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The global FGD system market is projected to reach a value of USD 3.88 billion with a CAGR of 5.41% between 2023 and 2028. The growth of the market depends on several factors such as stringent standards for sulfur oxide emission, growing demand for power and implementation of new emission norms in industries.
The market growth and forecasting report includes a comprehensive outlook on the market offering forecasts for the industry segmented by Product, which comprises wet FGD and dry FGD. Additionally, it categorizes End-user into power plants, iron and steel, chemicals, cement, and others and covers Region, including North America, APAC, Europe, Middle East and Africa, and South America. The market trends and analysis report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
Market Forecast 2024-2028
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This market growth analysis report includes the major drivers, trends, and challenges that will help market players stay ahead of their competitors. The market is focused on technologies that remove sulfur dioxide from flue gases produced by power plants and industrial processes.
The global FGD system market is projected to grow at a significant rate due to stricter environmental regulations regarding emissions. Most coal-fired power plants worldwide are equipped to reduce emissions. More than half of the systems installed globally use wet scrubbing technology due to its high efficiency in removing pollutants.
The power and manufacturing sectors have been the major sources of air pollution, with marine transportation joining the list in the last few decades. Combustion of fossil fuels in coal-fired power plants, manufacturing facilities, and marine transport releases SO2 and various nitrogen oxides, which, upon reaction with atmospheric moisture and oxygen, form sulfuric and nitric acid fumes, ultimately leading to acid rain. This acidic water robs the soil of its essential nutrients, many a time inhibiting the reproduction capabilities of trees while also doing considerable damage to associated ecosystems.
Also, there are adverse effects on human health in terms of direct or indirect exposure to sulfur oxides, with problems ranging from cardiovascular diseases to premature death. Hence, the need for the removal of toxic contaminants like SO2, mercury, and particulate matter at their source becomes paramount which can have a positive impact on flue gas desulphurization market growth. Therefore, stringent standards for sulfur oxide emission will positively impact the growth of the market during the forecast period.
Wet FGD and dry FGD are the two technologies used significantly. Wet systems are the preferred choice among all end-users. Wet scrubbers are widely popular in large plants that require the high-capacity removal of sulfur. Among all end-users, the power generation segment extensively uses wet scrubbers due to their higher efficiency than dry scrubbers. In a highly competitive environment, especially in the power generation industry, where competition is intense due to the wide availability of natural gas and renewable energy sources, the power generator sector is looking for cost-effective FGD solutions. Dry systems do not use any liquid stream.
Consequently, they have low power consumption, operational and maintenance costs, and freshwater consumption. The absence of a liquid stream eliminates the issues associated with disposal, which is a major issue in wet systems. Hence, the preference for dry systems is increasing which in turn results in flue gas desulfurization market expansion. Thus, it is expected that the demand for dry FGD systems will grow steadily, thereby driving the market growth and trends in the forecast period.
The future growth prospects of the market are dynamic and influenced by various factors. Governments, particularly in Japan and the Asia Pacific, are driving adoption through stringent regulations to curb emissions. While Latin America faces some restraints due to economic challenges, the market's trajectory is positive globally. Flare gas recovery systems are finding diverse applications, and their adoption is set to escalate as governments worldwide intensify efforts to combat environmental issues. With a focus on sustainable practices, the Asia Pacific and Japan are poised to play a pivotal role in shaping the market's future, marking a paradigm shift in pollution control strategies.
An electrostatic precipitator is followed by the primary desulfurization unit, a scrubber, and an in-line steam reheater in a normal system. This energy-intensive technology accounts for around 2.5%-6% of a coal-fired power plant's overall energy output capacity. As a result, operational expenses skyrocket, rendering reactors with capacities less than 500 MW economically unviable. The reheater, water, slurry pumps, and tank agitation all consume a significant amount of energy.
Additionally, scrubber design, coal properties, plant design, and regulatory limits are all elements that determine energy consumption patterns. These high energy needs are a significant impediment to the growth of the flue gas desulfurization system market. Thus, the high energy consumption in power plants will hamper the growth of the market during the forecast period.
The wet FGD segment is estimated to witness significant growth during the forecast period. Wet systems are the most commonly used technology, which use limestone or lime to scrub the sulfur dioxide from flue gases.
Dry and semi-dry systems are gaining popularity due to their lower water consumption and ease of installation. In a wet system, the flue gases are washed with an aqueous solution of absorbent. The absorbent reacts with the sulfur present in the flue gases to form a different chemical compound that is later removed to provide pollutant-free gases
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The wet FGD was the largest and was valued at USD 9.16 billion in 2018. However, wet systems are more expensive than dry systems. Also, they incur high operational and maintenance costs owing to the increased use of water, which requires high power consumption. In addition, the presence of moisture in a wet system makes it prone to corrosion, which, in turn, adds to the operational and maintenance costs. The liquid purge stream contains a high amount of dissolved sulfate, chlorides, traces of mercury and oxides of arsenic, boron, and selenium, which should be disposed of completely. In addition, it generates a large amount of wastewater. Stringent regulations are enforced on wastewater disposal and treatment. This, in turn, can hinder the demand for wet FGD systems, which is expected to moderately impact the growth of the market during the forecast period.
Based on end-user, the market has been segmented into power plants, iron and steel, chemicals, cement, and others. The power plants segment will account for the largest share of this segment. Sulfur dioxide (SO2) is a harmful gas created by the oxidation of sulfur-bearing materials such as oil, coal, and natural gas. SO2 emission is a major problem in the power generation industry. Furthermore, global economic growth, especially in developing countries, is likely to witness a rapid increase in power demand. The growing per capita income in these economies has promoted the widespread use of consumer electronic devices and appliances, which add to electricity consumption. Therefore, the rising electricity demand is likely to attract investments in the development of power infrastructure. These factors, in turn, will drive the growth of the power plants segment of the market during the forecast period.
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The Asia-Pacific region holds the largest share of the market, accounting for approximately 69% of the global market. The Asia Pacific region dominates the market, driven by rapid industrialization and increasing energy demand in countries like China and India. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
The region's electricity generation heavily relies on coal-fired power plants, leading to a surging demand for effective emission control systems. China, India, and Southeast Asia contribute significantly to the regional demand for coal-based power generation. China saw a 4% increase in coal-fired power capacity in 2021, with India experiencing a notable 13% rise.
Despite the growth in alternative energy sources like natural gas, solar, and wind, coal remains a prominent choice. The anticipated investment exceeding USD 1.75 million in emission control systems highlights the market potential in India. Ducon, a key player, stands to benefit from this opportunity, having successfully implemented installations, including a 500 MW seawater system at the Dahanu power plant and a 2 x 600 MW Limestone FGD system at Udupi Power Plant. The ongoing proposals further position Ducon as a pivotal player, indicating substantial market growth driven by the prevailing reliance on coal-fired power plants in the region.
Flue Gas Desulfurization (FGD) systems play a crucial role in mitigating emissions from industrial processes worldwide. Governments, particularly in Asia Pacific and Japan, have been implementing stringent regulations to curb environmental pollution. Various system types address diverse applications, and their adoption is witnessing a significant uptick around the globe. While some regions, like Latin America, are grappling with restraints in implementing these technologies due to economic challenges, others are making strides in achieving emission reduction targets. Government initiatives are pivotal in driving Flue Gas Desulfurization system adoption, with Asia Pacific and Japan leading the way in fostering sustainable practices to combat environmental challenges.
Flue Gas Desulfurization (FGD) systems find diverse applications across industries, responding to concerns about environmental impact and compliance with stringent laws. In cement manufacturing, Flue Gas Desulfurization systems, like those offered by Marsulex Environmental Technologies, play a pivotal role in reducing emissions. The pulp and paper industry also utilizes these systems to address environmental regulations. General Electric Company, a key player in the energy sector has come up with the introduction to FGD solutions to meet rising global energy demand. With an executive summary highlighting their effectiveness, FGD systems are gaining dominance in various sectors, showcasing their versatility in mitigating environmental challenges and aligning with evolving regulatory frameworks.
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.
AECOM - The company offers flue gas desulfurization systems such as the Bull Run.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including AECOM, Andritz AG, Babcock and Wilcox Enterprises Inc., China Boqi Environmental Protection Holding Co. Ltd, Doosan Corp., Ducon Infratechnologies Ltd., Enviropol, FLSmidth and Co. AS, Fujian Longking Co. Ltd., General Electric Co., IHI Corp., John Wood Group PLC, Kawasaki Heavy Industries Ltd., KraftPowercon Sweden AB, Mitsubishi Heavy Industries Ltd., RAFAKO SA, Rudis Doo Trbovlje, Thermax Ltd., Tsukishima Kikai Co. Ltd., and Valmet Corp.
Technavio's market analysis and report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
In the competitive landscape of the market, suppliers globally are responding to heightened awareness and market demand for pollution control. With industrialization accelerating across the world, especially in regions like Mexico, technologies are gaining prominence. Suppliers are strategically positioning themselves to offer retrofit solutions, addressing the byproduct gypsum's value in various applications. Clients prefer evolving, emphasizing sustainable practices and compliance with stringent regulations. As the market expands, the competition intensifies, and suppliers strive to innovate and meet the dynamic demands of the evolving environmental landscape, marking a pivotal phase in pollution control technology.
The flue gas desulfurization (FGD) system market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.41% |
Market Growth 2024-2028 |
USD 3.88 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.87 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 69% |
Key countries |
US, China, India, Germany, and Russia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AECOM, Andritz AG, Babcock and Wilcox Enterprises Inc., China Boqi Environmental Protection Holding Co. Ltd, Doosan Corp., Ducon Infratechnologies Ltd., Enviropol, FLSmidth and Co. AS, Fujian Longking Co. Ltd., General Electric Co., IHI Corp., John Wood Group PLC, Kawasaki Heavy Industries Ltd., KraftPowercon Sweden AB, Mitsubishi Heavy Industries Ltd., RAFAKO SA, Rudis Doo Trbovlje, Thermax Ltd., Tsukishima Kikai Co. Ltd., and Valmet Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market research and growth report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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