Vapor Recovery Units Market Size & Share Analysis Report by Process (Upstream, Downstream), Application (Storage, Processing, Transportation), Technology (Condensation, Adsorption, Absorption, Membrane Separation), End User (Oil & Gas Industry, Landfills, Brewery & Food Processing Industry) - Global Industry Growth Forecast to 2030

Market Overview

The global vapor recovery units market revenue was $758.5 million in 2021, and it is expected to reach $1,177.8 million by 2030, advancing with a CAGR of 5.0% during 2021–2030. This can be primarily ascribed to the increasing production of oil & gas and, in turn, of petrochemicals. Furthermore, the rising concern about the toxic emissions from petrochemicals and strict regulations for volatile organic compound (VOC) emission reduction are responsible for the market growth.

Transportation Applications To Witness Fastest Growth in Coming Years

The transportation category is expected to observe the highest CAGR during the forecast period, over 5%. 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 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.

VRUs Are Mostly Used by Oil & Gas Industry

The oil & gas industry accounted for the largest revenue share, of approximately 40%, in 2021, 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.

Upstream Process Contributes Majority of Revenue

The upstream process generated the majority of the revenue in the market in 2021, and it is expected to maintain the same trend during 2021–2030. 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.

North America Dominates Global Vapor Recovery Units Market

The North American vapor recovery units market accounted for the largest revenue share, of approximately 40%, in 2021, 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 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 $650 billion revenue in 2020.
• In India, the oil & gas industry is a major part of the economy. India was the third-largest consumer of oil in the world in 2021. 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 $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.

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.

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Growing Usage of Membrane Separation Technology Propels Market Growth

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 adsorption technology contributed the highest revenue to the market in 2021, 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.

Strategic Developments by Market Players

Major players in the vapor recovery units market are engaged in launching new products, partnerships, and acquisitions to achieve a better position. For instance,

• In March 2021, SCS Technologies launched a new brand of VRUs, as a result of a recent acquisition.
• In July 2019, Cimarron Energy Inc. acquired Hy-Bon/EDI, thus expanding the former’s strengths in vapor recovery and emission management for oil & gas firms.

Top Manufacturers of Vapor Recovery Units are:

• Gardner Denver Inc.
• PSG Dover
• Forum Energy Technologies Inc.
• Cool Sorption A/S
• Cimarron Energy Inc.
• Koch Industries Inc.
• Zeeco Inc.
• BORSIG GmbH
• Flogistix LP
• SCS Technologies

Vapor Recovery Units Market Size Breakdown by Segment

The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Process

• Upstream
• Downstream 

Based on Application

• Storage
• Processing
• Transportation

Based on Technology

• Condensation
• Adsorption
• Absorption
• Membrane Separation

Based on End User

• Oil & Gas Industry
• Landfills
• Brewery & Food Processing Industry

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• APAC
  • China
  • India
  • Japan
  • Australia
  • South Korea
• LATAM
  • Brazil
  • Mexico
• MEA
  • Saudi Arabia
  • South Africa