Air Pollution Control Equipment Services, Coal

22B air pollution control market predicted

Issue 11 and Volume 100.

22B air pollution control market predicted

More than $22 billion will be spent on air pollution control systems, parts and services between July 1, 1996, and June 30, 1997, according to The McIlvaine Co.`s Air Pollution Management Report. The report predicts the Americas segment will spend $6.4 billion, the Europe-CIS-Africa segment will spend $7.7 billion and Asia, the biggest spender, will top $8 billion. According to McIlvaine, during the last decade, purchases of gas phase contaminant removal equipment have increased much more rapidly than have purchases of particulate control equipment. In the 12 months analyzed, it is predicted the trend will continue worldwide with $6.8 billion allocated to particulate control and almost $11 billion spent for elimination of NOx, SOx, volatile organic compounds (VOC) and acid gases. Electrostatic precipitators are forecast to be the most popular equipment selection primarily due to purchases in the Asian sector.

Fifty-eight percent of the $3.9 billion slated for electrostatic precipitators will be spent in the Asian region. By contrast, the report states that purchase of precipitators in the Americas will account for only 18 percent of the total. Europe-CIS-Africa segment is expected to invest nearly $4 billion in gas phase contaminant reduction. Scrubbers and absorbers to remove acid gasses and VOCs will account for 37 percent ($1.5 billion) of the total spent. Another 33 percent ($1.35 billion) will be invested in NOx and SOx reduction systems, while the remaining 30 percent ($1.15 billion) will be invested in thermal and catalytic air treatment systems, according to the report. The worldwide air consulting segment will account for slightly more than 10 percent of the total revenues–$2.6 billion. The report points out, however, that this segment represents a big portion of the value added in the air pollution sector. Since there are few outside purchases, most air consulting revenues consist of value added by the consultant. In contrast, most of the revenue in flue gas desulfurization (FGD) system sales comes from the purchase and resale of components such as pumps and packing. Therefore, the value added and profitability of secondary suppliers represents a substantial portion of the total.

A single, large FGD contract may result in as many as 100 subcontracts. This division of the large contracts to many subcontractors plus the substantial portion of the industry represented by very small companies results in an industry comprised of large numbers of small suppliers. The report states that these 70,000 companies average $300,000 in revenues and employ 700,000 air pollution control workers, making air pollution control a significant industry worldwide. More information on the forecast is available at (847) 272-0010.