Flue Gas Desulfurization (FGD) Market Report

Flue Gas Desulfurization (FGD) Market Analysis Report By Technology (Wet FGD Systems, Dry FGD Systems), By Application (New Systems, Reagents & Replacements), And Segment Forecasts, 2012 - 2020

  • Published Date: Apr, 2017
  • Base Year for Estimate: 2016
  • Report ID: 978-1-68038-163-4
  • Format: Electronic (PDF)
  • Historical Data: 2014-2016
  • Number of Pages: 85

Industry Insights

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.

Proliferating demand for electricity along with considerable investments in thermal power generation capacity expansion, will propel the market growth. Surge in captive power plant development across heavy industries will boost the deployment of these systems.  Increasing adoption of stringent air quality standards to reduce the SOx emission level will drive the market size. Breathing difficulties, skin irritation, and inflammation of the respiratory system are some of the prominent health risk posed by the growing SOx levels. Globally, countries are focusing towards sustaining healthy air quality standards, which will further augment the business growth.

North America FGD market

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.

Technology insights

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. Low sorbent material costs along with control efficiencies & high scrubbing are some of the key underlying factors which will bolster the market growth. Presence of stringent emission regulations pertaining to heavy industries and power generation will further enhance the adoption of wet FGD systems.

Industry players are bagging flue gas desulfurization system contracts to bring efficiency in operations and provide cleaner technology. For instance, General Electric group gained a wet FGD system contract from NTPC wherein the open spray tower with wet limestone based design comprises of a dewatering system, slurry preparation, and an absorber system. The system will play a significant role in controlling coal-based plants emissions by reducing SOx content present in exit flue gases.

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. Simpler waste disposal processes and compact design are some of the dominant factors which will boost the adoption of these systems. 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

Application insights

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.

Global FGD market

Rise in infrastructure projects such as bridges, flyovers, tunnels, and dams directly impacts the demand for cement. Cement manufacturing generates SOx emissions during fuel combustion in pyro processing stage. Installed FGD systems at cement production plants achieve over 90% reduction in Sox emission levels. 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.

Regional insights

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. Rising investments towards capacity expansion of coal-fired generation along with the imposition of emission norms will augment the market demand over the forecast timeline. For instance, Ministry of Environment, Forest and Climate Change in India standardized the SO2 emission levels to 100mg/Nm3 in 2015. The stringent emission standards are set to generate demand for retrofitting the installed power generating stations, which in turn will further boost the business growth.

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

Flue gas desulfurization market share insights

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.

Partnerships & agreements, overseas business expansion, and new contracts are few of the key initiatives undertaken by the prominent industry players. Moreover, the industry participants are involved in significant research & development activities to gain competitive advantage over other companies. 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.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2012 - 2015

Forecast period

2017 - 2020

Market representation                                    

Revenue in USD million and CAGR from 2017 to 2020

Regional scope

North America, Europe, Asia Pacific, MEA and Central & South America

Report coverage        

Revenue forecast, company share, competitive landscape, and growth factors and trends

15% free customization scope (equivalent to 5 analysts working days)

If you need specific market information, which is not currently within the scope of the report, we will provide it to you as a part of customization


Segments covered in the report

This report forecasts revenue and revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global drilling fluids market on the basis of product, end-use, and region.

  • Technology Outlook (Revenue, USD Million; 2012 - 2020)

    • Wet Flue Gas Desulfurization System

    • Dry Flue Gas Desulfurization System

  • Apllication Outlook (Revenue, USD Million; 2012 - 2020)

    • New Flue Gas Desulfurization Systems

    • Reagents & Replacements

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

    • North America

    • Europe

    • Asia Pacific

    • RoW

Key questions answered by the report
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