Vapor Recovery Units Market

Technological advances will propel market growth.

Market CAGR for vapor recovery unit is being driven by the rate of technical invention and advancement is unending. New technology is rapidly expanding in the vapour recovery unit sector. Because of new technologies, consumer demand has evolved from the traditional condensation approach employed in vapour recovery units to a new membrane separation technology. In membrane separation technology, a semipermeable membrane is utilised for filtering. Condensation technology paired with membrane separation technology has proven to be exceptionally effective and efficient in increasing recovery rates while decreasing maintenance costs.

Innovative approaches and technologies may fuel the expansion of the vapour recovery units market over the forecast period.

Various industries are responsible for the release of volatile organic compounds into the environment, where they mix with the air. These substances pose a threat to the environment as hazardous air pollutants. Government authorities in numerous countries have passed strict environmental regulations in an effort to stop the negative effects of VOC emissions. These regulatory measures have required crude oil producers and the petroleum industry to install vapour recovery units in each of their operations.

For instance, the United States Environmental Protection Agency (EPA) issued a set of guidelines in May 2021 to minimise VOC, methane, and harmful air emissions in the oil and natural gas business. According to the revised guidelines, methane emissions in the country's oil and gas industry must be lowered by 40-45% by 2032 compared to 2019 levels.

Crude oil tanks hold light hydrocarbons like methane, natural gas liquids, hazardous air pollutants (HAP) and some inert gases. During storage, these hydrocarbons vaporise and amass in the storage area. These vapours are released into the atmosphere as the liquid level in the tank changes. These vaporised hydrocarbons are collected and stored using vapour recovery machines. In onsite operations, these hydrocarbons can be used and sold as fuel. All of this adds up to significant cost savings and a reduction in methane emissions. Thus, driving the Vapor Recovery Units Market revenue.

The Global Vapor Recovery Units Market Industry is significantly driven by stringent environmental regulations aimed at reducing volatile organic compound emissions. Governments worldwide are enforcing laws that mandate the installation of vapor recovery systems in various sectors, including oil and gas, chemical manufacturing, and waste management. For instance, the U.S. Environmental Protection Agency has established guidelines that require vapor recovery units to be implemented at specific facilities. This regulatory landscape not only compels companies to adopt these technologies but also fosters a competitive market environment, as compliance becomes essential for operational continuity.

The Global Vapor Recovery Units Market Industry is poised for growth, with projections indicating a market size of 1.19 USD Billion by 2024 and an anticipated increase to 1.64 USD Billion by 2035. This growth trajectory reflects a compound annual growth rate of 2.95% from 2025 to 2035. The increasing adoption of vapor recovery technologies across various sectors, driven by regulatory compliance and environmental awareness, suggests a robust market outlook. As industries continue to prioritize sustainability and emissions reduction, the demand for vapor recovery units is likely to remain strong, supporting the overall growth of the market.

Innovations in vapor recovery technology are propelling the Global Vapor Recovery Units Market Industry forward. Enhanced designs and improved materials are leading to more efficient systems that can capture a higher percentage of emissions. For example, advancements in membrane technology and carbon adsorption systems have shown promising results in increasing recovery rates. As these technologies evolve, they not only reduce operational costs but also improve the overall effectiveness of vapor recovery units. This trend suggests a growing market potential, as industries seek to adopt the latest technologies to meet regulatory demands and enhance sustainability.

The resurgence in oil and gas production globally is a key driver for the Global Vapor Recovery Units Market Industry. As extraction and refining activities increase, so does the need for effective vapor recovery solutions to manage emissions. The International Energy Agency projects that global oil production will continue to rise, necessitating the implementation of vapor recovery units to comply with environmental regulations. This growth in the oil and gas sector is expected to contribute to the market's expansion, with projections indicating that the market could reach 1.19 USD Billion by 2024, reflecting a robust demand for vapor recovery technologies.

There is a notable increase in environmental consciousness among consumers and industries, which is influencing the Global Vapor Recovery Units Market Industry. Companies are increasingly recognizing the importance of sustainability and the role of vapor recovery units in minimizing their environmental footprint. This shift in mindset is prompting investments in cleaner technologies and practices. As a result, businesses are more likely to adopt vapor recovery systems to align with consumer expectations and corporate social responsibility goals. This trend is likely to drive market growth, as organizations strive to enhance their sustainability profiles and reduce emissions.

Emerging economies are experiencing rapid industrialization, which is positively impacting the Global Vapor Recovery Units Market Industry. As countries like India and Brazil expand their industrial bases, the demand for vapor recovery units is expected to rise significantly. These nations are increasingly adopting stringent environmental regulations, similar to those in developed markets, to combat pollution. This trend indicates a potential market growth trajectory, with the Global Vapor Recovery Units Market projected to reach 1.64 USD Billion by 2035. The compound annual growth rate of 2.95% from 2025 to 2035 suggests a sustained demand for vapor recovery solutions in these regions.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. During the projected period, the Asia Pacific vapour recovery unit market is expected to rise rapidly. more oil and gas development, stricter pollution restrictions, and more manufacturing activity all contribute to the region's vapour recovery units market growth. Furthermore, industrial growth, an increase in the use of these recovery units in gas stations, and the strengthening of the petrochemical, chemical, and pharmaceutical industries all result in increased demand for vapour recovery units.

Moreover, China’s Vapor Recovery Units Market held the largest market share, and the Indian Vapor Recovery Units Market was the fastest growing market in the Asia-Pacific region.

Further, the major countries studiedin the market reportare The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Vapor Recovery Units Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Vapor Recovery Units Market accounts for the second-largest market share due to the rapid industrialisation, the discovery of new shale oil and gas fields, stringent government regulations imposed on VOC emissions in the region's countries Further, the German Vapor Recovery Units Market held the largest market share, and the UK Vapor Recovery Units Market was the fastest growing market in the European region

The North America Vapor Recovery Units Market is expected to grow at the fastest CAGR from 2023 to 2032. This is because of severe laws requiring the installation of vapour recovery systems and the significant output of gasoline as a fuel.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Vapor Recovery Units Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Vapor Recovery Units industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Vapor Recovery Units industry to benefit clients and increase the market sector. In recent years, the Vapor Recovery Units industry has offered some of the most significant advantages to medicine. Major Vapor Recovery Unit manufacturers, including Whirlwind Methane Recovery Systems, LLC (US), Dover (India), BORSIG GmbH (Germany), John Zink Hamworthy (US), Hy-Bon/EDI (US), and others, are attempting to increase market demand by investing in research and development operations.

Chiyoda, Tokyo, Japan is home to the international company Hitachi, Ltd. It is the parent company of the Hitachi Group (Hitachi Gurpu), and when DKB and Fuji Bank (the main entity of the Fuyo Group) merged to become the Mizuho Financial Group, it was a member of the Nissan zaibatsu, DKB Group, and Fuyo Group of companies. By 2020, Hitachi will be involved in a variety of industries, including infrastructure, AI, the Internet of Things, and big data.

In Jul 2019, Hitachi has agreed to offer innovative technologies and equipment for the Persian Gulf Bid Boland Gas Refinery project in southern Khuzestan Province. NIPNA, a Japanese corporation, will supply compressors, vapour recovery units, and gas storage equipment under the terms of the agreement.

Cimarron Energy Inc. is an oil and gas production equipment designer and manufacturer. Gas production units, separators, line heaters, vapour recovery towers, dehycombustor, and other related goods are available from the company. Cimarron Energy provides service to customers in the United States. In Jul 2019, Cimarron Energy, Inc. announced the purchase of HY-BON/EDI. Long-term client strategies for HY-BON/EDI and Cimarron are aligned in order to strengthen our market positions in vapour recovery and emissions control systems for oil and gas operators.