Market Trends of Vapor Recovery Units Industry
This section covers the major market trends shaping the Vapor Recovery Units Market according to our research experts:
Oil & gas Sector to Dominate the Market
- The oil & gas sector is expected to dominate the vapor recovery units market in the forecast period, owing to factors like rising oil & gas demand, increased refining throughput, and rapidly evolving environmental regulations.
- Vapor recovery units are used in the oil & gas industry to recover vent gas and to prevent its release into the atmosphere. The vapor recovery units (VRUs) collect vapor entrained in crude oil, well production wastewater, or other fuels stored in tanks. The VRUs also help oil & gas companies to earn additional revenues through the sale of the recovered vapor and simultaneously meet environmental regulations.
- Vapor recovery units for the oil and gas industry can vary from a range from small table-top packages for minute gas streams to packages handling millions of cubic feet of gas per day. The demand for vapor recovery units in the sector is driven by the increasing oil and gas demand. The global oil consumption grew by over 15% from 86619 thousand barrels daily in 2008 to 99843 thousand barrels daily in 2018, while the gas consumption grew by over 28% from 289.3 billion cubic feet in 2008 to 372.4 billion cubic feet in 2018.
- Vapor recovery units in the oil and gas industry are also used for providing flash gas recovery at near atmospheric pressure without the potential of oxygen ingress from the top of the storage tanks. The creation of vapor flash inside storage tanks has been observed to reduce the emissions from storage tanks to less than 6 tons per year.
- Therefore, with the increase in oil and gas demand and the rise in stringent regulations on the sector, the market for vapor recovery units is expected to grow with it.
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Asia-Pacific to Dominate the Market Growth
- Asia-Pacific is expected to be the fastest-growing market in the forecast period due to rising oil and gas demand.
- Asia-Pacific is one of the fastest-growing regions in the world because of the increasing population, urbanization, and industrialization. As a result, the demand for oil and gas is increasing rapidly.
- The oil consumption in the region has increased by over 38%, from 25940 thousand barrels daily in 2008 to 35863 thousand barrels daily in 2018, while gas consumption increased by over 63%, from 503.7 billion cubic meters in 2008 to 825.3 billion cubic meters in 2018. The oil consumption of the region was highest in the world and made up a 35.9% share of the global oil consumption in 2018, while gas consumption was second to North America at 21.4%.
- All of the above factors point towards ever-increasing oil and gas demand and, in turn, the demand for vapor recovery units in the region. The vapor recovery units market is also complemented by the environmental regulation for VOC emissions being put in place by developing countries in the region.
- Therefore, the aforementioned factors are expected to drive the market in the forecast period.
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