VAPOR RECOVERY UNITS MARKET ANALYSIS

Vapor Recovery Units Market Size and Trends

The vapor recovery units market is estimated to be valued at USD 505.3 Mn in 2024 and is expected to reach USD 613.1 Mn by 2031, exhibiting a compound annual growth rate (CAGR) of 2.8% from 2024 to 2031.

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The vapor recovery units market is expected to witness significant growth over the forecast period. Stringent environmental regulations regarding volatile organic compound (VOC) emissions from storage tanks and truck loading racks at petroleum terminals are expected to drive the demand for vapor recovery units. Additionally, growing concerns regarding hazardous air pollutants (HAPs) and greenhouse gas emissions from the oil and gas industry are also anticipated to boost the market growth. Rapid industrialization and urbanization in developing nations have led to a rising demand for petroleum products, which, in turn, is expected to increase installations of vapor recovery units across oil marketing companies and petroleum product manufacturers over the next few years.

Vapor recovery units prevent air pollution

As environmental regulations across the world have become more stringent in recent years, preventing air pollution from volatile organic compounds (VOCs) has become a high priority. Vapor recovery units (VRUs) play a critical role in capturing hydrocarbon vapors that would otherwise escape into the atmosphere during the loading and unloading of gasoline and other petroleum products. These vapors contain various harmful VOCs like benzene, toluene, and xylene that can negatively impact both public health and the environment if released unchecked. The strict enforcement of emission standards by environmental agencies has led petroleum product terminals, gas stations, and other transfer stations to increasingly rely on VRUs. Various innovations in VRU design like improved vapor collection efficiency and onboard monitoring systems have also made them more effective at capturing vapors. With air quality emerging as a major public concern, regulations around VOC emissions are expected to become more comprehensive over time. This growing regulatory pressure will be a key driver sustaining the long-term demand for VRUs across many industries involved in the distribution of petroleum and chemical products.

Opportunities for VRU use in emerging economies

While developed markets in North America and Europe have established regulatory frameworks around vapor recovery for some time now, many developing economies are still in the initial stages of addressing air pollution from their rapidly growing energy and transportation sectors. As urbanization and industrialization progresses in countries like India, Indonesia, and across Africa and Latin America, VRU technology presents an opportunity to curb emissions from an early stage itself. These emerging economies represent huge potential for VRU vendors to establish local manufacturing and service networks to tap into infrastructure projects across areas like oil terminals, LNG import facilities, pipelines, and gasoline retail. Several of these countries have also started introducing their own emissions standards modeled on international protocols. This regulatory push when combined with a need to manage VOC emissions from intensive industrial growth could spur sizable VRU deployment projects across various nodes in their developing fuel distribution infrastructure. Vendors successful in localizing their value chains and customizing solutions for these new markets stand to gain considerable long-term business as emission control becomes a rising priority.