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Emission Monitoring System Market Industry Growth Revenue Impact

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[188 Pages Report] The global EMS market size was valued at USD 3.0 billion in 2022 and is projected to reach USD 4.5 billion by 2027. It is expected to grow at a CAGR of 8.8% during the forecast period. The growth of the EMS market is driven by high dependency of countries worldwide on coal-fired power plants to generate electricity, stringent emission norms and standards enforced by North American and European governments, and increased need for environmental protection. Moreover, growing number for coal-fired power generation plants in APAC is likely to fuel the growth of the emission monoitoring system Market.

Market Dynamics:

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Driver: High dependency of countries worldwide on coal-fired power plants to generate electricity

A coal-burning power plant is a thermal power station that uses coal to generate electricity. According to a report by Carbon Brief, in 2020, coal nearly generated 40% of the world’s electricity. Similarly, according to the Coal Association of Canada, in 2020, the country produced roughly 62 million tons of coal, with 51% being thermal coal used for electricity generation. The burned coal releases several airborne toxins and pollutants, such as mercury, lead, sulfur dioxide, nitrogen oxides, particulates, and other heavy metals. Exposure to these pollutants can cause many health effects, including asthma and breathing difficulties, brain damage, heart problems, cancer, neurological disorders, and premature death. These pollutants can also damage the lungs, kidneys, respiratory, and nervous systems. Therefore, various regulatory authorities have made continuous or preventive emission monitoring systems mandatory to keep track of pollutant emission rates.

Restraint: Growing focus on clean energy

Renewables are becoming the fastest-growing source of electricity production. Countries are developing renewable energy sources, such as hydropower, offshore and onshore wind, solar photovoltaic, and bioenergy. These renewable energy sources are being used increasingly due to their zero-carbon emissions. According to a report published by the International Energy Agency in 2021, the share of renewables in global electricity generation reached almost 29% in 2020, with solar photovoltaic (PV) technology being dominant. Thus, to reduce CO2 emissions and local air pollution, the world needs to rapidly shift toward low carbon energy sources, such as nuclear and renewable technologies. However, since hydro, solar, and wind power plants produce electricity with little or no emissions, it eliminates the requirement for emission monitoring systems.

Opportunity: Growing number of coal-fired power generation plants in APAC

APAC is one of the primary regions using coal for power generation. APAC countries such as China and India are among the largest users of coal for power generation. According to the International Energy Agency, in 2020, coal remained a primary fuel in global energy systems and accounted for almost 38% of electricity generation. The highest increase in coal-based power generation occurred in China, followed by India. According to the US Energy Information Administration, China is the world’s largest coal consumer and draws more than 70% of its electricity from coal. Additionally, the country plans to construct new coal-fired power plants in South Africa, Pakistan, and Bangladesh. Similarly, India’s coal-fired power generation capacity is expected to rise by 22.4% to 238 GW by 2022, according to India’s Ministry of Power. Coal-fired plants are the main emitters of sulfur oxides. Thus, China and India’s involvement in establishing new coal-fired plants to bring electrification to the developing world and ensure the growth of their economies is likely to create lucrative opportunities for the players in the emission monitoring system market.

Challenge: Technical challenges in adhering to regulatory norms

Strict regulatory frameworks create certain technical challenges for emission monitoring systems. These challenges are associated with the maintenance of instruments and designs. Emission monitoring systems operate under harsh environments and even extreme conditions (dust, fog, rain, etc.). They are prone to accuracy and performance-related issues in such environments. Additionally, they are often used in different critical industries, such as chemicals, petrochemicals, and oil & gas, which creates further challenges in providing highly accurate and reliable data as equipment such as analyzers are installed at hard-to-reach locations. This may cause difficulty in calibration, maintenance, and replacements of such devices that can create further problems.

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