September 2024
The global thermal energy harvesting market transforms ambient heat into electrical power, enabling sustainable operation of sensors and IoT systems. The growth of the market is driven by the increasing adoption of renewable energy solutions and advancements in thermoelectric materials & technologies.
The thermal energy harvesting market is driven by the increasing need for sustainable and maintenance-free power solutions, particularly for Internet of Things (IoT) devices and wireless sensors. The increased adoption of IoT devices and smart infrastructure supporting remote sensor features in energy harvesting. Thermal energy harvesting (often implemented via thermoelectric generators, thermoelectric modules, and other waste-heat recovery transducers) refers to technologies and systems that convert temperature gradients or waste heat into electrical energy.
These systems are used to power low-power electronics (wireless sensors, IoT nodes), recover industrial waste heat, enable battery-free sensors, and improve overall energy efficiency in automotive, industrial, consumer and remote monitoring applications. Thermal harvesting solutions include materials (thermoelectric materials), modules (TEG modules), integrated harvesters (packaged energy-harvesting devices) and system-level power electronics (DC–DC converters, energy managers).
Thermal energy harvesting is undergoing a significant technological shift due to increased advancements in material science and innovative system designs. The key technological shift includes nano-enhanced phase change materials (PCMs), hybridization of storage methods, cutting-edge manufacturer techniques, thermoelectric materials, AI and ML, and bio-based and recyclable PCMs. The rapid innovations in hybrid energy harvesting systems and miniaturization for the development of compact harvesters for small electronics are further growth. Industries are increasing adoption of IoT devices, industrial automation coma and wearables, driving the need for sophisticated thermal energy harvesting technologies.
| Report Coverage | Details |
| Dominating Region | Asia Pacific |
| Fastest Growing Region | North America |
| Base Year | 2025 |
| Forecast Period | 2025 to 2034 |
| Segments Covered | Technology, Application, Deployment, End-User, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Which Technology Dominates the Thermal Energy Harvesting Market?
The thermoelectric generators (TEGs) segment dominated the market by capturing a 39.2% share in 2024 and is expected to grow at an 8.8% CAGR throughout the forecast period. This is mainly due to their ability to convert waste heat into usable electricity. Thermoelectric generators (TEGs) are highly used in energy efficiency and sustainability. Industries like automotive, aerospace, and manufacturing have increased demand for waste heat recovery, driving the adoption of thermoelectric generator technology. The widespread adoption of this technology in industries such as military, consumer, and remote is further contributing to the segment’s growth. The adoption of thermoelectric generators has also increased in various biomedical applications and IoT devices.
The waste-heat recovery systems segment is expected to grow at a significant CAGR over the forecast period due to increased focus of industries on energy efficiency and sustainability. Industries like oil and gas, manufacturing, and power generation produce a significant amount of waste heat, which requires recovery system technologies to convert this heat into usable electricity. The waste heat recovery system enables the reduction of operational costs and the lowering of environmental impact, making it ideal for industrial applications. Additionally, government initiatives and robust investments in sustainable power solutions are further leveraging the adoption of this technology.
What Made Wireless Sensor Networks the Dominant Segment in the Market?
The wireless sensor networks segment dominated the thermal energy harvesting market, holding a 35.5% share in 2024, and is likely to grow at a 9.2% CAGR in the upcoming period. This is primarily due to the increasing deployment of wireless sensors into various applications. The adoption of IoT devices has increased, driving the need for wireless sensor networks to enable remote monitoring and data collection. Smart technologies are driving the need for sustainable and battery-free power solutions, particularly in applications like industrial automation, healthcare, and smart infrastructure, by increasing power through the harvesting of thermal energy. Technological advancements, such as enabling energy harvesting for autonomous and long-lasting self-powered sensors, are expanding the accessibility of wireless sensor networks. Moreover, improvement in thermoelectrical materials and energy conversion methods further enhances efficiency and application range.
The industrial IoT & condition monitoring segment is expected to grow at the fastest rate over the projection period, driven by increased demand for self-powered and maintenance free wireless sensors. The strong focus on predictive maintenance and energy efficiency is leveraging a shift toward industrial IoT and condition monitoring. Thermal energy harvesting technologies, particularly thermoelectric generators, enable industrial settings to power sensor and monitoring systems. Thermal energy harvesting is crucial in supporting industrial IoT applications and smart manufacturing.
How Does the Standalone On-Device Harvesters Segment Lead the Market in 2024?
The standalone on-device harvesters segment led the thermal energy harvesting market while holding a 34.3% in 2024. This is mainly due to their ability to power devices independently. The increased adoption of IoT devices and advancements in thermoelectric materials are leading to a growing focus on deploying standalone device harvesters to reduce maintenance, minimize environmental impact, and enhance efficiency. This deployment enables widespread adoption of wireless sensor networks and the IoT ecosystem in smart homes, smart cities, and industrial automation. The deployment enables the proliferation of self-powered and low-power electronics for IoT applications.
The system / plant-level waste heat recovery units segment is expected to grow at a 9.5% CAGR over the forecast period, driven by their ability to capture waste heat from different industrial processes to useful energy. This deployment provides large-scale, reliable sources and high-quality sources of heat for conversion into useful energy. This deployment is in contrast with small-scale thermal energy harvesting, which is mainly used for low-power electronics and sensors. The system/plant-level waste heat recovery units are crucial in applications like variable devices, industrial automation, and smart buildings.
Which End-User Dominates the Thermal Energy Harvesting Market in 2024?
In 2024, the manufacturing & process industries segment dominated the market with a 35.3% share due to the increased need for energy saving and sustainability. The manufacturing and process industries are major energy consumers, and a net thermal energy harvesting system can optimize energy use and reduce operational costs. Thermal energy harvesting technologies are widely used in industries like steel, cement, and chemical processing, which generate sustainable waste heat. Thermal energy harvesting is an energy-efficient and cost-effective technology for the manufacturing and process industries.
The automotive & transportation segment is likely to grow at a 9.6% CAGR between 2025 and 2034, driven by an increased focus on energy efficiency and sustainability in the industry. Thermal energy harvesting technologies are primarily used in vehicles, particularly hybrid and electric ones, to recover waste heat and convert it into usable electricity and energy. Currently, this technology helps to reduce emissions and enhance fuel efficiency. Thermoelectric generators (TEGs) enable capturing waste heat from the exhaust system, reducing full consumption, and powering vehicle electronics.
What Made Asia Pacific the Dominant Region in the Thermal Energy Harvesting Market?
Asia Pacific dominated the thermal energy harvesting market in 2024, capturing 41% share, and is expected to grow at a CAGR of 10.1% in the coming years. This is mainly due to rapid industrialization, strong government initiatives, and large-scale smart city expansions across the region, particularly in China, Japan, and India. The surge in manufacturing and energy-intensive sectors is accelerating the adoption of thermal energy harvesting technologies. Additionally, the proliferation of smart cities and electric vehicles is further boosting demand for efficient, sustainable energy solutions.
Governments across Asia Pacific are also rolling out supportive policies to enhance energy efficiency and curb carbon emissions. For instance, in September 2025, the Indian government introduced a National Policy on Geothermal Energy to align with its Net Zero targets. Similarly, Uttarakhand approved a state-level geothermal energy policy in July 2025, showcasing regional commitment to renewable energy deployment.
Robust Industrial Growth to Boost China’s Market
China is a major contributor to the Asia Pacific thermal energy harvesting market, fueled by rapid industrialization, urbanization, and strong government support for renewable energy adoption. The country’s expanding electronics manufacturing sector, large-scale smart city projects, and cost-effective production capabilities position it as a global hub. Major players like Texas Instruments, Honeywell, and ABB are deepening their investments in innovative thermal harvesting solutions, further strengthening China’s market leadership.
North America: Fastest-Growing Region in Thermal Energy Harvesting Market
North America is expected to be the fastest-growing region in the market, driven by advanced technological infrastructure and a strong focus on sustainable energy solutions. The presence of leading technology and energy companies, coupled with significant investments in R&D, is accelerating the development of energy-efficient systems. Supportive government policies promoting renewable energy adoption further enhance market growth. Additionally, the widespread deployment of IoT devices is increasing demand for reliable, self-sustaining energy sources, reinforcing the need for advanced thermal energy harvesting technologies.
U.S. Thermal Energy Harvesting Market Trends
The U.S. remains a major player in the market, supported by its robust technological infrastructure and strong focus on sustainable energy solutions. Demand for energy-efficient technologies is rising, particularly in high-impact sectors such as automation, aerospace, and defense. Additionally, the country is witnessing a growing consumer base for sustainable energy and benefits from a well-established industrial ecosystem. Leading companies like Analog Devices, STMicroelectronics, and Texas Instruments are making significant investments in R&D to drive technological innovation and market expansion.
Thermal energy harvesting involves capturing and converting thermal energy from various heat sources into usable electricity.
Key Players: STMicroelectronics, Microchip Technology, Texas Instruments, and e-peas.
Grid maintenance and monitoring include using energy scavenged from waste heat to power wireless sensors on the power grid.
Key Players: General Electric, Honeywell, ABB, and Siemens.
Regulatory compliance for thermal energy harvesting involves adherence to fueling for safe waste heat capture and environmental protection. Energy trading involves monetizing captured energy within the vast energy market.
Key Players: STMicroelectronics, e-peas SA, EnOcean GmbH, Texas Instruments.
Tier I – Major Players
These companies dominate the thermal energy harvesting market, each holding significant individual shares. Together, they account for roughly 40–50% of total market revenue.
Tier II – Mid-Level Contributors
These companies have a strong presence but are less dominant than Tier I players. Collectively, they contribute around 30–35% of the market.
Tier III – Niche and Regional Players
Smaller or regional players with limited global reach. Individually, their market shares are modest but combined they account for around 15–20%.
The thermal energy harvesting market is poised at the nexus of accelerating demand for sustainable, self-sufficient power solutions and the exponential growth of the Internet of Things (IoT), industrial automation, and wearable electronics sectors. Leveraging waste heat as a ubiquitous and underutilized energy source, thermal energy harvesting technologies present a compelling value proposition for reducing reliance on conventional batteries and grid power, thereby driving both economic and environmental imperatives.
From a strategic vantage, the market’s expansive growth trajectory is underpinned by advancements in thermoelectric materials science, semiconductor integration, and miniaturized power management ICs, which collectively enhance conversion efficiencies and broaden application spectra. Moreover, regulatory pressures and global sustainability mandates are catalyzing investments into energy harvesting systems, particularly within smart building infrastructures, remote sensing, and automotive domains where energy autonomy translates into operational resiliency and cost optimization.
Crucially, the evolving landscape of ultra-low-power electronics creates fertile ground for the proliferation of thermal energy harvesters as enablers of maintenance-free, long-lifespan IoT nodes and wireless sensor networks. Emerging economies further represent untapped markets, where decentralized energy solutions address infrastructural deficits while opening avenues for tailored innovations.
In summation, the thermal energy harvesting market embodies a confluence of technological maturation, regulatory impetus, and escalating end-use demand, positioning it as a high-potential domain for strategic investment and innovation. The opportunity lies in harnessing cross-disciplinary synergies, between materials science, power electronics, and systems engineering, to unlock scalable, cost-effective thermal energy solutions that meet the exigencies of a low-carbon, connected future.
By Technology
By Application
By Deployment
By End-User
By Region
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