PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1876152
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1876152
The global continuous emission monitoring systems (CEMS) market is experiencing strong growth as governments and industries intensify efforts to comply with environmental regulations and reduce air pollution. According to Fortune Business Insights, the market was valued at USD 3.48 billion in 2024, is projected to reach USD 3.78 billion in 2025, and is expected to surge to USD 7.21 billion by 2032, exhibiting a robust CAGR of 9.6% during the forecast period (2025-2032).
CEMS are integrated systems that continuously collect, analyze, and record emissions data from industrial exhaust sources. These systems monitor gases such as SO2, NOx, CO2, CO, and O2, ensuring compliance with environmental regulations across diverse sectors such as power generation, oil & gas, cement, chemicals, metals & mining, pharmaceuticals, pulp & paper, and waste management. As sustainability becomes a core industrial priority, CEMS play a pivotal role in enabling transparency, accuracy, and operational efficiency in emissions management.
Key manufacturers driving the market include ABB, Siemens, Emerson Electric Co., Horiba, Thermo Fisher Scientific Inc., Teledyne Technologies, AMETEK Inc., Fuji Electric Co. Ltd., and SICK AG. These companies are continuously innovating advanced emission monitoring systems to meet evolving regulatory and environmental requirements.
Market Dynamics
Stringent Environmental Regulations Drive Global Market Growth
The increasing stringency of global air quality regulations is the primary driver of CEMS adoption. Governments across the U.S., Europe, China, and India have transitioned from periodic emission inspections to mandatory continuous, automated emission monitoring. Regulations such as the U.S. EPA's 40 CFR Part 75, the EU Industrial Emissions Directive (IED), and China's Air Pollution Prevention and Control Action Plan have made real-time emission measurement essential for compliance.
Non-compliance can result in substantial fines and even operational shutdowns, motivating industries to deploy certified CEMS solutions with high accuracy and reliability. For instance, NTPC Limited in India has installed advanced extractive CEMS across its thermal plants to comply with Central Pollution Control Board (CPCB) guidelines.
Impact of Artificial Intelligence (AI) Enhancing Market Efficiency
Artificial intelligence (AI) is revolutionizing the continuous emission monitoring systems market by enabling real-time anomaly detection, predictive maintenance, and data-driven decision-making. AI-based algorithms can identify calibration errors, predict system failures, and optimize sampling and calibration cycles, thus reducing operational downtime.
The Delhi Pollution Control Committee recently adopted AI analytics to forecast pollution trends and improve environmental decision-making efficiency. Such initiatives underscore AI's growing role in supporting accurate emissions forecasting and ensuring compliance with environmental standards.
Hybrid Monitoring Solutions Emerging as a Key Trend
Industries are increasingly adopting hybrid monitoring models-combining permanent CEMS with portable or semi-continuous devices-to maintain compliance while managing costs. This approach is particularly beneficial for smaller facilities or operations with intermittent emissions. In February 2023, Latvian company InPass introduced a portable monitoring controller for ship emissions, offering a flexible, low-cost alternative to full-scale CEMS installations.
Market Restraints
Emergence of Satellite and Drone-Based Monitoring Technologies
The proliferation of remote and satellite-based emission sensing technologies presents competition for conventional CEMS solutions. For instance, Chinese researchers in July 2025 developed a satellite-based Pollution-Carbon Synergy Model (PCSM) capable of estimating CO2 emissions with 13% error-significantly lower than traditional methods. Similarly, drone-mounted emission sensors are being deployed to detect pollution sources in hard-to-reach areas. However, despite these alternatives, CEMS remains the most accurate and regulatory-approved solution for real-time compliance monitoring.
Market Opportunities
Municipal and Urban Pollution Control Initiatives Expanding CEMS Adoption
The rise of smart city initiatives and air quality management programs is driving large-scale CEMS installations in municipal and industrial facilities. For instance, Indonesia's Environment Ministry mandated CEMS deployment across 4,000 industrial chimneys in Greater Jakarta in June 2025. Likewise, Thermo Fisher Scientific's 2024 expansion in India to manufacture air quality monitoring analyzers supports regional clean air missions and localization efforts. These developments indicate growing demand for CEMS in both urban infrastructure and industrial emissions management.
By Technology:
In 2024, Direct Extractive CEMS dominated the market due to its high reliability under extreme conditions in heavy industries such as cement, oil & gas, and power generation. This segment's dominance is driven by its precision and durability. Meanwhile, In-situ CEMS is expected to record the highest CAGR by 2032, attributed to its low maintenance, faster response times, and compatibility with decentralized facilities.
By Installation Type:
New installations accounted for the largest market share in 2024, supported by ongoing industrial expansions in Asia and the Middle East. Projects such as Indonesia's Jawa 9 & 10 coal plants integrated advanced CEMS technologies during construction to meet national emission standards. Retrofit installations, however, are anticipated to witness the fastest growth, particularly in developed economies where older industrial units are being modernized to meet stringent environmental norms.
By Application:
The power generation sector remains the largest application segment, as utilities are mandated to continuously monitor SOx, NOx, and CO2 levels. With increasing clean energy targets, power plants are investing heavily in automated monitoring systems. The municipal and "others" segments are expected to see the highest growth rate by 2032, driven by rising investments in smart city pollution management systems.
North America led the market with a value of USD 1.29 billion in 2024, supported by early regulatory adoption and strict enforcement by the U.S. Environmental Protection Agency (EPA). Companies like Duke Energy are modernizing CEMS infrastructure to meet new EPA carbon reduction standards and achieve net-zero goals by 2050.
Asia Pacific is projected to exhibit the highest CAGR through 2032 due to rapid industrialization, urbanization, and environmental reforms. Governments in China, India, Japan, and Indonesia are mandating CEMS installation in industrial plants to control air pollution. Reliance Industries in India deployed extractive systems at its Jamnagar refinery to monitor SO2 and NOx emissions in compliance with CPCB standards.
Europe holds the second-largest market share, driven by the EU's Industrial Emissions Directive (IED) and strict compliance monitoring enforced by agencies like Germany's Umweltbundesamt and the U.K.'s Environment Agency.
Competitive Landscape and Key Developments
Leading companies such as ABB, Siemens, Emerson Electric Co., Horiba, Thermo Fisher Scientific, Teledyne Technologies, and Fuji Electric continue to innovate through AI integration, automation, and strategic partnerships.
Conclusion
The global continuous emission monitoring systems market is set for sustained growth, expanding from USD 3.48 billion in 2024 to USD 7.21 billion by 2032. Driven by stricter global environmental regulations, AI-powered innovations, and industrial modernization, CEMS has become indispensable for achieving regulatory compliance and advancing sustainability goals. As industries transition toward low-emission operations and digital environmental management, CEMS technology will remain a cornerstone of industrial air quality control worldwide.
Segmentation By Technology
By Installation Type
By Application
By Region
Companies Profiled in the Report * ABB (Switzerland)