The “Global Vapor Recovery Services Market, by Process (Upstream and Midstream/ Downstream), by Application (Marine Loading, Storage Tank Vents and Railcar and Truck Loading), by Operation (New Installations and Services (O&M)) and by Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Global Forecast to 2027”, is expected to exhibit a CAGR of 7.4% during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.
Vapor recovery is the process of retrieving vapors from gasoline or other fuels, so they are contained into the storage and not escaped into the atmosphere. This is done to reduce explosive and potentially hazardous flames into the atmosphere and pollution. Vapor recovery unit is typically used for this process which stores, restricts, withdraws, and refines vapor from gas storage tanks. Vapor recovery unit is used to recover vapors which are directly emitted to environment. VPU finds applications in marine loading, storage tank vents, and railcar & truck loading. End-use industries such oil & gas, chemicals, and refiners are deploy VPU systems.
The global vapor recovery services market is estimated to account for US$ 303.5 Mn in terms of value by the end of 2019
Growing number of oil storage tanks worldwide is expected to drive the global vapor recovery services market growth during the forecast period
Global crude oil crisis has compelled major companies to focus on enhancing their storage and distribution capabilities, in order to minimize their losses. In such cases, storage tanks play an essential role in attending the increasing consumer demand and also maintaining stockpiles for future demands. Moreover, enforcement of strict environmental regulations by various governments and environmental agencies worldwide has accelerated the adoption of vapor recovery units in crude oil industry, in order to reduce environmental impact. For instance, according to Canadian Association of Petroleum Producers (CAPP), in 2015, 3.7 million barrels of crude oil were produced in Western Oil per day. Key players in the Canada are focusing on adoption VPUs, in order to enhance their storage capacity. Moreover, TransCanada planned to add 2.6 million barrels of capacity by the end of 2016.
Advancement in unconventional energy sources is expected to pose excellent business opportunities for market players
There has been development of unconventional energy source namely oil sands, shale oil, and coal bed methane, which has created lucrative growth opportunity for vapor recovery units manufacturers. Oil & gas producers across the world are actively adopting advanced technologies such as membrane-separated vapor recovery units to enhance their production process. Moreover, key players in the market are focused on investments for production, research, and development activities for oil sands, shale oil, and coal bed methane, which in turn, is expected to offer business opportunities for market players. For instance, in June 2016, Ghana National Petroleum installed two import LNG terminals as the country is planning to start importing LNF in early 2017.
Inappropriate management and assembly of vapor recovery units can lead to environmental issues
Installation and handling of vapor recovery units should be done appropriately under the supervision of experienced workers. Any mechanical failure during handling and assembly of the VPU can lead to leakage of hazardous gas such as methane, eventually causing environmental issues. Thus, such factors are expected to restrain the market growth in the near future.
Key companies in the market are focused on mergers and acquisitions, order to enhance global market presence. For instance, in July 2019, Cimarron Energy Inc. acquired Hy-Bon/EDI, a provider of vapor recovery and emissions control solutions for oil & natural gas industry.
The recovery of vapors is usually done through vaporization though it is an expensive and high maintenance process. Therefore, key players are preferring absorption and adsorption techniques, since they provide high vapor recovery rate and low concentrations of VOC. Membrane separation technology is being increasingly adopted, which is highly efficient and offer high vapor recovery rate. Moreover, membrane separation technology can be offered with customized system, in order to cater to specific demands.
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.
Coherent Market Insights is a prominent market research and consulting firm offering action-ready syndicated research reports, custom market analysis, consulting services, and competitive analysis through various recommendations related to emerging market trends, technologies, and potential absolute dollar opportunity.