Adsorption and Membrane Separation - Preferred Technologies Vapour recovery units based on the adsorption principle will continue to shape the market landscape in the coming years. While considering cost and operational efficiency, adsorption-based VRUs are a universal choice among end users. Moreover, these vapour recovery units would near revenue worth around US$ 1 Bn towards the end of the projection period. However, VRUs based on membrane separation technology are likely to witness greater demand growth owing to their straightforward installation and usage.

Stakeholders Eye North America and APEJ for Bigger Margins Combination of strong foothold of manufacturers and rising upstream & downstream projects are providing a spurt to the vapour recovery unit market in North America and Western Europe. Collectively capturing around 70% of total demand, the market in these developed regions would also be driven by strict mandates regarding greenhouse gas (GHG) emissions. The vapour recovery unit market in Asia Pacific excluding Japan (APEJ) is flourishing at a staggering rate, attributable to increasing gas demand from industry-adjacent sectors in China and ASEAN countries.

Regulatory Framework to Add Another Leg of Market Growth In the race towards a net-zero future, governments across the globe are imposing stringent norms regarding volatile organic compounds (VOC) emissions from storage tanks. Vapour recovery units prevent the escaping of vapours from storage tanks, and help allay VOC emissions by around 90%. Additionally, they help reduce crude oil wastage in upstream & downstream operations. In order to sustain air quality index, companies, especially in oil & gas field services, are installing vapour recovery units in their manufacturing facilities. This, in turn, would translate into exponential demand for vapour recovery units.

How Growth will Unfold Oil & gas compressors would generate over 70% of overall returns to market players as compared to other end-use sectors. Increasing need for storage and transportation of oil & gas to outpace their demand growth is resulting in widespread adoption of vapour recovery units in oil & gas compressors. Manufacturers are also witnessing demand upheaval in the brewery and food processing sectors, despite contributing marginally to vapour recovery unit market revenue. Although the usage of vapour recovery units in these end-use categories is accelerating, market players continue to create maximum value from oil & gas compressors.

FREQUENTLY ASKED QUESTIONS ABOUT VAPOUR RECOVERY UNIT MARKET What is the growth outlook of the vapour recovery unit market? Vapour recovery units are vital for the oil & gas industry, as these are used to restrict loss of crude oil from storage tanks through restriction of vapour. With regulations imposed on reducing VOC emissions and greenhouse gas emissions, the demand for vapour recovery unit solutions is expected to rise substantially during the forecast period. Which segment will gain healthy traction over the coming decade? By application, marine loading and railcar loading are expected to register substantial growth rates, attributable to increasing consumption of crude oil in these sectors. Extensive usage of VRUs in upstream applications and high cost of these units in upstream are anticipated to spur the growth of the upstream segment. Which trend will shape the global vapour recovery unit market? In recent years, a shift in consumer preference is being observed from vapour recovery units with condensation technology to those with membrane separation technology. Membrane separation technology VRUs provide a higher recovery rate and extensive reduction in maintenance cost. What is the degree of competitiveness among players in the global market? The global vapour recovery unit market is fragmented, due to the presence of numerous players in the global market. Multiple players have prominence in specific regions, but some players have global coverage due to their export businesses. Players such as Zeecon Inc, Gardner Denver Holdings Inc., and John Zinc Company LLC are identified as tier-1 players. Which region offers considerable growth opportunities for players in the vapour recovery unit market? APEJ is anticipated to offer lucrative opportunities for the global vapour recovery unit market. Milestone oil & gas industry developments on the back of intense consumption in markets such as China and India are expected to reinforce the sales of vapour recovery units in the APEJ region. With immense potential for oil & gas exploration activities, the market of MEA is also expected to flourish during the slated course of time.