Asia Pacific Organic Rankine Cycle (ORC) Market Size

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.

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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.