Flue Gas Desulfurization Market - Chinese FGD Market Is Expected to Grow Due to Rising Thermal Power Generation

This research study analyzes the market size of FGD, in terms of revenue. The FGD market has been segmented on the basis of technology, application, and geography, in order to provide a holistic picture of the market. Market data for all segments has been provided on a regional level for the period 2012 to 2019. A comprehensive competitive landscape including company market share analysis has also been provided in this report.

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Albany, NY -- (SBWire) -- 02/12/2016 --FGD systems are utilized to extract harmful sulfur dioxide emissions from the flue gas. Flue gas desulfurization assists in lowering SO2 and greenhouse gas emissions. Wet FGD and dry FGD systems are key technologies in the market. Wet FGD systems are high priced as compared to dry FGD systems but have low maintenance and operating cost. Rising stringent environmental regulations and growing global energy demand is expected to drive the market over the coming years. High installation and waste disposal costs are few key challenges faced by the FGD manufacturers. Emergent markets including China, India, and Brazil are some of the key regions that are paving the way for the market growth. The rising regulatory stiffness in these regions is expected to open new market opportunities for the market players in the region.

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Wet and dry FGD systems are two types of FGD systems installed worldwide. Wet FGD systems find applications in coal-fired plants with capacity larger than 300 MW while dry FGD systems perform efficiently in plant lower than 300 MW. Wet FGD systems capture the majority of the market and expected to maintain its dominance in coming years.

Chinese FGD market is expected to grow due to rising thermal power generation that is likely to fuel the FGD systems demand in Asia Pacific region. The market comprises of key application segments including new systems and replacement and reagents market. With the increasing number of FGD systems, the demand for reagents to run FGD systems has increased. The market for FGD equipment and components has also increased significantly for replacing old FGD components.

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Asia Pacific dominated the market in 2012 and accounted for over 55% of the global annual revenue. The inception of FGD technology began in North America and Europe back in the 1960's hence the market for replacement and reagents application is expected to grow in the region. Asia Pacific is confronted with implementation of impending regulations continuously over the past couple of years; hence several manufacturers (especially coal fired industries) are opting for the retrofitted FGD systems. The U.S. is estimated to dominate the FGD market in North America due to the enactment of numerous regulations including U.S. ARP (Acid Rain Program). Canada is estimated to be the second dominant region in North America. Implementation of EU NEC (European Union National Emission Ceilings) in Europe helped in reducing the SO2 levels in the atmosphere. EU NEC recently in 2011 revised the ceiling level for sulfur dioxide with a view to reducing harmful emissions and assist in reducing global warming.

The FGD systems market is mainly concentrated, with few leading players holding majority of the market share. Some of the leading players such as Alstom, Mitsubishi Heavy Industries (MHI), Babcock and Wilcox have sustained their positions by expanding globally and providing turnkey integrated solutions to their consumers. Alstom was the largest manufacturer in 2012 and accounted for over 20% of the market share by annual revenue and installed capacity. MHI and Babcock and Wilcox were the next largest companies in the market, together, accounting for over 30% of the market share in 2012. The other key players in the FGD market include Thermax, Hamon, Siemens, and China BoQi. MHI is one of the renowned companies that continuously focuses on new product development strategy. As a result new advanced FGD system is one of the outcomes of their continuous innovations over the years. AFGD system has an increased efficiency of 99.5%.

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