The global air pollution control equipment market should grow significantly once utility, oil and gas companies comply with increasingly stringent environmental regulations such as the EPA’s Maximum Achievable Control Technology rules, according to research by business consulting firm Frost & Sullivan.
Analysis of the Global Air Pollution Control Equipment in Energy and Power Market finds that the market earned revenues of $7.27 billion in 2010 and estimates this to reach $9.69 billion in 2017.
According to the report, the EPA’s MACT rules will compel pollution control equipment providers to reevaluate products to fulfill emission regulations. Planned projects between 2012 and 2013 are likely to be delayed until 2014, the report says.
Increased market saturation due to the influx of solution providers from Asia will also affect the market. These companies are looking to penetrate the retrofit market by offering equipment at competitive prices, Frost & Sullivan says. This will increase price competition within regions and will result in a significant number of mergers and licensee partnerships between local solution providers and foreign companies, the report says.
In July, Duke Energy Ohio threatened to decommission all six coal-fired generation units at a plant near Cincinnati, by Jan. 1, 2015, unless changes are made to MACT regulations. Duke plans to retire the coal-fired units at the nearly 60-year-old W.C. Beckjord Station, saying that changes to make the units MACT-compliant would prove too costly.