The vapour recovery units market is expected to grow from USD 1.39 billion in 2025 to USD 2.33 billion by 2035. The market is poised to expand at a 5.3% CAGR during the forecast period. Growth is being driven by tightening global regulations aimed at reducing volatile organic compound (VOC) emissions across sectors such as oil & gas, chemicals, and transportation.
Vapour recovery units (VRUs) offer critical advantages, including high VOC capture efficiency, reduced greenhouse gas emissions, and operational cost savings, making them essential in upstream, midstream, and downstream applications. As industries prioritize sustainability and environmental compliance, VRUs are being deployed widely in storage terminals, production facilities, and transportation hubs. The growing awareness of VOC-related health hazards is further accelerating their adoption across both developed and emerging markets.
Product innovation and technological advancements are further accelerating market momentum. Leading manufacturers are investing in IoT-enabled systems, automation, and predictive maintenance technologies to improve system performance and energy efficiency. Enhanced recovery rates, integration flexibility, and scalable designs are expanding VRU applicability beyond conventional sectors.
With increasing demand from marine, rail, and road transportation segments, advanced VRU technologies are being customized to meet diverse operational needs. Moreover, expanding applications in emerging areas such as biofuels, hydrogen production, and carbon capture are opening new growth avenues, positioning VRUs as a critical component in industrial decarbonization strategies.
Moreover, the vapour recovery units market is likely to benefit from evolving global emission regulations and sustainability trends. Agencies such as the USA Environmental Protection Agency (EPA) and the European Commission are enforcing stringent VOC emission standards through frameworks like NESHAP, NSPS, and the Industrial Emissions Directive (IED). In Asia-Pacific, policies under China’s Action Plan for Air Pollution Prevention and Control and India’s tightening environmental norms are spurring VRU demand.
As industries worldwide adopt greener production methods and align with net-zero goals, the vapour recovery units market is likely to experience sustained growth, becoming an essential solution for achieving regulatory compliance and enhancing environmental performance across global supply chains.
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.
The market is segmented based on technology, process, application, end use, and region. By technology, the market is divided into membrane separation, adsorption, condensation, and absorption. In terms of process, it is segmented into upstream and downstream.
Based on application, the market is categorized into marine loading, truck loading, railcar loading, pipelines, and storage tank vents. In terms of end use, the market is classified into oil & gas compressors, landfills, brewery and food processing, and others (chemical manufacturing, pharmaceutical industry, paints & coatings industry, textile industry). Regionally, the market is segmented into North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia Pacific, and the Middle East and Africa.
The membrane separation segment is projected to grow at the fastest CAGR of 6.9% from 2025 to 2035. Its expansion is driven by rising demand for compact, energy-efficient vapour recovery units (VRUs), particularly in offshore platforms, marine loading terminals, and pipeline operations.
Membrane systems offer high hydrocarbon recovery, low operational cost, and minimal maintenance, making them attractive amid tightening global emission standards. Increasing adoption is seen across Asia-Pacific and North America, where operators seek compliance with volatile organic compound (VOC) regulations.
Meanwhile, adsorption continues to dominate the market by volume and value, driven by its proven performance in storage tank vents and truck loading applications. The segment benefits from well-established technologies, cost-effective operation, and flexible configurations suitable for large-scale facilities.
Condensation finds growing niche demand where VOC purity and recovery for resale are key, such as in petrochemical terminals, although its energy intensity limits broader uptake. Absorption remains a reliable solution but is gradually being supplanted by membrane-based and adsorption technologies due to cost advantages and reduced maintenance needs. Overall, membrane separation is reshaping the competitive landscape of vapour recovery through innovation, aligning with the global shift toward cleaner, more sustainable industrial operations.
The upstream segment is expected to grow at the fastest CAGR of 6.2% from 2025 to 2035. This growth is being driven by mounting global pressure to curb fugitive VOC and methane emissions in oilfields and gas production sites.
Governments across Latin America and the Middle East are implementing stricter emissions targets, accelerating the deployment of vapour recovery units (VRUs) at wellheads and gas processing facilities. The adoption of compact membrane-based VRUs is gaining momentum in offshore platforms and remote upstream operations, thanks to their space-saving design and ability to handle variable gas flows.
Meanwhile, the downstream segment continues to dominate by volume and value due to its entrenched presence across refineries, petrochemical plants, and bulk storage terminals. Decades of integration with loading operations-such as marine loading, truck loading, and storage tank vents-ensure consistent VRU demand in Europe and North America. The downstream sector benefits from mature infrastructure and long-standing environmental compliance practices.
However, with evolving regulations and heightened focus on sustainability, the upstream market is poised to unlock new revenue opportunities. Advancements in VRU technology, designed to handle the complexities of upstream gas compositions, will further drive adoption across oil-producing regions globally.
The marine loading segment is expected to register the fastest CAGR of 6.5% from 2025 to 2035. Its growth is underpinned by increasingly stringent global port emissions mandates. Regulations such as IMO MARPOL Annex VI and national policies in Europe, East Asia, and North America are compelling marine terminals to install vapour recovery units (VRUs) to minimize VOC emissions during the loading of crude oil and refined petroleum products onto tankers. VRUs are being implemented across both new terminal developments and existing port infrastructures as part of green port initiatives.
Meanwhile, truck loading and railcar loading remain vital applications, particularly in markets like North America where decentralized terminal networks prevail. Modular VRU designs enable easy retrofitting and flexible deployment across transport terminals. Pipeline applications are witnessing niche demand, driven by operators seeking to capture hydrocarbons released during maintenance activities.
Storage tank vents provide a stable revenue stream, supported by ongoing regulatory upgrades and modernization initiatives, particularly in Western Europe and North America. The marine loading segment, with its combination of regulatory urgency, large-scale volumes, and cross-regional implementation, will remain the most lucrative and strategically important application area for vapour recovery units over the coming decade.
| Application Segment | CAGR (2025 to 2035) |
|---|---|
| Marine Loading | 6.5% |
The oil & gas compressors segment is projected to grow at the fastest CAGR of 6.8% between 2025 and 2035. Rising industry focus on carbon footprint reduction and regulatory mandates targeting methane and VOC emissions are fueling demand for vapour recovery units on compressor stations. Advanced VRUs are increasingly integrated with compressor skids to recover hydrocarbon vapours from seals, blowdown operations, and casing vents, particularly in North American and Middle Eastern gas transmission networks.
The landfills segment presents strong growth potential, supported by municipal sustainability targets and landfill gas recovery initiatives. VRUs help capture valuable hydrocarbons and reduce greenhouse gas emissions from landfill gas extraction and processing facilities. Brewery and food processing industries are also embracing VRUs, driven by both sustainability goals and cost-saving opportunities through hydrocarbon reuse in boiler fuel and process heat applications.
The others category includes chemical manufacturing, pharmaceutical industry, paints & coatings industry, textile industry, encompassing chemical manufacturing and pharmaceutical industries, sees niche demand where VOC recovery supports process safety, product quality, or regulatory compliance. While oil & gas compressors will remain the dominant revenue generator, growing adoption across landfill and industrial applications will further diversify the vapour recovery units market landscape in the coming decade.
| End-use Segment | CAGR (2025 to 2035) |
|---|---|
| Oil & Gas Compressors | 6.8% |
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 vapour recovery units market growth as sustainability initiatives become increasingly prominent, with a focus on efficient vapour recovery technologies.
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.
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 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
| Report Attributes | Details |
|---|---|
| Current Total Market Size (2025) | USD 1.39 billion |
| Projected Market Size (2035) | USD 2.33 billion |
| CAGR (2025 to 2035) | 5.3% |
| Base Year for Estimation | 2024 |
| Historical Period | 2020 to 2024 |
| Projections Period | 2025 to 2035 |
| Market Analysis Parameters | Revenue in USD billion/Volume in units |
| By Technology | Membrane Separation, Adsorption, Condensation, Absorption |
| By Process | Upstream, Downstream |
| By Application | Marine Loading, Truck Loading, Railcar Loading, Pipelines, Storage Tank Vents |
| By End-Use | Oil & Gas Compressors, Landfills, Brewery and Food Processing, Others |
| Regions Covered | North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia Pacific, Middle East and Africa |
| Countries Covered | United States, Japan, Germany, India, United Kingdom, France, Italy, Brazil, Canada, South Korea, Australia, Spain, Netherlands, Saudi Arabia, Switzerland |
| Key Players | John Zink Hamworthy Combustion, AEREON, PSG Dover, Cool Sorption A/S, Hy-Bon/EDI, Cimarron Energy Inc., Wintek Corporation, Accel Compression Inc., Whirlwind Methane Recovery Systems LLC, Petrogas Systems, Gardner Denver Nash |
| Additional Attributes | Dollar sales by value, market share analysis by region, country-wise analysis. |
| Customization and Pricing | Available upon request |
The global market is expected to reach USD 2.33 billion by 2035, growing from USD 1.39 billion in 2025, at a CAGR of 5.3% over the assessment period.
The oil & gas segment is projected to dominate the market, owing to stringent environmental regulations, growing focus on emission control, and increasing adoption of vapour recovery solutions in upstream and downstream operations.
Key drivers include rising environmental awareness, strict regulatory frameworks on VOC emissions, growing investments in oil & gas infrastructure, and increasing demand for cost-effective emission reduction technologies.
Oil & gas production facilities, storage terminals, and transportation sectors are key contributors, with demand driven by regulatory compliance requirements and the need for efficient vapour capture solutions.
Top companies include John Zink Hamworthy Combustion, AEREON, and PSG Dover, recognized for their advanced vapour recovery technologies, regulatory compliance solutions, and strong global presence.
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Vapour Recovery Units Market
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