Global Vapor Recovery Units Market - 2024-2031

Report Overview

The Global Vapor Recovery Units Market size was worth US$ 783 million in 2023 and is estimated to reach US$ 1,098.41 million by 2031, growing at a CAGR of 4.32% during the forecast period (2024-2031).

A vapor recovery unit (VRU) is a technology designed to remove unwanted vapors from distillation tanks or crude oil, allowing players to meet current emission standards. The technique of compressing and recovering vapor from various fuels to avoid their spread in the environment is vapor recovery. As the vapors are extremely toxic and even explosive, they can pollute the air.

Vapor recovery devices are powered by a gas engine or an electric motor and are mechanically driven. The ideal gas law is used to operate the vapor recovery machines. Scrubber, gas compressor, switching device and variable frequency drives are the four main components of a vapor recovery machine. Unwanted and dangerous vapor and fluid contaminants are removed and recovered from crude products using vapor recovery systems.

In the chemical and petroleum sectors, vapor recovery machines are routinely employed to capture vapors that have left. Condensation, activated carbon, lean oil absorption and a jet ejector system are some of the system's mechanisms to capture diverse components in the gas stream. The systems are utilized as a safety and anti-pollution measures in fueling stations to reduce explosive gases in industrial machinery, chemical storage tanks, chemical mixers, reactors and autos.

Market Dynamics

The strict environmental rules and standards concerned with volatile organic compound (VOC) emissions drive the worldwide vapor recovery units market growth. In addition, the worldwide vapor recovery units market is expected to grow in response to the rising demand for vapor recovery units (VRU) from the oil & gas industries. However, expensive installation and maintenance costs and a shortage of skilled labor to properly assemble vapor recovery devices limit the market's growth.

Technological advancements

The rate of technological innovation and upgradation is never-ending. The vapor recovery unit market is seeing significant expansion in new technology. Consumer preference has shifted from the classic condensation technique used in vapor recovery units to a new membrane separation technology due to the new technologies.

A semipermeable membrane is used in membrane separation technology for the filtering process. Condensation technology combined with membrane separation technology has proven extremely successful and efficient in increasing recovery rates while lowering maintenance costs. During the projected period, innovative techniques and technologies could fuel the expansion of the vapor recovery units market.

Increasing stringent regulations and environmental concerns

Due to the amount of waste generated by manufacturing industries has become one of the major concerns affecting air, land, water and scenic quality, many countries are placing a greater emphasis on developing environmental regimes to strike a proper balance between industrial growth and environmental impact. According to the comprehensive annual premature pollution-related fatalities report for 2017, China and India had the highest air pollution deaths.

The biggest challenges that require an immediate response are rising fatalities and human health difficulties caused by air pollution produced by industrial emissions. The detrimental impacts, particularly in Asian nations such as China and India, have compelled governments to implement strict laws and make it essential for current and new potential emitters to install air quality management systems. Such government measures are expected to raise demand for odor control systems during the projected period.

High costs of installation

The volume handling capacity of the VRU unit, the sales line pressure, the number of tanks in the battery, the size and type of compressor and the degree of automation influence equipment prices. Mechanical refrigeration, which employs a cascade refrigeration system, is costly. Some of the constraints projected to limit market expansion include rising manufacturing and installation costs and environmental safety concerns connected with handling and installing vapor recovery equipment.

Market Segment Analysis

By end-user, the vapor recovery units market is segmented into oil & gas, chemical & petrochemical and others.

Oil & Gas to drive the segment's growth

Due to rising oil & gas consumption, greater refining throughput and fast-evolving environmental regulations, the oil & gas sector will likely dominate the vapor recovery units market over the forecast period. In the oil & gas business, vapor recovery devices are used to recover vent gas and prevent it from releasing into the atmosphere. VRUs capture vapor entrained in crude oil, well production wastewater or other fuels held in tanks. The VRUs also assist oil & gas firms in generating additional cash from the sale of recovered vapor while complying with environmental standards.

Vapor recovery units for the oil & gas sector vary from small tabletop machines for small gas streams to large plants capable of handling millions of cubic feet of gas per day. The increasing demand for oil & gas drives the demand for vapor recovery devices. In the oil & gas industry, vapor recovery machines are also utilized to provide flash gas recovery at near atmospheric pressure without the risk of oxygen infiltration from the storage tanks' tops. The production of vapor flash inside storage tanks has reduced storage tank emissions to less than 6 tonnes per year. As a result, as demand for oil & gas rises and regulations become more stringent on the sector, the market is expected to grow.

Market Geographical Share

Increasing oil consumption in Asia-Pacific

Due to rising oil & gas demand, Asia-Pacific is predicted to be the fastest-growing market over the projection period. Because of rising population, urbanization and industrialization, Asia-Pacific is one of the world's fastest-growing regions. As a result, demand for oil & gas is fast expanding. Oil consumption has climbed by more than 38% in the region, from 25940 barrels per day in 2008 to 35863 barrels per day in 2018, while gas consumption has increased by more than 63 percent, from 503.7 billion cubic meters in 2008 to 825.3 billion cubic meters in 2018.

The region's oil consumption was the greatest in the world in 2018, accounting for 35.9% of worldwide oil consumption. All the considerations lead to rising oil & gas demand in the region, which will drive up demand for vapor recovery equipment. The market for vapor recovery systems is further bolstered by environmental regulations for VOC emissions implemented by developing nations in the region.

Market Competitive Landscape

Major global vapor recovery unit market companies include BORSIG Membrane Technology GmbH, John Zink Company LLC, Symex GmbH & Co. KG, AEREON, Hy-Bon Engineering Company, Inc., Cool Sorption A/S, Kilburn Engineering Ltd, Zeeco, Inc., Kappa GI and VOCZero Ltd.

COVID-19 Impact Analysis

Owing to the COVID-19 epidemic, the government placed many restrictions, causing the demand for oil and gas products to fall intensely and manufacturing operations to be interrupted worldwide.

Due to the rigorous lockdown, the gasoline demand dropped significantly and the supply chain was interrupted, which had a considerable impact on the demand for vapor recovery units.

Russia-Ukraine War Impact

The Russia-Ukraine war has significantly disrupted Europe's energy supply, impacting the operation of Vapor Recovery Units (VRUs). With Europe's heavy reliance on Russian fossil fuels, the war has accelerated efforts to diversify energy sources, such as increasing LNG imports and reviving coal power. The shifts affect VRUs by altering the types and volumes of vapors they need to handle, while rising energy prices and inflation contribute to higher operational costs for VRUs and affect financial feasibility.

Additionally, Europe's move towards renewable energy and policy changes like the REPower EU initiative are reshaping the energy landscape. As the EU reduces its dependence on Russian gas and boosts investment in renewables, VRU technology may need to adapt to new energy sources and regulatory requirements. The transition presents both challenges and opportunities for innovation in vapor recovery and emission control technologies.

By Application

• Processing
• Storage
• Chemical & Petrochemical

By End-user

• Oil & Gas
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In June 2022, PSG Dover began marketing vapor recovery devices under the name Blackmer. It gives the corporation the advantage of centralizing production and customer service under the brand name Blackmer.
• In May 2022, Flogistix unveiled its new facility, expanding its production capacity. The new VRU complex, measuring 2, 59,000 square feet, is located in El Reno, Oklahoma.

Why Purchase the Report?

• Visualize the composition of the vapor recovery units market segmentation by application, end-user and region, highlighting the critical commercial assets and players.
• Identify commercial opportunities in the vapor recovery units market by analyzing trends and co-development deals.
• Excel data sheet with thousands of vapor recovery units market-level 4/5 segmentation points.
• Pdf report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

The global vapor recovery units market report would provide access to an approx. 53 market data tables, 42 figures and 196 pages.

Target Audience 2024

• Vapor Recovery Units Service Providers/ Buyers
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Emerging Companies
• Vapor Recovery Units Manufacturers