The Flare Gas Recovery Systems Market is estimated to be valued at US$ 3.93 Billion in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Flare gas recovery systems are used to recover waste gases from flares at oil and gas production sites, refineries, and chemical plants. These systems capture vaporized hydrocarbons from flare stacks and process them for use as fuels. They help to improve energy efficiency and reduce environmental pollution at industrial sites. With strict environmental regulations, flare gas recovery systems offer an economical solution to reuse flare gases.
Market key trends:
Rising environmental regulations regarding emissions are driving the demand for flare gas recovery systems. Government bodies worldwide are enacting stringent rules to curb greenhouse gas emissions from industrial facilities. For example, the U.S. Environmental Protection Agency launched targets to reduce methane emissions from the oil and gas industry. Similarly, the European Union also implemented regulations to minimize waste gas flaring. This is prompting end users to adopt recovery systems for effective flare gas management. Additionally, the ability of these systems to boost fuel production from recovered gases and lower operating costs is increasing their deployment across industries. Technological advancements in processing equipment are further fueling the adoption of advanced recovery solutions.
Porter's Analysis
Threat of new entrants: Low barrier to entry for suppliers of components but high costs involved in establishing flare gas recovery plants limit new entrants.
Bargaining power of buyers: Oil and gas companies hold strong bargaining power due to availability of substitutes and compliance with environmental regulations.
Bargaining power of suppliers: Few component suppliers exist globally giving them moderate bargaining power over customers.
Threat of new substitutes: No close substitutes exist currently for flare gas recovery due to technical complexity and high costs involved in developing alternative technologies.
Competitive rivalry: Intense competition exists among existing players to capture larger market share through investment in R&D and expansion of product portfolio.
SWOT Analysis
Strengths: Regulations towards zero flaring, growing demand for captured gas as a feedstock.
Weaknesses: High upfront costs, technical challenges in recovering small volumes of flare gas.
Opportunities: Investments in emerging markets, increased productivity through IoT solutions.
Threats: Volatility in oil prices impacting capital expenditures, substitutes emerging from startups.
Key Takeaways
The global Flare Gas Recovery Systems Market Growth is expected to witness high growth, exhibiting CAGR of 7.5% over the forecast period, due to increasing regulatory pressures to curb flaring. North America dominated the market in 2023 with over 35% share owing to presence of major shale basins and stringent EPA regulations. The Asia Pacific region is projected to be the fastest growing market between 2023-2030 with a CAGR of around 9% due to rise in exploration & production activities and growing emphasis on gas utilization in China and India.
Key players operating in the flare gas recovery systems market are UOP-A Honeywell Company, MPR Industries PLC, John Zink Company LLC, Zeeco Europe and Zeeco India, Gardener Denver, and Ro-Flo Compressors. UOP accounted for over 20% share in 2023 owing to its wide global presence and integrated solutions. MPR Industries has extensive expertise in modular small-scale recovery units well-suited for remote sites.
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