Flare Gas Recovery Systems Market Estimated To Witness High Growth Owing To Increasing Focus On Reducing Greenhouse Gas Emissions
The Flare Gas Recovery Systems market is estimated to be valued at US$ 3.93 Bn 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 flare gases released during oil and gas production activities. Flare gases consist of hydrocarbons such as methane, ethane and propane which have potential to be reused. If not recovered, these greenhouse gases significantly contribute to global warming. Flare gas recovery systems help in reducing emissions by recovering raw gas from flares and utilizing it for onsite power generation or sending it to gas pipeline for commercial use.
Market Dynamics:
Increasing focus on reducing greenhouse gas emissions is a key driver fueling growth of flare gas recovery systems market. Restrictive regulations regarding flaring activities especially in Europe and North America are prompting oil and gas companies to adopt flare gas recovery systems. For instance, according to the World Bank, routine gas flaring contributes around 300 million tons of carbon dioxide equivalent annually, accounting for over 400 million tons including non-routine flaring. Recovering this flare gas through proper systems can help lower emission levels significantly. Additionally, oil prices fluctuations make recovered flare gases an attractive revenue stream. However, high initial investment remains a challenge for widespread adoption of flare gas recovery systems.
SWOT Analysis
Strength:
- Flare Gas Recovery Systems help reduce greenhouse gas emissions and minimize air pollution which provides a positive environmental impact.
- These systems help recover hydrocarbon gases that would otherwise be flared and allows them to be used as fuel. This results in reduced energy costs.
- Advanced technologies used in these systems such as cyclonic separation and membrane separation provide high recovery rates.
Weakness:
- High initial capital costs are required for setting up Flare Gas Recovery Systems which can be a hurdle for some companies.
- Require skilled workforce for operation and maintenance of these complex systems.
Opportunity:
- Growing emphasis on reduction of carbon footprint and stringent environmental regulations provide growth opportunities for Flare Gas Recovery Systems.
- Increasing natural gas production globally fuels the need for these systems.
Threats:
- Political instability or changes in existing policies in major oil & gas producing countries poses risks.
- Economic slowdowns can negatively impact capital spending on these systems by companies.
Key Takeaways
The Global Flare Gas Recovery Systems Market Size is expected to witness high growth, exhibiting CAGR of 7.5% over the forecast period, due to increasing focus on reducing carbon emissions and stringent environmental regulations.
Regional analysis: North America dominates the global market currently due to strong presence of key players and strict emission norms in the region. However, Asia Pacific is expected to grow at the fastest pace during the forecast period with increasing oil & gas production in countries such as China and India.
Key players: Key players operating in the Flare Gas Recovery Systems market are UOP-A Honeywell Company, Wärtsilä Hamworthy, MPR Industries PLC, John Zink Company LLC, Zeeco Europe and Zeeco India, Gardener Denver, and Ro-Flo Compressors. These players are focusing on developing innovative and advanced technologies to improve recovery rates and reduce costs.