FLUE GAS DESULFURIZATION (FGD) MARKET ANALYSIS

The flue-gas desulfurization (FGD) process employs a number of technologies to remove Sulphur dioxide (SO2) from coal-fired power plant flue gasses. The exhaust – flue gases – from fossil fuel-burning plants, particularly coal-burning plants, posed an environmental and human health threat, driving the development of flue-gas desulfurization systems. For instance, in March 2021, according to the International Energy Agency, coal-fired power stations generate around 37% of global electricity, making it the world’s largest sources of generating electricity. Such facilities, on the other hand, are prone to produce pollutants, particularly Sulphur, which has a negative impact on the environment. As a result, the flue-gas desulfurization system is being used in coal fired power station. In a standard coal-fired power plant, flue-gas desulfurization systems can remove around 95% of the SO2 from flue gases. Wet flue-gas desulfurization systems are often more expensive than dry flue-gas desulfurization systems. Also, Wet flue-gas desulfurization systems offer lower operational and maintenance costs.

Market Dynamics

The implementation of environmental laws and restrictions on industrial emissions has been one of the major driving factors for the global flue gas desulfurization market's growth. Furthermore, rising energy consumption around the world has created a strong demand for flue gas desulfurization. All of these factors are thus expected to play a significant part in propelling the global flue gas desulfurization market in the forecast period.

The expensive installation costs of these flue gas desulfurization systems have been one of the most significant barriers to market expansion. Another significant disadvantage is the increased waste disposal expenses associated with desulfurization operations. Rising demand from developing economies such as India and Japan, on the other hand, is expected to strengthen economic opportunities in the forecast period.

Market Outlook

The Asia Pacific flue-gas desulfurization market is expected to witness an increase in demand from the power generation industry as a result of increased restrictions on power output in the region. The power generation industry dominates Asia Pacific, allowing the market for FGD systems to expand. For instance, according to the global energy monitor, new coal plants with a capacity of 74,412 MW were constructed in China and India in 2019, increasing 45.2% from 2018. The chemical industry, as well as the cement and metal smelting industries, are anticipated to grow over the forecast period, providing additional opportunities for flue-gas desulfurization market in Asia Pacific. For instance, in December 2020, according to the global energy monitor, Indonesia, Vietnam, Bangladesh, and South Korea are likely to contribute 18.6% of total coal-fired power plant pipeline projects in the forecast period. As a result, demand for new FGD systems is increasing in Asia Pacific.

The flue gas desulfurization market systems is expected to decline in industrialized nations, such as North America and the Europe region choose to phase out coal in forecast period. Furthermore, growing concern regarding air quality standards, as well as the increased respiratory diseases linked to air pollution, has compelled the North America and the Europe region to seek out greener alternatives, reducing demand for new coal-fired power plants.

Key Players

Major players operating in the global flue gas desulfurization market include General Electric, Babcock & Wilcox Company, Chiyoda Corp., Mitsubishi Hitachi Power Systems, S.A. HAMON, Carmeuse, Thermax, Fujian Longking Co., Ltd., and Wuhan Kaidi Electric Power Environmental Co., Ltd.

Furthermore, manufacturers in the global flue gas desulfurization market are focusing on collaboration and mergers as a key development strategy to expand sales and strengthen their position in the global market. For instance, in August 2019, BHEL established itself to be India's largest FGD provider, gaining two orders worth US$ 334 million from the National Thermal Power Corporation (INR 2500 crores). Mitsubishi Hitachi Power Systems collaborates with Bharat Heavy Electricals Limited (BHEL) to fulfil over 50 thermal units of flue gas desulfurization orders.

Market Taxonomy

• On the basis of Material Type, Global Flue Gas Desulfurization Market is segmented into:
  • Wet FGD Systems
  • Spray Dry FGD System
  • Dry FGD System
• On the basis of End Use Industry, Global Flue Gas Desulfurization Market is segmented into:
  • Power Plants
  • Cement
  • Metal Processing & Mining
  • Chemicals
• On the basis of Region, Global Flue Gas Desulfurization Market is segmented into:
  • Asia Pacific
    • China
    • India
    • Japan
    • ASEAN
    • Australia
    • South Korea
    • Rest of Asia Pacific
  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • U.K.
    • Germany
    • France
    • Italy
    • Russia
    • Rest of Europe
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Middle East
    • GCC
    • Israel
    • Rest of Middle East
  • Africa
    • North Africa
    • Central Africa
    • South Africa