Emission Monitoring System Market

Market Overview

The global emission monitoring system market was valued at USD 3.24 billion in 2023. It is estimated to reach USD 7.54 billion by 2032, growing at a CAGR of 9.85% during the forecast period (2024–2032). The expansion can be attributed to developments in data analytics, sensor technologies, and remote monitoring capabilities, which have greatly improved the performance and efficiency of emission monitoring systems. These systems' adoption is driven by increased real-time data availability, accuracy, and reliability.

An Emission Monitoring System (EMS) is a crucial tool for monitoring and measuring the exhaust gas streams generated by industrial combustion operations. It serves to analyze emissions of various pollutants, including sulfur dioxide, nitrogen oxides, carbon dioxide, carbon monoxide, hydrogen chloride, mercury, volatile organic compounds, airborne particulate matter, and oxygen.

Typically, an EMS comprises analyzers responsible for measuring gas concentrations in the gas stream, equipment that conditions the sample gas, pneumatic plumbing featuring valves to direct the sample gas to the analyzers, and a Data Acquisition and Handling System (DAHS) tasked with collecting and storing emissions data for monitoring and compliance purposes.

The importance of EMS lies in its ability to ensure that businesses adhere to legal emission limitations, thereby preventing harmful chemicals from being released into the environment. Moreover, EMS provides reliable data for regulatory compliance and reporting to organizations such as the Environmental Protection Agency (EPA). EMS supports efforts to mitigate environmental impact and safeguard public health by monitoring emissions effectively.

Highlights

• PEMS dominates the type segment
• Oil and Gas dominates the end-user segment
• North America is the highest shareholder in the global market

Market Dynamics

Global Emission Monitoring System Market Drivers

Increasing Focus on Monitoring Ambient Air Quality

Monitoring outdoor air quality is increasingly recognized as essential in many nations worldwide. Cities with advanced civic technology infrastructures or those undergoing significant infrastructure upgrades should consider integrating Emission Monitoring Systems (EMS) into their systems. These systems enable cities with ""Smart City"" initiatives and sophisticated data management capabilities to accurately measure emissions, contributing to informed decision-making and improved air quality management. The detrimental effects of dangerous gases and particles are becoming increasingly evident to residents of heavily polluted urban areas.

Cities like London in Europe frequently experience elevated levels of air pollution, posing serious health risks to inhabitants. Therefore, monitoring ambient air quality in major cities has become imperative to protect the environment and public health. For example, the Environmental Protection Agency (EPA) recognizes the critical importance of monitoring ambient air quality to safeguard public health and the environment. By tracking key pollutants, such as sulfur dioxide, nitrogen oxides, carbon monoxide, and particulate matter, valuable insights can be gained into air quality trends, emission sources, and the effectiveness of control measures. By using a data-driven strategy, policymakers may put specific actions into place to enhance air quality and safeguard public health.

Global Emission Monitoring System Market Restraint

High Maintenance Costs

A continuous emission monitoring system (CEMS) is a hardware-based system that utilizes sensors and gas analyzers to continuously gather data on emissions. Designed to monitor emissions from various sources, including vehicles, CEMS must be capable of functioning effectively in adverse weather conditions. Maintaining high reliability and ensuring 24-hour operation of CEMS necessitates frequent or routine maintenance from manufacturers.

Depending on the specific application, maintenance may be required on a daily, monthly, quarterly, semi-annual, or annual basis. This maintenance is essential for ensuring the accuracy and efficiency of the monitoring system. However, it is worth noting that continuous emission monitoring systems can be costly to maintain due to the complexity of the equipment and the need for specialized expertise. Nevertheless, the investment in maintenance is crucial to uphold the integrity of the data collected and to meet regulatory requirements for emissions monitoring.

Global Emission Monitoring System Market Opportunities

Expanding Pharmaceutical Market

The pharmaceutical industry is witnessing rapid global growth, driven by factors such as the growth of the aging population and a rise in chronic illnesses. Technological advancements within the industry are also contributing to its expansion. However, the intricate manufacturing processes involved in pharmaceutical production often entail the use of various chemicals and solvents, which can potentially emit harmful environmental pollutants such as particulate matter (PM), hazardous air pollutants (HAPs), and volatile organic compounds (VOCs).

Recognizing the environmental impact of pharmaceutical manufacturing, regulatory bodies like the US Environmental Protection Agency (EPA) have recently finalized rules aimed at limiting HAP emissions from pharmaceutical facilities. To comply with these regulations, pharmaceutical companies are required to install and operate emission monitoring systems (EMS) to monitor and control their emissions effectively.

For example, a report from ""Power Magazine (April 2024)"" highlights how coal-fired power plants are investing in advanced EMS technologies to adhere to increasingly stringent regulations on air emissions. Similarly, pharmaceutical companies are adopting similar approaches to ensure compliance and minimize their environmental footprint. By implementing state-of-the-art emission monitoring systems, these companies aim to mitigate their impact on the environment while continuing to meet growing demands for prescription drugs.

Regional Analysis

North America Dominates the Global Market

Based on region, the global emission monitoring system market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

North America is the most significant global emission monitoring system market shareholder and is expected to expand substantially during the forecast period. The U.S. Environmental Protection Agency (EPA) is committed to safeguarding public health by improving air quality and reducing air pollution. Since the implementation of the Clean Air Act, significant advancements in technology have led to notable improvements in U.S. air quality. The EPA collaborates with state, local, and tribal governments as primary partners in reducing emissions of over 180 hazardous air pollutants. Moreover, fine particles found in smoke can pose various health risks, ranging from minor irritations like runny noses and burning eyes to more serious conditions such as bronchitis. These particles can contribute to long-term lung and heart problems, further emphasizing the importance of monitoring and mitigating emissions.

Furthermore, several states and provinces are leading the transition to clean energy by enacting laws promoting carbon reduction and energy efficiency. For example, British Columbia's CleanBC Plan has set ambitious provincial goals to cut emissions by 40% from 2005 levels by 2030, followed by reductions of 60% by 2040 and 80% by 2050. Government initiatives to lower energy emissions from historic and public buildings, such as the U.S. General Services Administration's contract with IBM Corporation to install smart and efficient building technologies in 50 energy-intensive buildings, are also driving market demand.

Asia-Pacific is anticipated to show the fastest growth rate over the projection period. Countries like China, India, Japan, and Southeast Asian nations are witnessing rising disposable incomes, urbanization, and the growth of the middle class, leading to increased consumer spending. Urbanization is fueling demand for construction-related goods and services as well as infrastructure development, driving the adoption of Emission Monitoring Systems (EMS). The expansion of smart cities, transportation networks, and sustainable infrastructure projects presents opportunities in the real estate, construction, and engineering sectors. Moreover, growing concerns about climate change and environmental sustainability drive a focus on environmentally friendly practices and renewable energy sources in Asia. Investments in clean energy technologies, sustainable infrastructure, and green initiatives are fostering market opportunities in renewable energy, energy-efficient solutions, and environmental services.

Segmental Analysis

The global emission monitoring system market is bifurcated into type, component, and end-user.

Based on type, the global emission monitoring system market is segmented into predictive emission monitoring systems (PEMS) and continuous emission monitoring systems (CEMS).

The predictive emission monitoring systems (PEMS) segment dominates the global market. In line with the guidelines set forth by the US Environmental Protection Agency (US EPA), a Predictive Emission Monitoring System (PEMS) facilitates continuous data recording and report generation. Notably, advancements have been made in the functionality and reliability of emission monitoring systems. Moreover, the user-friendly, non-proprietary interface of PEMS software simplifies configuration processes. PEMS utilizes a combination of process sensors and mathematical or statistical models to analyze gas concentrations or emission rates. Unlike Continuous Emission Monitoring Systems (CEMS), PEMS relies primarily on software rather than costly sensors and analyzers, resulting in a more cost-effective solution. This approach enables proactive emission monitoring, aiding in the early detection and prevention of environmental issues.

Based on components, the global emission monitoring system market is segmented into hardware, software, and service.

Hardware components play a major role in emission monitoring systems gathering precise emission data. These elements are essential to the system's capacity to efficiently monitor emissions. While predictive emission monitoring systems (PEMS) rely mostly on software and a small number of hardware components, like sensors, to forecast gas emissions, continuous emission monitoring systems (CEMS) operate through hardware components. Some of the hardware used in CEMS includes gas analyzers, gas sampling systems, data controllers, filters, sample probes, sample lines, flow and opacity monitors, and particulate matter monitors. Data on gas emissions from a variety of industries, including waste incineration, chemicals, building materials, oil and gas, and power generation, is gathered using CEMS. The need for CEMS has increased due to the growing number of regulations for pollution monitoring in various industries, which has, in turn, increased demand for hardware components.

Based on end-users, the global emission monitoring system market is bifurcated into oil and gas, chemicals and fertilizers, iron and steel, pharmaceuticals, food and beverages, healthcare, mining, and others.

The oil and gas segment owns the highest market share. Oil and gas companies utilize Emission Monitoring Systems (EMS) to achieve several objectives, including cost reduction, operational optimization, demonstration of environmental responsibility, and compliance with regulations. Effective emission monitoring is crucial for minimizing the negative environmental impact of operations and ensuring adherence to environmental standards. To accomplish these goals, oil and gas companies employ a variety of EMS technologies and strategies. One of the primary functions of these systems is to measure and manage greenhouse gas emissions, such as carbon dioxide (CO2), methane (CH4), and other volatile organic compounds (VOCs). By leveraging EMS, businesses can accurately monitor and quantify their emissions, identify the sources of pollution, and implement targeted emission reduction measures.

Recent Developments

• March 2024- Uttar Pradesh made progress in the direction of efficient monitoring of industrial emissions. The Directorate of Environment and the Uttar Pradesh Climate Change Authority suggest the CSE proposal for the CEMS certification scheme. The Directorate of Environment (DOE), Uttar Pradesh's Uttar Pradesh Climate Change Authority (UPCCA) released a report titled Continuous Emission Monitoring Systems (CEMS) in India: Performance Evaluation, Policy Gaps and Financial Implications for Effective Air Pollution Control.
• December 2023- ABB was awarded the 2023 Global Company of the Year Award in the emission monitoring systems industry by Frost & Sullivan, which evaluated the market for these systems. As a pioneer in global technology, ABB secures a more sustainable and resource-efficient future by incorporating automation and digitalization into its wide range of products to maximize performance.