The flame arrestors market is expected to rise at a CAGR of more than 1.5% during 2020 - 2025. Stringent government regulations, particularly for the chemical and oil and gas industries to install flame arrestors for safety purposes, are likely going to drive the flame arrestors market. However, volatile crude oil and gas prices which are leading to decrease investments are expected to restrain the flame arrestors market.
- Due to increasing annual production and refining capacity, the oil and gas segment is expected to be the largest segment in the flame arrestors market during the forecast period.
- The replacement of the old flame arrestors with the new technology of flame due to their outdated technology in old plants is expected to create several opportunities for flame arrestors market in the future.
- Asia-Pacific, due to its several projects in oil and gas, chemical, power generation, and mining is expected to be the largest market for the flame arrestors during the forecast period. In 2019, the total electricity generation of Asia-Pacific, which comes under power sector and uses flame arrestors, was about 46% of the world's electricity generation.
Key Market Trends
Oil and Gas Segment Expected to Dominate the Market
- Flame arrestors, also known as deflagration or flame trap, are the devices that allow gas to pass through it but stops a flame to prevent a massive fire or explosion. There is an enormous variety of situations in which flame arresters are applied, such as in transporting oil and gas through pipelines.
- The oil and gas industry majorly deals with the materials which are more prone to attract fire than in any other industry because several incidents occurred in the past. To prevent and control such types of events to occur, several governments in the world made is compulsory for the companies in the oil and gas industry to install flame arrestors at places that have more probability of generating a spark. Such guidelines and safety measures from the different governments are expected to drive the usage of flame arrestors in the oil and gas industry.
- In 2018, the global gas production was about 2867.9 billion cubic metres (bcm), and the total oil refining capacity of the world increased to 100,049 thousand barrels per day (BPD). The gas production and oil refining capacity showed an annual growth rate of 5.17% and 1.4%, respectively, compared to the previous year data. This increment in production and refining sectors of the oil and gas industry, where flame arrestors are majorly used, is expected to drive the market.
- In 2018, VFuels completed the Front End Engineering & Design (FEED) for the process area and facility for MMEX Resources Corp refinery in Texas. The refinery is expected to have a refining capacity of 10000 barrels per day (BPD). In 2020, VFuels announced the startup of Detailed Design and Engineering (DED) for the MMEX Resources refinery project.
- In 2019, McDermott International, Inc announced that Saudi Aramco had awarded it a contract of USD 1.5 billion for its Marjan Field. The engineering, procurement, construction, and installation (EPCI) contract includes the development of oil and gas facilities offshore and pipelines. The development of the plant consists of the usage of flame arrestors for preventing any accident.
- Hence, owing to the above points, oil and gas are likely going to the largest segment for the flame arrestors market during the forecast period.
Asia-Pacific Expected to Dominate the Market
- Asia-Pacific region, due to the constant increase in the energy demand in the area have several projects in oil and gas, chemical, power generation, and mining, which support it to be the largest market for flame arrestors in the world.
- The majority of the countries in the region, such as China, India, Indonesia, etc., consider themselves as developing nations, and have a constant growing energy demand and requirement of pharmaceuticals. Because of the above, Asia-Pacific region has been attracting several investments in various industries which use flame arrestors.
- As of 2018, the energy consumption of the Asia-Pacific region was 5985.8 million tonnes of oil equivalent (MTOE), which accounted for approximately 43% of the total energy consumption of 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.
- In 2019, MODEC won the engineering, procurement, construction and installation (EPCI) contract issued by the ConocoPhillips Australia Barossa Ltd for its floating production storage and offloading (FPSO) unit in the Barossa Field. The field is expected to produce gas and condensate for which flame arrestors are likely to be used for preventing the generation of spark. The project is expected to be operational by 2023.
- In 2019, Saudi Aramco, a Saudi Arabia oil major, signed a memorandum with S-Oil Corporation, a South Korea oil company, to collaborate on a USD 6 billion for steam crackers and olefin downstream Project which is expected to be complete by 2024. The new world-class steam cracker is likely going to produce ethylene and other necessary chemicals out of naphtha and refinery off-gas. This is likely to create a positive impact on the flame arrestors market.
- Hence, due to the above points, Asia-Pacific is expected to be the largest market for the flame arrestors during the forecast period.
The flame arrestors market is moderately consolidated. Some of the key players in this market include Emerson Electric Co., Elmac Technologies Ltd., PROTEGO Braunschweiger Flammenfilter GmbH, The Protectoseal Company, Inc., and WITT-Gasetechnik GmbH & Co KG.
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