Flue Gas Desulfurization Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type, By End-User Industry, By Installation, By Region & Competition, 2021-2031F

The Global Flue Gas Desulfurization Market is projected to expand from USD 26.48 Billion in 2025 to USD 39.61 Billion by 2031, reflecting a compound annual growth rate of 6.94%. Flue Gas Desulfurization encompasses a suite of technologies designed to eliminate sulfur dioxide from the exhaust streams of fossil-fuel power stations and various sulfur-emitting industrial operations. The market is primarily driven by rigorous environmental regulations implemented by governments globally to curb hazardous emissions and enhance air quality. Additionally, the rising electricity requirements in emerging economies necessitate the ongoing growth of coal-fired generation capacity, compelling the installation of these emission control systems to maintain regulatory adherence.

One major hurdle potentially limiting market growth is the substantial capital expenditure and operating costs linked to the installation and upkeep of these intricate systems, especially when retrofitting older plants. This financial strain is frequently exacerbated by the technical complexities of wastewater treatment and byproduct disposal. Underscoring the vast infrastructure requiring such compliance, the 'China Electricity Council' noted in '2024' that 'the country's installed coal-fired generating capacity was projected to reach 1.2 billion kilowatts'.

Market Driver

The enforcement of strict environmental regulations curbing sulfur dioxide emissions acts as the main catalyst for the market, forcing industries to implement pollution abatement solutions. Governments worldwide are mandating rigorous standards that require power plants and heavy industries to install desulfurization systems, turning statutory compliance into a vital business imperative. This regulatory pressure directly results in significant capital investments for retrofitting aging infrastructure to satisfy emission goals. For example, demonstrating this compliance-led investment, according to Construction World, June 2024, in the 'BHEL Secures Rs 35 Bn Order from Adani Power' article, Bharat Heavy Electricals Limited won a substantial contract worth over Rs 35 billion to provide and install Flue Gas Desulfurization (FGD) systems at Adani Power's thermal plants, showing how environmental rules create real revenue for technology suppliers.

Concurrently, the continued dependence on coal-fired power in emerging markets guarantees strong demand for desulfurization units. Despite global calls for decarbonization, rapid industrialization in countries like India requires the ongoing expansion of thermal capacity, necessitating emission control systems to reduce air quality issues. Highlighting this trend, according to LiveMint, September 2024, in the 'India's coal imports rise to 90.5 MT amid surge in power demand' report, India saw a 10.18% increase in coal-based power generation between April and July 2024 relative to the prior year. This regional usage corresponds with the immense global scale of fossil fuel consumption; according to the International Energy Agency, in 2023, global coal demand hit a record 8.54 billion tonnes, ensuring a stable foundation for desulfurization infrastructure.

Market Challenge

The significant capital investment and continuous operational expenses required for flue gas desulfurization systems constitute a major barrier to market growth. Implementing these systems entails a large financial commitment, especially for aging power plants and industrial sites needing intricate retrofitting to support new equipment. This economic pressure is further intensified by ongoing costs for maintenance, wastewater management, and byproduct disposal, which can burden the budgets of utility providers. As a result, price-sensitive markets might postpone compliance efforts or prolong the schedules for upgrading their emission control facilities.

This reluctance to invest directly narrows the potential market for technology suppliers. The extent of the sector facing these cost issues is vast. According to the 'International Energy Agency', in '2024', 'global coal demand was forecast to increase to approximately 8.7 billion tonnes'. Although this volume suggests a sustained requirement for emission control, the financial burden of installing desulfurization units compels many operators to favor cost-reduction strategies over immediate equipment acquisition, thereby retarding the industry's overall progress.

Market Trends

The increase in flue gas desulfurization installations within the iron and steel industries marks a significant market evolution, expanding the technology's reach beyond its traditional power generation roots. This growth is largely driven by strict industrial mandates in key manufacturing centers, where governments are imposing ultra-low emission requirements on metallurgical plants. Such regulatory demands compel steel manufacturers to retrofit sintering operations with advanced desulfurization systems to maintain production. Illustrating this momentum, according to SteelOrbis, September 2025, in the 'China releases Work Plan for steel industry in 2025-2026' report, the Ministry of Industry and Information Technology ordered that over 80% of steel production capacity must finalize ultra-low emission upgrades by the end of 2025.

At the same time, there is a growing emphasis on high-quality synthetic gypsum recovery, turning desulfurization from a mere compliance necessity into a driver of the circular economy. Operators are increasingly deploying wet limestone-forced oxidation systems that generate commercial-grade gypsum, which is used as a feedstock in the wallboard and cement sectors to help offset operating expenses. This alignment of pollution control with material supply is emerging as a defining feature of the market. Highlighting this trend, according to the U.S. Geological Survey, June 2025, in the 'Gypsum in the First Quarter 2025' Mineral Industry Survey, the utilization of synthetic gypsum was estimated at 3.85 million metric tons, representing roughly 37% of the total gypsum supply in the United States.

Key Market Players

• Alstom S.A
• Andritz AG
• Babcock & Wilcox Enterprises Inc
• Ducon Technologies Inc
• Fujian Longking Co. Ltd
• General Electric Company
• Hamon Corporation
• John Wood Group PLC
• Mitsubishi Hitachi Power Systems Ltd
• Thermax Ltd

Report Scope

In this report, the Global Flue Gas Desulfurization Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Flue Gas Desulfurization Market, By Type

• Wet FGD Systems
• Spray Dry FGD System
• Dry & Semi-dry FGD Systems

Flue Gas Desulfurization Market, By End-User Industry

• Power Generation
• Cement
• Chemical
• Iron and Steel
• Others

Flue Gas Desulfurization Market, By Installation

• Greenfield
• Brown Field

Flue Gas Desulfurization Market, By Region

• North America
  • United States
  • Canada
  • Mexico
• Europe
  • France
  • United Kingdom
  • Italy
  • Germany
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• South America
  • Brazil
  • Argentina
  • Colombia
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Flue Gas Desulfurization Market.

Available Customizations:

Global Flue Gas Desulfurization Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).