Asia Pacific Organic Rankine Cycle (ORC) Market - By Power Output (≤ 1 MWe, > 1 - 5 MWe, > 5 - 10 MWe, > 10 MWe), By Application (Waste Heat Recovery, Biomass, Geothermal, Solar Thermal, Oil & Gas, Waste to Energy) & Forecast, 2023 – 2032

Asia Pacific Organic Rankine Cycle Market Size

Asia Pacific Organic Rankine Cycle Market size was valued at USD 3.9 billion in 2022 and is projected to grow at a CAGR of 11.5% by 2032. Ongoing government initiatives aimed at reducing CO2 emissions have led to increased funding for the deployment of these technologies.
 

Additionally, the decreasing costs of renewable energy and national mandates to achieve renewable energy targets have led to the gradual phase-out of traditional coal-fired power stations. For instance, in September 2021, the Chinese government announced its decision to discontinue the construction of coal-fired power projects and instead support countries like Indonesia and Vietnam in developing environmentally friendly and low-carbon energy sources. This commitment has garnered support from more than 55 countries, which have collectively ratified, accepted, acceded to, or approved this agreement. These countries account for approximately 55% of global greenhouse gas (GHG) emissions.
 

The Organic Rankine Cycle (ORC) is a thermodynamic cycle that is used for the generation of mechanical power or electricity from heat. It is particularly suitable for converting low to moderate-temperature heat into useful work. The accelerated adoption of renewable energy technologies, including geothermal, biomass, and other unconventional sources for power generation, has created a significant business opportunity for manufacturers of Organic Rankine Cycle (ORC) systems.
 

Moreover, the presence of favorable government incentives and regulatory reforms designed to promote the adoption of renewable energy sources throughout the Asia Pacific region will persist in propelling business progress. The swift expansion of renewable energy networks, aimed at providing electricity to rural areas with limited access to the grid, along with increased investments from financial institutions such as the IFC and the Asian Development Bank, is set to further accelerate the deployment of renewable energy solutions across the region.
 

Organic Rankine Cycle (ORC) technology is currently in the development stage, and its implementation often involves a more complex and lengthy process of obtaining various environmental clearances when compared to Supercritical Rankine Cycle (SRC). The presence of several alternatives, including SRC and Kalina technology, which offer higher efficiency and lower costs, tends to overshadow ORC technology.
 

Moreover, the adoption of SRC technology is more widespread due to its use of cost-effective working fluids and its reputation for safe and secure operations in contrast to ORC systems. However, it's worth noting that regulatory bodies have consistently been introducing reforms and initiatives aimed at reducing greenhouse gas (GHG) emissions. Furthermore, consumer preferences are shifting towards more environmentally friendly solutions.
 

COVID-19 Impact

The pandemic had a considerable impact on the overall industry landscape. The impact resulted in a significant decline in the overall installation of various large-scale projects. However, developed economies are focusing on over-compensating the recent impacts of COVID-19 by fast-tracking the development of industrial establishments across the region.
 

Asia Pacific Organic Rankine Cycle Market Trends

In recent years, there has been a notable shift within the industry towards harnessing reliable medium and low-temperature heat sources for power generation, which includes biomass, geothermal energy, and solar power. Organic Rankine Cycle (ORC) systems are extensively employed in generating electricity by capturing heat from biomass combustion and geothermal energy sources. This growing adoption of renewable energy sources, coupled with a supportive legislative environment, is expected to promote the wider implementation of ORC systems.
 

Continued economic expansion and the rapid industrialization observed in pivotal nations are set to be significant drivers for the ORC market. The implementation of more stringent emission regulations aimed at reducing CO2 emissions, combined with the increasing deployment of biomass and geothermal power units, will further enhance the industry's potential in the foreseeable future. Moreover, the ORC technology is gaining momentum across various applications, including biomass, waste-to-heat, geothermal, and oil & gas, thanks to its advantages of long operational life. Several key factors that are positively influencing market growth include reduced mechanical stress, a lower number of operational stages, enhanced flexibility, and increased turbine efficiency.
 

Asia Pacific Organic Rankine Cycle Market Analysis

Based on power output, the market is segmented as ≤ 1 MWe, > 1 - 5 Mwe, > 5 - 10 Mwe, and > 10 MWe. The > 10 MWe segment held a market value of more than USD 55.2 million in 2022. ORC systems exhibit a remarkable level of flexibility when compared to other thermal energy harvesting technologies. They can be effectively employed to generate power across a wide range of capacities, from large-scale installations to smaller sources generating just a few kilowatts. What further drives the adoption of this technology is its status as the most efficient and economically viable means of converting thermal energy into mechanical or electrical power.
 

The numerous advantages, including high efficiency, reliability, and flexibility, have led to an increased presence of ORC systems in installations exceeding 10 megawatts electric (>10 MWe). Additionally, ORC power plants can be custom-designed for stationary applications without incurring excessive additional costs. This adaptability is significantly advancing the industry landscape.
 

Based on application, the Asia Pacific ORC market is segmented as waste heat recovery, biomass, geothermal, solar thermal, oil & gas, and waste to energy. The geothermal application is set to grow at a CAGR of over 13.5% by 2032. The integration of a geothermal system with an ORC (Organic Rankine Cycle) unit for heat extraction represents a cost-effective method for power generation. Geothermal wells typically yield temperatures ranging from 50°C to 350°C. To access higher temperatures from the Earth, deeper wells are necessary, which can substantially raise the overall cost.
 

The preference for ORC units has grown significantly, allowing for the generation of more power from lower-temperature geothermal wells. This trend is expected to boost the adoption of ORC technology in this field. Furthermore, the introduction of low-energy utilization power cycles has made it feasible to generate geothermal power even from oil and gas wells, further expanding the potential applications of this technology.
 

The organic rankine cycle market across China held a market share of over 31.8% in 2022. China has been placing a significant emphasis on renewable energy sources to reduce its reliance on coal and combat air pollution. The adoption of ORC systems for power generation from sources like geothermal, biomass, and waste heat aligns with the country's renewable energy goals. Geothermal energy has gained attention in China as a clean and sustainable power source.
 

ORC technology is well-suited for harnessing low-temperature geothermal resources, and this trend was driving the use of ORC systems in geothermal power generation. ORC systems were being adopted for industrial applications, such as recovering waste heat from manufacturing processes. China's extensive industrial base offers numerous opportunities for implementing ORC technology to improve energy efficiency.
 

Asia Pacific Organic Rankine Cycle Market Share

General Electric commands a substantial share in the Asia Pacific organic rankine cycle industry, distinguished for its extensive experience in engineering and producing diverse waste heat recovery technologies, encompassing SRC, ORC, among others. With a rich history deeply rooted in the sustainable technologies sector, the company has delivered ORC solutions across a broad spectrum of applications, spanning oil & gas, waste to energy, and geothermal sectors.
 

Some of the key market players operating across the Asia Pacific organic rankine cycle (ORC) industry are:

• General Electric
• Mitsubishi Heavy Industries, Ltd.
• Turboden S.p.A
• Zhejiang Kaishan Compressor Co., Ltd.
• ENOGIA
• ABB
• Atlas Copco AB
• ORCAN ENERGY AG
• Enertime
• Ormat Technologies
• ALFA LAVAL

Asia Pacific Organic Rankine Cycle Industry News:

• In September 2022, Mitsubishi Heavy Industries developed a binary power generation system based on ORC technology. This system recovers waste heat from sulfur-free fuel-burning engines and converts it into usable energy. The lineup includes three models with a rated output ranging from 200 kW to 700 KW, which is suitable for powering various vessel types. This advanced waste heat recovery system features high thermal efficiency and is fully sealed, oil- & maintenance-free. The development of this system strengthened the company’s presence across the waste-heat-to-energy market.
   

Asia Pacific organic rankine cycle market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume & revenue in MW & USD Million from 2019 to 2032, for the following segments:

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By Power Output, 2019 - 2032 (MW & USD Million)

• ≤ 1 MWe
• > 1 - 5 MWe
• > 5 - 10 MWe
• > 10 MWe

By Application, 2019 – 2032 (MW & USD Million)

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

The above information is provided for the following countries:

• China
• Australia
• India
• Japan
• South Korea
• Philippines
• Thailand
• Vietnam