Market Insight-Global Vapor Recovery Services Market 2017-2027

Market Overview

Vapor recovery unit is a set-up designed to remove undesirable vapors present in distillate tank or crude oil that allows operators to adhere to prevailing emission regulations. VRU is predominantly used in upstream and downstream processes in oil & gas industry. It is also used in chemicals, oil & gas, and refineries. Moreover, vapor recovery unit is used to recover vapors that are directly emitted into the environment. VRUs are mechanically driven and are powered by an electric motor or gas engine. The working of VRU is based on the Ideal gas law. There are four principal components of vapor recovery unit namely scrubber, gas compressor, switching device, and variable frequency drives (VFDs).

The global vapor recovery services market is estimated to account for US$ 303.5 Mn in terms of value by the end of 2019

Market Dynamics- Drivers

  1. Strict regulatory policies concerning volatile organic compound (VOC) emissions is expected to drive the global vapor recovery services market during the forecast period

The VOCs emitted from numerous oil and gas storage services during transportation operations have become major environmental concern for various government and non-government agencies. To curb these hazardous pollutants, regulatory agencies have enforced strict policies regarding these emissions. These policies have compelled industry players in oil & gas sector to incorporate VRU systems. For instance, in August 2013, Environmental Protection Agency (EPA) updated its 2012 performance standards for oil & natural gas industry to address VOC emissions from storage tanks that are being used for oil & natural gas industry. These updates will make sure that highest emissions from tank are controlled first and give tank owners and operators time to purchase and install VOC. In European Union Countries, VOC emissions cannot exceed 35g (HC)/Nm3, measured in the vent of the vapour recovery unit for petrol.

  1. Environmental and economic advantages offered by VPUs are expected to propel the global vapor recovery services market growth over the forecast period

Crude oil storage tanks are comprised of hydrocarbons such as natural gas, methane, hazardous air pollutants and also some inert gases. These gases vaporize and are collected in a storage tank. Whenever there is fluctuation in liquid level of tank, vapors are emitted out into the atmosphere. In such cases, vapor recovery units collect these hydrocarbons, which are sold and used as fuel in onsite operations. This, in turn, leads to significant cost savings. Moreover, VPUs can collect, store, and reduce the emission of methane, which is a hazardous greenhouse gas.

North America region dominated the global vapor recovery services market in 2018, accounting for 75.5% share in terms of value, followed by Europe and Latin America, respectively

Vapor Recovery Services  | Coherent Market Insights

Source: Coherent Market Insights

Market Dynamics- Restraints

  1. Operational risks and mechanical failures related to VPUs is expected to restrain the global vapor recovery services market growth over the forecast period

Vapor recovery unit is a complex system to install and operate. A small mechanical failure in these units can lead to emission of hazardous gases such as natural gas and methane. There is a high risk of mechanical failure such failure in functioning of a unit, which can lead to additional economical loss for crude oil producer. Moreover, adverse climatic changes can hamper smooth functioning of vapor recovery units. For instance, in June 2016, Irving Oil Ltd. installed a vapor recovery unit at the East Saint John terminal, which was designed to decrease VOC emission and air pollutants from oil storage tanks. However, mechanical issues started occurring within months of commencing operations. The unit was offline for around 78% time of the first three months of 2015, especially due to adverse climate in winter.

  1. High capital investments and low ROI is expected to hinder the global vapor recovery services market growth over the forecast period

On average, a vapor recovery unit costs around US$ 500,000 for truck loading operations. Moreover, specific client demands make impact on the cost of vapor recovery unit. In fact, vapor recovery units used in marine loading applications are more expensive than those used in truck loading applications. In truck loading applications, a vapor recovery unit can provide complete return on investment in two to three years. For vapor recovery units used in marine loading application, return on investment is comparatively less. This, in turn, is expected to hamper the market growth in the near future.

Market Opportunities

  1. Development of unconventional energy sources is expected to offer lucrative growth opportunities for market players

Development of unconventional energy sources such as oil sands, shale oil, and coal bed methane are expected to create new growth opportunities for market players. Oil & gas producers around the world are increasingly adopting novel technologies such as membrane-separated vapor recover units, in order to optimize their production process. Moreover, government agencies are focused on minimizing dependency on crude oil and are further helping producers of unconventional energy sources to incorporate advanced technologies and maximize production. For instance, in June 2016, Machine Making Company entered into a US$ 550 million contract with China's largest heavy industry enterprise to build an oil terminal with a capacity of 30 million barrels on Qeshm Island, in the southern Persian Gulf.

  1. Rising demand for energy in Middle East & Africa to offer significant growth opportunities

There has been high demand for oil storage in Middle East & Africa, typically owing to growing demand for energy in respective regions. Oil storages require robust VPU systems so that hazardous gases do not emit into the atmosphere, which in turn, is expected to offer lucrative growth opportunities for market players over the forecast period.

Vapor Recovery Services  | Coherent Market Insights

Source: Coherent Market Insights

Segment Information:

Global vapor recovery services market was valued US$ 282.1 Mn in 2018 and is forecast to reach a value of US$ 532.8 Mn by 2027 at a CAGR of 7.4% between 2019 and 2027. In global vapor recovery services market, by process segment Midstream/Downstream sub-segment dominated the global vapor recovery services market in 2018, accounting for 61.9% share in terms of value, followed by Upstram sub-segment.

Vapor Recovery Services  | Coherent Market Insights

Source: Coherent Market Insights

Market Trends

  1. Paradigm shift from condensation technology to membrane separation technology is a major trend in the market

Vapors are condensed to liquid form by lowering the temperature, though this process has its drawbacks such as high maintenance and high cost of nitrogen. Therefore, key players in the market are increasingly shifting towards adosporation and absorption techniques, since they can offer high vapor recovery rate and low concentrations of VOCs. These systems require low capital cost and are easy to operate. Moreover, these systems require relatively low operational cost as compared to other vapor recovery units. Development in technologies has enabled the use of membrane separation technology, which is highly efficient and offers high vapor recovery rate as compared to other technologies. Moreover, this technology can be customized according to a customer’s demand.

  1. Strategic mergers and acquisitions among key players in the market

Key companies in the market are focused on mergers and acquisitions, in order to expand their market presence and gain competitive edge in the market. For instance, in February 2014, Regal Beloit Corporation acquired Hy-Bon Engineering Company, Inc. for US$ 78 million.

Value Chain Analysis

Vapor Recovery Services  | Coherent Market Insights

Competitive Section

Key players operating in the global vapor recovery services market are SGS SA, PSC (Vapor Control), Zeeco, Inc., PSG Dover, Atlas Process Innovation, Hy-Bon/EDI, AEREON, Entech Corporation, JOHN ZINK COMPANY, LLC, Vapor Point LLC., OPW Company, Global Vapor Control, Inc. (GVC) (part of Tri-Star), and Petrogas Systems.

Key Developments

  1. Key players in the market are focused on mergers and acquisitions, in order to gain competitive edge in the market. For instance, in January 2017, PSC Industrial Outsourcing LP acquired Seal Industries Inc., a provider of leak detection and repair services.
  2. Major companies in the market are focused on mergers and acquisitions, in order to enhance their market presence. For instance, in May 2019, Dover, parent company of PSG Dover, acquired All-Flo Pump Company, Limited business.

Market Dynamics

Vapor recovery is the process of recovering the vapors of gasoline or other fuels, so that they do not escape into the atmosphere. This is often done at gas filling stations, in order to reduce potential and noxious explosive pollution and fumes. Vapor recovery units reduce these losses by capturing the light hydrocarbons and other volatile organic compounds (VOC) which usually escape, and stores these environmental hazardous substances in a space between the liquid and fixed roof of the storage tanks. Vapor recovery services involves complete set of solutions such as, repairs and maintenance, technical consultancy, control software, testing vapor recovery performance, training, and system upgrades. Furthermore, vapor recovery devices are air pollution control devices which recovers the contaminant and converts it to its original and reusable state. Vapor Recovery services helps to simplify the complex process of compliances with various advanced solutions.

Market Taxonomy

This report segments the global vapor recovery services market on the basis of process, applications, operation and region. On the basis of process, the market is segmented into upstream and midstream/ downstream. On the basis of application, the market is segmented into marine loading, storage tank vents, and railcar and truck loading. On the basis of operation, the market is segmented into new installations and services (O&M). For a comprehensive understanding of market dynamics, the market is analyzed across key geographical regions, namely, North America, Europe, Asia Pacific, Latin America and Middle East & Africa. Each of these regions is analyzed on the basis of market findings across major countries in these regions, for a macro-level understanding of the market.

Key features of the study:

  • This report provides an in-depth analysis of the global vapor recovery services market with market size (US$ Million) and CAGR (%) over the forecast period: 2019 – 2027, considering 2018 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approvals, regional outlook, and competitive strategies adopted by leading players
  • It profiles leading players in the global vapor recovery services market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments, and strategies
  • Key companies covered as part of this study include SGS SA, PSC (Vapor Control), Zeeco, Inc., PSG Dover, Atlas Process Innovation, Hy-Bon/EDI, AEREON, Entech Corporation, JOHN ZINK COMPANY, LLC, Vapor Point LLC., OPW Company, Global Vapor Control, Inc. (GVC) (part of Tri-Star), and Petrogas Systems among others.
  • Insights from this report will allow marketers and management authorities of companies to make informed decisions with respect to future product launches, technology upgrades, market expansion, and marketing tactics
  • Various strategy matrices used in analyzing the global vapor recovery services market would provide stakeholders vital inputs to make strategic decisions accordingly

Detailed Segmentation:

  • Global Vapor Recovery Services Market, By Process:
    • Upstream
    • Midstream/ Downstream
  • Global Vapor Recovery Services Market, By Applications:
    • Marine Loading
    • Storage Tank Vents
    • Railcar and Truck Loading
  • Global Vapor Recovery Services Market, By Operation:
    • New Installations
    • Services (O&M)
  • Global Vapor Recovery Services Market, By Geography:
    • North America
      • By Country
        • U.S.
        • Canada
      • By Segmentation
        • By Process:
          • Upstream
          • Midstream/ Downstream
        • By Application:
          • Marine Loading
          • Storage Tank Vents
          • Railcar and Truck Loading
        • By Operation:
          • New Installations
          • Services (O&M)
    • Europe
      • By Country
        • Germany
        • Italy
        • U.K.
        • France
        • Spain
        • Russia
        • Rest of Europe
      • By Segmentation
        • By Process:
          • Upstream
          • Midstream/ Downstream
        • By Application:
          • Marine Loading
          • Storage Tank Vents
          • Railcar and Truck Loading
        • By Operation:
          • New Installations
          • Services (O&M)
    • Asia Pacific
      • By Country
        • China
        • Japan
        • Australia
        • India
        • ASEAN
        • South Korea
        • Rest of Asia Pacific
      • By Segmentation
        • By Process:
          • Upstream
          • Midstream/ Downstream
        • By Application:
          • Marine Loading
          • Storage Tank Vents
          • Railcar and Truck Loading
        • By Operation:
          • New Installations
          • Services (O&M)
    • Latin America
      • By Country
        • Brazil
        • Mexico
        • Argentina
        • Rest of Latin America
      • By Segmentation
        • By Process:
          • Upstream
          • Midstream/ Downstream
        • By Application:
          • Marine Loading
          • Storage Tank Vents
          • Railcar and Truck Loading
        • By Operation:
          • New Installations
          • Services (O&M)
    • Middle East and Africa
      • By Country
        • GCC Countries
        • Israel
        • South Africa
        • Rest of Middle East and Africa
      • By Segmentation
        • By Process:
          • Upstream
          • Midstream/ Downstream
        • By Application:
          • Marine Loading
          • Storage Tank Vents
          • Railcar and Truck Loading
        • By Operation:
          • New Installations
          • Services (O&M)
  • Company Profiles
      • SGS SA
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • PSC (Vapor Control)
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • Zeeco, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • PSG Dover
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • Atlas Process Innovation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • Hy-Bon/EDI
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • AEREON
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • Entech Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • JOHN ZINK COMPANY, LLC
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • Vapor Point LLC
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • OPW Company
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • Global Vapor Control, Inc. (GVC) (part of Tri-Star)
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • Petrogas Systems
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates

“*” marked represents similar segmentation in other categories in the respective section.

Table of Content

  1. Research Objective and assumption
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet By Process
      • Market Snippet By Applications
      • Market Snippet By Operation
      • Market Snippet By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
      • Regulatory Scenario
      • Industry Trend
      • Merger and Acquisitions
      • New Product Approvals/Launch
  4. Global Vapor Recovery Services Market, By Process, 2017 - 2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Upstream
      • Introduction
      • Market Size and Forecast, 2019 - 2027, (US$ Million)
    • Midstream/ Downstream
      • Introduction
      • Market Size and Forecast, 2019 - 2027, (US$ Million)
  5. Global Vapor Recovery Services Market, By Application, 2017 - 2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Marine Loading
      • Introduction
      • Market Size and Forecast, 2019 - 2027, (US$ Million)
    • Storage Tank Vents
      • Introduction
      • Market Size and Forecast, 2019 - 2027, (US$ Million)
    • Railcar and Truck Loading
      • Introduction
      • Market Size and Forecast, 2019 - 2027, (US$ Million)
  6. Global Vapor Recovery Services Market, By Operation, 2017 - 2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • New Installations
      • Introduction
      • Market Size and Forecast, 2019 - 2027, (US$ Million)
    • Services (O&M)
      • Introduction
      • Market Size and Forecast, 2019 - 2027, (US$ Million)
  7. Global Vapor Recovery Services Market, By Regions, 2017 - 2027 (US$ Million)
    • Introduction
      • Market Share Analysis, By Region, 2017 and 2027 (%)
    • North America           
      • Introduction
        • Market size and Forecast, 2019 - 2027 (US$ Million)
      • By Segment
        • Market Size and Forecast, By Process, 2019 - 2027 (US$ Million)
        • Market Size and Forecast, By Application, 2019 - 2027 (US$ Million)
        • Market Size and Forecast, By Operation, 2019 - 2027 (US$ Million)
      • By Country
        • U.S.
        • Canada
        • Rest of Latin America
    • Europe
      • Introduction
        • Market size and Forecast, 2019 - 2027 (US$ Million)
      • By Segment
        • Market Size and Forecast, By Process, 2019 - 2027 (US$ Million)
        • Market Size and Forecast, By Application, 2019 - 2027 (US$ Million)
        • Market Size and Forecast, By Operation, 2019 - 2027 (US$ Million)
      • By Country
        • Germany
        • Italy
        • U.K.
        • France
        • Spain
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Introduction
        • Market size and Forecast, 2019 - 2027 (US$ Million)
      • By Segment
        • Market Size and Forecast, By Process, 2019 - 2027 (US$ Million)
        • Market Size and Forecast, By Application, 2019 - 2027 (US$ Million)
        • Market Size and Forecast, By Operation, 2019 - 2027 (US$ Million)
      • By Country
        • China
        • Japan
        • Australia
        • India
        • ASEAN
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Introduction
        • Market size and Forecast, 2019 - 2027 (US$ Million)
      • By Segment
        • Market Size and Forecast, By Process, 2019 - 2027 (US$ Million)
        • Market Size and Forecast, By Application, 2019 - 2027 (US$ Million)
        • Market Size and Forecast, By Operation, 2019 - 2027 (US$ Million)
      • By Country
        • Brazil
        • Mexico
        • Argentina
        • Rest of Latin America
    • Middle East and Africa
      • Introduction
        • Market size and Forecast, 2019 - 2027 (US$ Million)
      • By Segment
        • Market Size and Forecast, By Process, 2019 - 2027 (US$ Million)
        • Market Size and Forecast, By Application, 2019 - 2027 (US$ Million)
        • Market Size and Forecast, By Operation, 2019 - 2027 (US$ Million)
      • By Country
        • GCC Countries
        • Israel
        • South Africa
        • Rest of Middle East and Africa
  8. Competitive Landscape
    • Company Profiles
      • SGS SA*
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Recent Developments/Updates
      • PSC (Vapor Control)
      • Zeeco, Inc.
      • PSG Dover
      • Atlas Process Innovation
      • Hy-Bon/EDI
      • AEREON
      • Entech Corporation
      • JOHN ZINK COMPANY, LLC
      • Vapor Point LLC
      • OPW Company
      • Global Vapor Control, Inc. (GVC) (part of Tri-Star)
      • Petrogas Systems
    • Analyst Views
  9. Section
    • Available Customizations
    • References
    • Research Methodology
    • About us and Sales Contact

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