Flue Gas Desulfurization System Market Size, Share & Trends Analysis Report By Technology (Wet FGD Systems, Spray Dry FGD System, Dry FGD System), By Applications (Power Plants, Chemicals, Cement, Metal Processing and Mining, Manufacturing) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global flue gas desulfurization system market size was valued at USD 20.81 billion in 2022. It is estimated to reach USD 29.36 billion by 2031, growing at a CAGR of 3.9% during the forecast period (2023–2031).

Flue Gas Desulfurization (FGD) is a collection of technologies utilized to remove sulfur dioxide from exhaust flue gases in sulfur oxide-emitting processes, such as coal-fired boilers, paper and pulp facilities, diesel generators, oil-fired boilers, and waste incinerators. The sulfur dioxide (SO2) produced by burning coal, oil, natural gas, or wood is removed from the flue gas using absorbents.

Outdoor air quality is a vital aspect to be maintained to safeguard humans from the hazardous health effects caused due to toxic pollutants. Hence, FGD systems control and curtail the emission of SO2 and other gaseous pollutants. By purifying gases created during numerous industrial operations, including the production of cement, glass, paper, iron, steel, and copper, it aids in reducing air pollution. It also helps to prevent acid rain, which is brought on by an airborne concentration of sulfur dioxide (SO2) and nitrogen oxides (NOX) that is too high.

Highlights

• Wet FGD systems dominate the technology segment
• Power plants dominate the application segment
• Asia-Pacific is the highest shareholder in the global market

Market Dynamics

Market Drivers

Rising Focus to Combat Air Pollution

The air quality across the globe is degrading due to factors such as an increase in industrialization and a rise in urbanization. As per the World Health Organization (WHO), it is anticipated that the majority of the population in the world is exposed to unsafe air, and around four to five million people die each year due to health issues caused by air pollution. This has increased the need to improve air quality, fueling the demand for FGD systems. Moreover, in October–November 2018, WHO organized the first international conference on air pollution and health to increase awareness among the public, which in turn fuels the demand for FGD systems.

Both China and India, with their massive populations, are major causes of the global air pollution crisis. However, both countries are shifting their focus toward controlling air pollution. In January 2019, India launched the National Clean Air Program (NCAP), which delivers a roadmap to prevent, control, and reduce air pollution. Therefore, a rise in focus on curbing pollution is expected to increase the demand for flue gas desulfurization systems, which drives the growth of the flue gas desulfurization systems market.

Stringent Government Regulations Toward Controlling Air Pollution

Ever since the enactment of the Air Prevention and Control of Pollution Act in 1981, developing countries have been directing their resources to control the intensifying level of air pollution. In addition, increased coal consumption in India and China, less efficient industrial processes, and illegal mining operations have led to the depletion of air quality. The execution of stringent air quality control standards by developed countries is expected to fuel the growth of the FGD systems market.

Furthermore, several governments, knowing the societal and financial effects of air pollution, fund enormous amounts in rules and solutions to improve air quality. In 2016, the Government of London increased its budget to around USD 1 billion to deal with air pollution and clean up the capital's contaminated air. All these factors together are anticipated to drive the growth of the market.

Market Restraints

Declining Number of New Coal Power Plants Globally

The rise in concerns regarding pollution and the surge in the use of other fuels, such as gas and renewable energy sources, has led to a decline in the number of coal power plants. In 2017 and 2018, in the U.S., around 23,400 megawatts of coal-fueled power plants had shut down. In January 2019, Germany, one of the biggest coal consumers, announced to shut down all 84 coal power plants over the next 19 years.

Furthermore, the decline in the construction of new coal power plants has been witnessed; for example, in 2015, it declined by around 85%, and in 2018 by around 40% due to a decrease in the cost of renewable energy. In addition, around 186 GW of thermal power plants are expected to stop operating by 2030. All these factors are expected to reduce the demand for FGD systems used in the power generation sector, thereby restraining market growth.

Market Opportunities

Rising Technological Advancements

Technological advancements by manufacturers such as GE Power, Thermax, S.A. HAMON, MHPS, and others have increased the demand for FGD systems products. Advanced limestone flue gas desulphurization (FGD) units from ANDRITZ are economical and effective ways to remove dust and SO2 using the least energy. In addition, Carmeuse established new technologies, Novel Integrated Desulfurization (NID) and Circulating Dry Scrubbers (CDS), which can remove 98% SO2 on 2.5% sulfur coal. These technologies consecutively recycle SO2 from flue gas through proprietary regenerable aqueous amine-based solvents. Hence, such technological advancements are predicted to offer lucrative opportunities for manufacturers.

Furthermore, the launch of multi-pollutant control is expected to propel the market growth shortly. For example, Israel-based Lextran Ltd. industrialized a catalytic, regenerative wet scrubbing process that eliminates SOx and NOx from flue gas. Moreover, the rise in air pollution and an upsurge in carbon emissions make way for energy-efficient and environment-friendly FGD systems, reducing environmental degradation. This is anticipated to offer remunerative opportunities for market expansion.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global flue gas desulfurization system market is bifurcated into North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific is the most significant global flue gas desulfurization system market shareholder and is estimated to exhibit a CAGR of 4.21% during the forecast period. Asia-Pacific is densely populated, with India and China being the most populated countries. This is a key reason for the increased necessity of food, electricity, oil, gas, power, and others in this region. Therefore, the rise in the installation of oil and gas processing plants, food processing plants, and others in the region has resulted in increased air pollution, which in turn has further fueled the demand for extremely reliable and efficient flue gas desulfurization systems to prevent polluted and contaminated air being generated in these plants. According to the International Energy Agency (IEA), China will overtake the U.S. regarding oil consumption by 2030. In addition, different rules and regulations by governments of different countries are expected to boost the growth of the flue gas desulfurization systems business. For instance, in 2015, the Australian government signed The National Clean Air Agreement to reduce air pollution and improve the country's air quality.

Europe is estimated to exhibit a CAGR of 3.1% over the forecast period. Europe is a potential market for flue gas desulfurization systems due to its advanced infrastructure, easy availability of high-end products and technology, and high disposable income. In addition, the growth of the flue gas desulfurization systems market in Europe is driven by various laws and regulations implemented by the government to control air pollution. For instance, in May 2017, the government of France issued national objectives such as National Air Pollutant Emission Reduction Plan to control emissions such as sulfur dioxide, ammonia, and other fine particles from industries. Such factors are anticipated to lead to the growth of the market. In addition, according to the "Air Quality in Europe — 2018 Report" by the European Environment Agency (EEA), Europe's major sources of air pollution are the energy, transport, and agriculture sectors. Therefore, manufacturing hubs have been focusing on wet and dry scrubbers to maintain the ecological balance to eliminate flue gas pollutants in the industrial sector. Such factors are anticipated to propel the adoption of flue gas desulfurization systems in industries.

In North America, the United States, Canada, and Mexico are the three largest nations. The U.S. witnesses maximum air pollution in North America, which is expected to boost the demand for FGD systems. Organizations such as the National Air Filtration Association (NAFA), the National Association of Clean Air Agencies, and others have implemented stringent guidelines to deploy air purification filters at the source of air-polluting devices. Therefore, enforcing such mandatory laws has driven the demand for flue gas desulfurization systems across food and beverage industries and manufacturing units. In addition, the prominent players are focusing on developing advanced flue gas desulfurization systems to control the particulate and gaseous pollutants emitted from power generation plants, oil and gas plants, chemical industries, and others. For instance, the electrostatic precipitators (ESPs), wet scrubbers, and baghouse filters by Babcock & Wilcox Enterprises, Inc. are suitable for controlling the discharge of hazardous air pollutants.

LAMEA comprises Latin America and the Middle East and Africa. Rapid industrialization and urbanization have surged air pollution in the industrial centers and megacities, such as Riyadh, Abu Dhabi, São Paulo, Jeddah, Cairo, and Rio de Janeiro. The need for flue gas desulfurization systems in LAMEA is expected to increase at a considerable rate, owing to initiatives taken by the government to improve air quality. Moreover, the metallurgical, chemical, and petroleum industries produce a significant portion of the Middle East and Africa's gross national product (GNP). These sectors are the region's major end users of flue gas desulfurization systems. Therefore, the development of the abovementioned industries is anticipated to escalate the growth of the flue gas desulfurization systems market during the forecast period.

Segmental Analysis

The global flue gas desulfurization system market is segmented by technology and application.

Based on technology, the global flue gas desulfurization system market is bifurcated into wet FGD systems, spray dry FGD systems, and dry FGD systems. 

The wet FGD systems segment dominates the global market and is projected to exhibit a CAGR of 4.8% over the forecast period. Wet flue gas desulfurization (FGD) systems, also called wet scrubbers, are an excellent way of decreasing the SO2 emissions produced by industrial furnaces, boilers, and others. Over 80% of the scrubbers installed in the U.S. are wet scrubbers. According to the World Health Organization (WHO), approximately 4.2 million premature deaths were predicted in both urban and rural areas across the globe due to outdoor air pollution in 2016. Thus, there has been an increase in demand for wet scrubbers in varied end-user industries, such as power generation and automotive, to eliminate airborne contaminants and industrial gases from exhaust streams in ambient air. Market players are also focusing on offering technologically advanced FGD systems.

A dry FGD system controls SOx emission and multi-pollutant control across power plants and manufacturing industries such as petrochemical, iron, steel, and pulp and paper. The increased levels of hazardous gaseous pollutants such as CO, NO2, and SO2 have enforced regulatory boards such as NAAQS and EPA to implement safety measures in industrial spaces. This has fueled the adoption of dry scrubbers, which curb the emission of toxic gaseous pollutants from industrial releases, including SO2, acids, and alkaline gases. In addition, developing oil and gas, power, and mining industries boosts the demand for dry FGD systems, thereby propelling market growth. The surge in demand for dry scrubbers from cement mills and others due to increased construction-related activities in developing countries is also anticipated to offer lucrative growth opportunities for the market.

Based on application, the global flue gas desulfurization system market is segmented into power plants, cement, metal processing and mining, manufacturing, and chemicals. 

The power plants segment owns the highest market share and is estimated to exhibit a CAGR of 4.1% during the forecast period. Power generation plants emit SO2, NOx, PM, and other hazardous air pollutants. Power plant discharges occur from igniting fossil fuels such as gas, coal, and oil. This has boosted the demand for FGD systems that scrub SO2 discharged from oil and gas plants and thermal power plants. In addition, the growth of the power plants segment is driven majorly by a large dependence on coal-powered plants in economies such as the U.S., China, and others. These countries rely on coal to produce electricity.

Besides, coal-fired power plants are the foremost cause of local pollution, and they emit greenhouse gases and are responsible for health damage worldwide. Therefore, many countries have started regulating discharges from these plants, principally for health reasons. The 1990 Clean Air Act Amendments in the U.S. triggered several power plants to install FGD units or wet scrubbers or to shift to low-sulfur coal. Such regulations and consequent toughening of sulfur dioxide (SO2) rules have prompted more plants to scrub their flue gas releases.

The chemical industry requires an FGD system to control and scrub flue gases such as SO2 and others released throughout the chemical manufacturing process. The chemical industry comprises various manufacturing industries, such as plastics, glass, and chemicals. The development of the chemical industry is expected to boost the growth of the flue gas desulfurization systems market. For instance, the average growth rate of the chemical industry in India between 2018 and 2025 is expected to be over 9%, and the country ranks third in terms of production of chemicals, by volume, in Asia. Various government rules and regulations for controlling air pollution are also anticipated to fuel the development of the market.

Impact of covid-19

The Covid-19 pandemic has significantly affected the total tile market, with demand remaining subdued for 6 months in 2020. End-use industries such as construction, manufacturing, and chemical, among others, have seen substantial expansion in the market. For example, the United States has a well-established building industry. Until 2019, the construction industry contributed over USD 2 trillion to the American economy. Due to the pandemic, the figure fell to USD 1.3 trillion in 2020. As a result, the expansion of all related industries has been impeded. Several ongoing projects have been canceled or postponed.

The usage of fluorosilicic acid for aluminum production in the automotive sector had dropped by more than 20%. The demand for aluminum in this industry is directly related to the entire vehicle output. As a result, the acid market experienced the same influence on demand. This was caused by, among other things, the entire and partial suspension of manufacturing facilities, limited transportation of commodities, a prohibition on import and export activities, and the closure of showrooms.

Key Impacts of COVID-19

• Large oil, gas, and chemical firms are reducing capital and operational expenditures.
• Companies with high debt and insufficient cash flow are more prone to encounter liquidity difficulties, and some may be forced to close their doors permanently.

Market Recovery Timeline and Challenges

The global fluorosilicic acid market research study emphasizes possible recovery scenarios during the forecast period. Fluorosilicic acid is created as a byproduct of the production of phosphate fertilizers and from phosphate rock that includes fluoride and silica and is processed with sulfuric acid. It is a dry salt additive that must be dissolved in a solution before it can be added to water. Rising ground and surface water contamination raise the need for water treatment, which raises the demand for fluorosilicic acid.

Recent Developments

• August 2022- Power Mech Projects Limited (PMPL), a Hyderabad-based construction and services provider with a diverse portfolio, received a record order for five Flue Gas Desulphurization (FGD) projects worth a total of Rs 6,163.20 Crores. The orders are for fifteen FGD retrofits to coal-based units spanning from 330 MW to 660 MW.
• March 2022- Tata Projects, one of India's most admired and fastest-growing industrial infrastructure companies, finished the third chimney (chimney 5) at Odisha's Talcher Flue Gas Desulfurization project. Against all odds, the casting and slipping of the Chimney 5 exterior was completed.