Emission Monitoring System Market

Market Overview

The global emission monitoring system market size was valued at USD 3.1 billion in 2022 and is projected to reach USD 6.9 billion by 2031, registering a CAGR of 9.19% during the forecast period (2023-2031). The growth of the emission monitoring system market is driven by rigorous legal and environmental regulations, increasing health and safety issues, and increased awareness about environmental protection.

An Emission Monitoring System (EMS) is a collection of sensors and technology used to detect, monitor, and analyze pollutants and emissions discharged into the environment, most notably the atmosphere. These systems are essential for enterprises and facilities to maintain regulatory compliance, track emissions, and contribute to sustainable and responsible environmental practices. Global environmental regulators require manufacturing businesses to track pollutant emission rates using CEMS.

CEMS system components measure Gas or particulate matter concentration or pollutant emission rate. Software and analyzer measurements return emission limits or standards in units. Probe mounting style classifies CEMS as extractive or in-situ. The extractive CEMS system separates the analyzer and probe and extracts and conditions the gas sample before analyzing it for components. Analyzers in in-situ systems directly contact flue gas, eliminating sample conditioning. Some EPA regulations mandate CEMS for standard exceedances or continuous compliance. System approval or certification at relevant measuring ranges by international and national certification bodies like MCERTS in the UK, TUV in Germany, and other regulatory authorities is typical.

Market Dynamics

Market Drivers

Rigorous Legal and Environment Regulation

Governments worldwide have strict legal and environmental rules to reduce industrial emissions. Companies must follow these standards to operate legally and mitigate environmental effects. Industrial sectors must meet strict EU emission limits under the Industrial Emissions Directive (IED). EU companies must follow these requirements, driving demand for pollution monitoring equipment. Emission standards violations carry heavy fines from regulatory bodies. This encourages industries to invest in emission monitoring systems to avoid legal and financial penalties. The EPA enforces Clean Air Act penalties in the US. EPA civil and administrative penalties for federal agencies can reach USD 37,500 per day per infraction. The maximum penalty is USD 295,000 unless the EPA and DOJ agree.

The Paris Agreement and other international agreements set worldwide greenhouse gas emission targets. These agreements influence strict emission monitoring by countries. Countries have reduced emissions due to the Kyoto Protocol and subsequent accords. This has boosted demand for improved pollution monitoring systems to track and report progress toward these targets. Hence, The Emission Monitoring System market trend is closely tied to strict industrial emissions laws and environmental regulations.

Market Restraints

High Initial Cost

The high initial costs involved with deploying emission monitoring systems include expenses for monitoring equipment acquisition, software installation, integration with existing infrastructure, and overall monitoring system setup. These expenditures can be especially difficult for firms, particularly smaller ones, as they attempt to satisfy environmental compliance regulations. Continuous Emission Monitoring Systems (CEMS) costs greatly depending on parameters such as the type of gas analyzer, sample probe, and monitoring setup complexity. For example, depending on the specifications and requirements of the monitoring assignment, the cost of a complete CEMS for measuring pollutants such as sulfur dioxide (SO2), nitrogen oxides (NOx), and carbon monoxide (CO) can range from tens of thousands to hundreds of thousands of dollars.

As a result, this initial cost can be a considerable barrier for smaller enterprises, and the unwillingness to make such significant initial expenditures may result in delays in adopting pollution monitoring systems. While the long-term benefits, such as regulatory compliance and environmental responsibility, are apparent, the immediate cost impact, particularly for enterprises with limited financial resources, could hinder the adoption of these systems.

Market Opportunity

Rise in Industrialization in Emerging Countries

The rapid industrialization of emerging economies presents a significant opportunity for implementing pollution monitoring systems. As these economies develop and thrive, there is a greater understanding of the environmental impact of industrial activity. This knowledge and the requirement to comply with international environmental regulations drive the demand for advanced monitoring technologies. As one of the world's fastest-growing economies, China has experienced substantial industrialization. The country has recognized the environmental difficulties of rapid industrial growth and has taken steps to overcome them. According to the World Bank, China's industrial value-added output has continually increased. According to the most recent available data, China's industrial value-added increased by more than 6% yearly.

Similarly, another growing economy, India, has vigorously promoted its 'Make in India' effort to stimulate manufacturing and industrial operations. With this growth comes a greater emphasis on sustainable and responsible industrial practices. The Index of Industrial Production (IIP) in India measures manufacturing growth. India's manufacturing IIP has shown favorable trends, indicating that the country's industrial boom is underway. As emerging economies aspire to compete globally, environmental compliance is becoming increasingly important. Emission monitoring systems are becoming increasingly important in assisting enterprises in adhering to stringent environmental requirements and norms.

Regional Analysis

North America Dominates the Global Market

The global emission monitoring system market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America is the most significant global market shareholder and is estimated to grow at a CAGR of 9.2% over the forecast period. A healthy and dynamic economy, notable for its thriving manufacturing, technology, finance, and healthcare industries, is driving growth. The region's economic growth drives demand for diverse goods and services, promoting market expansion and encouraging innovation. Furthermore, the area has a robust ecosystem that fosters entrepreneurship, startups, and innovation. Strict greenhouse gas emission regulations, advancements in technology focusing on environmental sustainability solutions, and strict government and regulatory bodies such as the United States Environmental Protection Agency, among others, are likely to support the growth of North America's emission monitoring system market.

The EPA primarily collaborates with state, municipal, and tribal governments to reduce the emissions of more than 180 dangerous air pollutants. Furthermore, the tiny particles in smoke can cause various health issues, including burning eyes, a runny nose, and infections like bronchitis. One of the critical causes driving the demand for emissions monitoring systems is that these tiny particles can cause chronic heart and lung ailments. Many provinces and states lead toward sustainable energy by enacting regulations encouraging energy efficiency and carbon control. For example, British Columbia's CleanBC Plan established provincial targets of cutting emissions by 40% from FY 2005 levels by FY 2030, 60% by FY 2040, and 80% by FY 2050.

Asia-Pacific is anticipated to exhibit a CAGR of 9.4% over the forecast period. According to emission monitoring system market insights, Asia-Pacific is expected to grow significantly during the forecast period owing to increasing awareness regarding the benefits and efficiency of EMS and rapidly establishing industries across the region. China, India, Japan, and Southeast Asia are among the world's fastest-growing economies in the Asia Pacific region. The region's growing middle class, rising disposable incomes, and urbanization contribute to higher consumer spending, which drives demand for various goods and services. Cities throughout the region rapidly change due to urbanization, resulting in increased infrastructure development and demand for construction-related products and services. 

Moreover, rising concerns about air quality in China further drive the system's adoption. The growth of manufacturing and processing industries under the "Make in India" program will likely strengthen the market growth in Asia Pacific. In addition, the Asia-Pacific Partnership for Clean Development and Climate Change (APPCC). This alliance includes Australia, Canada, China, India, Japan, South Korea, and the United States. The collaboration aims to address climate change, energy security, and air pollution.

Europe is regarded as the most prominent IT provider and a prime manufacturing hub for establishing factories and data center facilities. The expanding building activities and power consumption in those countries are creating attractive prospects for the growth of the global market. Under the EU's Climate Monitoring Mechanism, which establishes the EU's internal reporting criteria based on internationally accepted duties, all EU countries are expected to monitor their emissions. For example, the European Climate Law intends to achieve climate neutrality in the EU by 2050, with a first milestone of a 55% reduction in net emissions by 2030. In addition, the law compels the Commission to publish an annual report on progress toward the Kyoto and EU targets.

Latin America, and Middle East and Africa emission monitoring system market is estimated to display moderate growth over the assessment period. Growing industrial activities in the oil and gas sectors, particularly in the Middle Eastern and African countries, tend to support the market growth in the region.

Segmental Analysis

The global emission monitoring system market is segmented based on system type, offering, end-user, and region.

The market is further segmented by System type into Continuous-Emission Monitoring Systems (CEMS) and Predictive-Emission Monitoring Systems (PEMS).

Continuous-Emission Monitoring Systems (CEMS) account for the largest share of the market.

Continuous-Emission Monitoring Systems (CEMS)

CEMS is predicted to support a potential global market share over the forecast period. Several impositions applied by authorities and stringent regulation compliance regarding pollution monitoring across several industries have increased demand for CEMSs. For instance, the Central Pollution Control Board (India) has launched several reforms and acts to control environmental issues. Acts and reforms such as The Air (Prevention and Control of Pollution) Act, The Environment Protection Act, and others with a significant focus on reducing the hazardous effects of industrial processes are projected to propel the market.

Predictive-Emission Monitoring Systems (PEMS)

PEMS are systems that forecast and estimate emissions using mathematical models and algorithms based on numerous process characteristics. These systems provide a low-cost alternative to CEMS, especially when continuous monitoring is difficult or expensive. PEMS is used when real-time monitoring is impossible, such as with mobile sources, small facilities, or processes with fluctuating emission patterns. They estimate emissions by using data on operating conditions, fuel usage, and other elements.

The market is sub-segmented based on offering Hardware, Software, and Services.

The hardware generates the most revenue.

Hardware

Hardware holds a significant share in the system for collecting data. The type of monitoring system determines the use of hardware. For instance, CEMS relies more on hardware for operations in industries; contrarily, PEMS is a software-based system that uses hardware components to determine pressure, temperature, and other industry standards. EMS hardware is frequently placed in protective enclosures or cabinets to protect it from external concerns such as dust, moisture, and temperature changes. EMS often includes communication and networking devices to enable data transfer and integration with other systems. Such devices include modems, Ethernet interfaces, and wireless communication modules. They allow remote data access, transmission to central databases, and interaction with control or supervisory control and data acquisition (SCADA) systems.

Software

The programs, algorithms, and digital tools that process, analyze, and visualize the data collected by the hardware components are referred to as software. This includes software for data interpretation, modeling techniques, and user interfaces that aid in comprehending emission patterns. Software is critical in transforming raw data into valuable insights. It allows for real-time data monitoring, interpretation, and reporting. Predictive modeling and interaction with other environmental management systems are examples of advanced software features.

The segment can be further bifurcated by end-users into Power Plants and combustion, Petrochemicals, Refineries and fertilizers, Oil and gas, Chemicals, Metal and mining, Pulp and paper, Marine and shipping.

Oil and gas are the major end-users of the market.

Oil and Gas

Oil and gas firms use EMS to comply with rules, demonstrate environmental responsibility, cut costs, and optimize operations. Monitoring emissions is critical for ensuring compliance with environmental regulations and reducing the ecological effect of operations. Oil and gas corporations use various technologies and methods in conjunction with EMS. The detection and regulation of greenhouse gas emissions, such as carbon dioxide (CO2), methane (CH4), and other volatile organic compounds (VOCs), is one of their principal applications. These systems enable businesses to track and quantify their emissions precisely, identifying pollution sources and adopting targeted emission reduction actions.

Power Plants and Combustion

Power plants and combustion processes, especially fossil fuels, are substantial emitters. In this industry, emission monitoring is critical for meeting environmental laws, enhancing combustion efficiency, and lowering air pollutants. Compliance with air quality laws includes restrictions on sulfur dioxide (SO2), nitrogen oxides (NOx), and particulate matter emissions.

Recent Developments

• April 2023- The United States' National Aeronautics and Space Administration (NASA) unveiled Tropospheric Emissions: Monitoring of Pollution (TEMPO), a cutting-edge technology. This system intends to provide exceptional accuracy in monitoring air pollution in North America. This ground-breaking air quality monitoring method can potentially reveal discrepancies in pollutant exposure.
• December 2023- ABB was named the 2023 Global Company of the Year in the pollution monitoring systems industry by Frost and Sullivan.
• December 2023- ENVEA will introduce the Cairnet® DATA+ mini-station for monitoring air quality.