The global vapour recovery units (VRU) market is witnessing steady growth, driven by increasing regulatory mandates and the need for emission control across industries. The market is estimated to be worth USD 1,392.9 million in 2025 and is expected to reach USD 2,334.5 million by 2035, reflecting a CAGR of 5.3% over the forecast period.
Increased adoption in the oil & gas, petrochemical, and transportation sectors with an emphasis on volatile organic compound (VOC) emissions are major drivers. With increased fuel storage and distribution networks, there is an enhanced rate of uptake of vapour recovery technologies around the world.
The market had reached the revenue of USD 1,322.8 million in 2024 and was expected to further grow with a rise of 4.9% Y-o-Y in 2025. Growth has primarily emanated from rigid environmental regulations set up by agencies such as USA EPA, EU Directives, and IMO regulations for industries to adopt vapour recovery systems and regulate hydrocarbon emissions.
Major user sectors include the upstream, midstream, as well as the downstream oil and gas sectors with increased adoption found in brewery food processing, as well as in pharmaceutical industries with rising environmental pressures driving industries towards advanced VRU technologies.
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 1,392.9 million |
| Industry Value (2035F) | USD 2,334.5 million |
| CAGR (2025 to 2035) | 5.3% |
Technological advancement through AI integrated monitoring systems, hybrid VRUs, and energy efficient cryogenic condensation units is changing the face of this market. The modular and skid mounted VRUs are also developed by the companies to get operational flexibility as well as for ease of deployment across different industries.
The expanding footprints of LNG terminals, growth in the expansion of petrochemical processing plants, and the rising transport activities of fuels further fuel demand for efficient vapor recovery systems. In addition, government incentives and subsidies for the adoption of next-generation VRUs in reducing emissions are encouraging the industries.
The incremental opportunity in this market is likely to be around USD 941.6 million, with growth expected at 1.7X through 2035, driven by increasing industrial infrastructure, stringent air quality regulations, and developments in vapour recovery technologies. This market is further likely to remain resilient in the long term on account of an increasing demand for environmentally friendly solutions in oil refineries, chemical plants, and storage terminals.
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The table below presents a comparative assessment of the variation in CAGR over six months for the base year (2024) and current year (2025) for the vapor recovery units market. This analysis reveals crucial shifts in market performance and indicates revenue realization patterns, thus providing stakeholders with a better vision of the market growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.
In the first half (H1) from 2024 to 2034, the business is predicted to surge at a CAGR of 4.9%, followed by a slightly higher growth rate of 5.0% in the second half (H2).
| Particular | Value CAGR |
|---|---|
| H1 | 4.9% (2024 to 2034) |
| H2 | 5.0% (2024 to 2034) |
| H1 | 5.2% (2025 to 2035) |
| H2 | 5.4% (2025 to 2035) |
Moving into the subsequent period, from H1 2025 to H2 2035, the CAGR is projected to increase slightly to 5.2% in the first half and remain relatively moderate at 5.4% in the second half. In the first half (H1) the market witnessed an increase of 30 BPS while in the second half (H2), the market witnessed an increase of 40 BPS.
Stringent Environmental Regulations Fuel Vapour Recovery Unit (VRU) Adoption
Strict environmental policies are the chief growth drivers in the vapour recovery units market, as Governments have enforced a strict emission-control policy to regulate VOC emissions into the atmosphere. The USA Environmental Protection Agency (EPA), EU Directives and International Maritime Organisation (IMO), have imposed serious mandates on different industries to hinder hydrocarbon vapor emissions into the atmosphere.
For example, there are New Source Performance Standards (NSPS) OOOOa by the EPA that require oil and gas operators to ensure installation of VRUs in storage tanks and loading terminals to reduce VOC emissions.
The marine and transportation segment is not left out as MARPOL Annex VI regulations by the IMO ensure cut back in emission at marine loading terminals and fuel bunkering operations. For example, in Europe, Directive 94/63/EC demands vapour recovery at fuel storage facilities.
This increases VRU deployment as both enforcement and regulatory pressure prompt investments in sophisticated vapor recovery technologies like AI-based monitoring and hybrid recovery systems that help capture VOCs with high efficiency. Adoption of VRUs will continue to expand as environmental regulations become more stringent for the oil & gas, petrochemical, and transport sectors around the world.
Expanding Oil & Gas Storage and Transportation Infrastructure Accelerates VRU Demand
The rapid growth of oil & gas storage facilities, pipeline networks, and fuel distribution hubs is a major driving force behind the vapour recovery units (VRU) market. With global crude oil production reaching over 100 million barrels per day in 2023, the demand for safe and efficient storage solutions is rising. The critical role of VRUs is to capture vapours from storage tanks, prevent loss of hydrocarbon, and maintain compliance with environmental regulations. USA, China, and India are investing significantly in increasing their SPR, thereby creating a large demand for vapour recovery technologies.
For example, India has its SPR that will be expanded to 87 million barrels by 2030. Such a development will require massive installations of VRUs at storage terminals. Other examples include the Trans Mountain Pipeline Expansion in Canada and Permian Basin pipeline developments in the USA are driving VRU demand along transportation networks.
Besides, marine and railcar loading operations at major ports, like the Port of Rotterdam and Houston Ship Channel, need VRUs to control emissions during bulk fuel transfers. As the global energy supply chain grows, VRU adoption will be on the increase to support safe and sustainable oil & gas logistics.
Rising VOC Recovery Demand in Petrochemical and Chemical Processing
The rising requirement for VOC recovery in refineries, LNG plants, and chemical industries is expected to be the main growth opportunity for the VRU market. Petrochemical companies produce huge volumes of hydrocarbons, benzene, toluene, and xylene (BTX) during their processing, hence a need for efficient vapour recovery solutions.
In general, the upgrading refineries are in China, India, and the USA and the capacity is also being built-up to meet fuels and chemicals produced worldwide, boosting VRU requirement. China refinery capacity has grown over 18 million barrels/day in 2023, where many of their current projects use advanced VOC recovery systems.
Liquefied natural gas plants are also huge emitters of VOCs. Their liquefaction and regasification operations also involve losses in hydrocarbon vapour. For instance, Qatar LNG expansion plans that will drive LNG production to 126 million tons of the commodity by 2027 are investing in vapour recovery solutions as part of the operations' improvement.
Chemical processing facilities that manufacture solvents, paints, and adhesives are also incorporating hybrid VRUs to decrease emissions and meet strict regulations. Petrochemical and chemical industries will lead substantial VRU market growth as sustainability initiatives become increasingly prominent, with a focus on efficient vapour recovery technologies.
The global vapour recovery unit’s system market recorded a CAGR of 2.5% during the historical period between 2020 and 2024. The growth of vapour recovery units market was positive as it reached a value of USD 1,322.8 million in 2024 from USD 1,196.4 million in 2020.
Between 2020 and 2024, there were challenges like high capital cost, complex compliance with regulations, and slow pace of adoption in developing regions in the vapour recovery units market. The impact of the COVID-19 pandemic on supply chains led to VRU installation delay and limited investments in industries. Small and mid-sized industries suffered from a high-cost nature of VRU deployment, thus restricted market penetration.
The stringent environmental norms have generated a compliance pressure, especially from the agencies like EPA's NSPS OOOOa and the EU VOC Directives. In fact, very few businesses, especially in less developed economies, had the technical and financial means to implement advanced vapour recovery systems.
Industry was able to overcome these challenges through the development of modular, scalable VRUs that allowed for flexibility and cost-effectiveness in adoption. This meant that, in addition to automated monitoring and AI-driven emission tracking, the energy-efficient adsorption and membrane separation technologies improved operational efficiency but remained within the regulatory standards of the industries involved.
Growth in the vapour recovery units market is expected to remain moderate between 2025 and 2035 as industrialization intensifies, global emissions norms become increasingly stringent, and hybrid VRU systems continue to advance. Governments and regulatory authorities will maintain their efforts on VOC reduction policies, which will further boost demand in oil & gas storage, chemical processing, and fuel transportation.
IoT-based remote monitoring and AI-powered VRUs will enhance operational efficiency and reduce emissions while optimizing energy consumption. Increasing investments in LNG infrastructure, strategic petroleum reserves, and refinery expansions in Asia-Pacific, North America, and the Middle East will provide new opportunities. The market is expected to grow 1.7X by 2035, and hence companies will develop low-maintenance, high-efficiency VRUs, which ensure long-term adoption and compliance with evolving environmental regulations.
Tier 1 companies comprise market leaders with a market revenue of above USD 100 million capturing a significant market share of 56% in the vapour recovery units market. These market leaders are characterized by extensive expertise in manufacturing across a range of packaging formats and have a wide geographic reach, with a strong foundation of consumers.
They offer an extensive range of series, which includes recycling and manufacturing with the latest technology to meet regulatory requirements and deliver quality. Prominent companies within Tier 1 John Zink Hamworthy Combustion, AEREON, PSG Dover.
Tier 2 and other includes the majority of small-scale companies operating at the local presence and serving niche markets having revenue below USD 100 million. These companies are notably oriented towards fulfilling local market demands and are consequently classified within the tier 2 share segment.
They are small-scale players and have limited geographical reach. Tier 2, within this context, is recognized as an unorganized market, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
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The section below covers the industry analysis for the vapour recovery units market for different countries. Market demand analysis on key countries is provided. The USA is anticipated to remain at the forefront in North America, with a value share of 68.9% through 2035. In East Asia, Japan is projected to witness a CAGR of 3.9% by 2035.
| Countries | Value CAGR (2025 to 2035) |
|---|---|
| USA | 4.3% |
| ASEAN | 5.7% |
| Japan | 3.9% |
| Germany | 4.8% |
| UK | 5.5% |
The USA vapour recovery units (VRU) market is expanding at a CAGR of 4.3%, driven by stringent Environmental Protection Agency (EPA) regulations targeting volatile organic compound (VOC) emissions in oil & gas operations, landfills, and food processing. Due to extensive pipeline infrastructure and storage tank facilities across the country, it demands highly sophisticated VRUs for adhering to the federal air quality standards.
Still today, the oil & gas industries are among the largest demand generators. The United States has continued to produce well above 12.9 million barrels per day in 2023. Brewing and food processing investments also amplify market growth wherein controlling emissions proves to be the most important one. The increasing number of around 2,600 active landfills across the USA increases the demand of VOC recovery system.
Marine, railcar and truck loading terminals are adopting VRUs because the logistics sector is also invested in reducing hydrocarbon emissions. The Port of Houston alone, for example, handles more than 275 million tons of cargo every year and has already put up vapour control measures in place. As technology improves, such as AI-powered emission monitoring, VRU deployment will see an increased proliferation across a variety of industries, which will help the market growth.
The ASEAN vapour recovery units (VRU) market is projected to grow at a CAGR of 5.7%, driven by rising oil & gas refining capacities, landfill expansion, and increasing brewery production. Countries like Indonesia, Thailand, and Malaysia are now experiencing an increase in oil storage and pipeline developments. The countries need VRUs for storage tank vents and pipeline transmission. Indonesia plans to increase the capacity of oil refining from 1 million bpd in 2030 to 2 million bpd, hence more vapour recovery solutions will be in high demand.
The food and beverage industry, particularly breweries, is expanding rapidly in the region, with Vietnam’s beer consumption reaching 4.3 billion liters in 2022, leading to greater adoption of VRUs to control ethanol vapours. The demand in the ASEAN market for marine and truck loading is constantly on the rise.
Singapore also emerged as one of the top transshipment hubs, handling more than 37 million TEUs annually. Energy-efficient and modular VRU systems are being invested in by businesses in ASEAN countries because of the strict emission standards enforced by those governments.
Japan's VRU market will grow at 3.9% CAGR, mainly on account of VOC emission controls that are very stringent, advances in food processing, and the push towards clean energy solutions. In Japan, stringent environmental policies, under the Air Pollution Control Act, enforce strict controls on vapour recovery systems for industries. The brewery and food processing sector estimated to be of more than USD 300 billion value is quickly integrating VRUs to improve the quality of air and reduce losses of ethanol and organic vapors.
Landfill gas recovery is another prime growth area, with Japan generating around 43 million tons of municipal solid wastes every year. Therefore, an increasing number of waste management facilities are now installing VRUs. In the oil & gas sector, Japan depends on imported crude to the tune of over 3.1 million barrels per day.
Efficient storage tank vents and pipeline transmission VRUs help reduce emissions in this regard. The country's marine and truck loading operations also employ vapour recovery technology in order to abide by international maritime pollution standards. Hybrid VRUs and AI-driven monitoring systems will continue to drive investments, making the market stable and on an upward trend.
The section contains information about the leading segments in the industry. By Technology, Adsorption segment is estimated to grow at a CAGR of 4.9% throughout 2035. Additionally, Storage tank vents Application type is projected to expand at 4.6% by 2035.
| Technology | Value Share (2035) |
|---|---|
| Adsorption | 37% |
Adsorption-based vapour recovery units are expected to be a market leader in 2035, with 37% market share, due to the high efficiency, cost-effectiveness, and the ability to operate in a range of industries. This technology has activated carbon or zeolite-based materials emphasizing capture of volatile organic compounds in the application such as storage tank vents, marine loading, and transportation.
Usage is pretty broad within oil & gas refineries, chemical processing plants, and petrochemical storage facilities for hydrocarbon recovery efficiency at relatively low operating costs.The benefit of adsorption technology is scalability, thus fitting both small industrial and large facilities. With the increasing regulatory pressure on emission reduction, industries are increasingly adopting adsorption-based VRUs because of their proven reliability and lower maintenance requirements compared to other technologies.
Compared to membrane separation, adsorption technology has better VOC recovery efficiency and is better suited for higher molecular weight hydrocarbons while membranes are poor at separating lower molecular weight vapors. Condensation technology used in cryogenic recovery requires substantial energy input to cool, and therefore is not very energy-efficient in high volume applications.
Though absorption technology is appropriate for certain specific applications of lean oil-based recovery, it requires constant replenishment of the solvent and has higher operational costs; hence, adsorption is likely to be more appropriate in most industries. Beyond this, enhanced AI-based monitoring and automation can easily support deployment and industry-wide adoption of adsorption-based VRUs compared to other technologies for vapour recovery.
| Application | Value Share (2035) |
|---|---|
| Storage tank vents | 30% |
Storage tank vents are the major application in the VRU market, and it is expected to be 31% by 2035. These vents are significantly used in crude oil storage terminals, chemical plants, and fuel depots for the liberation of huge quantities of volatile organic compounds (VOCs) and hydrocarbons through storage and transfer operations.
Technologically, VRUs of storage tank vent use the principle of adsorption, membrane separation, or cryogenic condensation to recover and capture vapors so as not to waste the product and reduce emissions. The rise in the usage of floating roof tanks and fixed-roof storage tanks in refineries and distribution centers increases the demand for VRUs. Mandates from regulations such as USA EPA's NSPS OOOOa standards and EU directives make installation in oil depots improve compliance and operational efficiency.
Compared to other applications, marine loading, truck loading, railcar loading, and pipeline transmission involve vapour recovery but on a more transient basis. Marine and railcar loading terminals require VRUs primarily during bulk fuel transfers, leading to intermittent demand. Truck loading VRUs cater to distribution hubs but handle smaller volumes compared to storage tank vents.
Pipeline transmission VRUs are critically important in gas processing but more for the purpose of recovering methane than VOCs. Storage tank vents make way because there is a constant demand for vapour recovery; there are the most substantial volumes of emissions, and it is required under strict environmental policy; it is thus the biggest market segment.
The market is benefiting from emerging trends such as the growing demand for energy-efficient recovery solutions, advanced automation, and enhanced compliance with volatile organic compound (VOC) reduction standards. As industries focus on minimizing emissions and product loss, innovations in adsorption, membrane separation, and cryogenic condensation technologies are reshaping the sector.
Key players in the market are leveraging cutting-edge technologies to enhance vapour recovery efficiency and operational reliability. AI-powered monitoring systems, IoT-enabled controls, and hybrid recovery solutions are being integrated into VRUs to optimize performance and regulatory compliance. In response to the increasing focus on decarbonization, industries such as oil & gas, chemicals, and transportation are investing in next-generation VRUs that offer higher recovery rates and reduced energy consumption, ensuring long-term sustainability.
Geographic expansion will remain a critical strategy for leading companies, particularly in Asia-Pacific, Latin America, and the Middle East, where industrialization and refining capacities are expanding. Additionally, emerging players are entering the market with modular and cost-effective VRU solutions, intensifying competition and accelerating innovation. This dynamic environment will drive continuous advancements, with companies developing more efficient and customizable vapour recovery technologies to meet evolving industry needs.
Recent Industry Developments
The global vapour recovery units industry is projected to witness a CAGR of 5.3% between 2025 and 2035.
The global vapour recovery units industry stood at USD 1,322.8 million in 2024.
The global vapour recovery units industry is anticipated to reach USD 2,334.5 million by 2035 end.
The key players operating in the global vapour recovery units industry John Zink Hamworthy Combustion, AEREON, PSG Dover.
| Market Size (2023E) | USD 11,431.3 million |
|---|---|
| Projected Market Size (2033F) | USD 18,268.8 million |
| Value CAGR (2023 to 2033) | 4.8% |
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