Vapour Recovery Units Market Report

The global oil and gas business have been impacted by the rising trend towards sustainable energy sources and fluctuating fuel costs. As a result, national oil corporations, particularly in the Middle East, Africa, and South America, are developing strategies to enhance their economies in the framework of the energy transition. National oil firms in the Middle East and North America are making investments in oil and gas projects while retaining transparent and efficient management. The United States Environmental Protection Agency (EPA) estimates that there are approximately 542,000 crude oil storage tanks in the United States.

Additionally, in the oil producing sector of the United States, around 7,000 to 9,000 vapour recovery machines are deployed. These regions' upcoming oilfield and oil storage potential are likely to create growth opportunities for vapour recovery unit manufacturers during the coming decade. For instance, Zakum Development Company's second prime offshore oilfield has announced a collaboration with ExxonMobil, Abu Dhabi National Oil Company, and the Japan Oil Development Company. This initiative is anticipated to boost the installation of vapour recovery equipment in certain regions in order to minimise VOC emissions. 

To completely eliminate VOC emissions in oil and gas facilities, a vapour recovery unit is built, which is usually designed to meet the plant's requirements. These units, which vary in capacity, are deployed at various levels in both upstream and downstream applications. Each unit’s component procurement, designing, and installation become costly due to customisation and diversity in sizes, capacity, and changing processing parameters. As a result, the cost of installing a vapour recovery unit is higher than for other units. The majority of Vapour Recovery Units (VRUs) components are mounted on a skid assembly. As entire VRUs, these skids allow systems to move easily. As a result, faulty installation and ground anchoring of the systems causes operational issues in these units.  In the majority of cases, faulty installation of a compressor, which is a crucial component in a VRU, can lead to operational issues with the unit. As a result, incorrect VRU handling and assembly might result in safety and environmental hazards.

Furthermore, maintaining vapor recovery units (VRUs) necessitates specific expertise and knowledge since their intricate systems and advanced technology. The need for specialized assistance can greatly increase operational expenses, especially when there is a lack of skilled technicians or they are not easily accessible. For instance, the complex sensors, valves, and pumps necessary for VRUs require thorough training and expertise. Lacking skilled staff can result in more downtime for companies, as they grapple with maintenance problems, potentially causing production stoppages and revenue loss. Furthermore, depending on specialized maintenance can result in logistical obstacles and lead to increased long-term operational costs, which highlights the importance for businesses to secure sufficient technical assistance for their VRU systems.

VRUs play a key role in collecting and recycling valuable vapours in industrial operations, crucial for reducing environmental harm and meeting regulations. They tackle the necessity of managing volatile organic compounds (VOCs) and greenhouse gases to decrease emissions and improve sustainability. VRUs assist industries in reducing operational expenses, adhering to strict environmental rules, and promoting resource efficiency by retrieving and reusing vapours. Growing environmental standards and increasing corporate responsibility highlight the significance of them. For instance, in June 2024, at the Methane Mitigation Technology & Innovation Summit, SCS Technologies (SCS), a leading provider of CO2 measurement systems, methane vapor recovery units and petroleum LACT units, launched a new line of pre-engineered vapor recovery units (VRUs), which are configurable to meet unique customer needs at a cost-efficient price.

Asia Pacific is expected to dominate market growth owing to increased urbanisation and industrialization, Asia Pacific is one of the world's fastest-growing regions. As a result, demand for oil and gas is rapidly expanding. Increased oil and gas exploration operations in India are likely to generate further growth prospects for manufacturers of vapour recovery units. According to the International Energy Agency (IEA), primary energy consumption is expected to nearly double to 1,123 MT of oil equivalent by 2040, as India's GDP climbs to US$ 8.6 trillion. The use of vapour recovery units is likely to increase in India as investment in oil storage and oilfield developments increases. For instance, in April 2023, Oil and Natural Gas Corporation announced a US$ 7 billion investment to increase oil and gas output. Such advancements in the oil and gas industry, as well as severe standards enforced by the International Energy Agency and the Environmental Protection Agency, are projected to boost demand of vapour recovery units in India.