Vapor Recovery Units Market Poised to Grow at a Robust Pace Owing to Stringent Regulatory Standards
The vapor recovery units market has witnessed significant growth over the past few years owing to stringent regulations imposed by governments across the globe for emission control. Vapor recovery units help capture and reuse gaseous hydrocarbon vapors that escape during petroleum product storage and transfer operations. They effectively reduce volatile organic compound emissions from storage tanks, vehicles, loading docks and other equipment. Vapor recovery units play a vital role in preventing air pollution and reducing dependency on fossil fuels. The growing environmental concerns and need for sustainability have boosted the demand for vapor recovery units from oil & gas, chemical and other industries globally.
The Global vapor recovery units market is estimated to be valued at US$ 505.3 Mn in 2024 and is expected to exhibit a CAGR of 2.8% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the vapor recovery units market are Alma Group, BORSIG GmbH,
Cimarron Energy, Dover, Flogistix LP, Gardner Denver, Hy-Bon/EDI, John Zink Company,
Kappa GI, Kilburn Engineering Ltd, Petrogas Systems, Symex Technologies, Voczero Ltd.,
Whirlwind Methane Recovery Systems LLC, Zeeco Inc, S&S Technical, KAPPA GI, Reynold India Private Limited., Ishan Equipments Pvt. Ltd., and TECAM Group. Rapid industrialization in emerging countries like India and China offer huge growth opportunities for vapor recovery units manufacturers. Key players are expanding their footprints in APAC and Latin American markets through strategic partnerships and investments to capitalize on the opportunities.
Vapor recovery units drives market share as growing industrialization and urbanization in developing nations has increased fuel consumption and industrial emissions, propelling the need for VRUs .Growing maritime and truck loading activities have also increased demand for portable vapor recovery units. Furthermore, the increasing focus on recovering natural gas and renewable fuels from biomass helps promote the vapor recovery units industry.
Market Drivers
- Stringent government regulations and policies for emission control across major economies like the US, Europe, China have boosted demand for vapor recovery units from oil & gas and refining industries. Non-compliance can result in heavy penalties which is driving increased adoption.
- Rapid industrialization and infrastructure growth in developing nations has augmented demand from petrochemical and chemical processing industries. Rising need for sustainable operations is a key factor.
Market Restraints
- High installation and operational costs of vapor recovery units poses significant challenges, especially for small and medium scale end-users.
- Lack of stringent enforcement of emission norms in some developing and underdeveloped countries hampers market growth.
- Technical issues and regular maintenance needs of vapor recovery units increase long-term ownership costs.
Segment Analysis
The vapor recovery units market can be segmented into fixed and portable units. Fixed vapor recovery units refer to those permanently installed at gas stations and storage tanks. These account for the largest share as they are installed at all major fuel stations and oil & gas facilities. Portable vapor recovery units are used for temporary recovery of vapors during transport or storage tank cleaning. The demand for portable units is growing faster than fixed units due to their increasing use at construction sites, remote fueling locations, and tank cleaning jobs.
Global Analysis
North America dominates the global vapor recovery units market, holding over 35% share. Stringent environmental regulations regarding VOC emissions in the US and Canada drive large-scale installations of vapor recovery equipment at gas stations and industrial facilities. Europe is the second largest market led by countries like Germany, UK, and France where such regulations are equally stringent.
The Asia Pacific region is expected to see the fastest growth during the forecast period with a CAGR of around 5%. Rapid industrialization and growing oil & gas industry in China and India are fueling the demand. Meanwhile, the Middle East & Africa market is projected to grow steadily supported by the large petroleum industry infrastructure in the Gulf nations.
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About Author:
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
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