PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1100682
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1100682
The global Vapor Recovery Units market size is projected to grow from USD 860.4 million in 2021, expanding at a CAGR of 4.2% during the forecast period.
A vapor recovery unit is a pressure system that collects and packs low-volume gas streams for injection into the suction of a larger compressor, a meter run, a local site fuel gas system, or simply into a gas gathering line. A driving engine or motor gives power to the compressor in vapor recovery. They are frequently used in oil and gas activities to recover vent gas. The vapor recovery unit reduces air pollution emissions by recovering vent gas that would otherwise be released into the environment or consumed in a flare.
To avoid a negative influence on the environment, various governments and industrial organizations in North America and Europe have implemented regulations and standards relevant to VOC emissions, particularly in the oil and gas industry. For example, VOCs such as benzene, methane, and other light hydrocarbons are generated by the oil and gas industry and act as precursors of ozone gas, which contributes to global warming. As a result, the government has established regulations to decrease VOC emissions. To avoid the emission of VOCs, vapor recovery systems are being encouraged. The Environmental Protection Agency, as well as regulatory bodies such as the TA-Luft, Directive 94/63/EC, Clean Air Act (CAA), and BISchG, have mandated the use of emission control systems in order to recover vapors from processing units, storage tanks, and transportation loading platforms such as rails, marine, and trucks. Because a vapor recovery unit can recover at least 95 percent of the vapor generated by oil and gas derivative products, the demand for vapor recovery units is expanding significantly.
Because of the COVID-19 epidemic, the government placed many restrictions, causing demand for oil and gas products to fall dramatically and manufacturing operations to be interrupted around the world. Due to the rigorous lockdown, the demand for gasoline dropped significantly, and the supply chain was interrupted, which had a considerable impact on the demand for vapor recovery units. It has been noticed that demand for vapor recovery units fell by double digits in 2020, particularly in the oil and gas business, while increased demand in the food and pharmaceutical industries helped to balance the loss marginally during the same year.
Vapor Recovery Units Market is segmented on the basis of application, end-user, and region.
The worldwide vapor recovery units market may be divided into three applications: processing, transportation, and storage.
In the aforementioned classification, transportation is likely to dominate the market. The expansion of this segment can be attributed to the increasing use of vapor recovery systems in the oil and gas industry. Vapor recovery systems are commonly used in transportation to reduce VOC emissions and make the recovered vapor saleable. As a result, rising demand for the installation of vapor recuperation units in rail loading and truck loading is propelling the development of vapor recovery units.
The overall vapor recovery units industry is divided into three segments based on end-user: landfills, oil & gas, and others. Oil and gas are predicted to dominate the market in the aforementioned categories. Because of the rising global demand for oil and gas. This led to the development of the oil and gas segment, which may be attributed to the high demand for vapor recovery units in the oil and gas industry's downstream process. Furthermore, the rigorous regulation of VOC emissions into the environment caused a high demand for vapor recovery systems.
The worldwide vapor recovery units market would be fragmented. The presence of several market leaders has raised competition, resulting in more product introductions. Some of the players are also looking to increase their worldwide influence through strategic mergers and acquisitions. Meanwhile, tier-1 players are expanding their sales channels and introducing cutting-edge products to meet emission criteria.
For instance, in November 2021, InventHelp Inventor introduced a new vapor recovery system for wet cooling towers (HUN-1025). This system will help to increase the percentage of process water that could be recovered from a cooling tower, to reduce the ecological impact.
The scope of this report covers the market by its major segments, which include as follows: