The European industrial air quality control systems market is expected to record a CAGR of approximately 3.72% during the forecast period of 2020 – 2025. The European Union policy on air quality aims to develop and implement appropriate instruments to improve air quality. Major factors driving the market are the growing awareness among consumers, stringent air quality control regulations, growing end-user industries, and increasing awareness among common mass to mitigate health risks. However, the emergence of alternative and renewable sources of energy with reduced/zero emissions and high capital required for the installation of an air quality control system are expected to hinder the growth of the market studied.
- The flue gas desulfurization (FGD) technology is expected to significant demand among the various types of AQCS products, on account of its widespread application across the industries.
- Retrofitting the existing plants provides tremendous opportunities for European industrial air quality control systems during the forecast period.
- Germany is expected to dominate the market over the forecast period owing to its growing dependence on the industrial sector.
Key Market Trends
Flue Gas Desulfurization (FGD) to Witness Significant Demand
- To reduce the impact of sulfur-based pollutants, industries are implementing several measures, and have particularly emphasized on gas-phase desulfurization. Hence, flue gas desulfurization (FGD) is the most important technology developed for this purpose.
- The efficiency obtained using scrubbers range between 95% and 99%, at electricity generating power plants. Apart from the power plants, the FGD systems are also used in the waste-to-energy plants as well, offering efficiency in the range of 95-99%.
- In May 2019, Rudis constructed a flue gas desulfurization plant for 600 MW Unit 6 in thermal power plant Sostanj that operates as one of the best plants in Europe. Outlet concentration of SO2 amounts to less than 100 mg/Nm3 (on average 20-30 mg/Nm3) and maximum removal efficiency amounts to 99,75%.
- Limestone FGD is the most used FGD process in the world. However, lime or limestone is comparatively less reactive to SO2 removal, and therefore, consumes higher quantities of process water and pumping energy, to achieve high circulation rates. This has led to higher operating costs for FGD systems employing lime/limestone.
- Prices of FGD systems have reduced significantly over the years with technological advancements, while the maintenance costs of FGD systems remains high. Therefore, any breakthrough innovation in the servicing sector can open a huge opportunity for players in the sector.
- In December 2019, the Rite Ugljevik mine and coal power plant switched on its desulfurization system. The facility for the protection from the consequences of burning coal is expected to have a three-month test drive.
- The thermal power plant is on the way to reach the European Union environmental standards and stabilize production. The flue gas desulfurization is the biggest ecological project in energy facilities in Southeastern Europe.
- Therefore, based on the above-mentioned factors, flue gas desulfurization is expected to witness significant demand for the industrial air quality control systems market in Europe over the forecast period.
Germany is Expected to Dominate the Market
- The European Union has been the forerunner in the implementation of renewable energy initiatives, especially in Germany, which has extremely high targets for the implementation. Germany is one of the largest economies in the world and the largest in Europe. Also, there has been considerable growth in Germany’s GDP in the past few years. The share of service sectors has been growing since the past few years, i.e. 68.2% in 2018.
- Also, the country extensively depends on coal for power generation. Due to the growing dependence on the industrial sector and coal-fired power generation, there has been growth in emissions in the country. To control air pollution, the government has been undertaking measures.
- For instance, in November 2016, the German Climate Action Plan, 2050, was approved by the German government. This plan aims to reduce GHG emissions from the energy, building, transportation, industrial, and agricultural industries, by approximately 60%, 65%, 40%, 50%, and 30%, respectively, by 2030.
- Germany aims to cut greenhouse gas emissions (GHG) by 40% by 2020, 55% by 2030, and approximately 95% by 2050. The share of renewables in gross final energy consumption is to rise to 60% by 2050. Renewables are to make up a minimum of 80% of the country’s gross power consumption.
- In December 2018, the German government announced to provide additional funds to the cities, to tackle air pollution linked to diesel vehicle emissions. Hence, owing to such regulations and efforts, the demand for air quality control systems in the country is expected to grow during the forecast period.
The European industrial air quality control systems market is partially fragmented. Some of the key players include Thermax Ltd, John Wood Group PLC, Babcock & Wilcox Enterprises Inc., General Electric Company, and Mitsubishi Hitachi Power Systems Ltd.
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