Oxy-fuel Combustion Technology Market is expected to reach US$ 1,056.23 Million by 2031

Increasing Government Initiatives and Emphasis on Environmental Regulations to Decrease Air Pollution Boost Oxy-fuel Combustion Technology Market Growth

According to our latest market study on "Oxy-fuel Combustion Technology Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Offerings and Industry," the market was valued at US$ 589.89 million in 2024 and is anticipated to reach US$ 1,056.23 million by 2031; it is estimated to register a CAGR of 8.94% during 2025–2031. The report includes growth prospects in light of current oxy-fuel combustion technology market trends and driving factors influencing the market growth.

Air pollution is one of the most severe health and environmental issues across the world, particularly in low-income countries. Many of the leading causes of death, such as heart disease, stroke, lower respiratory infections, lung cancer, diabetes, and chronic obstructive pulmonary disease, are linked to air pollution. According to the World Health Organization (WHO), in 2024, ambient air pollution caused ~7.0 million premature deaths worldwide, up from ~4.2 million cases recorded in 2019; 89–90% of these premature deaths occurred in low- and middle-income countries. The WHO also stated that ~2.4 million premature deaths were recorded due to household air pollution in 2024. Low-income countries have high indoor pollution rates due to their reliance on solid fuels for cooking. On the other hand, outdoor air pollution increases with the ongoing industrialization and efforts being made to move from low- to middle-income status.

Oxy-fuel Combustion Technology Market Analysis – by Geography, 2024

Source: The Insight Partners Analysis

Several initiatives have been taken by local and federal government bodies worldwide over the years to minimize hazardous industrial air disposal. For instance, enacted in 1981, the Constitution of India laid a framework for the prevention, control, and abatement of air pollution in the country. The Air (Prevention and Control of Pollution) Act empowers the Central and State Pollution Control Boards to set and enforce air quality standards, monitor pollution levels, and take essential actions against violators. In January 2019, the National Clean Air Programme (NCAP) was launched by the Central Government of India under the Central Sector Scheme – Control of Pollution, as a long-term, time-bound national strategy to address the country's air pollution problem comprehensively. In September 2022, the Government of India also announced setting a new target of a 40% reduction in particulate matter concentration in cities covered under the NCAP by 2026. In 2018, the government issued a Comprehensive Action Plan to identify timelines and implement agencies for actions aimed at preventing, controlling, and mitigating air pollution in the Delhi National Capital Region (NCR). In addition, the SAMEER app was launched to provide information on air quality and allow people to file complaints about air pollution.

The scope of the oxy-fuel combustion technology market report focuses on North America (the US, Canada, and Mexico), Europe (the UK, Germany, France, Italy, Russia, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), Middle East and Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East and Africa), and South America (Brazil, Argentina, and the Rest of South America). Europe registered significant oxy-fuel combustion technology market share in 2024 and is expected to register a CAGR of 8.80% during the forecast period. In Europe, CO2 emissions from the combustion of fossil fuels in power plants account for ~30% of overall CO2 emissions in the EU. Due to raw material conversion, process industries such as cement, iron & steel, aluminum, pulp & paper, and refineries emit CO2. According to the Massachusetts Institute of Technology, CCS technologies targets to trap approximately ~90% of CO2 emissions from power plants and heavy industry before transporting it by pipeline or ship and safely storing it ~800 meters beneath the Earth's surface. The rising demand for large-scale CCS projects in Europe is influencing the growth of the oxy-fuel combustion technology market share in the region. Europe is leading the way in adopting oxy-fuel combustion technology, driven by ambitious climate targets and a strong focus on sustainability. The European Union’s carbon pricing mechanisms incentivize industries to reduce emissions through innovative technologies.

Although renewable energy is becoming prevalent, fossil fuels are expected to play a significant role in Europe in the short and medium term. CO2 emissions from fossil fuel combustion in power generation account for roughly 30% of total CO2 emissions in the European Union (EU). The process industries, such as cement, iron & steel, aluminum, pulp & paper, and refineries, emit CO2 because of raw material conversion. Carbon capture and storage (CCS) technologies seek to capture up to 90% of CO2 emissions from power plants and heavy industries before transporting it by pipeline or ship and securely storing it at least 800 meters below the Earth's surface.

CCS initiatives have benefited from research and development and demonstration funding mechanisms at the EU and national levels. With the following projects in progress, the Joint Research Centre (JRC) has contributed to European Commission CCS-related policy initiatives:

• In collaboration with European Geological Surveys, the first EU CO2 storage atlas was developed.
• The JRC is also involved in infrastructure evaluations and the economic and environmental impacts of CO2 use.

The governments are working on reducing greenhouse gas emissions by establishing initiatives. Through the 2030 Climate Target Plan, the European government aims to cut greenhouse gas emissions by 50–55% by 2030, further intending to achieve climate neutrality by 2050. The plan aligns with the objectives set by the Paris Agreement to keep the global temperature increase below 2°C, further pursuing to keep it to 1.5°C. Thus, the above initiatives and plans by the European governments boost the oxy-fuel combustion technology market growth.

The government of Germany announced that it would set up a CCS program in its Climate Change Programme 2030, which was approved in the autumn of 2019. The government also stated that most studies indicate that technology is necessary for achieving greenhouse gas neutrality by 2050. The Federal Institute for Geosciences and Natural Resources (BGR), in cooperation with state agencies, assesses the geological conditions in Germany so that the government can determine the potential for carbon storage. In January 2023, the German government announced it aims to create legislation to enable carbon storage and reduce emissions by 65% in 2030 compared with 1990 levels. The nation is home to many energy-intensive industries that aim to reduce emissions to net zero by 2045.

The manufacturing industry, a subset of the broader industrial domain, accounts for a substantial portion of the overall GDP. The GDP from manufacturing increased from US$ 195 billion in Q4 2024 to US$ 198.12–199.1 billion (EUR 171.98 billion) in the first quarter of 2025. The soaring development in the industrial and manufacturing sector is fueling the demand for more environment-friendly operations, which is boosting the growth of the oxy-fuel combustion technology market in Germany.

Falorni Gianfranco SRL, Messer SE & Co KGaA, Heidelberg Materials AG, Jupiter Oxygen Corp, Encon Thermal Engineers Pvt Ltd, ESA SpA, Babcock & Wilcox Enterprises Inc, Linde Plc, and L’Air Liquide SA are among the key players profiled in the oxy-fuel combustion technology market report. Other major players were also studied and analyzed in the report to get a holistic view of the market and its ecosystem. The oxy-fuel combustion technology market forecast can help stakeholders plan their growth strategies. The market analysis provides detailed market insights, which help the key players strategize their growth.

Contact Us

Phone: +1-646-491-9876
Email Id: sales@theinsightpartners.com