Market Trends of Flame Arrestors Industry
This section covers the major market trends shaping the Flame Arrestors Market according to our research experts:
Oil and Gas Segment Expected to Dominate the Market
- Flame arrestors, also known as deflagration or flame traps, allow gas to pass through them but stop a flame to prevent a massive fire or explosion. Flame arresters are applied in various situations, such as transporting oil and gas through pipelines.
- The oil and gas industry majorly deals with materials that are more prone to attract fire than any other industry. The oil and gas industry witnessed several accidents in the past. To prevent and control such events, governments worldwide decided to install flame arrestors at places with more probability of generating a spark (especially in the oil and gas industry). Such guidelines and safety measures from various governments are expected to drive the usage of flame arrestors in the oil and gas industry.
- In 2020, the global gas production was 3853.7 bcm, i.e., an increase of about 9.7% compared to the gas production in 2015 (3511.7 bcm). Also, in 2020, the global oil refining capacity amounted to 101,947 thousand barrels per day (bpd), an increase of about 4.1% comapred to 2015 (97,898 bpd). This increment in the production and refining sectors of the oil and gas industry, where flame arrestors are majorly used, is expected to drive the market during the forecast period.
- In September 2021, Bharat Petroleum Corporation Ltd planned to invest USD 13.66 billion over five years to improve petrochemical capacity, refining efficiency, and upstream oil and gas exploration and production activities. Thus, such large-scale projects are augmenting the industry's infrastructure, which is expected to increase the need for accessories such as flame arrestors.
- Hence, such factors are likely to boost the oil and gas segment in the flame arrestors market during the forecast period.
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Asia-Pacific Expected to Dominate the Market
- Due to the constant increase in the energy demand, Asia-Pacific has several projects in the oil and gas, chemical, power generation, and mining sectors, which help the region become the largest market for flame arrestors globally.
- Most of the countries in the region, such as China, India, and Indonesia, are developing nations and have a growing energy demand and requirement for pharmaceuticals. Due to this growing energy demand, Asia-Pacific has been attracting several investments in various industries that use flame arrestors.
- As of 2020, the energy consumption of the Asia-Pacific region was 253.25 exajoules, which accounted for approximately 45% of the total energy consumption in the same year. The share of energy consumption exhibits the increasing industrial development in the region to fulfill the energy demand, which is likely to drive the flame arrestor market during the forecast period.
- As of 2021, Santos Ltd, Adelaide, let a contract for the construction, connection, and operation of the floating production, storage, and offtake (FPSO) vessel for Barossa gas-condensate field development in the Timor Sea to BW Offshore. The contract was subjected to a final investment decision (FID) for the USD 3.6 billion Barossa project. This project is designed to backfill the gas supply to the Darwin LNG plant, which is being fed by gas from the Bayu-Undan field. The field is expected to produce gas and condensate, for which flame arrestors are likely to be used to prevent the generation of sparks.
- In January 2022, S-OIL, a Korean company, signed four MOUs with Saudi Aramco aimed at collaborating on alternative energy business, including Thermal Crude to Chemicals (TC2C) technology, R&D on the production of lower-carbon future energy, and investment in venture capital. The new Crude2Chemicals technologies are expected to produce ethylene and other necessary chemicals from naphtha and refinery off-gas.
- Hence, such factors are likely to help Asia-Pacific become the largest market for flame arrestors during the forecast period.
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