Flue Gas Desulfurization Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Wet FGD Systems, Spray Dry FGD System, Dry & Semi-dry FGD Systems), By End-User Industry (Power Generation, Cement, Chemical, Iron and Steel, Others), By Installation (Greenfield, Brown Field), By Region and Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 26.48 Billion
CAGR (2026-2031)	6.94%
Fastest Growing Segment	Wet FGD Systems
Largest Market	North America
Market Size (2031)	USD 39.61 Billion

Market Overview

The Global Flue Gas Desulfurization Market will grow from USD 26.48 Billion in 2025 to USD 39.61 Billion by 2031 at a 6.94% CAGR. Flue Gas Desulfurization refers to a set of technologies utilized to remove sulfur dioxide from the exhaust flue gases of fossil-fuel power plants and other sulfur-emitting industrial processes. The primary drivers supporting market growth include stringent environmental regulations enforced by governments worldwide to limit hazardous air emissions and improve air quality. Furthermore, the escalating demand for electricity in emerging economies necessitates the continued expansion of coal-fired power generation capacity, which subsequently mandates the deployment of these emission control systems to ensure regulatory compliance.

One significant challenge that could impede market expansion is the high capital investment and operational costs associated with installing and maintaining these complex systems, particularly for older facilities requiring retrofitting. This financial burden is often compounded by the technical difficulties involved in treating wastewater and disposing of byproducts. Highlighting the massive scale of the infrastructure necessitating such compliance, according to the 'China Electricity Council', in '2024', 'the country's installed coal-fired generating capacity was projected to reach 1.2 billion kilowatts'.

Key Market Drivers

The implementation of stringent environmental regulations limiting sulfur dioxide emissions serves as the primary catalyst for the market, compelling industries to adopt pollution abatement technologies. Governments globally are enforcing rigorous standards that obligate power plants and heavy industries to integrate desulfurization systems, thereby transforming statutory compliance into a critical commercial driver. This regulatory pressure is directly generating substantial capital commitments for retrofitting aging infrastructure to meet emissions targets. For instance, reflecting this compliance-driven investment, according to Construction World, June 2024, in the 'BHEL Secures Rs 35 Bn Order from Adani Power' article, Bharat Heavy Electricals Limited secured a major contract valued at over Rs 35 billion to supply and install Flue Gas Desulfurization (FGD) systems at Adani Power’s thermal facilities. Such orders illustrate how environmental mandates are translating into tangible revenue opportunities for technology providers.

Simultaneously, the sustained reliance on coal-fired power generation in emerging economies ensures robust demand volume for desulfurization units. Despite global decarbonization narratives, rapid industrialization in nations like India necessitates the continued expansion of thermal capacity, which subsequently requires emission control systems to mitigate air quality impacts. Underscoring 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 recorded a 10.18% growth in coal-based power generation from April to July 2024 compared to the same period in the previous year. This regional consumption aligns with the massive global scale of fossil fuel usage; according to the International Energy Agency, in 2023, worldwide coal demand reached an all-time high of 8.54 billion tonnes, guaranteeing a steady baseline for desulfurization infrastructure.

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Key Market Challenges

The high capital investment and ongoing operational costs associated with flue gas desulfurization systems present a primary obstacle to market expansion. Installing these systems involves substantial financial outlay, particularly for older power plants and industrial facilities that require complex retrofitting to accommodate new infrastructure. This economic burden is further aggravated by the recurring expenses related to maintenance, wastewater treatment, and byproduct disposal, which can strain the operating budgets of utility companies. Consequently, price-sensitive markets may delay compliance or extend the timelines for upgrading their emission control capabilities.

This hesitation to invest directly restricts the addressable market for technology providers. The scale of the sector grappling with these cost implications is extensive. According to the 'International Energy Agency', in '2024', 'global coal demand was forecast to increase to approximately 8.7 billion tonnes'. While this volume indicates a continued need for emission control, the associated financial weight of deploying desulfurization units forces many operators to prioritize cost-saving measures over immediate equipment procurement, thereby slowing the overall momentum of the industry.

Key Market Trends

The surge in flue gas desulfurization deployments within the iron and steel sectors represents a pivotal market shift, extending the technology's application beyond its traditional power generation base. This expansion is primarily propelled by aggressive industrial mandates in major manufacturing hubs, where governments are enforcing ultra-low emission standards on metallurgical facilities. This regulatory pressure forces steelmakers to retrofit sintering plants with advanced desulfurization units to ensure operational continuity. Underscoring 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 mandated that by the end of 2025, more than 80% of steel production capacity must complete ultra-low emission upgrades.

Simultaneously, there is an enhanced focus on high-quality synthetic gypsum recovery, transforming desulfurization from a compliance requirement into a circular economy enabler. Operators are increasingly adopting wet limestone-forced oxidation systems capable of producing commercial-grade gypsum, which is utilized as a raw material in the wallboard and cement industries to offset operational costs. This integration between pollution control and material supply is becoming a definitive market characteristic. Highlighting this trend, according to the U.S. Geological Survey, June 2025, in the 'Gypsum in the First Quarter 2025' Mineral Industry Survey, synthetic gypsum utilized was estimated to be 3.85 million metric tons, accounting for approximately 37% of the total gypsum supply in the United States.

Segmental Insights

The Wet FGD Systems segment is experiencing the most rapid growth in the Global Flue Gas Desulfurization Market due to its superior efficiency in removing sulfur dioxide and particulate matter. Strict emission mandates from regulatory bodies, such as the United States Environmental Protection Agency, compel power generation facilities to adopt these high-performance scrubbers to ensure compliance with air quality standards. Furthermore, the ability of wet systems to utilize cost-effective limestone reagents makes them economically viable for large-scale operations handling high-sulfur fuels. This widespread preference for reliable, high-capacity emission control drives the accelerated expansion of the wet scrubbing segment.

Regional Insights

North America holds a dominant position in the Global Flue Gas Desulfurization Market, driven primarily by stringent environmental mandates established by the United States Environmental Protection Agency. Policies such as the Clean Air Act and the Mercury and Air Toxics Standards require significant reductions in sulfur dioxide emissions from coal-fired power plants and manufacturing facilities. This rigorous regulatory framework compels utility operators to adopt effective desulfurization technologies to ensure operational compliance. Consequently, the continuous enforcement of these strict air quality standards fosters a sustained demand for emission control systems throughout the region.

Recent Developments

• In June 2025, Andritz received an order from Technische Betriebe Solingen to supply a new flue gas cleaning system for a waste-to-energy plant in Germany. The retrofit project involved the installation of the company's proprietary TurboSorp technology, which utilizes a circulating fluidized bed process to efficiently remove pollutants such as sulfur oxides and hydrogen chloride. This modernization aimed to extend the facility's service life and ensure full compliance with the country's stringent air quality regulations. The project highlighted the continued relevance of advanced dry sorption technologies in upgrading existing waste treatment infrastructure.
• In March 2025, Sumitomo SHI FW signed a contract with Fortum for a comprehensive decarbonization project at the Częstochowa combined heat and power plant in Poland. The scope of the agreement included the modernization of a Circulating Fluidized Bed (CFB) boiler to utilize renewable biomass fuel and the delivery of an upgraded flue gas cleaning system. This project was designed to radically reduce the plant's carbon dioxide and other pollutant emissions, aligning with the operator's sustainable development strategy. The initiative represented a significant step in the transition from coal to renewable energy sources within the region's heating sector.
• In June 2024, Bharat Heavy Electricals Limited (BHEL) secured a substantial order valued at over Rs 35 billion from Adani Power to supply and install Flue Gas Desulfurization (FGD) systems. The contract mandated the deployment of these critical emission control technologies across the customer's thermal power plants located in India to ensure compliance with stricter environmental norms. This project underscored the company's leading role in the domestic market for upgrading power generation infrastructure with cleaner technologies. The execution of the order was expected to significantly reduce sulfur dioxide emissions from the coal-based power generation units.
• In April 2024, Babcock & Wilcox (B&W) was awarded a contract valued at approximately $15 million to supply advanced environmental equipment for an industrial facility in the Middle East. The project scope required the company's environmental segment to design and manufacture technologies specifically aimed at reducing emissions, including sulfur dioxides, nitrogen oxides, and particulate matter. This agreement highlighted the growing demand for the company's emissions control solutions in the region, encompassing systems for cooling, ash handling, and gas treatment. The equipment was intended to help the facility meet stringent environmental regulations and improve its operational sustainability.

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

By Type	By End-User Industry	By Installation	By Region
Wet FGD Systems Spray Dry FGD System Dry & Semi-dry FGD Systems	Power Generation Cement Chemical Iron and Steel Others	Greenfield Brown Field	North America Europe Asia Pacific South America Middle East & Africa

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