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Vapor Recovery Units Market is Estimated to Witness High Growth
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The vapor recovery units market is primarily driven by the increasing stringency of air pollution regulations across various industries. Vapor recovery units facilitate the capture and recovery of volatile organic compound (VOC) emissions from petroleum marketing terminals, petroleum loading facilities, chemical and petrochemical plants, natural gasoline terminals, crude oil terminals, bulk plants and other industrial facilities. They help prevent air pollution by recovering and transporting hydrocarbon vapors that are displaced during petroleum product loading, unloading or storage.
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.
Regulatory bodies worldwide are introducing more stringent regulations on VOC emissions to curb air pollution, which is a key factor driving the demand for vapor recovery units.
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.
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 global exports of crude oil and petroleum products is also expected to create demand for vapor recovery units at ports and oil terminals.
Advances in vapor recovery technologies such as dry seal vapor recovery units, which do not use water or liquid seals, are gaining popularity. Improved seal designs help reduce maintenance costs and ensure high vapor recovery efficiency.
Market Drivers
Stringent government regulations regarding VOC emissions from oil handling and storage facilities are a key driver for the vapor recovery units market. Most regions worldwide have laid down specific emission threshold limits for VOCs from petroleum product loading/unloading racks as well as storage tanks. Compliance with such regulations is expected to fuel the demand for vapor recovery units. Growing international trade of crude oil and refined petroleum products also contributes to higher VOC emissions, necessitating the installation of vapor recovery units at ports, terminals and depots. The market is thus expected to gain traction driven by tightening emission norms.
Challenges in Vapor Recovery Units Market
The vapor recovery units market is facing challenges such as variation in fuel prices, stringent environmental regulations, and complex vapor recovery system design and installation process. Frequent fluctuations in crude oil prices impact the profitability of petroleum products manufacturing and transportation sectors that utilize vapor recovery units on a large scale. Varying environmental standards across regions regarding hydrocarbon emission control add to the compliance challenges for vendors. The design of vapor recovery units involves integrating complex vapor handling equipment within confined plant facilities. Their installation requires shutting down processing units temporarily, increasing downtime costs for end-users.
SWOT Analysis
Strength: VRU systems help reduce air pollution and recycle valuable petroleum products. They provide an eco-friendly solution to recover vapors during refueling and storage tank loading/unloading.
Weakness: High initial capital investment and maintenance costs of VRUs pose affordability challenges for small operators. Complex technology design requires extensive technical knowledge for smooth operations.
Opportunity: Strict air quality norms worldwide are augmenting the need to install advanced VRUs across oil & gas, chemical and other process industries. Emerging markets in Asia Pacific present significant growth potential.
Threats: Downturn in crude oil prices impacts replacement/retrofit demand from downstream sectors. Alternative vapor control methods may gain traction if they provide a lower-cost compliance option.
Geographical Regions
North America currently holds the largest share in the vapor recovery units market, both in terms of value and volume. Stringent emission standards in the U.S. and Canada have led to widespread VRU adoption at oil terminals, refineries and other facilities. The Asia Pacific region is expected to exhibit the fastest growth during the forecast period. Developing economies like India and China are implementing emission norms at par with developed nations, opening new growth avenues.
The Asia Pacific region is poised to emerge as the fastest growing region for the vapor recovery units market between 2024-2031. Countries like India, China, Indonesia, and Vietnam are witnessing rapid industrialization and infrastructure development. This is augmenting demand for petroleum products and increasing throughput at oil terminals, refineries and petrochemical plants - key end-use sectors for VRUs. Tightening environmental norms by governments aim to curb air pollution, boosting replacement/retrofit opportunities. The regional growth will be further aided by heavy foreign investments and expansion plans of global oil & gas majors.
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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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