Vapor Recovery Unit Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Vapor Recovery Units Market Trends & Growth Drivers

Technological Advancements in VRUs Are Biggest Market Trends

• The key trends in this market are the technological advancements in vapor recovery units.
• With the increasing risk of pollution, health damage, and fire from volatile vapors and the evolution of the regulations implemented in this regard, VRUs are being continuously advanced.
• This includes the integration of an array of sensors, software, and controllers to monitor the performance of these systems as well as the level of vapors in a tank.
• Modular VRUs are also becoming popular as they are easy to install, customize, remove, and service, especially for entities transporting hazardous goods across long distances.
• The dry pump technology is, likewise, trending in this market as it removes the requirement for a sealant, which is usually oil or water.
• This, in turn, lowers the risk of contamination and eliminates the need to dispose of wastewater, thus enabling better compliance.

Strict Regulations on VOC Emissions Are Expected To Drive VRU Demand

• VOC emissions into the atmosphere emanate from a number of industries, and they, upon their release, mix with the air.
• VOCs are dangerous airborne contaminants that can harm the environment.
• In order to prevent the detrimental consequences of VOC emissions, government agencies in several nations have enacted severe environmental protection laws.
• These legislative changes require the installation vapor recovery units in each of the operations of the petroleum industry.
• For example, the U.S. EPA issued a set of guidelines in May 2016 to minimize VOC, methane, and other harmful emissions from the oil & gas sector.
• Methane emissions from the country's oil & gas industry must be cut by 40–45% by 2025, according to the new rules.

High Procurement and Maintenance Costs Hamper Market Growth

• The biggest restraint for the vapor recovery units market is the high procurement and maintenance costs of these systems.
• The high cost primarily stems from the need to customize them to the industrial facility and the solvent to be handled, which means that they are few standardized and cost-effective VRUs available.
• Moreover, system of a particular capacity and attributes cannot handle multiple applications; therefore, in the oil and gas industry, different units must be used for upstream and downstream operations.
• VRUs require additional pipes for taking the captured vapors away from the working area and tanks to store them until disposal.
• The installation of these systems is, additionally, labor-intensive and long, further raising operational expenses.

Vapor Recovery Units Market Analysis

Technology Insights

The adsorption technology contributes the highest revenue to the market in 2024, and it is expected to maintain its position in the forecast period. This is because adsorption-based VRUs are widely used for the recovery or removal of sulfur from crude oil, along with preventing the dangerous VOCs from being discharged into the environment during evaporative hydrocarbon transfer activities.

The membrane separation technology will account for the fastest growth in the vapor recovery units market, with a CAGR of over 5%, during the forecast period. This can be ascribed to the cost-effectiveness of installing and using membrane separators in VRUs. Moreover, membrane-separation-based VRUs have a better recovery rate and offer a massive reduction in the cost of maintenance.

The below-mentioned technologies have been analyzed:

• Condensation
• Adsorption (Largest Category)
• Absorption
• Membrane Separation (Fastest-Growing Category)
• Others

Application Insights

The storage category held the largest vapor recovery units market revenue share in 2021. This is because vapor recovery systems for storage tanks can be used to recollect vent gases from crude petroleum and distillation tanks at storage sites. In this regard, the growing number of crude oil storage tanks around the world has increased the demand for VRUs. For instance, according to the U.S. Environmental Protection Agency (EPA), there are over 500,000 crude oil storage tanks in the U.S.

The transportation category is expected to observe the highest CAGR during the forecast period, of 5.9%. This will be due to the growing demand for petroleum, petrochemical products, and other commodities, as well as the widespread use of recovery units in automobiles to reduce VOC emissions. In this regard, the rigorous government rules limiting VOC emissions will boost the industry growth.

The report offers insights for the following applications:

• Storage (Largest Category)
• Processing
• Transportation (Fastest-Growing Category)

End User Insights

The oil & gas industry accounts for the largest revenue share, of approximately 40%, in 2024, and it is expected to maintain the trend over the forecast period. This can be ascribed to the expanding oil and gas utilization, increasing number of refineries, and rapidly changing environmental laws. Additionally, the rising demand for downstream processes and emission control systems across the industry fuels the market expansion.

The brewery & food processing industry is the fastest-growing category, with a CAGR of 6.0% over this decade. Like other industries, the regulations related to emission of vapors from beers, spirits, and other food products are becoming increasingly stringent. This has prompted companies in these industries to install vapor recovery units in their facilities.

We have studied the following end users:

• Oil & Gas Industry (Largest Category)
• Landfills
• Brewery & Food Processing Industry (Fastest-Growing Category)
• Chemical Industry
• Others

Process Insights

The upstream process generated the majority of the revenue in the market in 2024, holding a share of 65%. This huge revenue is mainly generated from upstream oil & gas processes, including exploration and production activities. Thus, the increase in the number of upstream projects in North America and the Middle East drives the demand for VRUs. As a result, the high usage of these vapor recovery units in the upstream category will boost the vapor recovery units market advance.

The downstream category will witness the higher CAGR, of 5.8%, over the forecast period. This is attributed to the stringent VOC emission and fire safety regulations imposed on downstream oil & gas companies, petrochemical refineries, and chemical warehouses.

The segment is bifurcated as follows:

• Upstream (Larger Category)
• Downstream (Faster-Growing Category)

Geographical Analysis

• The North American vapor recovery units market accounts for the largest revenue share, of approximately 45%, in 2024, and it is expected to continue its dominance during the forecast period.
• This will be owing to the growth of end-use industries, including pharmaceutical and petrochemicals, which are also taking initiatives for improving their vapor recovery process in the region.
• Furthermore, the discovery of new shale oil and gas reserves accelerates the region's market expansion.
• The U.S. is majorly contributing to the region’s industry growth and the huge number of VRUs being installed in oil production sites.
• APAC will register the fastest growth in the market during the forecast period, with 6.2% CAGR, owing to the increasing investments in oil & gas capacity addition, itself due to the rising demand for these commodities and petrochemical derivatives; and growth of the manufacturing industry.
• Emerging economies, such as China and India, are contributing considerably to the market with their rising population and rampant urbanization and industrialization.
• Chinese energy companies are expected to be faced with strict mandates regarding energy transition.
• China National Petroleum Corporation, China Petroleum & Chemical Corporation, and China National Offshore Oil Corporation are the key players in the Chinese energy sector.
• In 2020, these national players collectively produced around 4.5 million barrels per day of liquids, which was equivalent to about 30% of China’s oil demand. Moreover, they generated around USD 650 billion revenue in 2020.
• In India, the oil & gas industry is a major part of the economy, and the country is the third-largest consumer of oil in the world.
• Moreover, the country’s oil & gas sector is projected to witness a healthy growth rate in the coming future.
• The primary energy demand in India is set to double, to around 1,130 million tonnes of oil equivalent, as the country's gross domestic product is expected to increase to around USD 9.0 trillion by 2040.
• Several policies have been implemented by the Indian government to cater to this domestic demand for a range of goods and services.
• For instance, 100% Foreign Direct Investment in many sectors is one of the key policies implemented for attracting overseas investments.

The following is the geographical breakdown of the market:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest Country Market)
  • France
  • U.K. (Fastest-Growing Country Market)
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • India (Fastest-Growing Country Market)
  • Japan
  • Australia
  • South Korea
  • APAC
• Latin America (LATAM)
  • Brazil (Largest Country Market)
  • Mexico (Fastest-Growing Country Market)
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest and Fastest-Growing Country Market)
  • South Africa
  • Rest of MEA

Vapor Recovery Units Market Share

The vapor recovery units market is fragmented on account of the diversity of applications, which creates the necessity for different iterations of VRUs. Additionally, across countries, the stringency of regulations varies for different industries and also in general, which allows local and regional firms to register significant sales in emerging economies. Additionally, since standard systems do not exist on a large scale, the scope for customization opens doors for different kinds of market players.

Vapor Recovery Units Market News

• In August 2024, Dover Corporation acquired SPS Cryogenics B.V. and its affiliate, Special Gas Systems (SGS) B.V., both of which manufacture vacuum-insulated piping systems for different liquified gases.
• In July 2024, Zeeco Inc. moved its Midland, Texas office to Zeeco Permian Basin in Andrews, Texas.
• In May 2024, Cimarron Energy Inc. launched Standardized Smart Equipment, which contains the Optilink edge device to establish bi-directional control and remote cloud connectivity. This solution allows the company’s electronic, electrical, and mechanical systems, such as fugitive emission control systems, vapor recovery systems, and burner management systems, to be controlled and monitored.
• In April 2023, BORSIG GmbH replaced a 2,000-m³ membrane inside a vapor storage tank at Orlen’s Ostrow, Poland site.