The 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 used to capture flare gases at oil and gas production facilities. Flare gases are unrecovered gases that are burned during oil and gas production and processing activities. Flare gas recovery systems help capture these gases and use them as an energy source. They reduce air pollution by limiting the emission of greenhouse gases like methane from flaring activities.
Market key trends:
One of the key trends driving the growth of flare gas recovery systems market is the increasing focus on promoting circular economy. Flaring or venting of gases during oil and gas production results in wastage of resources and greenhouse gas emissions. Many countries and organizations are now focusing on minimizing wastage and promoting efficient use of resources through initiatives like zero flaring. Flare gas recovery systems help producers capture previously flared gases and utilize them for various purposes like power generation. This supports the shifting focus towards circular economy and promotes efficient resource utilization in the oil and gas industry.
Porter's Analysis
Threat of new entrants: The high capital requirement and technical skills needed acts as a barrier for new players to enter this market.
Bargaining power of buyers: Large oil and gas companies have significant bargaining power over suppliers due to their purchasing power and demand scale.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of substitute products and less switching costs for buyers.
Threat of new substitutes: No major threat as flare gas recovery systems is the most viable option for oil and gas companies to comply with environmental regulations.
Competitive rivalry: High as players compete based on product quality, technology, installation and maintenance services.
SWOT Analysis
Strengths: Flare gas recovery helps minimize emission and usage of recovered gas for captive power generation reduces energy costs.
Weaknesses: High initial investments and complex installation process. Dependency on oil & gas industry cycles makes demand volatile.
Opportunities: Growing global focus on reducing GHG emissions and stringent regulations will drive demand. Asia Pacific offers huge growth potential.
Threats: Fall in crude oil prices can negatively impact capex spending of oil companies. Substitutes like renewable energy pose long term threat.
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 curb GHG emissions. Asia Pacific dominates currently due to large ongoing refinery projects and holds around 35% share. China, India and Middle East are fastest growing regional markets.
Regional analysis: Asia Pacific flare gas recovery systems market is expected to grow the fastest aided by considerable oil & gas activities and strengthening of environmental norms in countries like China, India and Indonesia. Middle East is another major market led by countries like Saudi Arabia, UAE, Kuwait and Iran due to large number of oil fields.
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, Gardener Denver, and Ro-Flo Compressors. Companies are focusing on expanding in high growth regions through collaborations and facility expansions.
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