July 21, 2024
Flare Gas Recovery Systems Market

Growing Environmental Concerns to Boost Growth of the Global Flare Gas Recovery Systems Market

The global 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 widely utilized in oil and gas industry to recover hydrocarbon gases from flaring. These systems help in conserving natural gas by trapping it for productive use or reinjection. They prevent uncontrolled combustion of gas flares which emits greenhouse gases and negatively impacts the environment. Flare gas recovery systems typically consist of knockout drums, separators, compressors, and scrubbers to remove impurities from recovered gas. The purified gas can then be used as a fuel or reinjected into pipelines and fields. They offer advantages like decreased carbon footprint, improved safety & reliability, and monetization of recovered gases. Growing environmental concerns about gas flaring is a key factor driving increased adoption of flare gas recovery systems across oil & gas facilities.

Market key trends:

Stringent government regulations regarding gas flaring emissions is a major trend shaping the flare gas recovery systems market. Many countries and regions have either imposed restriction or complete bans on uncontrolled gas flaring to reduce carbon footprint. For instance, many African countries have set targets to end routine gas flaring by 2030 under the World Bank’s ‘Zero Routine Flaring by 2030’ initiative. This is compelling oil producers to invest in advanced flare gas recovery technologies. Another key trend is the growing focus on sustainability and emission reduction goals of oil & gas companies. Many producers are proactively installing flare gas recovery systems across onshore and offshore facilities to curb emissions and wastage of natural resources. Furthermore, increasing flare gas production from mature oil fields in regions like Middle-East and North America is augmenting the sales of these systems. Technological advancements are also enabling development of highly efficient modular and mobile flare gas recovery units.

Porter’s Analysis

Threat of new entrants: Low fixed cost and government regulations create entry barriers for new players in this market.
Bargaining power of buyers: Large customers have strong bargaining power due to their demand, which affects prices of recovery systems.
Bargaining power of suppliers: Key components suppliers have lower bargaining power as recovery systems require customized components.
Threat of new substitutes: No direct substitutes present for flare gas recovery solutions, making threat of substitutes low.
Competitive rivalry: Presence of large multinational players like UOP-A Honeywell Company increases competitive rivalry.

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 environmental regulations to reduce atmospheric emissions.

Regional analysis: North America dominates currently due to strict environmental standards, followed by Europe and Asia Pacific. Asia Pacific region is expected to witness fastest growth during forecast period led by China and India due to rapid industrialization.

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. These players are focusing on new product launches and partnerships to gain higher share in the market.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it