The “Global Vapor Recovery Units Market, by Technology (Membrane Separation, Adsorption, Absorption, and Condensation), by Application (Marine loading, Railcar Loading, Truck Loading, Pipeline, and Storage Tank Vents), by Process (Upstream and Downstream), by End-use Industry (Oil & Gas Compressors, Landfills, Brewery and Food Processing, and Others), and by Geography (North America, Europe, Asia Pacific, and Latin America, Middle East & Africa) - Global Forecast to 2027”, is expected to be valued at US$ 672.8 million by 2027, witnessing a CAGR of 3.3% during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.
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.
In this method, temperature is lowered using processes such as direct expansion of gas or direct refrigeration to recover vapors. Although this process has a low capital cost, its maintenance cost is high and provides low ROI.
In this process, a chilled absorbent is used that enters from the top of the tower and the vapor is captured by this absorbent liquid. This method is cost-effective and high energy consumption.
Increasing oil storage tanks across the globe is expected to propel growth of the global Vapor recovery units market over the forecast period
The global oil crisis has forced major oil & gas companies to stress on optimizing their storage and distribution competences, to reduce losses. Storage tanks are crucial in addressing the on-time consumer demand coupled with buildup stocks for future requirements. Increasing number of crude oil storage tanks combined with advent of VRUs, it is clearly indicating that crude oil producers are focused on optimizing storage capabilities and distribution channels to deal with rising crude oil price crisis. Moreover, implementation of strict emission policies by various regulatory and environmental agencies is compelling crude oil producers to install vapor recovery units. According to the Canadian Association of Petroleum Producers (CAPP), in 2015, around 3.7 Mn barrels of crude oil were yielded in Western Canada per day. Canada-based players such as Gibson Energy Inc., TransCanada Corporation and Enbridge, Inc. are planning to enhance their oil storage capacity over the next few years. TransCanada Corporation announced plans to add 2.6 million barrels of capacity by the end of 2016. Gibson Energy Inc. has announced addition of 2.3 Mn barrels by the end of 2016. Moreover, in June 2016, EnLink Midstream and EnLink Midstream Partners announced plans to construct a new crude oil gathering system in locations within the Permian Basin.
Frequent installation of VRUs on gas station in Asia Pacific is expected to present lucrative business opportunity for market players
Petrol comprises volatile organic compounds that evaporate during unloading underground storage tanks and refueling vehicles. New environmental regulations pertaining to curtailing VOC emissions has, in turn, led to installation of vapor recovery units at petrol pumps. For instance, on May 5, 2009, the European Parliament passed the proposal for a Directive on Stage II Petrol Vapor Recovery during refueling of passenger cars at service stations. However, the regulations are not stringent in Asia Pacific region. Installation of new vapor recovery units with capacity less than 50 mcf can bring in economic profits along with environmental benefits in the region.
High capital investment coupled with low ROI is expected to hamper the global vapor recovery units market over the forecast period
Initial installment cost for vapor recovery units is around US$ 500,000 per unit for truck loading operations. However, this price may change according to client specifications. Therefore, require vapor recovery unit may vary significantly from standard vapor recovery unit. Moreover, in truck loading application, a vapor recovery unit can provide complete return on investment in two to three years. These factors have restrained growth of the market up to certain extent.
Key players in the market are involved in mergers and acquisitions, in order to gain competitive advantage. For instance, in July 2019, Cimarron Energy Inc. acquired Hy-Bon/EDI to strengthen its market position.
Condensation is one of the most common process used for vapor recovery. However, its maintenance cost is high and offers low ROI. Thus, end users are adopting other methods namely membrane separation for vapor recovery. Membrane separation technology has high efficiency and high vapor recovery rate compared to all other technologies. VRU based on the technology are compact and can be tailored as per customer demand. Membrane separation technique is most reliable and is low maintenance as compared to other technologies.
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.
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