The global flue gas desulfurization system market is projected to grow from $23.6 billion in 2026 to $31.7 billion by 2031, a new market report finds, as aging coal plants are retrofitted to meet stricter SO2 limits; Mitsubishi Heavy Industries, GE Vernova, Doosan Lentjes and Babcock & Wilcox are among 25 companies profiled.
Dublin, Oct. 20, 2026 (GLOBE NEWSWIRE) — “Flue Gas Desulfurization System Market: Global Forecast To 2031” has been added to ResearchAndMarkets.com’s offering.
The global flue gas desulfurization system market is projected to grow from USD 23.60 billion in 2026 to USD 31.70 billion by 2031, registering a CAGR of 6.1% during the forecast period. Market growth is being driven by stringent sulfur dioxide emission regulations, continued reliance on coal-fired power generation in developing economies, and increasing demand for compliant emission-control systems across power plants, cement facilities, and industrial boilers.
New coal-fired power capacity featuring flue gas desulfurization (FGD) systems from inception is supporting demand, while large-scale retrofit programs for existing thermal power fleets are creating additional opportunities. Regulatory enforcement, ultra-low-emission requirements, and heightened scrutiny of air quality in industrial regions are expected to sustain investment in FGD technologies through 2031.
Dry & semi-dry FGD systems expected to record the highest CAGR
By type, the dry & semi-dry FGD systems segment is anticipated to achieve the fastest growth between 2026 and 2031. Adoption is increasing because these systems consume less water, require less auxiliary power, simplify waste management, and reduce wastewater treatment requirements compared with wet FGD systems.
Demand is particularly strong in water-constrained regions and at smaller-capacity facilities requiring effective SO2 emission control without extensive wet scrubbing infrastructure. Coal-fired power plants, cement kilns, and industrial boilers in arid and water-stressed markets are key adopters. Modular configurations, a smaller capital footprint, and straightforward retrofit integration also make dry & semi-dry technologies attractive to mid-sized industrial emitters.
Power generation to remain the leading end-use industry
The power generation segment is projected to account for the largest share of the flue gas desulfurization system market in 2031. Its leadership reflects the extensive use of coal-fired plants for baseload electricity across Asia Pacific, Europe, and parts of North America. Thermal power stations rely on FGD systems to comply with sulfur dioxide emission standards and reduce the risk of regulatory penalties, operating restrictions, or forced curtailment.
Coal power capacity additions in emerging economies, phased retrofit mandates, and stricter emission enforcement are strengthening market demand. The scale of the global installed coal fleet will continue to create opportunities for both greenfield installations and brownfield modernization projects.
Europe positioned as the second-largest regional market
Europe is expected to hold the second-largest market share during the forecast period. Regional demand is supported by established regulations for large combustion plants and industrial emissions, ongoing compliance obligations for the remaining coal fleet, and the adoption of emission-control requirements in non-EU Southeastern European markets.
Europe also benefits from a strong base of FGD system manufacturers and emission-control technology providers, supporting innovation and supply-chain capabilities. However, the region’s aging and gradually declining coal-fired power capacity is likely to limit growth compared with Asia Pacific.
Competitive landscape
Companies covered in the report include Mitsubishi Heavy Industries, Ltd. (Japan), GE Vernova (US), Doosan Lentjes (Germany), Babcock & Wilcox Enterprises, Inc. (US), ANDRITZ (Austria), Valmet (Finland), Kawasaki Heavy Industries, Ltd. (Japan), Bharat Heavy Electricals Limited (India), Longking Environmental Protection (China), and KC Cottrell (South Korea), among others.
The competitive assessment examines company profiles, market positioning, product portfolios, recent developments, and strategic initiatives. It also reviews mergers, acquisitions, product launches, expansions, and investments shaping competition within the flue gas desulfurization system ecosystem.
Research scope and market segmentation
The report categorizes the flue gas desulfurization system market by type, installation, end-use industry, and region. Type segmentation covers wet FGD systems and dry & semi-dry FGD systems, while installation analysis includes greenfield and brownfield projects. End-use industries include power generation, cement manufacturing, iron & steel, chemicals & petrochemicals, and other industrial applications.
The research evaluates market drivers, restraints, opportunities, and challenges. Key growth factors include stringent environmental regulations, retrofit installations at aging thermal power plants, and investment in coal-fired capacity across emerging economies. Market restraints include high capital and operating costs and declining coal-based generation in developed economies.
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Growth opportunities: Expansion of emission-control investment in emerging markets and modernization and digitalization of existing systems.
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Market challenges: Management of FGD by-products and wastewater, along with balancing emission compliance against the global energy transition.
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Technology analysis: Coverage of research and development, upcoming technologies, and product and service launches.
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Market development: Regional analysis identifying attractive markets and emerging areas of demand.
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Market diversification: Assessment of new offerings, untapped geographies, investments, and recent industry developments.
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Competitive assessment: Analysis of market shares, growth strategies, and service offerings among established companies and emerging participants.
The report provides market participants with revenue estimates for the overall market and its subsegments, enabling them to assess competitive positioning and develop informed go-to-market strategies. It also offers actionable intelligence on regulatory trends, technology adoption, regional opportunities, and investment priorities affecting the global flue gas desulfurization system market.
Key Topics Covered:
1 INTRODUCTION
1.1 STUDY OBJECTIVES
1.2 MARKET DEFINITION
1.3 MARKET SCOPE
1.3.1 MARKET SEGMENTATION AND REGIONAL SCOPE
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
