FLARE GAS RECOVERY SYSTEMS MARKET ANALYSIS

Flare gas recovery systems are used across the refinery industry for safety and maintenance reasons as the release of unburned gas leads to increase in carbon emissions. In order to curb these emission flare systems are installed across refinery as they efficiently prevent the release of unburned gases. Flare system is required for safe and effective operational purpose and every hydrocarbon processing industry has a flare system in order to burn the vent gases before they enter into the atmosphere. Refineries, gas processing plants and gas production plants are some of the major end-users of flare gas recovery systems.

Global flare gas recovery systems market was valued at US$ 3.4 Billion in 2021 in terms of revenue, exhibiting a CAGR of 7.5% during the forecast period (2022 to 2030).

Drivers

Rising need to reduce carbon emissions has boosted the adoption of flare gas recovery systems across refineries which is expected to augment the market growth of flare gas recovery systems. Flare gas recovery systems capture the unburned gas released from the production facilities and use captured gas for reinjection into the production well for power generation.

Increasing demand for flare system from oil &gas industry as these systems offer reuse of energy option is expected to stimulate the market growth. The growing need to reduce energy consumption in the oil &gas industry as this industry is highly energy-intensive is expected to boost demand for a flare gas recovery system. This factor is expected to augment the market growth over the forecast period.

In 2020, the unprecedented COVID-19 outbreak suspended all industrial activities and delayed several oil and gas projects to an extent. Market also saw a significant dip in sales of flare gas recovery systems within end-use sectors including oil and gas, chemicals, and industrial fuel gas treatment.

However, government initiatives to resume operations in heavy industries to full capacity and resumption of stalled project activities is likely to propel sales of flame gas recovery systems in the forecast period.

Among region, North America dominated the global flare gas recovery systems market in 2021, reporting 33% market share in terms of revenue, followed by Europe and Asia Pacific, respectively

Figure 1. Global Flare Gas Recovery Systems Market Value Share (%), By Region, 2021

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Market Restraints

High capital investment of the flare gas recovery system as the marketing of a system includes design, production, installation and test run which increases the overall cost of the system. This factor is expected to restrict the adoption of a flare gas recovery system over the forecast period.

Lack of clarity regarding return on investment across the oil & gas industry has hampered demand for flare system as manufacturers consider it uneconomical to install. This is expected to hinder the market growth of flare gas recovery system.

Market Opportunities

Increasing focus of manufacturers to offer flare gas recovery system packages which include aftermarket, installation, and post-sales service is expected to provide potential growth opportunities to market. High demand for small and medium capacity of the flare gas recovery system since they are easy to install is further anticipated to foster the market growth of flare gas recovery systems over the forecast period.

Emerging economies coupled with the increasing per capita of the consumers is expected to fuel the market growth of flare gas recovery systems. Growing corporate social responsibility towards carbon emissions is expected to augment the market growth over the forecast period. Moreover, growing strict government regulations regarding the installation of a flare system in response to demand for environmental sustainability is expected to accelerate the market growth.

Figure 2. Global Flare Gas Recovery Systems Market Value Share (%), By Capacity, 2021

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On the basis of capacity, very large dominated the global flare gas recovery systems market in 2021 with around 44% of market share in terms of revenue, followed by large and medium, respectively

Recent Developments

• In 2020, Zeeco, Inc., a designer and manufacturer of advanced combustion and environmental solutions, announced that Saudi Aramco 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, a manufacturer of vacuum pumps, blowers, compressors and systems announced that the Switzerland-based engineering company NSB Gas Processing was now part of 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.

Competitive Section

Major players operating in the global flare gas recovery systems market include UOP-A Honeywell Company, Wärtsilä Hamworthy, MPR Industries PLC, John Zink Company LLC, Zeeco Europe and Zeeco India, Gardener Denver, and Ro-Flo Compressors.