Impact Analysis of Covid-19

The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.

Market Insights - Global Vapor Recovery Units Market

Market Overview

A vapor recovery unit (VRU) is a device used for recovery of vapors such as gasoline, natural gas, and other fuels so that they can reused for industrial applications. Vapor recovery units are majorly used in upstream and downstream processes in chemical process industry. Vapor recovery unit uses different methods such as condensation, absorption, adsorption, and membrane separation for vapor recovery. In condensation process, vapors are condensed by lowering temperature. Furthermore, in the U.S., the Environmental Protection Agency (EPA) mandates operators to carry out vapor removal process to control harmful air emissions in natural gas processing plants, natural gas wells, and hydrocarbon storage facilities.

The global vapor recovery units market accounted US$ 520.9 Mn in terms of value and 10,210.8 Units in terms of volume in 2019.

Market Dynamics- Drivers

  1. Strict regulatory policies regarding VOC emission are expected to drive growth of the global vapor recovery units market during the forecast period

Various industries are responsible for the emission of volatile organic compounds that are mixed with air in the environment. These compounds are hazardous air pollutants that can damage the ecosystem. Government agencies in various countries have implemented stringent environmental legislations, in order to reduce harmful effects of VOC emissions. These regulatory policies have mandated crude oil production companies and petroleum industry to install vapor recovery units in each plants. For instance, in May 2016 U.S. Environmental Protection Agency (EPA) introduced a set of standards to reduce VOC, methane and toxic air emissions in the oil and natural gas industry. According to the new standards, methane emissions in the oil & gas industry in the country need to be reduced by 40-45% by 2025 as compared to levels in 2012.

  1. Economic and environmental advantages offered by vapor recovery units are expected to propel the global vapor recovery units market growth over the forecast period

Crude oil tanks contain light hydrocarbons such as methane, natural gas liquids, and hazardous air pollutants (HAP) and some inert gases. During storage, these hydrocarbons vaporized and get collected in storage space. These vapors are vented into the atmosphere as and when liquid level in the tank fluctuates. Vapor recovery units are installed to collect and store these vaporized hydrocarbons. These hydrocarbons can be further used and sold as fuel in onsite operations. This all results in significant cost savings and reduction in methane emission. According to results of an independent research study, at least 11 facilities in the U.S. have installed eductor vapor recovery units. Key benefits of these units are as follows:

  1. Emission reduction of 280 Mn Mmscfy (Million standard cubic feet per year) of methane, 21,600 tonnes per year of VOC and 1,700 tonnes per year of HAP (hazardous air pollutants)
  2. Improved recovery value of natural gas with economic value of US$ 6.3 Mn per year
  3. Economic value of recovered natural gas is expected to be US$ 41 Mn – US$ 120 Mn per year     

North America region dominated the global vapor recovery units market in 2018, accounting for 37.9% share in terms of volume, followed by Europe, MEA, Asia Pacific, and Latin America, respectively.

Vapor Recovery Units  | Coherent Market Insights

Source: Coherent Market Insights

Market Dynamics- Restraints

  1. Mechanical failure and operational risks related to VRU are expected to restrain growth of the global vapor recovery units market during the forecast period

Vapor recovery units are a meticulous machine and challenging to operate. Any mechanical breakdown in complex vapor recovery unit could lead to emission of potentially hazardous gases such as methane. Moreover, operational risk associated with VRU is significantly high as failure in functioning can result in additional economic losses for crude oil producer. Furthermore, adverse changes in climatic conditions near crude oil extraction plants would hamper the smooth functioning of VRU. For instance, in 2011, Irving Oil Ltd. installed a vapor recovery unit at the East Saint John terminal, which was designed to reduce air pollutants and VOC emissions from its oil storage tank. However, within months after commencing operation it showed mechanical issues. In fact, the situation worsened in winter. The unit was offline 78% of the time in the first three months of 2015, which was 1.1X as of 2014.

  1. High initial investment and low ROI are expected to hinder the global vapor recovery units market growth over the forecast period

Initial investment for installation of vapor recovery unit is around US$ 500,000 per unit. The cost may fluctuate due to client specifications. Therefore, modified vapor recovery units can significantly vary from the standard unit. Vapor recovery units that are used in marine loading application are more expensive than those used in truck loading applications. Therefore, high capital investment is expected to hinder the market growth.

Market Opportunities

  1. Development of unconventional energy sources is expected to pose lucrative business opportunity

Development of unconventional energy sources namely shale oil, coal bed methane, and oil sands are presenting new growth opportunities for vapor recovery unit manufacturers. Oil & gas producers are increasingly adopting high-end technologies such as membrane-separated vapor recover units, in order to optimize the production process. Following are some of the major investments made by oil & gas companies. In June 2016, Iran's Machine Making Company signed a US$ 550 Mn contract with China's largest heavy industry enterprise to build oil terminal with a capacity of 30 million barrels on Qeshm Island, in the southern Persian Gulf. Furthermore, in June 2016, Ghana National Petroleum Corporation announced installation of two import LNG terminals, as the country has planned to start importing LNG in early 2017.

  1. Rapid installation of VRUs on gas stations in Asia Pacific region is expected to present growth market opportunity for marketers

New stringent regulations regarding reduction of VOC emission have compelled petrol pump owners to install vapor recovery units. For instance in 2004, in China, the Air Pollution Control (Petrol Filling Stations) (Vapor Recovery) Regulation was amended to require petrol filling stations to install a system to recover petrol vapor emitted during vehicle refueling (Phase II vapor recovery system). Furthermore, the amended regulation came into effect on March 31, 2005.

Vapor Recovery Units  | Coherent Market Insights

Source: Coherent Market Insights

Global upstream based vapor recovery units market was valued at US$ 428.2 Mn in 2018 and is forecasted to reach a value of US$ 540.7 Mn by 2027 at a CAGR of 2.8% between 2017 and 2027.

Market Trends

  1. Growing preference for membrane separation technology instead of condensation technology

Condensation of vapors is one of the most basic process available for vapor recovery though it requires high maintenance and high costs of nitrogen. Due to this, major players in the market are rapidly shifting towards adsorption and absorption techniques, in order to avoid high capital cost and provide vapor recovery rate. Moreover, membrane separation technique is another novel technology with high efficiency and high vapor recovery rate as compared to other technologies.

  1. Mergers and acquisitions among key players

Key companies in the market are focused on merger and acquisition activities, in order gain competitive edge in the market. For instance, in February 2014, Regal Beloit Corporation acquired Hy-Bon Engineering Company, Inc.—one of the leading players in the vapor recovery units market—for US$ 78 Mn. The company provides vapor recovery units for oil and gas applications.

Segment information:

In Global Vapor Recovery Units market, by process segment, the upstream sub-segment dominated the global market in 2018, accounting for 84.5% share in terms of value, followed by downstream, respectively.

Vapor Recovery Units  | Coherent Market Insights

Source: Coherent Market Insights

Competitive Section

Key players involved in the global vapor recovery units market are John Zink Company, LLC, Hy-Bon/EDI, Whirlwind Methane Recovery Systems LLC, Petrogas Systems, Accel Compression Inc., PSG Dover, Wintek Corporation, AEREON Inc., and Cimarron Energy Inc.

Key Developments

  1. Major market players are focused on mergers and acquisitions, in order to enhance their market presence. For instance, in July 2019, Cimarron Energy Inc. acquired Hy-Bon/EDI to strengthen its market position.
  2. Key companies in the market are involved in strategic collaborations, in order to gain competitive edge in the market. For instance, in January 2017, Aeron Inc. collaborated with Honeywell to leverage Honeywell’s Industrial Internet of Things (IIoT) ecosystem for oil & gas industry.

Vapor recovery units (VRUs) are typically used to recover fuel and gasoline from storage tanks, in order to restrict their escape into the atmosphere. VRUs restrict, store, withdraw, and refine vapor from gas storage tanks. It is both economically and environmentally beneficial to recover vapors. These units find application in upstream and downstream processes in the chemical process industry. Vapor recovery unit uses different methods such as condensation, absorption, adsorption, and membrane separation for vapor recovery. In condensation process, vapors are condensed by lowering temperature. Furthermore, in the U.S., the Environmental Protection Agency (EPA) mandates operators to carry out vapor removal process to control harmful air emissions in natural gas processing plants, natural gas wells, and hydrocarbon storage facilities.

Market Dynamics

Various industries are responsible for the emission of volatile organic compounds that are mixed with air in the environment. These compounds are hazardous air pollutants that can damage the ecosystem. Government agencies in various countries have implemented stringent environmental legislations, in order to reduce harmful effects of VOC emissions. These regulatory policies have mandated crude oil production companies and petroleum industry to install vapor recovery units in each plants. Therefore, strict regulatory policies regarding VOC emission are expected to drive growth of the global vapor recovery units market during the forecast period

However, mechanical failure and operational risks related to VRU are expected to restrain growth of the global vapor recovery units market during the forecast period

Market Taxonomy

This report segments the global vapor recovery units market on the basis of technology, application, process, and end-use industry. On the basis of technology, the global vapor recovery units market is segmented into membrane separation, adsorption, absorption, and condensation. On the basis of application, the market is segmented into marine loading, railcar loading, truck loading, pipeline, and storage tank vents. On the basis of process, the market is segmented into upstream and downstream. On the basis of end-use industry, the market is segmented into oil & gas compressors, landfills, brewery and food processing, and others.

Key features of the study:

  • This report provides an in-depth analysis of the global vapor recovery units market and provides market size (US$ Million) and Compound Annual Growth Rate (CAGR %) for 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 approval, regional outlook, and competitive strategy adopted by leading players
  • It profiles leading players in the global vapor recovery units market based on the following parameters – regulatory landscape, company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered as a part of this study include John Zink Company, LLC, Hy-Bon/EDI, Whirlwind Methane Recovery Systems LLC, Petrogas Systems, Accel Compression Inc., PSG Dover, Wintek Corporation, AEREON Inc., and Cimarron Energy Inc.
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology up-gradation, market expansion, and marketing tactics
  • The global vapor recovery units market report caters to various stakeholders in this industry including investors, suppliers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the global vapor recovery units market

Detailed Segmentation:

  • Global Vapor Recovery Units Market, By Technology:
    • Membrane Separation
    • Adsorption
    • Absorption
    • Condensation
  • Global Vapor Recovery Units Market, By Application:
    • Marine Loading
    • Railcar Loading
    • Truck Loading
    • Pipeline
    • Storage Tank Vents
  • Global Vapor Recovery Units Market, By Process:
    • Upstream
    • Downstream
  • Global Vapor Recovery Units Market, By End-use Industry:
    • Oil & Gas Compressors
    • Landfills
    • Brewery and Food Processing
    • Others
  • Company Profiles
    • John Zink Company, LLC *
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Hy-Bon/EDI
    • Whirlwind Methane Recovery Systems LLC
    • Petrogas Systems
    • Accel Compression Inc.
    • PSG Dover
    • Wintek Corporation
    • AEREON Inc.
    • Cimarron Energy Inc.

*Browse all the market data tables and figures on "Global Vapor Recovery Units Market - Forecast to 2027”

Table of Contents

  1. Research Objective and Assumption
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Technology
      • Market Snippet, By Application
      • Market Snippet, By Process
      • Market Snippet, By End-use Industry
      • 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 Launch/Approvals
      • Value Chain Analysis
      • Porter’s Analysis
      • PEST Analysis
  4. Global Vapor Recovery Units Market, By Technology, 2017-2027  (US$ Million & Units)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Membrane Separation
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million & Units)
    • Adsorption
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million & Units)
    • Absorption
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million & Units)
    • Condensation
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million & Units)
  5. Global Vapor Recovery Units Market, By Application, 2017-2027  (US$ Million & Units)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Marine Loading
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million & Units)
    • Railcar Loading
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million & Units)
    • Truck Loading
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million & Units)
    • Pipeline
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million & Units)
    • Storage Tank Vents
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million & Units)
  6. Global Vapor Recovery Units Market, By Process, 2017-2027  (US$ Million & Units)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Upstream
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million & Units)
    • Downstream
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million & Units)
  7. Global Vapor Recovery Units Market, By End-use Industry, 2017-2027  (US$ Million & Units)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Oil & Gas Compressors
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million & Units)
    • Landfills
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million & Units)
    • Brewery and Food Processing
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million & Units)
    • Others
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million & Units)
  8. Global Vapor Recovery Units Market, By Region, 2017-2027  (US$ Million & Units)
    • Introduction
      • Market Share Analysis, By Region, 2017 and 2027 (%)
    • North America
      • Regional Trends
      • Market Size and Forecast, By Technology, 2019–2027 (US$ Million & Units)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million & Units)
      • Market Size and Forecast, By Process, 2019–2027 (US$ Million & Units)
      • Market Size and Forecast, By End-use Industry, 2019–2027 (US$ Million & Units)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.S.
        • Canada
    • Europe
      • Regional Trends
      • Market Size and Forecast, By Technology, 2019–2027 (US$ Million & Units)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million & Units)
      • Market Size and Forecast, By Process, 2019–2027 (US$ Million & Units)
      • Market Size and Forecast, By End-use Industry, 2019–2027 (US$ Million & Units)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.K.
        • Germany
        • Italy
        • France
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Regional Trends
      • Market Size and Forecast, By Technology, 2019–2027 (US$ Million & Units)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million & Units)
      • Market Size and Forecast, By Process, 2019–2027 (US$ Million & Units)
      • Market Size and Forecast, By End-use Industry, 2019–2027 (US$ Million & Units)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Regional Trends
      • Market Size and Forecast, By Technology, 2019–2027 (US$ Million & Units)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million & Units)
      • Market Size and Forecast, By Process, 2019–2027 (US$ Million & Units)
      • Market Size and Forecast, By End-use Industry, 2019–2027 (US$ Million & Units)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • Regional Trends
      • Market Size and Forecast, By Technology, 2019–2027 (US$ Million & Units)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million & Units)
      • Market Size and Forecast, By Process, 2019–2027 (US$ Million & Units)
      • Market Size and Forecast, By End-use Industry, 2019–2027 (US$ Million & Units)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Israel
        • GCC Countries
        • South Africa
        • Rest of the Middle East and Africa
  9. Competitive Landscape
    • Company Profiles
      • John Zink Company, LLC
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Hy-Bon/EDI
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Whirlwind Methane Recovery Systems LLC
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Petrogas Systems
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Accel Compression Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • PSG Dover
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Wintek Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • AEREON Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Cimarron Energy Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
    • Analyst Views
  10. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse 60 market data tables and 40 figures on "Vapor Recovery Units Market - Global forecast to 2027”.

Existing Clientele

Joining thousands of companies around the world committed to making the Excellent Business Solutions.

View All Our Clients

Our Trusted Patner