The global flue gas desulfurization market size was valued at USD 18.73 billion in 2016 and is projected to expand at a CAGR of 6.0% over the forecast period. Flue gas desulfurization (FGD) has gained importance due to increasing air pollution resulting from release of sulfur dioxide into the atmosphere during combustion processes.
Cement is a major contributor of air pollution and as cement manufacturing units continue to mushroom across the globe, so will the need for air purification methods and solutions. Growing need to reduce the adverse impact of emissions will boost the demand for flue gas desulfurization.
Asia Pacific is expected to be a strong market due to rising manufacturing industries in this region. In addition, stringent government regulations and growing presence of coal-fired power plants is expected to drive the industry.
North America is expected to steady growth through 2020 on account of ongoing industrialization in the region. Demand for flue gas desulfurization will continue to rise over the forecast period with rising usage of cement and other materials.
Wet FGD systems dominated the global market, accounting for 84.3% of the revenue in 2013.Growth of the real estate sector is influenced by demand for urban, semi-urban accommodations as well as office spaces. This is expected to boost demand for cement, which will subsequently spur the need for FGD systems.
Dry FGD systems accounted for 15.62% of the global revenue in 2013 and the segment is expected to hold a 16.28% market share by 2020. However, cost and maintenance of dry FGD systems are high as compared to wet FGD systems, which is slated to impact its demand.
Rise in new constructions or renovation of existing buildings and houses has greatly influenced market growth, with the total cement consumption reporting an increase of nearly 9.7 million tons from 2016 to 2017. Thus, growth in housing construction is directly linked to rise in demand for cement, which boosts the need for FGD solutions.
New systems dominated the global flue gas desulfurization market in 2013, accounting for 51.5% of the overall value that year. Growing demand for electricity in developing countries such as India and China, on the heels of rapid industrialization and urbanization, is expected to increase the number of coal-fired power plants. This is expected to propel demand for new FGD systems to combat harmful emissions.
The reagents and replacement segment was valued at USD 7.65 billion in 2013 and is likely to register a CAGR of 6.9% from 2014 to 2020. Increased use of reagents such as dibasic acid, sodium hydroxide, and limestone is expected to boost the market.
Rise in infrastructure projects such as bridges, flyovers, tunnels, and dams directly impacts the demand for cement. This is expected to drive the demand for FGD technologies over the forecast period.
Increasing demand for the product in power generation, chemicals, cement manufacturing, iron and steel, and other industries is expected to drive the market over the coming years. In addition, government regulations around the globe regarding environmental pollution is expected to boost the market.
In terms of revenue, Asia Pacific is considered to be the largest regional market, accounting for 53.9% of the global demand in 2013. It is expected to dominate the industry over the forecast period due to growing industrial sectors such as cement and metal smelting in countries like India and China and alarming levels of pollution in the region.
The Europe market is expected to witness a CAGR of 2.3% from 2014 to 2024, driven by initiatives taken by the European government in the agriculture sector, such as agro ecology, sustainable intensification, and green growth.
North America is expected to exhibit a CAGR of 3.6% from 2014 to 2020, propelled by growing demand for electricity in the region. Governments here have also set up strict environmental regulations, which are expected to propel the FGD industry.
The RoW market was valued at USD 407.3 million in 2013 and it is expected to reach USD 645.0 million in 2020, registering a CAGR of 6.8% from 2014 to 2020. Rapid developments in the industrial sector in countries such as Brazil and Argentina are expected to drive the FGD industry.
The industry is highly consolidated in nature and is dominated by key players such as Alstom S.A.; China Boqi; Babcock and Wilcox Company; Chiyoda Corporation; Ducon Technologies Inc.; Hitachi Power System America Ltd.; Hamon Research-Cottrell; Lonjing Environment Technology Co. Ltd.; Marsulex Environmental Technologies; Mitsubishi Heavy Industries, Ltd.; Siemens Energy; and Thermax.
These companies, through strategic developments, aim to enter new markets and enhance their product offerings in order to gain market share and consolidate their positions in the industry. During the forecast period, the industry is likely to consolidate due to collaborations between global and regional players.
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2012 to 2020. For the purpose of this study, Grand View Research has segmented the global flue gas desulfurization market report based on technology, application, and region:
Technology Outlook (Revenue, USD Million, 2012 - 2020)
Wet Flue Gas Desulfurization System
Dry Flue Gas Desulfurization System
Application Outlook (Revenue, USD Million, 2012 - 2020)
New Flue Gas Desulfurization Systems
Reagents & Replacements
Regional Outlook (Revenue, USD Million, 2012 - 2020)
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