycle Market
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Organic Rankine Cycle Market: Growth Drivers and Challenges

Growth Drivers

  • Government Proactively Working for Reducing Greenhouse Gas Emission– The United States Environmental Protection Agency established federal greenhouse gas emissions rules for passenger automobiles and light trucks for Model Years (MY) 2023 through 2026 on December 20, 2021. Governments worldwide are actively working to reduce greenhouse gas emissions. Policies such as feed-in tariffs, tax incentives, grants, and others. ORC systems, which excel at utilizing low-grade heat source, aligns perfectly with these goals and receive support from government initiatives.
  • Increasing Investment in Renewable Energy – Over the previous two decades, the amount of funding dedicated to clean energy has significantly increased. The entire new investment in global renewable energy in 2022 was around 495 billion US dollars. This was a 17% rise over the previous year. The growing investment in renewable energy is driving the diversification of energy sources. While wind and solar power dominate the renewable energy landscape, there is a need to explore and utilize others. This diversification further boosts the demand for ORC technology.
  • The Life Cycle of ORC is Longer– ORC systems are designed to operate continuously for extended periods, typically with minimum maintenance requirements. The components used in PRC systems, such as turbines, heat exchangers, and pumps, are built to withstand the conditions of the working fluid and the specific heat source. This durability and reliability ensure the longevity of ORC systems thus contributing to the growth of the ORC market

Challenges

  • Initial Implementation Cost is High- The upfront capital costs of ORC systems can be relatively high compared to conventional power generation technologies. The cost of equipment, installation, and customization for specific applications can pose a challenge, especially can pose a challenge or markets with limited financial resources. However, as the technology matures and economies of scale are realized, the costs are expected to decrease, improving the market competitiveness of ORC systems.
  • Lack of Technical Expertise-
  • Other Substitutes Available in the Market

Organic Rankine Cycle Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

2.5%

Base Year Market Size (2023)

USD 800 Million

Forecast Year Market Size (2036)

USD 1.14 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Organic Rankine Cycle (ORC)Segmentation

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 2023. 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 2036. 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 2023. 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 2036. The development and deployment of huge geothermal facilities will primarily drive the segment’s growth. In 2023, 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:

            Power Output

  • <1Mwe
  • >1-5Mwe
  • >5-20Mwe
  • >10MWe

            Model

  • Dynamic
  • Steady-State

            Application

  • Waste Heat Recovery
  • Geothermal
  • Biomass
  • Oil & Gas
  • Waste to Energy
  • Solar Thermal
 

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Organic Rankine Cycle Industry- Regional Synopsis

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 2036. 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 2036 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 2036. 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.

Research Nester
Organic Rankine Cycle Market Size
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Companies Dominating the Organic Rankine Cycle Landscape

top-features-companies
    • Air Squared, Inc.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Dürr Group
    • ENOGIA
    • Enertime
    • EXERGY INTERNATIONAL SRL
    • General Electric Company
    • ORCAN ENERGY AG
    • Ormat Technologies, Inc.
    • Turboden S.p.A.
    • Transitional Energy LLC

In the News

  • Turboden S.p.A. has announced its selection for supplying ORC geothermal plant of 29 MW for the expansion of Playayn Bayan in the power plant complex of EDC in the Philippines.
  • Transitional Energy LLC announced the collaboration with ElectraTherm, Inc. in the oil and gas business to convert heat waste to power. The collaboration aims to set up Sled Geothermal System at an oilfield in rural Nevada they will use the OCR system of ElectraTherm.

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 5068
  • Published Date: May 22, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing production and demand for renewable energy, and higher investment in promoting clean energy usage are the major factors driving the market growth.

The market size of organic rankine cycle (ORC) is anticipated to attain a CAGR of around 4% over the forecast period, i.e., 2023 – 2035.

The major players in the market are Air Squared, Inc., Dürr Group, ENOGIA, Enertime, EXERGY INTERNATIONAL SRL, General Electric Company, ORCAN ENERGY AG, Ormat Technologies, Inc., and Turboden S.p.A.

Fundamental of both processes are pretty much similar, however, ORC uses organic fluid with a low boiling point to match perfectly with the heart sources of low temperatures.

The average cost of every organic ranking cycle is somewhere between USD 1000 to USD 2000 per KW.

The ORC system's efficiency is constantly optimized at 50% load, and electrical efficiency stays at 90% of the standard electrical efficiency.

The <1Mwe segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Organic Rankine Cycle Market Report Scope
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