Market Trends of Flare Gas Recovery System Industry
This section covers the major market trends shaping the Flare Gas Recovery System Market according to our research experts:
Downstream Sector to Dominate the Market
- Refineries have different ways to reduce flare gas emissions, including the production of energy from it or its usage as feedstock, diverted to other plants for processing. Among such mechanisms include the flare gas recovery system.
- Flare gas recovery system converts the flare gas into a fuel which may be used in the refineries or sold to a third party for profit. Flare gas recovery system provides for a reliable mechanism usable energy, which can reduce the cost of power required to run the refining operations.
- Refining capacity in the world increased by 1.45%, to 100049 thousand barrels per day, in 2018 from 98621 thousand barrels per day, in 2017. An increase in the refining capacity around the world is expected to raise the demand for flare gas recovery systems and thereby drive the market in the forecast period.
- Iran and Venezuela are the largest emitter of oil downstream flare gas in the world. With each emitting around 1.27 billion cubic feet of flare gas per year. Weak regulation on the companies to reduce flare gas emission and quality of the oil is among the significant reasons for the high flare gas emission.
- Therefore, with the increase in efficiency of flare gas recovery mechanisms and an increase in the profits made from the gas recovered, thereby it is expected to dominate the market during the forecast period.
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Europe to be the Fastest Growing Market
- Most countries in Europe produce low flare gas into the atmosphere, but countries like the Russian Federation and the United Kingdom increase the overall flare gas emission. Most of the flare gas emission is from the upstream sector.
- In 2020, the Russian Federation is the largest emitter of flare gas in the world. It increased its gas flared to 21.86 billion cubic meters in 2018 from 21.50 billion cubic meters in 2017. Most of the flare gas came from the upstream sector. The government is expected to pursue companies to curb the emissions under the Paris Climate Accord, which is expected to increase the demand for flare gas recovery systems and thereby generate growth in the flare gas recovery industry.
- The United Kingdom is the second-largest emitter of flare gas in the European continent. The overall gas flared has decreased in the country, which is mainly due to the decrease in the upstream sector, while the gas flared from the downstream industry has marginally increased.
- Hence, Europe is expected to be the fastest-growing market is expected to be the fastest-growing market in the world, driven primarily by the Russian Federation to reduce its flare gas emissions.
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