The market for FGD gypsum is projected to expand from US$ 2,298.56 million in 2022 to US$ 3,207.00 million by 2030, reflecting a compound annual growth rate (CAGR) of 4.3% during the period from 2022 to 2030.
Flue gas desulfurization (FGD) gypsum is utilized in a variety of applications, including the production of wallboard or drywall, as a set retarder in cement, as a soil amendment in agriculture, and as a water clarification agent in treatment processes. Its widespread availability, along with its favorable chemical and physical properties, has contributed to its popularity. The surge in construction and development activities has significantly boosted the demand for FGD gypsum.
The global FGD gypsum market is experiencing robust growth and is anticipated to maintain this upward trend in the years ahead. FGD gypsum is a by-product of the flue gas desulfurization process employed in coal-fired power plants, which is essential for reducing sulfur dioxide (SO2) emissions to meet environmental standards. This by-product serves as a valuable alternative to natural gypsum across various applications. The construction industry is a primary consumer of FGD gypsum, utilizing it in the manufacture of plasterboard and cement. The implementation of stringent environmental regulations and emission standards has compelled power plants to adopt FGD systems, leading to an increase in the production of FGD gypsum. As development and construction activities continue to rise, the market for FGD gypsum is expected to grow further.
The global FGD gypsum market is categorized by application into several segments: wallboard/drywall, cement, agriculture, water treatment, and others. In 2022, the wallboard/drywall segment dominated the market, holding the largest share. Wallboard, also known as drywall, is a construction material that serves as an alternative to traditional brick or stone walls. FGD gypsum is extensively used in the production of wallboards and drywalls within the construction sector, acting as a core component in gypsum-based drywall panels. The core of these panels provides structural integrity while remaining lightweight. Additionally, FGD gypsum contains a small amount of calcium sulfate hemihydrate, which enhances its fire-retardant properties. The consistent quality and purity of FGD gypsum make it particularly advantageous for drywall manufacturing. Manufacturers of wallboard and drywall have increasingly turned to synthetic gypsum, such as FGD gypsum, as a viable substitute for natural gypsum. The growing activities in construction and renovation worldwide are driving the demand for drywall products.
In 2022, the Asia Pacific region accounted for the largest share of the global FGD gypsum market. Key factors contributing to the growth of this market in Asia Pacific include the rising installation of FGD systems in coal power plants and an upsurge in construction activities. According to a report from the International Energy Agency in 2022, the Chinese power sector is responsible for one-third of global coal consumption, which saw a significant increase in 2021 due to heightened electricity demand. Furthermore, countries in Southeast Asia, such as Indonesia and Vietnam, are planning to expand their coal-based power generation. The Indonesian Ministry of Energy and Mineral Resources has outlined plans to increase coal power capacity by 27 Gigawatts (GW) in its Electricity Supply Business Plan (RUPTL) for 2019-2028. However, stringent government regulations regarding emissions from coal power plants have necessitated the installation of Flue Gas Desulfurization (FGD) systems to convert flue gases into FGD gypsum. The Chinese government has implemented various policies, including on-grid tariff premiums and operational priorities for power plants equipped with scrubbers, to encourage the adoption of FGD systems.
Key players in the global FGD gypsum market include Georgia-Pacific LLC, Cez Energeticke Produkty SRO, EP Power Minerals GmbH, CASEA GmbH, Holcim Ltd, Knauf Gips KG, Travancore Titanium Products Ltd, Compagnie de Saint-Gobain SA, American Gypsum Co. LLC, and National Gypsum Co. These companies are focused on delivering high-quality products to meet customer needs. They are also pursuing strategies such as investing in research and development and launching new products to enhance their market presence.
The overall size of the global FGD gypsum market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews were conducted with industry participants to validate the findings and gain deeper analytical insights. Participants included industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the FGD gypsum market.