China Flue Gas Desulfurization Market Overview, 2031

Key Insights

• According to the research report, "China Flue Gas Desulfurization Market Outlook, 2031," published by Bonafide Research, the China Flue Gas Desulfurization Market is anticipated to add to more than 2368.11 Million by 2026-31.
• China has built the world's largest Flue Gas Desulfurization (FGD) market on the back of its extensive coal-fired power generation capacity and long-standing efforts to improve air quality. Over the past two decades, the country has developed a strong domestic manufacturing base for desulfurization equipment and achieved widespread deployment of FGD systems across thermal power plants. Today, demand is increasingly supported by emission-control investments across steel, cement, coking, and chemical industries, making China the Global benchmark for FGD deployment and manufacturing.
• FGD systems are now installed across almost the entire fleet of China's coal-fired power plants following years of nationwide ultra-low emission retrofitting. Limestone-gypsum wet FGD remains the preferred technology because of its high sulfur dioxide removal efficiency and proven performance in large utility boilers. As most power plants have already completed initial installations, As most power plants have completed initial installations, demand is increasingly centered on modernization, lifecycle upgrades, and long-term maintenance.
• China's steel industry continues to strengthen its environmental performance through large-scale investments in ultra-low emission technologies. Steel producers are upgrading sintering plants, coke ovens, and blast furnace operations with advanced desulfurization, denitrification, and dust collection systems to comply with tightening environmental requirements. At the same time, stricter emission standards for the coking industry are expected to support additional demand for flue gas treatment technologies over the coming years.
• China's cement industry is the next major frontier for FGD deployment. By 2025, nitrogen oxide treatment equipment installation rates in the cement sector reached significant levels, with desulfurization penetration substantially lower. Multiple provincial governments have mandated that cement production lines achieve ultra-low emission retrofitting by 2026–2028, creating substantial growth opportunities for FGD technologies in the non-power sector.
• China's FGD market has entered a more mature stage of development as large-scale installation projects across the power sector reach completion. While new thermal power projects continue to create demand, future growth will increasingly come from equipment modernization, operational optimization, aftermarket services, and industrial retrofit projects across sectors such as steel, cement, coking, and chemicals.

Market Outlook

• China's FGD market is gradually moving from rapid capacity expansion toward long-term asset management. As most coal-fired power plants have already completed ultra-low emission retrofits, future opportunities are expected to be driven by equipment refurbishment, operation and maintenance services, emissions monitoring, and retrofit projects across industrial facilities. Continued environmental regulations and industrial modernization programs will support steady demand for advanced flue gas treatment technologies.
• Power generation will remain the largest application for FGD systems in China because coal continues to play an important role in the country's electricity mix. Although most coal-fired generating units are already equipped with desulfurization systems, operators continue investing in equipment upgrades, efficiency improvements, emissions monitoring, and lifecycle maintenance. New thermal power projects also continue to incorporate advanced FGD systems during plant construction.
• China's cement industry is becoming one of the most promising growth areas for FGD technologies outside the power sector. Provincial governments continue introducing ultra-low emission requirements for cement production facilities, encouraging manufacturers to upgrade existing plants with integrated systems for sulfur dioxide, nitrogen oxide, and particulate control. These environmental investments are expected to generate sustained demand for flue gas treatment equipment over the coming years.
• China's steel industry continues to invest in environmental upgrades even after significant progress in ultra-low emission retrofitting. Producers are modernizing sintering plants, blast furnaces, coke ovens, and other high-emission operations to improve environmental performance and operating efficiency. These projects continue to support demand for replacement equipment, process optimization, and advanced flue gas treatment systems.
• The large installed base of FGD systems is creating a sizeable aftermarket for inspection, spare parts, refurbishment, automation upgrades, emissions monitoring, and predictive maintenance services. Digital technologies such as AI-based process optimization and continuous emissions monitoring are increasingly being integrated into plant operations to improve reliability and reduce operating costs.
• China has developed one of the world's strongest manufacturing ecosystems for flue gas desulfurization equipment, supported by extensive engineering expertise and a well-established domestic supply chain. Chinese companies continue supplying FGD technologies to overseas power generation and industrial projects across Asia, the Middle East, and other developing regions. Their competitive manufacturing capabilities and large project experience continue to strengthen China's position in the Global environmental equipment industry.

Policies & Regulatory Landscape

• In September 2025, the Ministry of Industry and Information Technology and four other ministries jointly issued the "Steel Industry Stable Growth Work Plan (2025-2026)", mandating the comprehensive completion of steel industry ultra-low emission retrofitting by the end of 2025. By the end of 2025, hundreds of enterprises had completed full-process ultra-low emission retrofitting, accounting for a significant majority of total crude steel capacity. The industry's cumulative investment has been substantial.
• New emission standards for China's coking industry took effect on April 1, 2025, with existing facilities granted a two-year transition period until January 1, 2027. The standards are expected to reduce particulate matter emissions, SO₂, NOx, and VOCs substantially. This regulatory requirement will drive FGD and desulfurization technology adoption across China's coking sector.
• In December 2025, the Ministry of Industry and Information Technology and the Ministry of Ecology and Environment jointly issued the 2025 edition of the "National Catalogue of Encouraged Major Environmental Protection Technology Equipment", promoting advanced environmental protection technologies including multi-effect integrated flue gas purification systems.
• Since 2004, China has progressively introduced desulfurization electricity pricing, denitrification electricity pricing, dust removal electricity pricing, and ultra-low emission electricity pricing, collectively known as environmental protection electricity pricing. These policies have driven rapid installation and effective operation of air pollution control equipment at coal-fired power plants, effectively promoting SO₂, NOx, and particulate matter emissions reductions.
• Provincial governments have established binding targets for industrial emission reductions. Multiple provinces have mandated cement clinker production lines to complete ultra-low emission retrofitting by specific deadlines. Provincial governments are issuing dedicated desulfurization, denitrification, and carbon reduction subsidy policies, offering electricity price preferences and carbon quota incentives to enterprises adopting low-carbon technologies, creating a policy structure of "national standards as baseline, local governments adding additional requirements, and incentives guiding behavior.

FGD Procurement & Industry Impact

• Procurement activity in China's FGD market is increasingly centered on modernization projects, retrofit programs, and long-term maintenance contracts rather than first-time installations. Demand remains strong across power generation, steel, cement, coking, and chemical industries, where plant operators continue investing in equipment upgrades, automation, emissions monitoring, and lifecycle support to maintain regulatory compliance and improve operational performance.
• New ultra-supercritical coal-fired power projects commissioned during 2025 continued to incorporate advanced limestone-gypsum wet FGD systems as standard environmental equipment, sustaining procurement opportunities for EPC contractors and equipment suppliers.
• China's cement industry represents the most significant emerging procurement opportunity for FGD technologies. By 2025, nitrogen oxide treatment equipment installation rates reached significant levels, with desulfurization penetration substantially lower. Provincial governments have mandated that cement production lines achieve ultra-low emission retrofitting by 2026–2028. The cement industry's demand growth rate for air pollution control solutions was strong in 2025. Cement enterprises including Jinyu Jidong Cement Tangshan Branch and Yixing South Cement are investing in integrated desulfurization, denitrification, and dust removal systems.
• China's steel industry continues to generate procurement opportunities through ongoing modernization of sintering plants, blast furnaces, coke ovens, and gas-cleaning systems. Steel producers are investing in upgraded desulfurization equipment, dust collection systems, and integrated flue gas treatment technologies that improve environmental performance while supporting efficient plant operations.
• China's aftermarket remains a major revenue source for FGD suppliers, with growing demand for spare parts, consumables, inspection services, equipment refurbishment, predictive maintenance, and digital monitoring solutions. A significant proportion of new projects have incorporated digital twin technology for real-time energy efficiency monitoring and predictive maintenance platforms. Leading Chinese suppliers include Longking Environmental Protection, Feida Environmental Protection, Guodian Longyuan Environmental Protection, Boqi Electric Power, and Qingxin Environment.

Industry News

• December 2025: The Ministry of Industry and Information Technology and the Ministry of Ecology and Environment jointly issued the 2025 edition of the "National Catalogue of Encouraged Major Environmental Protection Technology Equipment", promoting advanced environmental protection technologies.
• China reported substantial progress toward completing the nationwide ultra-low emission retrofitting program for the steel industry, with most targeted crude steel capacity brought under compliance by the end of 2025.
• 2025: China's 2025 Edition of the Thermal Power Plant Air Pollutant Emission Standard tightened SO₂ emission limits for new units. Newly commissioned coal-fired power plants added substantial new capacity with significant desulfurization investment. Coal-fired power generation reached massive volumes, driving an estimated operational FGD market substantially larger than the construction market.
• 2025: China issued the 2025 "National Pollution Prevention and Control Technology Guidance Catalog", covering thermal power, steel, cement, and chemical industries. The catalog included low-efficiency technologies alongside encouraged technologies.
• 2025: The China Cement Association announced the first cement enterprises to complete ultra-low emission retrofitting. Provincial governments mandated cement production line ultra-low emission retrofitting by 2026–2028. The cement industry's demand growth rate for air pollution control solutions was strong in 2025.
• During 2025, leading Chinese environmental engineering companies, including Longking Environmental Protection and Feida Environmental Protection, secured multiple contracts for flue gas treatment projects across the power, steel, cement, and other industrial sectors. Most of these projects focused on ultra-low emission retrofits, modernization of existing environmental systems, and installation of integrated flue gas purification technologies.
• Throughout 2025, Chinese environmental equipment suppliers continued strengthening their operation and maintenance capabilities by introducing advanced emissions monitoring, automated process control, and predictive maintenance solutions. These developments reflect the market's gradual shift from new equipment installation toward improving the efficiency and long-term performance of existing FGD systems.
• April 2025: New emission standards for China's coking industry took effect, requiring existing facilities to achieve compliance by January 1, 2027, with expected substantial SO₂ reductions.

Segment Analysis

China Flue Gas Desulfurization Market By Technology
• Wet Flue Gas Desulfurization (Wet FGD) systems represent the dominant SO₂ control technology for China's large industrial facilities, including coal-fired power plants, steelworks, and cement plants, because of their ability to routinely achieve over 90% SO₂ removal efficiency. Limestone-gypsum wet FGD technology remains the predominant approach, accounting for the majority of installed capacity. The technology is particularly well-suited for China's power sector, where average SO₂ emission concentrations have dropped to world-class levels.
• Spray Dry Absorber (SDA) and semi-dry systems are deployed across medium-capacity industrial facilities, cement manufacturing, and selected industrial applications where lower water consumption and simpler operation are priorities. Semi-dry systems provide an effective balance between emission reduction, operating cost, and installation flexibility, making them suitable for retrofit projects across China's industrial sector. In China, semi-dry technologies are increasingly adopted in the cement and steel sectors, where space and water constraints are important considerations.
• Dry FGD technologies continue to support emission control across cement manufacturing, coking, chemical processing, and other industrial facilities. These systems generally achieve 50–80% SO₂ removal, depending on fuel characteristics and process configuration, while offering lower water requirements, compact installation, and cost-effective operation for medium-sized industrial applications. In China, dry FGD technologies are being deployed in the coking sector to meet new SO₂ reduction requirements. Activated carbon adsorption is emerging as an advanced dry desulfurization technology for China's steel and coking industries.
China Flue Gas Desulfurization Market By End-use Industry
• Power generation remains the largest end-use industry for FGD systems in China because of the country's extensive coal-fired power generation fleet. Most operating coal-fired power plants are already equipped with desulfurization systems following nationwide ultra-low emission retrofit programs. As the installed base continues to mature, demand is increasingly shifting toward equipment upgrades, maintenance, and performance optimization, while new thermal power projects continue to install advanced FGD technologies during construction.
• Steel production remains one of the largest industrial users of flue gas desulfurization technologies in China. Environmental investments continue across sintering plants, blast furnaces, coke ovens, and other emission-intensive processes as producers work to maintain compliance with ultra-low emission standards. Future procurement is expected to focus on equipment replacement, system upgrades, and integrated flue gas treatment solutions that improve both environmental performance and operational efficiency.
• Cement manufacturing is emerging as one of the fastest-growing applications for FGD technologies in China as environmental regulations become more stringent. Producers are upgrading existing clinker production lines with integrated systems for sulfur dioxide, nitrogen oxide, and particulate control to meet provincial ultra-low emission requirements. Most future investments are expected to come from retrofit and modernization projects rather than new plant construction, creating sustained opportunities for FGD equipment suppliers.
• Coking and Chemical Processing continue to generate demand for emission-control technologies. New coking emission standards effective April 2025 require substantial SO₂ reductions from existing facilities by 2027. The coking industry is also deploying advanced desulfurization technologies including dry and wet FGD systems.
China Flue Gas Desulfurization Market By Installation Type
• Brownfield Installations dominate the Chinese FGD market as industrial operators prioritize modernization of existing emission-control systems over construction of new facilities. Investments focus on absorber refurbishment, slurry pumps, mist eliminators, corrosion-resistant materials, process controls, and digital monitoring systems to improve reliability, efficiency, and regulatory compliance across aging industrial assets. A significant proportion of thermal power FGD projects were retrofit projects. The steel industry's ultra-low emission retrofitting campaign was overwhelmingly brownfield, with cumulative investment being substantial. The cement industry's upcoming ultra-low emission retrofitting requirements will be primarily brownfield installations.
• Greenfield Installations account for a significant portion of the Chinese market, primarily associated with new coal-fired power capacity and industrial expansion projects. In 2025, newly commissioned coal-fired power plants added substantial new capacity. Major new coal-fired projects require new FGD systems as mandatory supporting facilities. Greenfield FGD installations are also associated with new cement and steel production capacity, where emission-control technologies are integrated into new production facilities to satisfy environmental requirements.


Considered in this report
• Historic Year: 2020
• Base year: 2025
• Estimated year: 2026
• Forecast year: 2031



Aspects covered in this report
• Flue Gas Desulfurization Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Technology
• Wet FGD Systems
• Spray Dry FGD Systems
• Dry & Semi-Dry FGD Systems

By End-use Industry
• Power Generation
• Cement
• Iron & Steel
• Chemical & Petrochemical
• Metal Processing & Mining
• Oil & Gas Refineries
• Waste-to-Energy
• Others



By Installation
• Greenfield
• Brownfield (Retrofit)