According to Future Market Insights (FMI), global demand for vapor recovery units is expected to rise at a 5.6% CAGR between 2022 and 2028. The increasing use of these units in the oil and gas industry is boosting the market growth.
The growing number of crude oil storage tanks being built around the world has increased the demand for vapor recovery units. These tanks are used to temporarily store oto to stabilize the flow between production wells and pipelines.
End users are increasingly using vapor recovery units to reduce the emission of light hydrocarbons and other volatile compounds. The United States has approximately 500,000 crude oil storage tanks, according to the Environmental Protection Agency (EPA).
Surging upstream and downstream projects around the world have increased crude oil production and storage tank vent installation in the oil and gas and marine industries. According to the International Energy Agency (IEA), global demand and supply for oil are expected to rise by 104.1 million barrels per day (mb/d) and 67.6 million barrels per day (mb/d), respectively, by 2026.
End users are increasing the installation of vapor recovery units in response to the constant increase in upstream projects and oil and gas exploration activities. Because of stricter environmental regulations limiting GHG and other VOC emissions, the oil and gas and marine industries are looking for ‘alternative methods’ to comply.
According to the EPA, the government across several countries is aiming to reduce emissions by nearly 90,000 per year. Due to this, manufacturers, importers, and distributors are compelled to limit the VOC content of consumer products.
Hence, demand for vapor recovery units is expected to surge in the oil and gas industry over the forecast period.
As per Future Market Insights, the Asia Pacific excluding Japan is expected to be the second-largest gest marfortvaporpour recovery unit, holding over 10.4% of the share in 2022. Increasing oil and gas exploration activities in India are expected to create incremental growth opportunities for vapor recovery unit manufacturers.
- Hy-Bon/EDI, Petrogas Systems
- PSG Dover
- John Zink Company LLC
- Cimarron Energy Inc.
- Wintek Corporation, Accel Compression Inc.
- Whirlwind Methane Recovery Systems LLC