Flare Gas Recovery Systems Market Size, Share, Growth, and Industry Analysis, By Type (Small Systems, Medium Systems, Large Systems and Very Large Systems), By Application (Petroleum Refineries, Gas Treatment and NGL Plants, Chemical Production, Storage Tank Vent Recovery and FPSO Offshore Platforms) and Regional Forecast to 2032

Updated On: 02 September 2024

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FLARE GAS RECOVERY SYSTEMS MARKET REPORT OVERVIEW

The global Flare Gas Recovery Systems Market size was USD 2.503 billion in 2023 and the market is projected to touch 5217 million by 2032, exhibiting a CAGR of 7.62% during the forecast period.

The rising interest for the environment and the new fiscals which make the market shift to the use of more energy, has really advanced the Flare Gas Recovery Systems market. These systems reinject or attempt to capture gas that would otherwise be flared, reducing GHG, and enhancing energy utilization. Industry maturation creating environmental concern coupled with the increased regulatory measures applied on flaring activities has been cited as key motivating factors for flare gas recovery into various industries comprising hydrocarbon and chemical industries.

Furthermore, due to the advancement in technology, the installation and operations of flare gas recovery system have since enhanced in efficiency and costs. Higher efficiency in technologies like separation technologies, designs involving the compressor, and better control technologies make these solutions feasible for wider use. Implementation of such sophisticated technologies in all manner goes a long way in mobilizing for the required output while adding value by converting the waste gas into useful energy. This has increased the Flare Gas Recovery Systems demand owing to increased concern with sustainability and efficient use of energy.

COVID-19 Impact: Market Growth Restrained by Pandemic due to Operational Disruptions

The global COVID-19 pandemic has been unprecedented and staggering; with the flare gas recovery systems market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

COVID19 impacted the manufacturing and supply of flare gas recovery systems since most industries experienced disruptions due to the virus. This hurt the manufacturing industries due to lockdowns, travel restrictions, and shortages in the workforce that affected the lead times. Due to the multiple stimuli affecting the demand, most industries especially oil and gas with reduced economic activity, the demand for flare gas recovery systems reduced in the short-term. This situation meant that the companies made lesser investments in new systems and enhancement of existing systems.

Some organizations were financially affected due to the outbreak of the COVID-19 and have been forced to adopt various cost-saving strategies. This concentration on short-term liquidity often resulted in cost implications that entailed postponements or avoidances of capital investments in such equipment like flare gas recovery systems. Thus, although flare gas recovery systems development faced certain obstacles in the beginning and as a direct result of the pandemic, companies have since refocused their efforts on investing in sustainable technologies in the aftermath of the pandemic. The market is anticipated to boost the flare gas recovery systems market growth following the pandemic.

LATEST TRENDS

"Integration with Digital Technologies to Drive Market Growth"

The market is gradually advancing in the recovery technologies consisting of enhanced separation processes, optimum compressors, and effective controls. They also contribute to even better efficiency and further more cost saving on flare gas recovery systems. This is the emphasis on such areas as IoT, remote observation and prognostication of maintenance needs. One of the specific flare gas recovery system implementations is the upstream segment where these technologies assist in increasing the performance of systems; reducing the down times besides improving the overall efficiency. With this latest development, it is expected that flare gas recovery systems market share will develop further. These latest developments are anticipated to boost the flare gas recovery systems market share.

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FLARE GAS RECOVERY SYSTEMS MARKET SEGMENTATION

By Type             

Based on type the global market can be categorized into Small Systems, Medium Systems, Large Systems and Very Large Systems.

• Small Systems: Designed for low-flare-volume operations, small systems are typically used in smaller facilities or for specific applications with limited gas output. They offer cost-effective solutions for companies needing basic flare gas recovery capabilities. Their compact size makes them suitable for installations with space constraints.
• Medium Systems: These systems cater to medium-sized facilities with moderate flare volumes. They balance efficiency and cost, offering enhanced recovery capabilities compared to small systems. Medium systems are ideal for industries with growing flare gas recovery needs but without the scale to justify larger systems.
• Large Systems: Large systems are intended for high-flare-volume operations in large industrial facilities, such as major refineries or chemical plants. They offer advanced recovery technologies and high efficiency, capable of handling substantial gas volumes and reducing emissions significantly. Their complexity and cost reflect their high capacity and performance.
• Very Large Systems: Designed for the largest scale operations, very large systems handle massive volumes of flare gas and are used in extensive industrial complexes or large-scale oil and gas operations. They incorporate the latest technologies for maximum recovery efficiency and environmental compliance, but come with significant investment and operational demands.

By Application

Based on application the global market can be categorized into Petroleum Refineries, Gas Treatment and NGL Plants, Chemical Production, Storage Tank Vent Recovery and FPSO Offshore Platforms.

• Petroleum Refineries: Flare gas recovery system used in petroleum refineries recover all the gases that are usually flared during the refining process. This helps in cutting emission and also in recovering valuable energy thus making operations to be efficient as per the environmental standards.
• Gas Treatment and NGL Plants: They are employed in treatment of gas and natural gas liquid plants for the recovery of flare gases produced in the process of separating and treating natural gas. It means that the recovered gas can be processed to get other products or can be used as fuel which increases resource efficiency and minimizes organic waste.
• Chemical Production: In industrial plants, particularly in chemical production facilities, a flare gas recovery system deals with the management and capture of gases usually flared during chemical production and processing. This assists in reducing the environmental effects and also for the recovery the valuable by-products for reuse or conversion to energy.
• Storage Tank Vent Recovery: These systems collect gases evolved from storage tanks and the later are normally burned off through flaring. These vapours are cut down by the systems in question and this means that emissions are less, and useful hydrocarbons are not lost, thereby slashing on inefficiency and environmental infringements.
• FPSO Offshore Platforms: In Floating Production Storage and Offloading (FPSO) equipment, flare gas recovery systems manage the flared gases executed in offshore oil and natural gas production. They allow for the collection and subsequently, utilization of the flare gases and hence, minimize the emission rate while increasing the efficiency of the offshore activities.

DRIVING FACTORS

"Growing Industrialization to Boost the Market"

Faster growth of industrialization especially in the developing countries has placed tremendous pressure on the use of flare gas recovery systems. Thus, the management and recovery of flare gases become more crucial as industrial activities grow. Flare gas recovery systems are being applied to help increase energy efficiency to minimize wastage on energy. These systems can take waste gases and turn them into additional energies which builds efficiency. Requirement for environment control and enhancement of green emissions and flaring control are among the factors. To meet these requirements, organizations are compelled to spend on flare gas recovery systems to avert fines.

"Environmental Sustainability to Expand the Market"

Concerns of the environment and its importance have forced organizations to make ways to reduce waste and emissions within industries. These systems assist in capturing and utilizing flare gases thus supporting global sustainability goals, policies, and standards. CSR and ESG initiatives have emerged as an important trend, with organizations integrating sustainability concerns into their strategies. Flare gas recovery systems make a good value proposition as they signal good corporate intent in terms of emissions decrease. These factors are anticipated to drive the flare gas recovery systems market share.

RESTRAINING FACTOR

"Complexity of Integration to Potentially Impede Market Growth"

Implementation of flare gas recovery processes may prove challenging since flare gas recovery system involves physical changes to existing systems. Due to this, it can be seen that some companies may hesitate to implement these systems. Flare gas recovery systems involve technical procedures of operating and maintaining the equipment that are best handled by professionals with considerable experience. Maintenance can be a continuing process and related operational problems might be a concern to some of the organizations. This is because quickly growing technologies can cause some stakeholders not to invest in them; given that they may become obsolete in the shortest time. This is majorly because firms may be reluctant to acquire technology that might be outcompeted by better technologies shortly after their implementation. The factors are anticipated to hinder the growth of the flare gas recovery systems market growth.

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FLARE GAS RECOVERY SYSTEMS MARKET REGIONAL INSIGHTS

"North America is Dominating the Market with Stringent Environmental Regulations and Advanced Industrial Sector"

"The market is primarily segmented into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa."

North America as a region especially the United States and Canada has implemented stringent environmental policies and compliance on emission of greenhouse gases and flaring. Such regulations act as a promoter of flare gas recovering systems because companies do not want to face the consequences of the law. Thus, connection of the flare gas recovery system is highly attractive for oil and gas, chemical processing, and refining industries in the region. The superior facilities and high degree of industrialization are attested for this region and have placed it in a position of strength in the market. Today technological advancement and development is highly endowed in North America region. Prominent industries in North America as well as the constant development of technologies regarding to recovery used in the flare gas recovery systems are the factors that promote the market growth in this area.

KEY INDUSTRY PLAYERS

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

The flare gas recovery systems market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development, materials, and smart features in flare gas recovery systems, catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List of Market Players Profiled

• UOP Honeywell [U.S.]
• Wärtsilä [Finland]
• Transvac Systems [U.S.]
• MPR Industries [U.S.]
• Aereon [U.S.]

INDUSTRIAL DEVELOPMENT

June 2023: EcoFlare™ Recovery System provided by Aereon is intended for reaching high efficiency in terms of capturing flare gases in industries. They used the latest separation technology and the function of monitoring and controlling in real-time which resulted in high recovery and low emission. This system is suitable for analyzing high volume applications, bringing two major benefits of compliance with environmental standards and better control of operational expenses.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.