Organic Rankine Cycle Market Growth & Trends
The global organic rankine cycle market size is expected to reach USD 1.07 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 3.3% from 2022 to 2030. A rise in the adoption of renewable energy in countries such as the U.S., China, Germany, and Canada is making supporting regulations and providing financial incentives for the deployment of renewable energy. Financial incentives such as feed-in-tariff, subsidies, and tax benefits are some of the major tools utilized by countries around the world to attract investment in the renewable energy sector. These factors propel the growth of the organic rankine cycle (ORC) market in the near future.

The supply chains of spare parts for ORC systems are majorly affected due to the shutdown of production facilities of the manufacturers. The manufacturing of most components in the energy & power sector is slowing down considerably. In addition, local and international travel restrictions, quarantine requirements, and lockdowns have caused delays in shipments of already manufactured parts to be supplied to the distributors and end-users. ORC manufacturers usually have access to an adequate supply of critical parts, devices, components, and materials for emergencies. But, these companies are facing bottlenecks due to the limited production of supplies in countries severely affected by COVID-19.

The geothermal segment led the market and accounted for the largest revenue share in 2021. The major reason for the dominance of the geothermal segment is due to the large-scale megawatt capacity of these geothermal projects as compared to other application segments such as biomass, waste heat recovery, and solar thermal. Since every geothermal project is usually of more than 10 MW capacity whereas ORC-based projects in other application segments are not always of capacities equivalent to 10 MW and are generally less than 1 to 2 MW.

The market for ORC is concentrated where major companies such as Ormat, Turboden, and Exergy account for more than 75% market share in 2020. These companies apart from equipment supply are also focusing on providing EPC and long-term maintenance services to enhance their market share further. This factor is expected to make these companies hold their dominance in the ORC market during the forecast period.

Organic Rankine Cycle Market Report Highlights

  • Geothermal has the largest market share in the application segment in 2021. Geothermal projects are of usually higher capacity as compared to biomass and waste heat recovery projects owing to which the ORC market is higher for geothermal application in 2021 due to the deployment of large-scale geothermal projects in recent years
  • As of 2021, Europe accounted for 30.40% revenue share of the overall market. The region has been one of the front runners in implementing favorable policies and support mechanisms for the growth of renewable energy and energy efficiency projects across the globe. This has resulted in the growth of the market in Europe
  • Various strategic initiatives were recorded over the past few years to boost the growth of the market. For instance, in February 2020, Turboden signed a contract to provide an 8000 kW ORC system for power generation which uses sawmill residual woody biomass as fuel to Meadow Lake Tribal Council (MLTC), Canada