Flare Gas Recovery Systems Market Is Estimated To Witness High Growth Owing To Stringent Environmental Regulations For Emission Reduction
Flare gas recovery systems are used to recover waste gases released from refineries and oil and gas production sites. They capture flare gases containing hydrocarbons and convert them back into usable fuel or feedstock. This helps reduce emissions and recover commercial products. The systems consist of recovery compressors, separators, and controls that collect flare gases for reuse. They benefit oil and gas operators by improving operational efficiency and meeting stringent emission norms.
The global Flare Gas Recovery Systems Market is estimated to be valued at Us$ 4.53 Bn in 2023 and is expected to exhibit a CAGR Of 11.% over the forecast period 2024 To 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the key drivers for the growth of the flare gas recovery systems market is the stringent environmental regulations for emission reduction. Regulatory bodies across regions have implemented strict norms to curb greenhouse gas emissions from refineries and oil and gas installations. For example, in Europe, the European Union Emission Trading Scheme mandates compliance and penalties for excess emissions. Similarly, in the US, the Environmental Protection Agency has set emission thresholds under new source performance standards. This has compelled oil and gas companies to adopt recovery systems to meet regulatory compliance, driving market demand.Additionally, recovering flare gases boosts operational efficiency as it helps generate energy from what was previously wasted. The captured gases can be converted into usable fuel, feedstock or power through on-site cogeneration. This improves profitability and lowers energy costs for oil and gas operators.
SWOT Analysis
Strength: Flare gas recovery systems help reduce greenhouse gas emissions and help oil & gas companies comply with environmental regulations. They efficiently recover flare gas and utilize it for power generation or reinjection purposes. The recovered gases can also be supplied for various industrial applications.
Weakness: High initial capital costs associated with installing flare gas recovery systems act as a barrier for some companies. Fewer maintenance needs of enclosed combustion devices over open flare stacks also increases operating costs.
Opportunity: Stringent government regulations regarding utilization of flare gas and reduction of methane emissions present opportunities for vendors. Growing demand for energy coupled with increasing oil & gas production also drives the need for flare gas management. Adoption in developing markets with new oilfields offers scope.
Threats: Volatility in crude oil prices impacts capital spending of exploration and production companies. Economic slowdowns can decrease opportunities for new flare gas recovery projects. Alternatives like methane emission capture without recovery poses competition.
Key Takeaways
The Global Flare Gas Recovery Systems Market Demand is expected to witness high growth.
The market in North America is the largest as the region is ahead in terms of exploiting shale oil and gas reserves. Countries like the US and Canada have enforced stringent regulations to curb greenhouse gas emissions augmenting regional demand.
Key players operating in the flare gas recovery systems market include GE Healthcare, Siemens Healthineers, Koninklijke Philips N.V., Block Imaging, SOMA TECH INTL., Avante Health Solutions, Hilditch Group, Everx Pvt Ltd., Integrity Medical Systems, Inc., Radiology Oncology Systems, Inc., Master Medical Equipment, US Med-Equip, Fair Medical Co. Ltd., Future Health Concepts, US Medical Systems, LLC., Nationwide Imaging Services, Pacific Healthcare Imaging, LLC, Venture Medical ReQuip, Inc., Desert Tech Medical Systems, Hi Tech International Group, Inc., CURA Healthcare, JAPAN CENTRAL MEDICAL, INC., HOYU AND CO., LTD., Sanrad Medical Systems, BOND JAPAN CO., LTD., FlexrayMedical ApS, Amber Diagnostics, Rhombus Medical Equipment., LLC, Blue Start Limited and Cielo Co., Ltd.
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