The global vapor recovery units market is estimated to be valued at US$ 520.9 Mn in 2022 and is projected to reach US$ 692.3 Mn by 2022, exhibiting a CAGR of 3.3% over the forecast period (2023-2030), according to a new report by Coherent Market Insights.
Vapor recovery units are used to recover vapors from oil and gas storage tanks, thereby reducing the emission of volatile organic compounds (VOCs) into the atmosphere. These units help in reducing air pollution and comply with environmental regulations. The advantages of vapor recovery units include improved air quality, increased safety, and reduced fuel consumption. The need for these products is driven by the increasing focus on environmental sustainability and stringent emission control regulations.
Market Key Trends:
One key trend in the vapor recovery units market is the growing adoption of carbon adsorption systems. Carbon adsorption systems offer higher efficiency in capturing VOCs and are widely used in various industries, including oil and gas, chemical, and pharmaceutical. These systems use activated carbon to adsorb VOCs, providing a cost-effective and reliable solution for vapor recovery.
The Porter’s Analysis for the vapor recovery units market is as follows:
Threat of new entrants: The threat of new entrants in the vapor recovery units market is low. This is due to the high barriers to entry, such as the need for advanced technology and equipment, government regulations, and established customer relationships. Existing players in the market have already established a strong foothold, making it difficult for new entrants to compete.
Bargaining power of buyers: The bargaining power of buyers in the vapor recovery units market is moderate. While buyers have the option to choose from a range of suppliers, the specialized nature of vapor recovery units and the limited number of players in the market give suppliers some leverage. However, buyers can still negotiate on price and quality to some extent.
Bargaining power of suppliers: The bargaining power of suppliers in the vapor recovery units market is moderate. Suppliers have the advantage of providing a specialized product, but they also face competition from other players in the market. Suppliers need to maintain good relationships with buyers to ensure repeat business.
Threat of new substitutes: The threat of new substitutes in the vapor recovery units market is low. Vapor recovery units are essential for controlling emissions in various industries, and there are limited alternatives available. The stringent environmental regulations and increasing focus on sustainability further reduce the likelihood of substitutes.
Competitive rivalry: The competitive rivalry in the vapor recovery units market is high. There are several key players operating in the market, each striving to gain a larger market share. This leads to intense competition and frequent product innovations.
The vapor recovery units market is expected to witness high growth, exhibiting a CAGR of 3.3% over the forecast period. This growth can be attributed to increasing environmental concerns and the need for emission control measures in industries such as oil and gas, chemical, and petrochemical. Stringent government regulations regarding air pollution also drive the demand for vapor recovery units.
In terms of regional analysis, North America is the fastest-growing and dominating region in the vapor recovery units market. This can be attributed to the presence of a large number of oil and gas refineries in countries like the United States and Canada. Additionally, the region has well-established infrastructure and stringent environmental regulations, promoting the adoption of vapor recovery units.
Key players operating in the vapor recovery units market include John Zink Company, LLC, Hy-Bon/EDI, Whirlwind Methane Recovery Systems LLC, Petrogas Systems, Accel Compression Inc., PSG Dover, Wintek Corporation, AEREON Inc., and Cimarron Energy Inc. These players have a strong market presence and offer a wide range of vapor recovery unit solutions to cater to the diverse needs of industries. They focus on product development and innovation to maintain their competitive edge in the market.
Overall, the vapor recovery units market is poised for significant growth in the coming years, driven by increasing awareness about environmental pollution and the need for emission control measures. The dominance of key players and the stringent regulatory landscape contribute to the market’s competitive dynamics.
In conclusion, the vapor recovery units market is expected to witness steady growth in the coming years, driven by increasing environmental concerns and stricter emission control regulations. The adoption of carbon adsorption systems is a key trend in the market, offering improved efficiency and cost-effectiveness in vapor recovery processes.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it