Flare Gas Recovery System Market Outlook:
Flare Gas Recovery System Market size was over USD 2.32 billion in 2025 and is projected to reach USD 4.61 billion by 2035, growing at around 7.1% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of flare gas recovery system is evaluated at USD 2.47 billion.
The global flare gas recovery system market is expected to experience significant growth due to the increasing awareness of clean energy and the need for environmental conservation. The market is driven by rising concerns about the harmful environmental impact of various industrial processes and carbon emissions. In the year 2022, CO2 emissions due to energy combustion increased by around 1.3 % or 423 megatons. The implementation of stringent regulations by various governments and organizations, coupled with the need for energy-efficient and cost-effective solutions, is expected to drive the market's growth further. These key factors are expected to result in a surge in demand for flare gas recovery systems, driving market growth over the forecast period.
Moreover, it is projected that flare gas recovery system market growth will rise in the long term due to growing importance of environment protection activities. In addition, the deployment of flared gas recovery systems in order to maximise energy efficiency is being sought by an increasing number of oil and gas companies. A number of enterprises are considering this a form of corporate social responsibility, which increases demand for the procedure.
Key Flare Gas Recovery System Market Insights Summary:
Regional Highlights:
- North America flare gas recovery system market is projected to capture a 44% share by 2035, driven by public concern for carbon emissions and adoption of gas recovery technologies.
- Europe market is expected to hold a significant revenue share by 2035, driven by increasing adoption of gas recovery systems due to environmental concerns.
Segment Insights:
- The oil & gas segment in the flare gas recovery system market is expected to hold a 42% share by 2035, attributed to the adoption of flare gas recovery systems in climate-compatible oil and gas production, enabling reuse of vent gases and improving safety.
- The oil & gas segment in the flare gas recovery system market is expected to hold a 42% share by 2035, attributed to the adoption of flare gas recovery systems in climate-compatible oil and gas production, enabling reuse of vent gases and improving safety.
Key Growth Trends:
- Growing applications in the end use sector
- Volatile Oil Prices
Major Challenges:
- High Installation Costs
- Lack of awareness
Key Players: Gardner Denver, Honeywell International Inc., MAN, So Energy, KASRAVAND Co., GENERON, CHEM Group MPR Services, LLC., MPR Associates, Inc., ZEECO, INC., Cosmo Engineering Co., Ltd.
Global Flare Gas Recovery System Market Forecast and Regional Outlook:
Market Size & Growth Projections:
- 2025 Market Size: USD 2.32 billion
- 2026 Market Size: USD 2.47 billion
- Projected Market Size: USD 4.61 billion by 2035
- Growth Forecasts: 7.1% CAGR (2026-2035)
Key Regional Dynamics:
- Largest Region: North America (44% Share by 2035)
- Fastest Growing Region: Asia Pacific
- Dominating Countries: United States, China, United Arab Emirates, Germany, Russia
- Emerging Countries: China, India, Japan, South Korea, Brazil
Last updated on : 11 September, 2025
Flare Gas Recovery System Market Growth Drivers and Challenges:
Growth Drivers
- Growing applications in the end use sector-The demand for power generation is on the rise, leading to an increase in applications in this field. This growth has created attractive prospects for the oil and gas industry in the global flare gas recovery system market. However, it's worth noting that the adoption of flare gas recovery systems is significantly impacted by government rules governing carbon emissions. These regulations have increased the need for more environmentally friendly solutions, leading to a rise in the use of flare gas recovery systems. The adoption of these systems has been further prompted by the increasing focus on reducing greenhouse gas emissions and reducing the carbon footprint. As a result, the adoption of these systems is expected to continue to grow in the coming years.
- Volatile Oil Prices- The oil industry has seen unpredictable fluctuations in the prices of oil, causing companies to seek ways to improve their operational efficiency and reduce costs. As a result, there has been an increased adoption of flare gas recovery systems, which help to capture and utilize gas that would otherwise be burned off as waste. This not only helps to reduce emissions, but also allows companies to generate additional revenue from the sale of the recovered gas.
- Rising Concern related to Energy Conservation - Flare gas recovery systems are an essential part of the oil and gas industry. They capture and utilize the gases that are usually burned off during oil production, helping to reduce the need for additional energy sources & energy storage systems. This process contributes significantly to energy conservation efforts, as it not only saves energy but also helps to reduce greenhouse gas emissions. The recovered gases can be used as fuel or sold on the flare gas recovery system market, making it a profitable and sustainable practice.
Challenges
- High Installation Costs- Flare gas recovery systems are essential for reducing greenhouse gas emissions and improving overall environmental sustainability. However, the upfront cost of installing such systems can be a significant barrier for small and medium-sized businesses, which may lack the necessary financial resources. Despite this challenge, investing in a flare gas recovery system can ultimately result in long-term cost savings and environmental benefits.
- Lack of awareness regarding the benefits and capabilities of flare gas recovery systems, hindering their adoption.
- Complexities, regarding technical expertise and maintenance, tend to be a barrier for some companies.
Flare Gas Recovery System Market Size and Forecast:
| Report Attribute | Details |
|---|---|
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Base Year |
2025 |
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Forecast Period |
2026-2035 |
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CAGR |
7.1% |
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Base Year Market Size (2025) |
USD 2.32 billion |
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Forecast Year Market Size (2035) |
USD 4.61 billion |
|
Regional Scope |
|
Flare Gas Recovery System Market Segmentation:
Application Segment Analysis
Oil & Gas segment is poised to hold 42% share of the global flare gas recovery system market by 2035. Flare gas recovery systems are widely used in climate-compatible oil and gas production. A flare gas recovery system is a crucial piece of equipment for safety and operation in crude oil refineries. This system helps to continually burn vent gases before evacuated in the atmosphere. Also, it is significantly adopting O&G applications for reused gas in furnaces, turbines, and Heat Exchangers.
Operating Pressure Segment Analysis
Up to 5 bar operating pressure segment in the flare gas recovery system market is expected to hold the majority revenue share over the forecast period. The 5 bar operating pressure systems are designed for the recycling of methane and Lpg gas, as well as efficient transfer into storage tanks. To prevent gas from catching fire directly, the process involves several analyzers. This system has been implemented by several chemical industries to reduce and control greenhouse gas emissions, as well as save operating costs. In addition, the operation of a 5-bar operating pressure system requires less maintenance.
Our in-depth analysis of the global flare gas recovery system market includes the following segments:
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Application |
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Operating Pressure |
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Capacity |
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Type |
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Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Flare Gas Recovery System Market Regional Analysis:
North American Market Insights
North America is estimated to hold around 44% share of the flare gas recovery system market by 2035. This can be attributed to the growing public consciousness of carbon emissions and the importance of environmental protection. In addition, the rapid implementation of flare gas recovery systems for power production applications is expected to fuel this expansion further. As a result, there is a significant increase in demand for eco-friendly technologies and sustainable solutions shortly.
European Market Insights
European flare gas recovery system market is poised to hold a significant revenue share. Flare gas recovery systems are primarily used in the oil and gas industry during production, refining, and other processes to capture gas that would otherwise be burned or released into the atmosphere. They are also known as flare gas utilization systems. The increase in greenhouse gas emissions and other pollutants caused by flaring has prompted companies in Europe to adopt flare gas recovery systems. Flaring leads to environmental issues such as air pollution and climate change. To mitigate these problems, companies are increasingly using flare gas recovery systems to capture and redirect flare gas to more productive uses. This trend will drive steady growth in the Europe flare gas recovery system market.
Flare Gas Recovery System Market Players:
- Koch Industries, Inc
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Gardner Denver
- Honeywell International Inc.
- MAN
- SoEnergy
- KASRAVAND Co.
- GENERON
- CHEM Group MPR Services, LLC.
- MPR Associates, Inc.
Recent Developments
- The newly constructed Enclosed Ground Flare (EGF) at the ExxonMobil Fife Ethylene Plant has become officially operational. The confined nature of the flame in the new unit sets it apart from the high flares that are currently in place at Mossmorran. The unit doesn't require a lot of steam to function because it is made to run entirely smokeless. When combined, these technologies greatly lessen the occasional light, noise, and vibration that come with the present flares.
- The market's leading creator of the most efficient and cost-effective carbon dioxide (CO2) capture technology, ION Clean Energy, and Koch Engineered Solutions (KES) have signed a comprehensive strategic cooperation agreement.
- Report ID: 5431
- Published Date: Sep 11, 2025
- Report Format: PDF, PPT
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