Flare Gas Recovery Systems Market Is Estimated To Witness Robust Growth Owing To Increasing Need For Cost-Effective And Environmentally Sustainable Flare Gas Management Solutions
Flare gas recovery systems are used to recover wasted gases from industrial flaring processes in oil and gas facilities. These systems consist of compressors, knockouts, and separators that collect flare gases like hydrogen, methane, and volatile organic compounds (VOCs). Recovering flare gases provides significant economic and environmental benefits. It enables the reuse of valuable hydrocarbon gases for on-site power generation or reinjection, reducing operational costs. It also lowers greenhouse gas emissions and improves regulatory compliance with emission norms.
The global Flare Gas Recovery Systems Market is estimated to be valued at Us$ 4.53 Bn in 2024 and is expected to exhibit a CAGR Of 11% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Growing environmental concerns regarding greenhouse gas emissions from constant flaring have amplified the need for efficient flare gas recovery and utilization. Major regulatory bodies like the EPA in the US have mandated strict restrictions on industrial gas flaring. This growing regulatory pressure on emission control is expected to drive the demand for flare gas recovery systems that can help organizations comply with norms and lower operational expenses simultaneously. Their ability to facilitate cost-effective gas conservation and reuse while reducing an organization's carbon footprint will further increase their adoption in oil and gas facilities worldwide.
Porter's Analysis
Threat of new entrants: The flare gas recovery systems market requires high initial investments and has strict regulatory standards, lowering the threat of new entrants.
Bargaining power of buyers: Large oil and gas companies have significant bargaining power over suppliers due to their bulk buying ability.
Bargaining power of suppliers: The presence of numerous technology providers limits the bargaining power of individual suppliers in this market.
Threat of new substitutes: There are limited substitute products for flare gas recovery systems since they play a critical role in emissions reduction for oil and gas facilities.
Competitive rivalry: The market sees tight competition among major players focusing on product innovation and expanding their global footprint.
SWOT Analysis
Strengths: Flare gas recovery systems help reduce greenhouse gas emissions and recover hydrocarbons, allowing oil & gas operators to comply with stringent regulations.
Weaknesses: High initial capital expenditures and complex installation of flare gas recovery systems can delay ROI. Maintaining aging equipment also increases operational costs.
Opportunities: Growing focus on zero-routine flaring by 2030 provides opportunities to supply advanced recovery systems to emerging markets in Asia Pacific and Middle East & Africa.
Threats: Volatility in oil prices poses risks of delays or cancellations of new gas recovery projects. Rising raw material costs also threaten profit margins.
Key Takeaways
The Global Flare Gas Recovery Systems Market Demand is expected to witness high growth over the forecast period driven by stringent government mandates to curb harmful emissions. North America currently dominates the market owing to large-scale shale oil and gas production and supportive regulatory environment in the US and Canada for gas conservation.
Regional analysis indicates Asia Pacific is likely to showcase the fastest growth in demand for flare gas recovery systems during the forecast period. This can be attributed to rising oil and gas production activities and new policies emphasizing zero flaring of associated gas in countries such as China, India, and Indonesia.
Key players operating in the flare gas recovery systems market are GE Healthcare (US), Siemens Healthineers (Germany), Koninklijke Philips N.V. (Netherlands), etc. These players are focusing on new product launches and partnerships to strengthen their global presence.
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