The global market for heat recovery steam generators (HRSGs) is predicted to reach $888.2 million by 2020, according to new research.

A report released this week by analysis firm MarketsandMarkets put the HRSG segment’s value at an estimated $740.7 million in 2015, with growth expected at a CAGR of 3.7% to 2020.

Among the drivers of this growth are global emissions reduction efforts, increasing uptake of combined heat and power (CHP) plants, growing investment in power generation due to increasing worldwide demand, and the technology’s economic benefits.

The report found that CHP plants are the dominant application for HRSGs, accounting for over 50% of the total market share in 2014.  

Europe, with the highest number of CHP plants in the world, will continue to dominate the market for HRSGs, the researchers said. The Asia-Pacific region is expected to grow at the fastest rate due to increasing urbanization and industrialization.

According to the report, leading players in the HRSG space such as GE, Siemens, Amec Foster Wheeler, Babcock & Wilcox and Doosan are developing strategies aimed at penetrating emerging markets.