Oxy-Fuel Combustion Technology Market

Market Overview

Oxy-fuel combustion technology is gaining traction in recent years owing to the increasing environmental concerns and the emergence of stringent laws and regulations on the ever-growing greenhouse emissions. This has surged the need to develop new technologies with lower emissions; thus, making way for oxy-fuel combustion technology. It is one of the most promising technologies for capturing carbon, which can be easily used in other industrial applications.

Rapid industrialization across the globe is significantly contributing to environmental pollution, further creating an adverse impact on health. Rising health concerns and the need to reduce environmental pollution is propelling the market growth. Moreover, the ever-growing population and industrialization have resulted in higher demand for energy, further rising the number of power plants and the adoption of oxy-fuel combustion technology.  

Market Dynamics

Rising Environmental Awareness to Compel Companies to Adopt Cleaner Technologies

Companies are inclining towards the adoption of clean air solutions, further driving the demand for oxy-fuel combustion technology.  With the growing population, there is a rise in the demand for metals used in the manufacturing and construction industries. The metal industry continuously strives to reduce production costs while improving the quality and productivity of the products.

Oxy-fuel combustion technology helps in reducing the exhaust gas volume by around 75%, which significantly lowers the heat loss. The companies are also working to reduce the emissions and environmental impact of their operations. Hence, the companies are investing and implementing clean technology solutions that offer low energy consumption and NO_x emissions, along with increased productivity. The below-mentioned info-graph depicts the annual total CO₂ emissions around the world for the period 2013–2017 (Billion Tons)

As per the above statistics, the total CO₂ emissions reached 36.15 billion tons in 2017 from 35.68 billion tons in 2016. The increased carbon dioxide emission is one of the crucial barriers to the reduction and control of global warming. Due to the tremendously increasing energy demand globally, there is a higher adoption of carbon capture technology in the power plants to reduce the emission levels. Moreover, the retrofit option makes it easier for the power plants and manufacturing facilities to install the oxy-fuel combustion technology with minimum costs, which is driving the market growth.

Rapid Industrialization and Rising Population to Drive the Energy Demand

Electricity is a crucial part of the industries and livelihood across the globe. As per the United Nations (UN) Organization estimations, the world’s population is expected to reach 9.7 billion in 2050 from the current figure 7.7 billion. The increasing demand for electricity for household and commercial activities has surged the overall number of thermal power plants. Today, most of the energy is produced from combusting fossil fuel, such as coal and natural gas. This has created the need to develop novel technologies to mitigate the environmental impact and reduce pollutant emissions. The below-mentioned info-graph depicts U.S. coal consumption by sector for the year 2016.

As per the Energy Information Administration (EIA), around 91.4% of coal is consumed in the U.S. for generating electricity to meet the growing electricity demand, which has compelled the power plant owners to install oxy-fuel combustion technology. A significant reduction in the nitrogen oxide (NOx) emissions can be achieved from the oxy-fuel combustion, further facilitating the market growth. Furthermore, the rising air pollution levels and its impact on health is influencing the market growth.

Segmental Analysis

Stringent Regulations Regarding CO₂ Emission to Drive the Adoption of Oxy-Fuel Combustion Technology

The glass manufacturing segment holds the highest market share. Glass is a recyclable and sustainable material that is extensively used in the manufacturing of various industrial products, such as tableware, flat glass, LCDs, computers, and windows for the automotive and construction sectors. However, the glass manufacturing process is a leading source of greenhouse gas and carbon dioxide (CO₂) emissions. As per the International Energy Agency (IEA), the glass manufacturing industries emit over 60 megatons of CO₂. The demand for glass is primarily driven by the rising population and rapid growth in the infrastructure sector

Stringent regulations and the need to reduce the environmental impact has resulted in higher demand for oxy-fuel combustion technology from the glass manufacturers. Asia accounted for more than 70% of glass production in the year 2019. In China, glass manufacturers are in search of sustainable solutions to meet stringent government regulations. Oxy-fuel combustion technology enables glass manufacturing companies to increase efficiency and reduce the overall environmental footprint.   

Regional Analysis

North America: World’s Largest Consumer of Oxy-Fuel Combustion Technology

North America dominates the oxy-fuel combustion technology market strongly supported by the stringent government regulations for maintaining the environment air quality. Umpteen environment agencies and governmental organizations, such as the Environmental Protection Agency (EPA) and the U.S. Energy Information Administration (EIA), have formulated several regulations regarding the emission of greenhouse gases in the region. This has compelled the players to adopt cleaner air solutions for their operations, which is further driving the demand for oxy-fuel combustion technology. The below-mentioned info-graph depicts power production through various energy sources in the U.S. for the year 2019.

As per the data mentioned above, there is a paradigm shift in the demand for energy sources in developed countries. However, the current energy capacities are not competent enough to meet the total energy demand, making a large part of the region to depend on conventional power plants. Fossil fuels still account for 63% of U.S. electricity.

In June 2019, EPA implemented GHG emission regulations for the existing fossil fuel-fired power plants in the Affordable Clean Energy Rule. The rule requires the power plants to use advanced technologies to improve efficiency and reduce CO₂ emissions, which has further compelled the companies to adopt oxy-fuel combustion technology.

In December 2018, the EPA introduced norms for new power plants to limit carbon dioxide emissions, which certainly requires the installation of carbon capture and storage technology. This has created an opportunity for active market players to provide novel products in order to reduce the emission rate and comply with the norms.  

Asia-Pacific to Present Ample of Growth Opportunities to the Players in the Oxy-Fuel Combustion Technology Market

Asia-Pacific offers lucrative growth opportunities to the players in the oxy-fuel combustion technology market owing to the rapid urbanization and industrialization in the region. Rising population and standard of living have surged the need for energy in the region, further encouraging higher investments in power plants. Against the backdrop of the favorable government norms and availability of resources, many industries have shifted their production facilities in the region, contributing to increased CO₂ emissions. The companies have expanded their production facilities into emerging markets such as China and India to meet the growing consumer demand.

Companies are adopting the oxy-fuel combustion technology as it offers increased productivity backed by its high flame temperature and heat transfer ratio. After the COVID-19 outbreak in China, several companies are shifting their production facilities in newer markets. In May 2020, the Indian government offered around 461,589 hectares of land to lure businesses moving out of China.  

Recent Developments

• In May 2019, Air Products unveiled an innovation in oxy-fuel combustion technology, Cleanfire® HRx™ burner, at China Glass 2019 in Beijing, China.
• In March 2019, ESA came into agreement with Olsträd Engineering Corporation for an exclusive dealership in the U.S. and as a non-exclusive dealer for Canada and Mexico. Olsträd Engineering Corporation will supply a broad range of ESA S.p.A. products and provide customer service to existing customers of combustion technology.

Oxy-Fuel Combustion Technology Market Segmentation

By Offering

• Solution
• Service

By End-User

• Oil and Gas
• Power Generation
• Glass Manufacturing
• Industrial
• Metals and Mining

By Region

• North America
• Europe
• Asia-Pacific
• South America
• The Middle-East and Africa