Vapor recovery units (VRUs) are refueling equipment that capture hydrocarbon vapors that are emitted during the delivery of gasoline, natural gas, and other volatile fuels. They prevent air pollution by collecting vapors during fuel transfers instead of releasing them into the atmosphere. Vapor recovery units play a key role in controlling industrial emissions and complying with environmental regulations. Their compact design and ability to recover up to 98% of emissions makes them suitable for use across various end-use industries such as oil & gas, chemicals and petrochemicals, utilities and mining. Growing environmental awareness about reducing VOC emissions and strict air pollution norms by regulatory bodies are major factors driving demand for VRUs globally.
The global vapor recovery units market is estimated to be valued at US$ 505.3 Mn in 2024 and is expected to exhibit a CAGR of 2.8% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the vapor recovery units market are Alma Group, BORSIG GmbH, Cimarron Energy, Dover, Flogistix LP, Gardner Denver, Hy-Bon/EDI, John Zink Company, Kappa GI, Kilburn Engineering Ltd, Petrogas Systems, Symex Technologies, Voczero Ltd., Whirlwind Methane Recovery Systems LLC, Zeeco Inc, S&S Technical, KAPPA GI, Reynold India Private Limited., Ishan Equipments Pvt. Ltd., and TECAM Group.
Growing industrialization and urbanization in developing nations have increased fuel consumption and industrial emissions, propelling the need for Vapor Recovery Units (VRUs).
Stringent regulatory frameworks aimed at curbing air pollution and volatile organic compound (VOC) emissions from sectors such as oil & gas and petrochemicals are also driving the growth of the Vapor Recovery Units Market size acquisitions and global expansion strategies to consolidate their market position and capitalize on high growth opportunities in developing regions such as Asia Pacific and Latin America.
With rising investments in industrial infrastructure worldwide, the vapor recovery units market is expected to witness lucrative growth over the forecast period.
Market Key Trends
One of the major trends gaining traction in the vapor recovery units market is the increasing adoption of zero emissions VRUs. This trend is being driven by the growing focus on reducing greenhouse gas emissions and achieving sustainability targets. Several companies are developing zero emissions technologies for vapor recovery that prevent methane and VOC leaks during the fuel distribution process. For example, companies are offering VRUs integrated with zero emissions compressors that collect vapors and return them to the fuel storage tank without releasing any emissions. Such environment-friendly solutions are expected to boost adoption across end-use industries in the coming years.
Porter's Analysis
Threat of new entrants: New entrants find it difficult to enter this market due to high capital requirement and established brands.
Bargaining power of buyers: Buyers have low bargaining power due to lack of substitute products and wide range of offerings from existing players.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of alternative material suppliers and dependence of buyers on supplies.
Threat of new substitutes: Threat of substitution is low as vapor recovery units have no close substitute.
Competitive rivalry: Competition is high among existing players due to presence of many global and regional players offering similar product range.
The geographical region where the vapor recovery units market is concentrated in terms of value is North America. North America holds more than 35% share of the global market owing to stringent government regulations regarding emission control, emphasizing its significance in the Vapor Recovery Units Market Regional Analysis Europe holds the second largest share in the global vapor recovery units market due to adoption of stringent emission norms by European Union.
Rising oil and gas activities coupled with enforcement of emission control regulations especially in China and India is driving the market in this region. Countries like China, India, Indonesia and Malaysia are expected to offer huge growth opportunities for vapor recovery units market in coming years.
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