Thermal air pollution control equipment market growth concentrated in certain industries and markets
In the 1990s the market for thermal air pollution control equipment soared. Europe and the U.S. spent billions for thermal, catalytic, and regenerative oxidizers. These devices were primarily sold to destroy VOCs emitted from surface coating and printing operations. Today the market in these countries for these applications is much smaller. The result has been the demise of some of the biggest names in the business, e.g. Smith. On the other hand, new applications have developed and the Asian market for all applications is starting to grow. The result is a different but still attractive market. This is the conclusion reached by the McIlvaine Company in its online Thermal/Catalytic World Air Pollution Markets.
By 2007 the market for installed systems will be $2.3 billion, up modestly from 2003. Supplier share of that market will be $920 million or 40 percent. Surface coating will no longer be the dominant sector. In fact, with projected revenues of $120 million, the semiconductor industry will be as large a market as surface coating. The semiconductor industry has recently turned around and is projected to grow substantially over the next four years. Each large semiconductor plant has hundreds of wafer processing steps where toxic gases must be captured and destroyed.
The market for reduction of emissions from ethanol plants is growing at double-digit rates. VOC emissions from U.S. ethanol plants are much higher than originally anticipated. As a result, some 75 plants in the U.S. have triggered New Source Review and are installing best available control technology (BACT). This is an immediate market of $75 million for regenerative thermal oxidizers, catalytic, or direct fired thermal oxidizers. Since the industry is expanding, there will be an ongoing market as well. Energy legislation before Congress would boost the use of ethanol and trigger another spurt in construction of ethanol plants.
Most of the system suppliers are small. A few of the larger ones such as Durr and MEGTEC furnish the systems which create the VOCs as well the thermal systems. The suppliers of the catalysts are larger companies such as Engelhard, Johnson Matthey, Haldor Topsoe, Sud Chemie, and Hitachi Zosen. Regenerative oxidizers continue to be the leading product segment due to their lower energy consumption. A new category with the label of regenerative catalytic oxidizer has not achieved the anticipated growth and is relegated to a minor position.
Asia is the growth region for thermal air pollution control equipment. Most of the world’s most polluted cities are in Asia. Taiwan, South Korea, and certain of the wealthier regions in Asia are already moving forward to reduce VOC emissions. China remains the largest potential market. The largest semiconductor growth will be in China. So will growth in the chemical industry. China already produces three million cars per year and expects output to grow at double-digit rates. These applications alone will make an attractive thermal treatment market in China.
For more information on Thermal/Catalytic World Air Pollution Markets click on: http://www.mcilvainecompany.com/air.html#N007 .
Bob McIlvaine
847-784-0012