According to the latest research report titled "Scrubber Systems Market Forecast to 2028 - COVID-19 Impact and Global Analysis," published by The Insight Partners, the market is expected to grow from US$ 1,316.0 million in 2021 to reach US$ 2,989.2 million by 2028; it is estimated to grow at a CAGR of 12.4% from 2021 to 2028.
Rapid Industrialization in Developing Economies to Drive Market During Forecast Period
The rapid industrialization in developing economies is creating a lucrative opportunity for scrubber system manufacturers to augment their market share. The growing industrial activities in developing economies such as China, India, Brazil, and Vietnam result in more plants and factories in various industries. In this rapid industrialization era, the developing economies are witnessing a surge in new production facilities or capacities of the manufacturing industries such as cement, glass, petrochemicals and chemicals, oil & gas, food & beverages, pharmaceuticals, mining & metallurgy, and pulp & paper. For instance, China's National Bureau of Statistics (NBS) has reported a 1.6% year-on-year rise in cement production to 2.377 billion tons for 2020. Also, the country is witnessing constructions of 3,203 cement factory projects, which started in December 2020, with a total investment of US$ 415.6 billion.
The outbreak of COVID-19 in North America, especially in the US and Canada, led to the imposition of lockdown measures, thereby affected many industries' businesses, including oil & gas, marine, and manufacturing. The lockdown resulted in a considerable decline in global oil prices, which further restricted the oil & gas-related projects. Hence, scrubber systems manufacturing companies faced revenue loss and slow growth in 2020. The shutdown of manufacturing industries due to the COVID-19 pandemic hampered the operations of various industries, which has negatively impacted the market. Moreover, due to the governments' social distancing norms to contain the spread of COVID-19 viruses, many companies from North America have started their operations virtually. Thus, the lower production rate in 2020 further reduced the demand for scrubbers in the manufacturing industry. However, the market is expected to grow gradually from 2021 onward as several oil & gas exploration and production (E&P) companies have started discovering new oil rigs in the Gulf of Mexico. This development is expected to boost the demand for scrubber systems. The marine industry in the US is already facing a decline, and COVID-19 has further accelerated its downfall. A decrease in marine transportation and new shipbuilding activities may reduce the demand for scrubbers in North America.
Several companies have adopted different strategies to continue their operations and increase their annual sales statistics. Verantis reported that it would continue to develop innovative offerings and technologies to support environmental control solutions, with a pending patent for an improved method of gas scrubbing. Wärtsilä will be supplying customized hybrid scrubber system packages to Norwegian Getaway and Norwegian Breakaway. This will enable both ships to comply with the IMO sulfur restriction legislation.
Key Findings of Study:
The global scrubber systems market is segmented into five major regions-North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). The scrubber system market in Europe is subsegmented into France, Germany, Russia, Italy, the UK, and the Rest of Europe. Compared to the Nordic and Eastern European countries, Western European countries are more developed and technologically advanced. The European Union's (EU) increasingly stringent policies to observe the numerous constituents of air are anticipated to propel the growth of the scrubber system market. Also, despite the EU proposals, all member states of the IMO approved scrubbing system technology as an accepted compliance method. According to European exports, Germany is one of the significant countries that deployed marine scrubbers in long voyage vessels.
Furthermore, the rise in government investments & funding to strengthen national security by deploying advanced shipping lines leads to the development of advanced vessels, encouraging industry growth. Developing economies and increasing investments toward the shipping and trade industry development are significantly driving the market.
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