Global Vapor Recovery Units Market - 2022-2029

Market Overview

The global vapor recovery unit market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX % during the forecast period (2022-2029).

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.

Because 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 to drive the growth of vapor recovery units

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.

COVID-19 Impact Analysis

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 worldwide. Based on a US$ 30 per barrel oil price, the International Energy Agency forecasts that oil and gas income for several significant producers will plummet by 50 to 85 percent in 2020 compared to 2019. 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.

It has been noticed that demand for vapor recovery units fell instantly in 2020, particularly in the oil & gas business, while increased demand in the food and pharmaceutical industries helped to balance the loss marginally during the same year. After COVID-19 infection cases begin to decline, manufacturers of equipment and machinery must focus on protecting their employees, operations and supply networks to respond to immediate emergencies and build new working practices. Furthermore, the healthy growth of oil & gas in the coming year is expected to drive the 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.

Geographical Analysis

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.

Competitive Landscape

Many prominent competitors in the market have raised competition, resulting in more product introductions. Certain players are pursuing strategic mergers and acquisitions to enhance their worldwide influence. For example, InventHelp Inventor presented a novel vapor recovery system for wet cooling towers in November 2021. (HUN-1025). To lessen the environmental impact, the system will help to enhance the percentage of process water that can be recovered from cooling a tower. SCS Technologies launched a new environmental product offering with their vapor recovery systems in March 2021. Due to a recent acquisition, the company developed a best-in-class vapor recovery system to comply with EPA 0000a rules.

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.

Kilburn Engineering Ltd

Overview: The company has been specializing in process design, manufacture, supply, installation and commissioning of various vital customized process equipment for various applications for about four decades. It claims to be the only firm to offer a complete range of solid, liquid and gas dryers under one roof, with applications in chemical, petrochemical, oil & gas, refineries, power, steel, cement, fertilizer, mining, sewage treatment and food. It also creates custom-designed solutions for a variety of onshore and offshore applications.

PVC, carbon black, soda ash, sodium cyanide, rubber, heavy chemicals, sewage, sugar, paddy, tea, coconut and other materials are dried & processed items. Every year, exports account for 30-40% of overall revenue. It features a world-class production and testing facility near Mumbai, India and an in-house pilot plant for material testing.

Product Portfolio: KILBURN's Gasoline vapor recovery systems are backed by the company's significant experience in process design, detail engineering and the delivery of adsorption systems and skid-mounted equipment. It removes up to 99.98 percent of the hydrocarbon content from the exhaust air, eliminates gasoline vapor from the exhaust air, reduces the risk of fire or explosion due to reduced hydrocarbon vapor in the atmosphere and produces no pollutant during operation. Benefits of recovered gasoline, custom design to meet unique needs, compact design with ease of maintenance & transportation, the skid-mounted design minimizes civil/erection costs, the system developed with only electricity as a utility and operation fully automatic.

Key Development: Couldn't find it on the website.

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Target Audience 2022

Vapor Recovery Units Service Providers/ Buyers

Industry Investors/Investment Bankers

Education & Research Institutes

Emerging Companies

Vapor Recovery Units Manufacturers