The oxy-fuel combustion technology market size was valued at US$ 589.89 million in 2024 and is expected to reach US$ 1,056.23 million by 2031; it is estimated to record a CAGR of 8.94% from 2025 to 2031.

Oxy-fuel combustion technology is transforming the overall performance of heavy industries by enabling lower emissions and improved energy efficiency through continuous carbon capture technology integration. In the steel industry, oxy-fuel combustion technology helps in decarbonizing blast furnaces. It involves substituting air with ~95% pure oxygen, lowering nitrogen dilution, and producing a concentrated CO? stream for capture. In July 2022, Taiyo Nippon Sanso Corporation (TNSC) announced that it was working on reducing greenhouse gas and CO2 emissions in industrial furnaces through oxygen combustion technologies. Nippon Steel is vigorously pursuing the COURSE50 project, whose goal is to significantly decrease CO2 emissions from blast furnaces by substituting carbon with hydrogen-rich gases. This initiative is a significant part of the company's Carbon Neutral Vision 2050. It includes developing technologies for injecting hydrogen into blast furnaces and exploring other innovative methods, thereby initiating high-grade steel production in electric arc furnaces alongside directing the hydrogen reduction of iron. The company is thus exploring the application of oxy-fuel combustion technology, which encompasses using oxygen instead of air in the blast furnace, potentially reducing CO2 emissions. Oxy-fuel combustion is the process of combusting hydrocarbon fuel in a nearly pure oxygen environment. Instead of using nitrogen to control the temperature, a part of the flue gas is used to dilute the oxygen.

In coal-fired power plants, oxy-fuel combustion technology is employed with the primary goal of producing flue gas with extremely high CO2 and water vapor concentrations, allowing the CO2 to be separated or captured from the flue gas using low-temperature dehydration and desulfurization processes. Thus, reduced NOx emissions, high CO2 purity, and lower gas volumes due to increased density are a few outcomes of oxy-fuel combustion technology benefiting the metal and power generation plants. Oxy-fuel combustion is one of the prominent methods available in the market for cost-effective, technically feasible carbon capture. The most common oxy-fuel process involves burning pulverized coal in nearly pure oxygen (purity greater than 95% and up to 99%) mixed with recycled flue gas. Thus, the reduction in emissions of industrial gases such as carbon dioxide and nitrous oxide is adding to the popularity of oxy-fuel combustion technology in industries such as manufacturing, metal and mining, oil and gas, and power generation.

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 oxy-fuel combustion technology market players that are profiled in this market study.

The overall oxy-fuel combustion technology market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the Oxy-fuel combustion technology market size. The process also helps obtain an overview and forecast of the market with respect to all the market segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights. This process includes industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the oxy-fuel combustion technology market.