The Global Flare Gas Recovery Systems Market size in terms of market revenue was valued at USD 2.7 billion in 2024 and is predicted to surpass USD 5.5 billion by the end of 2032. The flare gas recovery systems (FGRS) industry is expected to grow at a CAGR of 7% between 2025 and 2032.
Flare gas recovery systems are innovated to utilize, process, capture, and dispose of the waste gasses burned during industrial processes, especially in chemical processing and oil & gas production. These systems aim to lower emissions, recover valuable hydrocarbons, and minimize flaring, enhancing economic returns, environmental performance, and operational efficiency. The flare gas capture system component collects these flare gasses from different sources like vents, flares, headers, piping, and many others. The collected gasses remove contaminants, liquids, and impurities before releasing them for further utilization.
Key Insights
In terms of revenue, the global flare gas recovery systems market size was valued at around USD 2.7 Billion in 2024 and is projected to cross USD 5.5 Billion by 2032.
Surge in power generation applications is driving the growth of the global flare gas recovery systems market share.
Based on the application, the downstream segment is growing at a high rate and is projected to dominate the global market.
Based on the technology, the compressor segment is projected to swipe the largest market share.
Based on configuration, the skid-mounted segment is expected to dominate the global market.
Based on end-users, the oil & gas segment is anticipated to witness high CAGR during the forecast period.
Based on region, North America is expected to dominate the global market during the forecast period.
Increasing utilization of flare gas for power generation is one of the major factors for the high growth rate of the global flare gas recovery systems market. Initially, the flare gas was wasted through venting. Later, these flare gasses were identified as valuable energy sources that could be used further for power generation or other purposes. Capturing these flare gasses is highly crucial in different user sectors such as petrochemicals & refining, oil & gas production, and many others. Furthermore, industries are improving their energy efficiency by utilizing the flare gas recovery system, thereby lowering their dependence on external energy sources. Additionally, utilizing these flare glasses for different purposes helps lower greenhouse emissions and the environmental impact of industrial operations. The regulatory authorities further encourage the growth of the industry by promoting energy conservation practices like flare gas recovery system applications. Therefore, all these factors are likely to accentuate the growth of the global market during the forecast period.
According to the World Bank's Global Gas Flaring Tracker Report (2023), global gas flaring results in the annual wastage of approximately 150 billion cubic meters (bcm) of natural gas, which could generate 750 billion kWh of electricity. Additionally, in December 2023, The United Nations Climate Change Conference (COP28) highlighted FGRS as a critical technology for achieving net-zero emissions in the oil and gas sector.
In March 2024, BP announced a $500 million investment in expanding FGRS installations across its global facilities, aiming to reduce flaring by 50% by 2030 and in January 2024, Chevron implemented next-gen FGRS systems at its Gorgon LNG facility in Australia, achieving a 20% improvement in recovery efficiency.
The heavy upfront investment associated with the installation of a flare gas recovery system is expected to hinder the growth of the global flare gas recovery systems market. This initial cost barrier restricts small to medium companies from adopting these systems. Significant variations in flare gas composition are further expected to negatively impact the growth of the industry. As per analysis, the installation cost of an average FGRS ranges from $5 million to $10+ million, depending on the system capacity and complexity.
The ongoing advancements in flare recovery technology are a major factor expected to widen the scope of the flare gas recovery systems industry during the forecast period. These developments make the systems more reliable, cost-effective, and efficient. Innovations like advanced separation techniques, sophisticated compressors, and many others are driving the growth of the industry. Cost saving is another advantage offered by flare gas recovery systems, particularly for industries using these waste gasses to manufacture valuable products. Companies offering these services help businesses lower their fuel cost and penalties imposed due to heavy emissions. Such a landscape is likely to positively impact the industry's growth trajectory in the coming years.
In December, 2023, the World Bank launched the Global Flaring & Methane Reduction (GFMR) Partnership / Global Gas Flaring Reduction Partnership (GGFR), aimed at assisting developing countries in reducing emissions from the oil and gas industry and minimizing methane emissions from the O&G industry to almost zero by year 2030.
Integrating a flare gas recovery system into the legacy infrastructure is complex. Expert staff and specialized engineers are required to install and implement the process. Therefore, it has emerged as a big challenge in the flare gas recovery systems industry. Additionally, the arising retrofitting requirement and compatibility issues are further likely to slow down the industry's growth.
Report Attributes | Details |
Flare Gas Recovery Systems Market Forecast Years | 2025 to 2032 |
Flare Gas Recovery Systems Market Historical Years | 2021, 2022, 2023, 2024 |
Flare Gas Recovery Systems Market Size 2024 | USD 1.5 Billion |
Flare Gas Recovery Systems Market CAGR | 7% (2025 to 2032) |
Flare Gas Recovery Systems Market Size 2032 | USD 5.5 Billion |
Key Segments | Technology, Configuration, Application, End-User, and Region |
Key Regions & Countries | North America (The U.S. Canada, Mexico), Europe (Germany, The U.K, France, Netherlands, Spain, Russia, Poland, Benelux, Nordic Countries, Rest of Europe Countries), Asia Pacific (China, Japan, India, South Korea, ASEAN, Australia, Rest of APAC Countries), Middle East & Africa (GCC – UAE, Saudi Arabia, Qatar, Oman, Bahrain, Kuwait), Israel, South Africa, Egypt, Rest of MEA Countries), and South America (Brazil, Argentina, Colombia, Chile, Rest of South America Countries) |
Some Key Companies |
The global flare gas recovery systems market can be segmented into application, technology, configuration, end-user, and region.
On the basis of application, the market can be segmented into upstream, downstream, and others. The downstream segment accounts for the largest share of the flare gas recovery systems industry. Downstream facilities like chemical plants and refineries generate huge flare casts, which poses a demand for these solutions in industrial settings. Strict environmental regulations are further driving the demand for downstream facilities to lower the release of flare gas and greenhouse emissions. Advancements in flare gas recovery technology significantly improve downstream applications, which is also expected to contribute heavily to the growth of the segment. Also, the economic benefits offered by downstream operations support the growth of the segment.
On the basis of technology, the market can be segmented into the ejector-based and compressor. The compressor segment is projected to witness significant developments in the coming years. Compressor technology helps in improving reliability, efficiency, and performance. The modern compressor designs are efficient and can easily capture and compress flare glasses, thereby improving the overall system effectiveness. Compressor base flare gas recovery systems are versatile and can easily absorb fluctuations in pressure and fluids. Therefore, these are largely adopted by end users for different industrial applications. The increasing capacity of compressor-based systems due to the rising demand for the flare gas recovery system because of economic incentives and environmental regulations is further expected to widen the scope of the segment. These systems can easily be integrated with power generation facilities like reciprocating engines to transform these flare gasses into electricity. Advancements in IOT technology and digitalization facilitate predictive maintenance and remote monitoring, thereby offering real-time data analytics and automation capability, which further drives the adoption of systems in industrial settings.
On the basis of configuration, the market can be segmented into skid-mounted and modular. Skid-mounted is the fastest-growing segment in the global flare gas recovery systems market. Skid-mounted segments are pre-assembled on a compact platform, thereby making it ideal for installing it into existing industrial facilities. Skid-mounted systems are cost-effective as they involve more affordable site-assembled solutions for diverse industrial operators. Skid-mounted systems are flexible and can accommodate different operational needs and process requirements. These solutions are scalable and can adapt to varying production volumes.
On the basis of end-users, the market can be segmented into storage tanks, chemical plants, oil & gas, industrial flare gas treatment, and others. The oil & gas segment is likely to dominate the flare gas recovery systems industry. The oil & gas sector involves activities like downstream refining, upstream exploration, and others that are the significant causes of flare gas emissions. The complex nature of the extraction, processing, and refining process poses a huge opportunity for flare gas recovery applications. The regulatory authorities are trying to lower the environmental impact and greenhouse emissions. The oil and gas companies must comply with these regulations to capture the flare gasses effectively. The flare gas recovery system further presents opportunities to enhance resource utilization.
Europe accounts for the largest global flare gas recovery systems market share during the forecast period. The regulatory framework in the region is one of the major factors for the high market rate. The European Union aims to lower greenhouse emissions from industrial sources. Therefore, these agencies are imposing restrictions to limit emission rates and encourage the adoption of eco-friendly techniques to lower venting and flaring. The Russian Federation is known to be the largest emitter of flare gas globally. Europe is issuing mandates to curb the emission under various acts. Therefore, all these factors are likely to support the regional market's growth in the coming years. Additionally, the rising attention of manufacturers in the region to facilitate flare gas recovery system packages is further expected to widen the scope of the regional market. There is high demand for small- to medium-capacity flare gas recovery systems because of the ease of installation and operation. Also, Europe is transitioning to a green economy, which is further expected to positively impact the growth trajectory of the regional market.
North America is another major region expected to propel the regional market's growth. The regulatory agencies in the region, like the Environmental Protection Agency, are implementing regulations to curb emissions from industrial sources and encourage the utilization of flare gasses. Additionally, the growth of shale gas production in the region further increased flare gas volumes, which further drove the demand for flare gas recovery systems. The ongoing technological innovations in the flare gas recovery system, like advancements in modular kits, mounted solutions, compressor technology, control systems, and remote monitoring systems, have significantly enhanced the flare gas recovery system's cost-effectiveness, reliability, and efficiency. Furthermore, the fluctuations in energy market dynamics, such as natural gas prices, are expected to promote regional market growth in the coming years.
Flare Gas Recovery Systems Market Key Companies
The key players in the global flare gas recovery systems market include:
Aereon (Cimarron Energy)
Baker Hughes
Fluor Corporation
Honeywell
John Zink Hamworthy Combustion (Koch Industries)
Linde Engineering
MPR Industries
Ramboll
Schlumberger
SoEnergy
Transvac Systems
Wärtsilä
Zeeco
others
The global flare gas recovery systems market is segmented as follows:
By Application
Upstream
Downstream
Others
By Technology
Ejector Based
Compressor Based (Reciprocating, Screw, Liquid Ring, Siding Vane)
By Configuration
Skid Mounted
Modular
By End-User
Storage Tanks
Chemical Plants
Oil & Gas
Industrial Flare Gas Treatment
Others
The global flare gas recovery systems market is a comprehensive study of market definitions, growth drivers, opportunities, and challenges. It covers the geographical and competitive dynamics of the global marketplace. Based on your selected License Type, you will receive the report in various downloadable formats, including PDF, PPT, Word, and Data Pack (Spreadsheet) files.
Europe accounts for the largest global flare gas recovery systems market share during the forecast period.
The key players in the global flare gas recovery systems market include Aereon (Cimarron Energy), Baker Hughes, Fluor Corporation, Honeywell, John Zink Hamworthy Combustion (Koch Industries), Linde Engineering, MPR Industries, Ramboll, Schlumberger, SoEnergy, Transvac Systems, Wärtsilä, Zeeco, and others.
Increasing utilization of flare gas for power generation is one of the major factors for the high growth rate of the global flare gas recovery systems market. Initially, the flare gas was wasted through venting. Later, these flare gasses were identified as valuable energy sources that could be used further for power generation or other purposes.
The flare gas recovery systems industry is expected to grow by a CAGR of 7% between 2025 and 2032.
The global flare gas recovery systems market size in terms of market revenue was valued at USD 2.7 billion in 2024 and is predicted to surpass USD 5.5 billion by the end of 2032.
Flare gas recovery systems are innovated to utilize, process, capture, and dispose of the waste gasses burned during industrial processes, especially in chemical processing and oil & gas production.
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