The flare gas recovery system market size is expected to grow year-on-year at 4.8% in 2021, with the overall valuation expected to reach USD 1.05 Billionn in 2021. As per a recent analysis by Future Market Insights (FMI), sales of flare gas recovery systems are expected to increase at 5.9% CAGR between 2021 and 2031.
According to the study, the overall flare gas recovery system market demand valuation is forecast to top USD 1.7 billion by 2031. Compressor technology is expected to remain highly sought-after, and sales of modular flare gas recovery systems will increase steadily, exhibiting growth at a 5.7% CAGR in 2021.
| Attribute | Details |
|---|---|
| Base Year Value (2020A) | USD 1 Billion |
| Estimated Year Value (2021E) | USD 1 Billion |
| Projected Year Value (2031F) | USD 1.76 Billion |
| Value CAGR (2021 to 2031) | 5.90% |
| Collective Value Share: Top 3 Countries (2021E) | 36.00% |
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Revenue generated by the oil and gas segment of the flare gas recovery system (FGRS) market rose gradually in 2021. Demand for flare gas recovery systems grew by 4.8% between 2020 and 2021, enabling growth in the flare gas recovery system market.
The FGRS market is regulation driven. Historically, the market witnessed impressive growth after 2015, when the World Bank launched its “Zero Flaring by 2030” initiative. The initiative was launched to end routine flaring by 2030, by facilitating cooperation between stakeholders to find solutions to curb gas flaring through appropriate regulations, adoption of technologies, and financial arrangements.
Leading flare gas recovery system manufacturing companies are focusing on providing highly efficient and cost-effective options that reduce payback periods. Further, manufacturers are investing in research and development in FGRS to enhance their capability to work in remote oil and gas fields to improve sales.
According to the study, the USA is expected to account for over 76% of the North American flare gas recovery systemmarket through 2031.
According to the World Bank, the USA accounted for 70% of global flaring decline, with gas flaring falling by 32% from 2019 to 2020, due to an 8% drop in oil production, combined with new infrastructure to use gas that would otherwise be flared. This indicates the successful implementation of regulation and increasing use of renewable energy in the country.
Besides this, the presence of key market players and robust oil & gas infrastructure is further expected to boost sales of flare gas recovery systems. The USA has numerous remote oil and gas fields that are spurring demand for flare gas recovery systems. This is expected to provide lucrative opportunities to key market players and new entrants operating in the USA
Demand in the Middle East and Africa market is expected to rise at nearly 5.0% CAGR over the forecast period. Countries such as Qatar, KSA, Algeria and Tunisia have emerged as prominent players in the flare gas recovery system market in terms of consumption.
The Middle East and Africa have been one of the leading oil and gas-producing regions with OPEC countries being the epicentre of production hubs. Increasing competition in the oil and gas sector has compelled prominent oil and gas companies in the region to concentrate on their emissions and carbon footprints, not only pricing.
However, pricing in the region remains one of the highest around the world owing to the high import rate. Since the ambient temperature in the region is higher than in other countries, and frequent sandstorms require more durable fittings, demand for flare gas recovery systems is expected to remain high in these regions over the assessment period.
Europe is one of the key manufacturers of flare gas recovery systems across the globe. In 2021, it is expected to account for over 14% of total flare gas recovery system sales. As per FMI, Russia is expected to hold 12.9% of the Europe flare gas recovery systemmarket share in 2031.
In recent years, improved technology, and stringent regulation against flaring in Europe to minimize emissions and payback period are propelling sales of flare gas recovery systems in the country.
According to the World Bank, Russia topped the list of global gas flaring countries in 2020, contributing 15% of global gas flaring. Mixed performance is seen across Russia, with a significant increase in flaring at oil production sites in East Siberia, along with improvements in flaring reduction in the KMAO region in West Siberia.
Considering this, FMI has projected a steady rise in FGRS sales in Russia, owing to its high oil and gas producing capacities which would require proper systems to cut emissions and flaring. Besides this, demand for flare gas recovery systems is anticipated to rise in the biogas and landfill sectors over the assessment period.
China has been the epicenter for oil and gas production in the East Asia region and is estimated to account for over 50% of the East Asia flare gas recovery system market by 2031.
According to the World Bank, gas flaring in China increased by 35%, placing it as the ninth-highest flaring country in 2020. Increasing gas flaring can be attributed to new field developments in the West of China. This is because Chinese regulation is much less stringent when compared to regulations in the USA and the European Union.
However, the country still has a significant installed base of FGRS. Stringency in regulations regarding carbon emissions in China is expected to fuel sales of flare gas recovery systems in China over the forecast period.
In 2021, India is anticipated to account for over 32%of sales of flare gas recovery systems in the South Asia region. The primary growth driver in the region is the ongoing expansion of the oil and gas sector.
According to Invest India, India's current refining capacity stands at 249 MMTPA, comprising 23 refineries - 18 under the public sector, 3 under the private sector and 2 in a joint venture. Indian Oil Corporation (IOC) is the largest domestic refiner with a capacity of 70 MMTPA.
Top three companies -IOC, Bharat Petroleum Corporation (BPCL) and Reliance Industries (RIL) - contribute around 66.3% of India's total refining production from FY 2018-19. India is expected to emerge as a refinery hub as the country is planning to increase its refining capacity to 400 MMTPA by 2025.
The aforementioned statistics suggest that India will emerge as a prominent oil and gas industry, which, in turn, will benefit the expansion of the flare gas recovery system market in the country.
Based on configuration, the skid mounted systems segment is anticipated to hold a leading share of around 65% of the flare gas recovery systems market in 2021. These systems are used extensively in end-use sectors owing to their high degree of customization and efficiency.
In terms of application, the oil and gas sector is projected to account for more than 60% of the total flare gas recovery system market share by 2031. Various industries such as petrochemical refineries, NGL plants, fuel gas conditioning and others from oil and gas sector require these systems for flare gas recovery.
Based on technology, liquid ring compressor is expected to emerge as the most preferred technology type used in the global flare gas recovery market. Simple and compact design, minimal pressure fluctuation, and isothermal gas compression make it the most preferred choice for gas recovery applications.
The segment is expected to account for approximately 44.7% of the total flare gas recovery system market over the forecast period.
By operating pressure, up to 5 bar (small) remains the most extensively used range of flare gas recovery systems. This segment is forecast to account for 36.5% of the total flare gas recovery system market share in 2021.
By flow rate, upto 2 MMSCFD segment is anticipated to account for 29.4% of the total flare gas recovery systems market. These systems are widely being adopted as the components are easily available and are cost-effective, while reducing payback period.
Leading companies operating in the global flare gas recovery system market are focusing on expanding their presence in emerging market to improve sales. Apart from this, players are investing in mergers, acquisitions, strategic collaborations, and partnerships to strengthen their distribution channels and to expand production facilities. For instance:
In 2020, Zeeco, Inc., announced that Saudi Aramco has granted 9COM approval to Zeeco for a variety of combustion equipment manufactured at the Zeeco Middle East, Ltd. facility in Dammam.
In 2018, Busch Vacuum Pumps and Systems announced that the Swiss-based engineering company NSB Gas Processing is now partof its group. NSB Gas Processing has been renamed Busch NSB AG. Busch NSB product portfolio offers a wide range of flare gas recovery systems, a sub-sector of the oil and gas industry.
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| Attribute | Details |
|---|---|
| Forecast Period | 2021 to 2031 |
| Historical Data Available for | 2016 to 2020 |
| Market Analysis | USD Million for Value |
| Key Countries Covered | USA, Canada, Brazil, Mexico, Argentina Germany, UK, France, Italy, Spain, Russia, Nordics, China, Japan, South Korea, India, ASEAN Countries, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, Western Africa, Iran and South Africa |
| Key Segments Covered | Operating Pressure, Configuration, Technology, Flow Rate, Application and Regions |
| Key System Manufacturing Companies Profiled | Honeywell UOP; Cimarron Energy, INC.( Jordan Technologies); Wärtsilä; Zeeco, Inc; SoEnergy International; John Zink Hamworthy Combustion; Ramboll Group, Inc. |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The flare gas recovery system market is projected to have a CAGR of 5.9% through 2032.
The flare gas recovery system market size is anticipated to be USD 1.88 billion by 2032.
The flare gas recovery system market is likely to record a value of USD 1 Billion in 2021.
North America is likely to lead the flare gas recovery system market.
| Market Size (2023) | USD 9,237.2 million |
|---|---|
| Market Size (2033) | USD 17,667.8 million |
| Market CAGR (2023 to 2033) | 6.7% |
| Estimated Value of Global Market by 2032 | USD 7.47 Billion |
|---|---|
| Documented Market Value of the Market in 2022 | USD 4.8 Billion |
| Estimated CAGR from 2022 to 2032 | 4.1% |
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Flare Gas Recovery System Market
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