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The flare gas recovery system market size is estimated to grow by USD 1.56 billion at a CAGR of 14.76% between 2023 and 2028. Refineries are increasingly adopting Flue Gas Recovery Systems to mitigate environmental impacts and enhance economic benefits. FGRS capture and utilize the waste heat from flue gases generated during the refining process, generating electricity that can be sold back to the power grid. This not only reduces carbon emissions but also results in cost savings through energy recovery. Moreover, the rising demand for power generation applications, particularly in the renewable energy sector, presents significant opportunities for FGRS. Strict government regulations on carbon emissions further emphasize the importance of implementing FGRS in refineries to meet sustainability targets and comply with environmental standards. In summary, FGRS offer environmental and economic advantages to refineries, making them a crucial investment for sustainable and profitable refining operations.
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The market refers to the technology and infrastructure used to capture and process excess gas generated during the production and refining of fossil fuels. This system plays a crucial role in reducing carbon emissions and generating additional revenue for industrial facilities, refineries, and power generation plants. The market for Flare Gas Recovery Systems is driven by the increasing demand for natural gas production and the refining process. The systems used in this market include compressor technology such as Liquid Ring Compressors, which help increase the operating pressure and flow rate of the gas. Skid-mounted systems are popular in this market due to their ease of installation and maintenance. Gas flaring, a common practice in the oil and gas industry, is a significant source of excess gas. However, the trend towards recovering this gas for power generation applications is growing. The captured gas can be used as fuel for power generation, reducing the dependence on traditional fossil fuels and decreasing carbon emissions. The Flare Gas Recovery System Market caters to various industries, including refineries, chemical plants, and power generation facilities. The market is expected to grow significantly due to the increasing focus on sustainable energy and the need to optimize the use of resources in the fossil fuel industry. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Environmental and economic benefits to refineries is notably driving market growth. Flare Gas Recovery Systems (FGRS) play a crucial role in refineries, offering both environmental and economic advantages. By recovering waste hydrocarbons, refineries can significantly decrease the emission of harmful gases, such as hydrogen sulfide (H2S), during the flaring process. This reduction in emissions not only contributes to meeting environmental standards but also demonstrates a commitment to social responsibility and community goodwill. Moreover, FGRS enable refineries to reuse recovered gases, primarily composed of LPGs, thereby reducing facility fuel gas costs.
Furthermore, the savings extend beyond fuel costs, as lower greenhouse gas (GHG) emissions may also be realized, and recovered gases can be sold for additional revenue. Onshore and offshore installations can benefit from FGRS implementation, making it a valuable solution package for the refining industry. By adopting this technology, refineries can optimize their operations, minimize environmental impact, and enhance their overall profitability. Thus, such factors are driving the growth of the market during the forecast period.
Increasing in natural gas production is the key trend in the market. The global natural gas industry has witnessed significant growth due to the increasing supply of coalbed methane, shale gas, and tight gas. The US, in particular, has been at the forefront of this trend, with successful extraction of shale oil and gas since 2008. According to the US Energy Information Administration (EIA), shale gas production in the US increased from 68% in 2018 to 71% in 2019.
Furthermore, this growth is expected to continue, with the International Energy Agency (IEA) predicting that the US will account for 49% of global natural gas output growth by 2022. In response to this increasing demand, the Flare Gas Recovery System market has gained significant traction. This solution package is essential for both onshore and offshore installations, as it helps in the efficient recovery and utilization of flare gas, reducing emissions and operational costs. Thus, such trends will shape the growth of the market during the forecast period.
Lack of technology in underdeveloped and emerging economies is the major challenge that affects the growth of the market. Flare gas, generated as a byproduct of various industrial processes such as oil and gas recovery, petrochemical processes, landfill gas generation, and wastewater treatment, presents a significant challenge due to its continuous release through flaring. Although utilizing flare gas for heat and power generation can be economically viable in substantial quantities, in other instances, it may not be a cost-effective solution for energy recycling. Flare gas contributes significantly to greenhouse gas emissions, making it a pressing environmental issue. The flare gas recovery system market encompasses onshore and offshore installations designed to capture and utilize this otherwise wasted resource.
Furthermore, the system typically involves the gas from the flare process unit being directed into a liquid ring compressor, along with process water, to enhance its pressure and temperature, making it suitable for further utilization. Effective implementation of flare gas recovery systems can not only reduce greenhouse gas emissions but also generate revenue through the sale of recovered gas as a valuable commodity. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
GENERON - The company offers offshore oil and gas communications products such as the SeaONYX BOP surface control system.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the very large segment will be significant during the forecast period. Flare Gas Recovery Systems (FGRS) play a crucial role in the fossil fuel industry by mitigating the environmental impact of gas flaring and maximizing plant efficiency. Compressor technology, such as liquid ring compressors, is integral to FGRS, enabling the compression and processing of excess gas from industrial facilities like refineries and chemical plants. Operating pressure and flow rate are essential factors in compressor selection, ensuring optimal energy consumption and natural gas production.
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The very large segment showed a gradual increase in the market share of USD 507.50 million in 2018. FGRS are particularly important for large-scale facilities, including petroleum refineries and natural gas processing plants, where significant volumes of unmarketable natural gas are generated. These systems recover and treat excess gas, reducing operational expenses and minimizing financial loss. Skid-mounted systems offer flexibility and ease of installation for small facilities and offshore reserves, such as subsea oil and gas formations. FGRS also contribute to power generation applications, converting excess gas into electricity through energy co-generation and captive power applications. However, it is essential to consider the environmental impact of FGRS, including carbon emissions and H2S flaring, and adhere to EHS guidelines and corporate social responsibility initiatives. In summary, Flare Gas Recovery Systems play a vital role in the fossil fuel industry by recovering excess gas from industrial facilities, maximizing plant efficiency, and reducing operational expenses. Compressor technology, skid-mounted systems, and power generation applications are essential components of FGRS, which help minimize financial loss, reduce carbon emissions, and contribute to environmental conservation activities.
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North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market refers to the technology used in industrial facilities, refineries, and chemical plants for capturing and processing excess gas that would otherwise be flared due to its unmarketable nature. This system is crucial for optimizing plant efficiency and reducing operational expenses. Compressor technology plays a significant role in this process, with skid-mounted systems, such as liquid ring compressors, being commonly employed to compress the recovered gas to suitable operating pressures and flow rates. Fossil fuel industries, including petroleum refineries and natural gas production, are major consumers of this technology. Gas flaring, a common practice in the extraction processes of subsea oil and gas formations, is a significant contributor to carbon emissions and environmental impact. Flare Gas Recovery Systems enable the conversion of excess gas into valuable energy through power generation applications, reducing financial loss and promoting energy co-generation for captive applications. Small facilities and NGL plants also benefit from this technology, as it allows them to comply with EHS guidelines and corporate social responsibility initiatives. H2S flaring, a common issue in refining processes, can be mitigated through effective gas treatment and recovery. Natural gas consumption and imports are influenced by the availability and accessibility of refinery infrastructure and offshore reserves. The adoption of Flare Gas Recovery Systems is essential for minimizing energy waste and promoting environmental conservation activities.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 -2022 for the following segments.
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The market encompasses technologies and solutions designed to capture and utilize excess gas generated during the production and processing of fossil fuels, particularly in industries such as petroleum refineries, chemical plants, and power generation. Compressor technology plays a crucial role in this market, with skid-mounted systems and liquid ring compressors being commonly used for gas compression. Operating pressure and flow rate are essential factors in the selection of appropriate compressor technology for various applications. In industries like refineries and chemical plants, flare gas recovery is essential for improving plant efficiency and reducing operational expenses. Small facilities and subsea oil and gas formations also benefit from flare gas recovery systems. Gas flaring, a common practice for the disposal of unmarketable natural gas, contributes significantly to carbon emissions. Oil and gas extraction supports energy co generation through captive application, whether on shore or offshore installation, contributing to diverse energy needs across industrial and environmental landscapes.
However, the recovery and utilization of this gas through flare gas recovery systems can help mitigate environmental impact and promote energy conservation. Power generation applications, energy co-generation, captive applications, and H2S flaring are some of the key areas where flare gas recovery systems find extensive use. The market for flare gas recovery systems is driven by the increasing demand for natural gas consumption, refinery infrastructure development, and the exploration of offshore reserves. The financial loss due to flaring of excess gas and the need to comply with EHS guidelines and corporate social responsibility initiatives further fuel the growth of this market. Gas treatment and NGL plants are also significant contributors to the market, providing solutions for the processing and utilization of flare gas. Modular flare gas recovery systems, including Skid mounted systems, are crucial for optimizing efficiency at oil and gas production sites. They cater to varying scales of operations, from medium flare gas recovery system to Large flare gas recovery systems and Very large flare gas recovery, ensuring effective capture and utilization of flare gas while adhering to environmental regulations and enhancing operational sustainability.
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Market Scope |
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Report Coverage |
Details |
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Page number |
141 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 14.76% |
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Market growth 2024-2028 |
USD 1.56 billion |
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Market structure |
Concentrated |
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YoY growth 2023-2024(%) |
12.55 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 37% |
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Key countries |
US, United Arab Emirates, China, Russia, Canada, and Iran |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Baker Hughes Co., EMTIVAC Engineering Pty. Ltd., GENERON, Honeywell International Inc., Ingersoll Rand Inc., Kavin Engineering And Services Pvt. Ltd., Koch Industries Inc., MAN Energy Solutions SE, Ramboll Group AS, SoEnergy International, Srisen Energy Technology Co. Ltd, Transvac Systems Ltd., Wartsila Corp., and Zeeco Inc. |
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Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Capacity
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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