Natural gas production involves a refining process wherein substantial volumes of gas are flared as a part of maintenance and safety procedure. However, this flared gas results in significant carbon emissions in atmosphere, causing a lot of financial loss to natural gas producers. In addition, this process also adds up to energy. The process of flare gas recovery involves recollection of waste gas in order to generate power. Aptly known as associated or unmarketable natural gas, flared gas can be best used for energy co-generation or captive application. Flare gas recovery systems are gaining considerable traction since the past few years and PMR indicates strong growth prospects for the global flare gas recovery systems market.
The global market for flare gas recovery systems (FGRS) was valued at US$ 1,087.5 Mn in 2015, which is poised to rise at a healthy rate through 2016 to 2020. Over the forecast period 2015-2020, the global FGRS market will expand at a robust CAGR of 13.8%.
Increasing power generation applications have been a primary factor fueling the demand for flare gas recovery systems on a global level. A majority of producers re-inject flare gas in natural gas production wells in order to maintain the optimum pressure inside the wells. This will continue to sustain the demand over the next few years as well. Rising concerns and awareness about the adverse environmental impact of various industrial production processes is another factor expected to drive the demand for FGRS. The significance of environmental conservation activities is increasing rapidly, eventually boosting the adoption of flare gas recovery systems. Expansion of the oil and gas sector and burgeoning investments by leading companies will also be a major driver to the market growth during the forecast period.
Recently, the World Bank Group’s EHS guidelines announced the target of zero flare by 2025 end. This and more such guidelines set by environmental organizations will remain a longstanding driver to the market growth. Moreover, a large number of natural gas and oil companies are increasingly seeking implementation of flare gas recovery systems to achieve the maximum energy usage. This is being considered as a corporate social responsibility by a number of companies, bolstering the demand thereby. Developing countries are likely to witness accelerated adoption of flare gas recovery systems during the forecast period, in order to mitigate carbon emission levels.
FGRS manufacturers are anticipated to capitalize on a lucrative opportunity in the next few years. The market may witness the introduction of flare gas recovery systems solution package that includes everything from design, consulting, and manufacturing, to installation, aftermarket, and post-sales services. However, high capital costs, time-sensitive installation procedure, and lower awareness among end-user industries will remain the key factors hampering the adoption, and thereby market growth through to 2020.
Based on capacity, the global flare gas recovery systems market is classified into four key segments - small, medium, large, and very large capacity flare gas recovery systems. Status of these segments is likely to depend on various factors, such as on-shore or off-shore installation venue, budget, requirement of recovery, and design and installation complexities.
Although small and medium capacity system segments were observed to dominate the market within the recent past, the market may see dominant emergence of large and very large capacity system segments. This growth is estimated on the basis of increasing preference for large capacity systems by producers. Very large capacity segment is anticipated to account for over 43% market value share by 2020 end, expanding at a CAGR of 15.1% over 2015-2020.
The global flare gas recovery systems market is geographically segmented into seven key regions viz. North America, South America, Europe, Eurasia, Asia Pacific, Middle East, and Africa. Although North America and Europe will remain the most prominent markets over the forecast period, Europe is expected to witness declining market growth owing to relatively lower natural gas production and saturated market conditions.
North America is likely to account for a value of around US$ 661.2 Mn by 2020, with over 32% market share. Europe and North America will collectively capture nearly 62% share of the market in terms of revenues over the forecast period. Markets in developing economies are however projected to witness an uptake, attributed to rising awareness about carbon emissions and environmental conservation, and surging adoption of FGRS for power generation applications.
Key Players Analysis
Gardner Denver Nash, Zeeco Inc., and John Zink Hamworthy Combustion are a few of the most prominent players competing in the global flare gas recovery systems market.
In this report, Persistence Market Research (PMR) offers a five-year forecast of the global flare gas recovery systems market between 2015 and 2020. The current study reveals the market trends and market dynamics in all seven regions from world that are expected to positively affect the current market environment and future scenario of the flare gas recovery systems market over the forecast period. This PMR report inspects the global flare gas recovery systems market for the period 2015–2020. The prime objective of this report is to offer insights into developments in the flare gas recovery systems market that are gradually helping transform global businesses associated with the same.
The global flare gas recovery systems market report begins by the executive summary and market definition. It is followed by market dynamics overview of the global flare gas recovery systems market, which includes PMR analysis of market trends, drivers, restraints, and opportunities that are impacting growth of the global flare gas recovery systems market. It also covers a section summary with rationale for demand of flare gas recovery systems with value propositions in segment outlook. Furthermore, to understand the popularity of the market segment and regions, the attractiveness index with elaborated insights on the same is provided, which will show the market’s attractiveness based on factors such as CAGR and incremental $ opportunity.
The global FGRS market has been categorized on the basis of capacity, components, and region. This section provides an in-depth segment and regional analysis, and provides the market outlook for 2015–2020. The study investigates the country trends contributing to the growth of the global flare gas recovery systems market and the market attractiveness region wise, as well as analyses the limit to which the drivers are influencing the global flare gas recovery systems market world over. Regions assessed in this report include North America, South America, Europe, Asia Pacific, Eurasia, Middle East, and Africa.
In the final section of the report on global flare gas recovery systems, the dashboard view of the companies is provided to compare the current industrial scenario and their contribution in total flare gas recovery systems market. Moreover, it is primarily designed to provide clients with an objective and detailed comparative assessment of key providers specific to a market segment. Report audiences can gain segment-specific manufacturer insights to identify and evaluate key competitors based on the in-depth assessment of their capabilities and success in the flare gas recovery systems marketplace. Detailed profiles of flare gas recovery systems manufacturing and processing companies are also included in the report to evaluate their long– and short–term strategies, key product and service offerings, and recent developments in the flare gas recovery systems market. Key market players covered in the report include Zeeco Inc., Gardner Denver Nash, and John Zink Hamworthy Combustion.
To ascertain the global flare gas recovery systems market size, we have taken into account the revenue generated by the various flare gas recovery systems manufacturers and processors globally. The forecast presented here assesses the total revenue generated by value, across the global flare gas recovery systems market. In order to provide an accurate forecast, we initiated by sizing up the current market, which forms the basis on how the flare gas recovery systems market is expected to develop in the future. Given the characteristics of the market, we triangulated the outcome on the basis of three different types of analysis; based on supply side, downstream industry demand and the economic envelope.
In addition, it is imperative to note that in an ever-fluctuating global economy, we not only conduct forecasts in terms of CAGR, but also analyze the market based on key parameters, such as year-on-year (Y-o-Y) growth rates, to understand the predictability of the global flare gas recovery systems market and identify the right opportunities across the market.
The flare gas recovery systems market, by capacity of system, component, and region, have been analyzed in terms of basis point share (BPS) to understand the individual segment’s relative contributions to market growth. This detailed level of information is important for identifying various key trends in the global flare gas recovery systems market.
Another key feature of this report is the analysis of key segments in terms of absolute dollar opportunity. This is overlooked while forecasting the market. However, absolute dollar opportunity is critical for evaluating the scope of opportunity that a provider can look to achieve, as well as to identify potential resources from a delivery perspective of the global flare gas recovery systems market. The overall absolute dollar opportunity along with the segmental split is mentioned in the report.
To understand key growth segments in terms of growth and adoption for flare gas recovery systems globally, PMR has developed the flare gas recovery systems market ‘Attractiveness Index.’ The resulting index should help providers identify real market opportunities.