November 7, 2024
Vapor Recovery Units Market

Vapor Recovery Units Market Poised to Grow Substantially due to Rising Environmental Regulations

The vapor recovery units market offers cost-effective and environment-friendly recovery of hydrocarbon vapors emitted during petroleum product storage and transportation processes, which would otherwise contribute to air pollution. Vapor recovery units capture hydrocarbon vapors during the loading and unloading of tank trucks, railcars, marine vessels, and storage tanks and direct them back into the loading facility or vessels through a vapor control system. Rapid industrialization and increasing petroleum trade has fueled the demand for vapor recovery units across oil storage terminals, refineries, and gasoline dispensing stations globally. The vapor recovery units are either dynamic seals or coil-type traps that recover up to 98% of hydrocarbon vapors efficiently.

The Global vapor recovery units market is estimated to be valued at US$ 1.32 Bn in 2024 and is expected to exhibit a CAGR of 4.6% over the forecast period 2024 To 2031.

Key Takeaways

Key players operating in the Vapor Recovery Units are Nynas AB, Royal Dutch Shell, Calumet Specialty Products Partners, Ergon Inc., Chevron Corporation, Repsol S.A., ExxonMobil Corporation, H&R Group, Avista Oil, Petrobras, Lubricon Industries, Eastern Petroleum, Indo Petro Chemicals, Panama Petrochem Ltd., Gandhar Oil Refinery India Limited, Apar Industries Limited, HollyFrontier Corporation, Pentagon Lubricants, Witmans Industries Pvt. Ltd. The growing petroleum trade globally and stringent regulations regarding VOC emissions present significant growth opportunities for vapor recovery units in the oil & gas industry. Technological advancements such as integrating sensors and Internet of Things (IoT) capabilities would help automate vapor recovery operations and improve efficiency.

Market Drivers

Growing environmental regulations worldwide regarding volatile organic compound (VOC) emissions from refineries, oil storage facilities, and gasoline dispensing stations are a key driver for the vapor recovery units market. Stringent norms by organizations like the U.S. Environmental Protection Agency (EPA) have compelled petroleum product handlers to incorporate vapor recovery units to curtail air pollution. Rapid urbanization and increasing demand for petroleum-based fuels and products also necessitate robust vapor recovery infrastructure, boosting the vapor recovery units market.

Current Challenges in the Vapor Recovery Units Market

The stringent emission regulations regarding VOC emissions from storage tanks and transport vessels are proving to be a major challenge for players in this industry. Meeting the specified emission limits within the stipulated timelines requires retrofitting vapor recovery units which is a costly affair. Further, the varying VOC emission norms across countries add to the compliance burden. The low crude oil prices over the past few years have negatively impacted investments in newer storage and handling infrastructure, adversely affecting demand for vapor recovery units.

SWOT Analysis

Strength: Vapor Recovery Unit Growth help reduce air pollution by lowering VOC emissions from oil storage and transport facilities. They ensure compliance with stringent environmental norms.
Weakness: High initial costs involved in installing vapor recovery units. Further upgrades needed to match evolving emission standards add to costs.
Opportunity: Growing needs to reduce hydrocarbon emissions from crude oil and refined fuel storage opens up opportunities for vapor recovery unit suppliers. Strict implementation of VOC norms also drives replacement demand.
Threats: Lower oil prices impact investments in storage infrastructure development thereby threatening demand. Substitutes like thermal oxidizers pose competition.

Geographical regions of concentration

The North American region accounts for a major share of the global Vapor Recovery Units Market Regional Analysis currently in terms of value. Stringent VOC emission norms enforced by environmental agencies like EPA have propelled investments in vapor control solutions across crude oil terminals, pipelines and refineries in the US and Canada. The Asia Pacific region is also expected to witness high growth in the coming years led by China and India. With rising oil demand andimports, these countries are expanding petroleum product storage capacities wherein vapor recovery units find increasing usage.

Fastest growing region

The Middle East and Africa region is projected to emerge as the fastest growing regional market for vapor recovery units during the forecast period. This is due to the massive ongoing and planned capacity expansions of crude oil terminals and pipelines in the oil-rich Gulf countries to boost exports. For example, Saudi Arabia plans to set over 30 crude export terminals along its coastline by 2030. Such infrastructure projects will certainly drive the need for vapor control equipment like vapor recovery units.

*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it

About Author - Priya Pandey
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Priya Pandey is a dynamic and passionate editor with over three years of expertise in content editing and proofreading. Holding a bachelor's degree in biotechnology, Priya has a knack for making the content engaging. Her diverse portfolio includes editing documents across different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. Priya's meticulous attention to detail and commitment to excellence make her an invaluable asset in the world of content creation and refinement. LinkedIn ProfileĀ 

 

About Author - Priya Pandey

Priya Pandey is a dynamic and passionate editor with over three years of expertise in content editing and proofreading. Holding a bachelor's degree in biotechnology, Priya has a knack for making the content engaging. Her diverse portfolio includes editing documents across different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. Priya's meticulous attention to detail and commitment to excellence make her an invaluable asset in the world of content creation and refinement. LinkedIn ProfileĀ   

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