Vapor Recovery Unit Market Size, Share & Trends Analysis Report By Technology, By Application, By End-user, By Region, And Segment Forecasts, 2023 To 2030

The purpose of a Vapor Recovery Unit (VRU) is to compress low-pressure gas, remove undesired vapor from distill tanks or crude oil, and enable operators to follow current emission requirements. For instance, the U.S. Environmental Protection Agency suggests installing VRUs on storage tanks to stop the emissions of these light hydrocarbon vapors and provide considerable financial savings. Around 95% of the Btu-rich vapors can be captured by relatively simple VRUs for sale or on-site fuel usage. Presently, the oil production industry has between 7,000 VRUs and 9,000 VRUs installed, 4 tanks on average are linked to each VRU. Examples include wellhead compression, tank battery vapor, industrial tail gas recovery, and gas-lift. Oil tank battery gas recovery is the most typical application, frequently right after a vapor recovery tower. The vapor recovery tower enables partial oil flash gas capture and aids in preventing oxygen contamination, a common issue with atmospheric tanks. Moreover, vent gas from distill tanks & crude oil at storage facilities can be recovered using a vapor recovery system for storage tanks.

In order to lessen the negative effects on the environment, several government organizations in North America and Europe have established regulations and standards relating to the emission of volatile organic compounds (VOCs), particularly in the oil and gas sector. For instance, the oil and gas industry releases VOCs including benzene, methane, and other light hydrocarbons that act as precursors to ozone gas, which is a factor in global warming. As a result, regulations have been enforced by the government to cut down on VOC emissions. To prevent the emission of VoC, vapour recovery systems are being encouraged for the same reason. The use of systems that control emission control and recover vapors from storage tanks, processing units, and transportation loading platforms, such as rails, marine, and trucks, has also been mandated by the Environmental Protection Agency (EPA), regulatory bodies such as the TA Luft, Directive 94/63/EC, Clean Air Act (CAA), and BISchG. Due to the fact that vapor recovery units can recover at least 95% of the vapor released by oil and gas derivative products, there is a considerable increase in demand for them.

Moreover, the extensive acquisition, product launch, and finance opportunities by companies are driving up demand for VRUs. For instance, the Vapor Recovery System (VRS) deployment in fuel retail outlets in Tamil Nadu has been mandated to be reported on by oil firms by the southern bench of the National Green Tribunal in August 2020. The Central Pollution Control Board and the Tamil Nadu government were also directed to receive notice. The court ordered the oil corporations to provide a report detailing daily retail sales volume. This demonstrates the market for vapor recovery systems' promising future. Aereon, a leader in emissions management services and solutions for upstream, midstream, and downstream energy and infrastructure industry applications, was also acquired by Cimarron in May 2020. Moreover, Cimarron Energy, Inc. acquired Hy-Bon/EDI in July 2019. The long-term client initiatives of Cimarron and Hy-Bon/EDI are coordinated to increase the market positions in emissions control and providing vapor recovery solutions for oil & natural gas operators.

The market is segmented based on technology, application, end-user, and region. The technology segment is divided into Condensation VRU, Membrane Separation VRU, Adsorption VRU, Absorption VRU, and Rotary VRU. The application segment is divided into Upstream, Midstream, and Downstream. The end-user segment consists of chemicals, oil & gas, food & beverage, pharmaceuticals, and other applications.

The vapor recovery unit market is expected to grow at a rapid rate over the forecast period due to the optimization of process in the oil & gas industry and improved efficiency of operation, increasing production of oil & gas industries coupled with stringent regulations in North America, Europe, and Asia Pacific regions. In particular, key countries such as the U.S., Canada, the UK, Germany, France, Japan, China, and India are the major contributors to the market. For instance, Flogistix increased the company's manufacturing capacity in May 2022 with the construction of a new plant in El Reno, Oklahoma. Thus, the company will have 259,000 square feet of manufacturing area for VRUs and other compression technologies with this development. Flogistix will be able to satisfy the growing demand for our products with this new facility. Moreover, in October 2020, to create and implement digital twin technology across its complete fleet of sector-leading vapor recovery, wellhead compression, and gas lift equipment, Flogistix collaborated with UrsaLeo.

Prominent players operating in the market include PSG, Aareon, Cimarron Energy, Inc., John Zink Company, Carbovac, SYMEX Technologies, VOCZero, Flogistix and Kappa Gi. These companies are involved in the development, manufacturing, and marketing of vapor recovery units to meet the requirements of various end-users.