The European market for VOC emission control equipment

Citation

(1998), "The European market for VOC emission control equipment", Pigment & Resin Technology, Vol. 27 No. 6. https://doi.org/10.1108/prt.1998.12927faf.005

The European market for VOC emission control equipment

The European market for VOC emission control equipment

Keywords Emissions, Europe, Legislation

The legislative requirements for reducing VOC emissions represent the most significant driver in the European VOC control equipment market. There are no economic benefits to be gained from installing end-of-pipe VOC equipment, and such equipment is mostly installed merely to comply with legislative requirements. EU requirements have been implemented through national legislation and in many countries air pollution emission standards are consistently increasing.

According to a new study by Frost & Sullivan, the international marketing consulting company, the increasingly fierce competition experienced in the VOC control equipment market from both suppliers and alternative abatement techniques puts greater emphasis on the provision of efficient and innovative equipment. Issues expected to impact VOC abatement in the future include price, technological development, increased consumer purchasing power and dominance of integrated system providers.

New technologies and equipment with a solvent recovery capability will be a significant stimulus for growth in the European VOC emission control equipment market, driving revenues from US$354.3 million in 1997 to US$520.2 million by 2004 (Figure 2).

According to Louise Pitts, research analyst at Frost & Sullivan, Germany currently accounts for the largest share of the overall European VOC emission control equipment market. This market is very mature and most large applications now comply with regulatory requirements. The potential for revenue growth will be limited by the increased focus on upgrades and retrofits rather than the installation of large scale new installations.

These factors will all contrive to reduce Germany's dominance of the total European VOC control equipment market by 2004.

This will effectively make Germany the second largest market at the close of the forecast period with the UK and Ireland accounting for the largest share.

Thermal incineration is the most dominant of the six product types under review in Frost & Sullivan's study, followed by adsorption and catalytic oxidation.

By virtue of their slow emergence and wide range of potential applications, biological and condensation treatments should experience faster growth towards the end of the forecast period, with thermal incineration and adsorption forecast to remain dominant, adds Mathew Wheatley, joint author of the study.

Figure 2 The European market for VOC control equipment (percentage of revenues by equipment type ­ forecast for the year 2004)

Market maturity has driven the demand for new and substitution equipment in the western European market. A number of new technologies have evolved including flameless thermal oxidation (FTO) which is non-catalytic and provides lower running costs, a microwave energised plasma technique which operates at low gas flow rates and the use of clays as an alternative to activated carbon. The advantages of such equipment include lower running costs, cheaper effluent disposal costs and increased efficiency of operation.

The largest application for VOC control equipment in 1997 was the painting and coatings sectors. In the long run, demand from these applications will be increasingly constricted because of the significant use of oil-free and low-solvent paints and coatings.

Price decreases have been primarily driven by increased competition, end-user demand, improved efficiency of manufacture and technological development. Many companies have successfully utilised competitive pricing strategies to penetrate both geographic and technological markets.

The level of competition experienced in the VOC control equipment market in western Europe has resulted in end-users having significantly increased purchasing power. Key attributes required by end-users include the design and supply of customised, cost-effective solutions with low maintenance and lower running costs. Suppliers are also under pressure to provide complete service packages including all equipment, technical assistance, after sales capability and a degree of innovation.

The leading contenders in the western European market have achieved success by providing an integrated approach to VOC abatement. Of note are the German companies Eisenmann, KEU, Duerr, in addition to MEGTEC and the UK-based Haden Drysys.

End-user demand for a broad range of technologies, solvent recovery and additional services will increase. Therefore, suppliers unable to meet these demands will likely lose market share, Frost & Sullivan's study concludes.

Frost & Sullivan is an international marketing consulting company that monitors a comprehensive spectrum of high-tech markets, including the environmental industry for market trends, market measurements and strategies. This ongoing research is utilised to complement a series of research publications such as the European Water and Wastewater Treatment Equipment Markets (3122) to support industry participants with customised consulting needs. Free executive summaries of all Frost & Sullivan reports are available to the press.

For further information contact Frost & Sullivan.Tel.+44 (0) 171 915 7824; Fax: +44 (0)171 730 3343.