Emission Monitoring Systems Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Service), By Type, By End-use, By Region, And Segment Forecasts, 2019 - 2025

Industry Insights

The global emission monitoring systems market size was valued at USD 2.51 billion in 2018 and is expected to expand at a CAGR of 8.6% from 2019 to 2025. Growing demand from oil and gas and power generation industries is anticipated to emerge as a major growth driver. Stringent government regulations regarding deployment of the Emission Monitoring System (EMS) in the upstream and downstream oil and gas industry segments to analyze harmful gas emissions and air quality is driving the global demand.

The environmental regulatory authorities require industries to track pollutant emissions using EMS. It enables companies to determine gas concentration or emission level for various air pollutants. These systems are deployed to monitor and measure multiple environmental pollutants such as Nitrogen dioxide (NOx), Sulfur Dioxide (SO2), Carbon Monoxide (CO), Carbon Dioxide (CO2), Hydrogen Chloride (HCI), Ammonia (NH3), Hydrogen Fluoride (HF), Mercury (Hg), Methane (CH4), Sulphur Hexafluoride (SF6), and Total Organic Carbon (TOC), among others.

Apart from measuring and monitoring emissions, EMS also helps companies to effectively report and reduce harmful emissions and air polluting gases. The manufacturers also assist customers in custom designing, installation, calibration, validation, and periodic maintenance. Some of the system manufacturers are working on integrating Artificial Intelligence (AI) to reduce the release of harmful materials. For instance, ABB Ltd. has developed an empirical model to predict plant emission concentrations in advance on the basis on process data.

 Government regulations and standards focus on continuous monitoring and reporting of emissions from oil and gas, power generation, and metals and mining industries in North America, Europe, and Asia Pacific. Adoption of EMS has enabled regulatory agencies to effectively monitor harmful chemical release and ensure adherence to regulatory standards. In the U.S., quality assurance procedures in Appendix F to 40 CFR 60 are used to assess the effectiveness of Quality Assurance (QA) and Quality Control (QC) procedures and the quality of data generated by a Continuous Emission Monitoring Systems (CEMS) used for determining compliance with the emission standards.

Similarly, Environment Agency's Monitoring Certification Scheme (MCERTS) in the U.K. ensures adherence to compliance with European Directives regulating industrial emissions, equipment, monitoring data, and personnel. Europe has imposed strict emission limits and actively supports the Kyoto Protocol, an international treaty for reducing greenhouse gases.

The energy demand in Asia Pacific is expected to witness a rapid increase owing to growing economic activities, thus, creating an opportunity for manufacturers to expand their operations in the untapped markets. The rapid growth of crude oil and natural gas transportation infrastructure as well as power generation facilities is also anticipated to play a pivotal role in driving the regional demand.

Component Insights

On the basis of component, the emission monitoring systems market can be classified into hardware, software, and service. The service segment is further categorized into installation and deployment, training, and support and maintenance. Hardware segment led the market in 2018 and is expected to emerge as the fastest-growing segment over the forecast period.

Hardware segment comprises components such as gas sensor, sample probe, opacity and flow monitors, enclosure, hardware mount, gas analyzer, work-station, and data collection system, among others. The requirement of hardware components in an EMS is determined by its type. For instance, CEMS are highly dependent on hardware for operations compared to software based PEMS.

Increased demand for CEMS, owing to benefits such as higher detection accuracy and increasing deployment in emerging regions such as Asia Pacific and Middle East and Africa (MEA) is expected to drive the segment over the forecast period.

Type Insights

Based on type, the market can be classified into CEMS and Portable Emission Monitoring System (PEMS). CEMS is a traditional equipment certified by most of the authorities and is being used for monitoring. Various global environmental regulatory authorities and agencies necessitate industries to monitor pollutant release rates. Various countries are also in the process of approving PEMS as alternative of CEMS.

PEMS is a software-based system which uses mathematical or statistical models based on historical processes and emission data generated by plant control systems and the existing EMS. PEMS is highly accurate and incurs almost half the capital and lifecycle costs. The United States Environmental Protection Agency (EPA) is one of the first regulatory authorities to approve the use of PEMS. Due to the regulatory approval, EMS manufacturers are working on developing precise PEMS as a cost-effective alternative to CEMS. PEMS segment is expected to witness higher growth in North America owing to the regulatory approvals.

End-Use Insights

On the basis of end-use, the market is classified into oil and gas, metals and mining, power generation, chemical and fertilizer, pulp and paper, and pharmaceutical, among others. Oil and gas accounted for a significant market share in 2018 and is expected to emerge as the fastest-growing segment over the forecast period.

EMS is majorly deployed in the oil and gas industry to measure and minimize hazardous chemicals such as sulfur dioxide (SO₂) and methane (CH₄) and to gather the data required for reporting emissions to government regulatory agencies such the Industrial Emissions Directive (IED) by the European Parliament and the council on industrial emissions and Clean Air Act by the EPA in the U.S.

Apart from the stringent environmental regulations, increased concerns, and awareness about environmental and personal health protection are the major factors driving the adoption of EMS. Rapid industrial development and energy demand are the major factors leading causes of greenhouse gas emissions. Hence, the implementation of EMS in oil and gas and power plants is being mandated by various governments to control the release of greenhouse gases and pollutants.

Regional Insights

North America led the market in 2018 owing to its well-established and clearly-defined regulations for controlling emissions. North America accounts for the highest number of deployments of EMS. However, the share of new deployments in the region is expected to marginally decline over the forecast period owing to saturation of the market. Furthermore, North America and Europe are relatively mature markets and thus, the CEMS are expected to be used in the form of replacements or upgrades.

Asia Pacific is expected to witness significant growth over the forecast period owing to the introduction of stringent monitoring and air quality regulations in India and China. In March 2018, the Chinese government reconstituted the Ministry of Environmental Protection (MEP) as the Ministry of Ecology and Environment (MEE) to consolidate pollution related regulations. After reconstitution, the MEE in June 2018 announced plans for implementing special restrictions on industrial units in 80 cities. Presently, these restrictions are limited to 28 cities.

Emission Monitoring Systems Market Share Insights

The key players operating in the EMS market include ABB Ltd.; Ametek, Inc.; Emerson Electric Company; General Electric Company; Enviro Technology Services Plc.; Horiba Ltd.; Fuji Electric Co., Ltd.; Rockwell Automation, Inc.; Siemens AG; and Thermo Fisher Scientific Inc.; among others. The players are making huge investments in R&D projects and establishing production infrastructure to develop and offer PEMS.

ABB Ltd., Rockwell Automation, and General Electric Company have a strong market presence owing to the availability of well-established R&D department and production facilities. The companies primarily focus on product innovation and possess a well-established global network of partners in multiple countries such as the U.S., Germany, India, and Brazil.

The leading manufacturers have launched highly flexible and advanced systems to work in harsh environmental conditions. For instance, ABB Ltd. has introduced a new smart EMS for specifically developed for marine applications and installation board of vessels and off-shore oil and gas drilling rigs. Another company, Thermo Fisher Scientific Inc. has developed Fourier transform infrared (FTIR) technology, which enables a user to simultaneously analyze up to 10 gases.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global emission monitoring systems market report based on component, type, end-use, and region:

• Component Outlook (Revenue, USD Million, 2014 - 2025)

  • Hardware

  • Software

  • Service

    • Installation & Deployment

    • Training

    • Support & Maintenance

• Type Outlook (Revenue, USD Million, 2014 - 2025)

  • CEMS

  • PEMS

• End-Use Outlook (Revenue, USD Million, 2014 - 2025)

  • Oil & Gas

  • Metals & Mining

  • Power Generation

  • Chemical & Fertilizer

  • Pulp & Paper

  • Pharmaceutical

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • MEA