The Flue Gas Desulfurisation (FGD) systems market is projected to grow from $19.3 billion in 2021 to $24.9 billion by 2026, at a CAGR of 5.2 per cent from 2021 to 2026.
The FGD systems market has been witnessing consistent growth owing to the increasing concerns regarding environmental pollution, growing prevalence of airborne diseases, and enforcement of environmental laws and regulations
The rise in demand for FGD systems from the power generation, chemical, iron & steel, and cement and manufacturing industries is expected to drive the market globally. Stringent environmental regulations focused on the control of excessive industrial sulfur dioxide emissions are further expected to drive the growth of the market during the forecast period.
Cleaner, cooler, and healthier environment redefined the necessity to adopt renewable sources of energy for sustainability, and hence, the reliance on carbon fuels is decreasing. Countries are making efforts to develop renewable sources of energy such as hydropower, offshore & onshore wind, solar photovoltaic, and bioenergy. This is the key challenge affecting the growth of coal fire power plants and as a result affecting the FGD systems market.
According to the International Energy Agency, coal remained a major fuel in global energy systems and accounted for almost 36.7 per cent share of electricity generation in 2019. China, India, and other emerging economies of the Asia Pacific region accounted for the highest increase in the usage of coal for power generation, while consumption patterns decreased in North America and Europe.
A standard FGD system consists of an electrostatic precipitator followed by the main desulfurization unit, a scrubber, and an in-line steam reheater. This energy-intensive technology accounts for roughly 2.5 per cent to 6 per cent of the total energy generation capacity of a coal-fired power plant.
Thus, the operational costs rise substantially, leading to economic infeasibility for plants with a capacity of less than 500 MW. Major energy consumption is attributed to the reheater, water & slurry pumps, and tank agitation.
Other factors that influence energy consumption patterns are scrubber design, coal characteristics, plant design, and regulatory constraints. These high energy requirements pose a major challenge to the growth of the FGD systems market.
Based on type, the market has been segmented into wet and dry and semi-dry FGD systems. Key factors responsible for the adoption of wet FGD technology are its high removal efficiency, high emission standards set by federal governments, an increase in electricity demand, and an increase in the number of coal-fired power plants in emerging economies.
The growth of the wet FGD systems segment can also be attributed to its early commercial deployment in 1970 and its high efficiency in terms of SO2 removal. Moreover, the by-product of typical wet FGD systems, which use limestone as a reagent, is gypsum. This can be marketed to cement and wallboard manufacturers and the fertilizer industry.
Based on end-use industry, the power generation end-use industry segment accounted for the largest share of the global FGD market in 2020. Coal-fired power plants are the major source of sulfur pollutants, due to the usage of high sulfur content coals in power plants. Therefore, increased power generation is the reason for the dominance of the power generation segment over other end-use industries.
The Asia Pacific FGD systems market will see increased demand from the power generation industry as a result of the increased regulations and power production in the region. The power generation industry consumed the highest amount of FGD in the region and accounted for the largest share in the Asia Pacific FGD systems market in 2020. As the chemical sector, as well as the cement and metal smelting industries, are growing in Asia Pacific, more opportunities are expected for this market in this region in the coming years.-OGN