Air Quality Control System Market Analysis by Mordor Intelligence
The Air Quality Control System Market size is estimated at USD 107.85 billion in 2025, and is expected to reach USD 143.04 billion by 2030, at a CAGR of 5.81% during the forecast period (2025-2030).
This expansion is propelled by tightening cross-border emission standards, a wave of retrofit activity in power and heavy industry worth more than USD 50 billion, and Asia-Pacific’s coal-to-gas transition, creating immediate demand for ultra-low-NOx solutions. Flue-gas desulfurization (FGD) retains its lead as the largest product category, while fabric and ceramic filters emerge as the fastest growing. Hardware still represents the bulk of spending, yet software and analytics segments advance quickly as predictive maintenance lowers operating costs by up to 36% in carbon-capture service. New-build projects dominate volumes, but retrofit work is gaining traction as operators look to extend plant life cycles rather than fund greenfield construction.
Key Report Takeaways
- By product type, flue-gas desulfurization captured 39% of the air quality control system market share in 2024, whereas fabric/ceramic filters are projected to register a 6.1% CAGR to 2030.
- By component, hardware commanded 68% of the air quality control system market size in 2024, while software and analytics are advancing at a 7.7% CAGR.
- By installation type, new build projects represented 62% of 2024 revenue; retrofit and upgrade work is forecast to expand at a 6.9% CAGR to 2030.
- By application, power generation held 55% revenue share in 2024; the cement sector is expected to grow fastest with a 7.2% CAGR through 2030.
- By geography, Asia-Pacific accounted for 43% revenue share in 2024 and is predicted to grow at a 6.3% CAGR, outpacing all other regions.
Global Air Quality Control System Market Trends and Insights
Drivers Impact Analysis
| Driver | ( ~ ) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Stringent trans-continental emission caps (IMO 2020, EU IED) | +1.8% | Global, with concentrated impact in Europe & maritime corridors | Medium term (2-4 years) |
| Coal-to-gas power-mix shift in Asia driving retrofits | +1.4% | Asia-Pacific core, spill-over to emerging markets | Long term (≥ 4 years) |
| Accelerated cement capacity additions in Sub-Saharan Africa | +0.9% | Sub-Saharan Africa, secondary impact in Middle East | Medium term (2-4 years) |
| AI-enabled predictive maintenance cutting OPEX | +0.7% | Global, early adoption in North America & EU | Short term (≤ 2 years) |
| Green-hydrogen fired boilers requiring ultra-low-NOx AQCS | +0.6% | Europe & North America, pilot projects in Asia | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Stringent Trans-Continental Emission Caps Drive Immediate Compliance Investments
The International Maritime Organization’s 2020 sulfur limits and the European Union’s Industrial Emissions Directive have triggered a USD 50 billion compliance-driven spending cycle across shipping, power, and heavy industry.[1] International Maritime Organization, “2020 Global Sulfur Cap,” imo.org Scrubber retrofits typically reach economic break-even inside five years for more than 95% of vessels, yet the associated open-loop wash water has created EUR 680 million in external environmental costs that are steering demand toward closed-loop systems.[2]Chalmers University of Technology, “Scrubber Discharge Externalities,” chalmers.se Complementary regulation, such as the EU F-gas ban on SF6 in switchgear, is accelerating the uptake of clean-air insulated equipment, with Blue GIS technology lowering CO₂ footprints by 30% relative to legacy designs. Spill-over effects now reach cement and steel, where similar intensity targets are prompting holistic air quality control retrofits that bundle particulate, acid-gas, and trace-metal capture in one platform.
Coal-to-Gas Transition in Asia Unlocks Retrofit Opportunities
Asia-Pacific policymakers prioritize coal-plant flexibility over outright retirement, requiring sophisticated emission-control retrofits rather than decommissioning. China’s strategy allows 194-245 GW of incremental renewable penetration and trims transition costs by USD 176 billion by 2030, creating strong demand for systems that tolerate biomass co-firing and green ammonia blends. India’s mandated FGD roll-out already posts SO₂ removal efficiency above 98%, underscoring the business case for large-scale retrofits. LNG has not displaced coal materially, so asset owners are turning to multi-fuel-capable scrubbers and low-NOx burners to comply with tightening norms while dispatching coal capacity.
Accelerated Cement Capacity Additions in Sub-Saharan Africa Create Specialized Demand
Rapid clinker capacity growth across Sub-Saharan Africa spurs a niche segment for high-temperature particulate control. Regional kilns contribute roughly 8% of global CO₂ releases, yet can shave 40% of that footprint by substituting agricultural ash in cement blends. Algeria’s Djelfa relaunch, aimed at 1.8 million t annual output, is typical of new African projects specifying advanced fabric filters plus wet and dry ESPs to manage detached plume and total-organic-carbon challenges. Suppliers can command premium margins owing to harsher operating envelopes and limited local competition for deep-battery fabric filters, high-acid-gas scrubbers, and hybrid precipitators.
AI-Enabled Predictive Maintenance Reduces Operational Expenditure
Artificial intelligence now underpins predictive algorithms that shave 36% off carbon-capture operating costs by optimizing solvent circulation and absorber loading. HVAC pilots have cut downtime 75% and mean-time-to-repair 50% through self-learning fault diagnostics. Real-time IoT networks achieve 99% accuracy in temperature and humidity forecasting, feeding closed-loop controls that keep emissions within permit levels at minimal energy input. Although inference workloads increase site power demand, operators accept the trade-off because payback often arrives within two years through chemical savings and avoided penalties. Vendors that bundle AI dashboards with hardware warranties are gaining clear differentiation against traditional equipment-only offerings.
Restraints Impact Analysis
| Restraint | ( ~ ) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Volatile raw-material prices (stainless steel, catalysts) | -1.2% | Global, acute impact in manufacturing hubs | Short term (≤ 2 years) |
| Declining coal power pipeline in OECD economies | -0.8% | North America & Europe, secondary impact in developed Asia | Medium term (2-4 years) |
| PFAS & secondary pollution concerns for wet scrubbers | -0.4% | Global, regulatory focus in North America & EU | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Volatile Raw-Material Prices and Shrinking OECD Coal Pipeline Compress Equipment Margins
Prices for stainless steel, platinum, and palladium move with geopolitical disruptions in Russia and South Africa, inflating catalyst replacement costs representing up to 60% of selective catalytic reduction lifecycle spend. Simultaneously, the United States and Europe are accelerating coal-plant retirements, narrowing the addressable base for traditional scrubber and ESP installations. Combined, these factors squeeze OEM margins and lengthen buyer decision cycles. Suppliers are countering through hedged procurement, alternative catalyst recipe,s and targeting growth regions where fuel-switch retrofits keep demand robust.
PFAS and Secondary Pollution Concerns Challenge Wet Scrubber Applications
The EPA’s 2024 move to classify PFOA and PFOS as hazardous substances under CERCLA has intensely scrutinized wet-scrubber mist suppressants. Regulators now audit discharge streams for persistent fluorinated compounds that accumulate downstream, forcing owners to install separate treatment or shift toward closed-loop or dry scrubbing. Complementary restrictions appear in Europe, prompting R&D into thermally stable sorbents and high-pressure drop packed towers that avoid PFAS altogether. Despite the compliance burden, operators who adopt next-generation closed-loop absorbers can future-proof assets and cut water use, partially offsetting the upfront capital premium.
Segment Analysis
By Type: Flue-Gas Desulfurization Dominates Amid Filter Innovation
Flue-Gas Desulfurization systems accounted for 39% of the air quality control system market 2024. Wet units achieve SO₂ removal beyond 98% in India’s latest projects, while semi-dry designs appeal where water scarcity prevails. Fabric and ceramic filters lead growth at a 6.1% CAGR, favoured for 99% particulate capture and tolerance of gas streams up to 1,800 °C. The air quality control system market size for filtration is forecast to expand steadily as cement and biomass co-firing raise particulate loads.
Product portfolios are also shifting to multi-pollutant architectures. Closed-loop scrubbers mitigate wash-water discharges flagged by EU ports, while emerging SCR variants drive NOx below 30 ppm, meeting ultra-low standards for hydrogen-ready boilers. Though smaller in value, demand for mercury and VOC control modules is rising where integrated limits apply, reinforcing vendor push toward stackable reactor trains.
Note: Segment shares of all individual segments available upon report purchase
By Component: Hardware Dominance Challenged by Software Growth
Hardware comprised 68% of 2024 revenue, reflecting the cost of reactors, ducting, and induced-draft fans. However, analytics platforms are the fastest mover at 7.7% CAGR, because predictive emission monitoring can deliver 50-80% cost savings against conventional CEMS without sacrificing compliance.[3]Siemens Energy, “Predictive Emission Monitoring,” siemens-energy.com Embedded digital twins lower unplanned outages and feed maintenance dashboards that trim parts inventory.
Services also gain weight as long-term operating contracts bundle parts, performance guarantees, and AI-driven insights. As a result, the air quality control system market share for software-plus-services is projected to inch higher each year, compressing the standalone hardware proportion. Suppliers that marry rugged equipment with cloud analytics are building durable switching costs for plant owners.
By Installation Type: Retrofit Gains Momentum Despite New-Build Dominance
New-build projects still delivered 62% of 2024 turnover, fuelled by industrial expansion in Asia and the Middle East. Yet the retrofit slice is growing faster at 6.9% CAGR because upgrading an existing boiler typically demands less capital and faces fewer permitting hurdles. Babcock & Wilcox’s USD 246 million coal-to-gas conversion, covering more than 1,000 MW, illustrates the retrofit economics: fuel switch plus emission controls allow the plant to comply without complete replacement.[4]Babcock & Wilcox, “Coal-to-Gas Conversion Project,” babcock.com
Retrofit scopes increasingly include carbon-capture add-ons and AI optimization that were unavailable during original commissioning. Modular reactor skids minimize outage windows, and flanged duct sections expedite tie-ins. Consequently, the air quality control system market size for retrofit packages is expected to edge closer to that of new-builds by the decade’s end, especially in OECD plants facing lifecycle extension mandates.
Note: Segment shares of all individual segments available upon report purchase
By Application: Power Generation Leadership Faces Cement Challenge
Power generation held 55% of 2024 spending owing to standardized FGD and SCR requirements for coal and combined-cycle stations. Yet the cement chain is charting the quickest rise at 7.2% CAGR, as Sub-Saharan Africa and Southeast Asia add capacity with stringent particulate and acid-gas ceilings. Emerging kiln designs with pre-calciner flue gas recirculation need tailored high-temperature bag filters and dry scrubbers, raising unit values.
Steel, chemicals and waste-to-energy form a solid second tier of demand. For example, steam generators harness off-gas heat in electric-arc furnaces, saving 22.5 kWh per tonne while curbing SO₂ and dust. Dubai’s 2 million tpy waste-to-energy plant also shows how multi-pollutant capture becomes integral to municipal infrastructure. Such diversified end-use broadens opportunities beyond utilities.
Geography Analysis
Asia-Pacific’s 43% revenue share in 2024 makes it the undisputed leader, with a forecast 6.3% CAGR through 2030. China’s decision to keep coal capacity online for grid flexibility while co-firing biomass and green ammonia drives an extensive retrofit wave for ultra-low-NOx burners and high-efficiency scrubbers. India’s FGD mandate is on track to cut 1.1 million t of SO₂ annually after recent installations reached 98% removal. Region-wide, steel and cement expansions reinforce demand for high-temperature fabric filters and dry sorbent injection, ensuring sustained order flow. Japan and South Korea add technology pull by insisting on best-in-class emission factors, spurring R&D investment by domestic OEMs.
North America and Europe form mature yet vibrant retrofit markets. The EU Industrial Emissions Directive and the F-gas phase-out propel swap-outs of legacy switchgear and coal-plant dust collectors with clean-air GIS and SCR-plus-carbon-capture hybrids. In the United States, capacity-conversion projects mirror the Babcock & Wilcox fuel switch, pairing low-NOx burners with predictive emission monitoring to satisfy state permits without abandoning existing sites. Both regions prioritize AI-assisted maintenance and carbon-capture integration, generating high-value service contracts that offset lower volume growth.
The Middle East and Africa present the highest upside outside Asia. Dubai’s waste-to-energy complex powers 135,000 homes while proving the case for large-scale flue-gas treatment in solid-waste applications. Sub-Saharan Africa’s clinker entrants need robust baghouses and hybrid ESPs tailored for dusty, high-alkali environments. Algeria’s Djelfa plant, for example, plans 1.8 million t of capacity with a green-cement slant. South America lags in regulatory rigor, yet mining and metals projects embed mercury and acid-gas controls to meet export-market expectations, slowly broadening the installed base.
Competitive Landscape
Air quality control system market competition remains moderately fragmented, anchored by Mitsubishi Heavy Industries, GE Vernova, and Babcock & Wilcox. These incumbents leverage depth in boilers, turbines, and process engineering to cross-sell scrubbers, ESPs, and carbon-capture modules within integrated packages. Mitsubishi Heavy Industries’ CO₂MPACT™ series now features plug-and-play modules capturing up to 200 t CO₂ per day and dovetails with its hydrogen-ready gas turbines that require sub-15 ppm NOx combustion. GE Vernova strengthens domestic turbine combustion supply through its recent Woodward parts acquisition, ensuring tighter integration between burners and downstream emission gear.
Technology differentiation is intensifying. AI dashboards that predict catalyst deactivation or bag breakage are emerging as must-have add-ons rather than optional extras. ANDRITZ’s February 2025 purchase of LDX Solutions brings wet ESPs and regenerative thermal oxidizers, widening its offerings in North American pulp and waste-to-energy markets. Smaller specialists focus on single-pollutant niches—such as mercury sorbents or PFAS-free mist eliminators—pushing big players toward faster innovation cycles and selective partnering to fill portfolio gaps.
Strategic moves underline the consolidation angle. Mitsubishi Heavy Industries posted a record ¥7,071.2 billion order book in FY 2024, powered by energy-systems wins that bundle emission controls with high-efficiency turbines. Duke Energy’s early-2025 order for up to 11 GE gas turbines exemplifies regional utilities tying equipment supply to domestic manufacturing and decarbonization commitments. Capital markets reward vendors that can pair proven hardware with software ecosystems delivering measurable OPEX savings.
Air Quality Control System Industry Leaders
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Mitsubishi Heavy Industries (MHPS)
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General Electric (GE Vernova)
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Babcock & Wilcox
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Siemens Energy
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Fujian Longking
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- February 2025: ANDRITZ acquired LDX Solutions, adding wet ESP and RTO products to enhance its environmental technology presence in North America.
- September 2024: Babcock & Wilcox secured FEED work for Canada’s first waste-to-energy plant with full carbon capture in Alberta.
- August 2024: Mitsubishi Heavy Industries and Taiwan Fertilizer signed an MoU to build an ammonia fuel chain to achieve carbon-neutral goals.
- July 2024: ANDRITZ won the contract to design a carbon-capture unit for Westenergy’s Finnish waste-to-energy plant, targeting full-flue-gas capture for e-fuel production.
Global Air Quality Control System Market Report Scope
The air quality control system market report include:
| Electrostatic Precipitators (Dry & Wet) |
| Flue-Gas Desulfurization (Wet, Dry, Semi-dry) |
| Scrubbers (Wet, Dry, Marine) |
| Selective Catalytic and Non-Catalytic Reduction |
| Fabric/Ceramic Filters |
| Mercury and VOC Control Units |
| Hardware (Reactors, Ductwork, Fans) |
| Software and Analytics |
| Services (O&M, Retrofit) |
| New Build |
| Retrofit/Upgrade |
| Power Generation |
| Cement |
| Iron and Steel |
| Chemicals and Petrochemicals |
| Pulp and Paper |
| Waste-to-Energy |
| Others (Glass, Mining, etc.) |
| North America | United States |
| Canada | |
| Mexico | |
| Europe | Germany |
| France | |
| United Kingdom | |
| Italy | |
| Russia | |
| Rest of Europe | |
| Asia-Pacific | China |
| India | |
| Japan | |
| South Korea | |
| ASEAN Countries | |
| Rest of Asia-Pacific | |
| South America | Brazil |
| Argentina | |
| Rest of South America | |
| Middle East and Africa | Saudi Arabia |
| United Arab Emirates | |
| South Africa | |
| Egypt | |
| Rest of Middle East and Africa |
| By Type | Electrostatic Precipitators (Dry & Wet) | |
| Flue-Gas Desulfurization (Wet, Dry, Semi-dry) | ||
| Scrubbers (Wet, Dry, Marine) | ||
| Selective Catalytic and Non-Catalytic Reduction | ||
| Fabric/Ceramic Filters | ||
| Mercury and VOC Control Units | ||
| By Component | Hardware (Reactors, Ductwork, Fans) | |
| Software and Analytics | ||
| Services (O&M, Retrofit) | ||
| By Installation Type | New Build | |
| Retrofit/Upgrade | ||
| By Application | Power Generation | |
| Cement | ||
| Iron and Steel | ||
| Chemicals and Petrochemicals | ||
| Pulp and Paper | ||
| Waste-to-Energy | ||
| Others (Glass, Mining, etc.) | ||
| By Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Europe | Germany | |
| France | ||
| United Kingdom | ||
| Italy | ||
| Russia | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| India | ||
| Japan | ||
| South Korea | ||
| ASEAN Countries | ||
| Rest of Asia-Pacific | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| Middle East and Africa | Saudi Arabia | |
| United Arab Emirates | ||
| South Africa | ||
| Egypt | ||
| Rest of Middle East and Africa | ||
Key Questions Answered in the Report
What is the current size of the air quality control system market?
The market reached USD 107.85 billion in 2025 and is projected to climb to USD 143.04 billion by 2030.
Which segment is growing fastest within the air quality control system market?
Fabric and ceramic filters lead growth with a 6.1% CAGR through 2030 due to their 99% particulate capture and high-temperature tolerance.
Why is Asia-Pacific the leading region for air quality control systems?
Asia-Pacific commands 43% market share because China and India are driving large-scale retrofit programs and new installations to comply with stringent emission limits.
How are AI and analytics influencing the air quality control system industry?
AI-enabled predictive maintenance is cutting operational expenditure by up to 36% in carbon-capture units and reducing downtime by 75% in HVAC applications.
What are the main restraints affecting market growth?
Volatile prices for stainless steel and precious-metal catalysts, alongside regulatory scrutiny of PFAS in wet scrubbers, are pressuring margins and complicating capital-spending decisions.
Which companies hold significant positions in the market?
Mitsubishi Heavy Industries, GE Vernova and Babcock & Wilcox are among the leading players, with ANDRITZ expanding its presence through acquisitions.
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