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Regulatory changes, growing demand to drive global O&G pipeline leak detection market

The global pipeline leak detection system market for the oil and gas industry is expected to witness significant growth until 2023, driven by increasing demand and regulatory changes.

The market’s estimated value by the end of 2016 was $2.1 billion, a new market study by Credence Research says, and it is projected to reach $3.2 billion (€2.9bn) by 2023, growing at a CAGR of 6.4%.

The market is expected to gain momentum due a growing global pipeline network, facilitated by advances in remote monitoring technology, and an increasing demand for fossil fuels.

The global pipeline network, considered the safest and most efficient method of transportation for hydrocarbons, consists of about 3.5 million kilometres of pipe.

Leakage is listed as the most common hazard facing pipelines, and it can result in costly repairs and massive damage to nearby environment.

Such risks are exemplified by 2014 gas pipeline explosions in Minnesota and Nebraska, US, and they have brought in legislation making leak detection systems in pipelines transporting hazardous materials mandatory.

These regulatory changes are expected to give a boost to the global leak detection system market, which will be driven by increasing natural gas production, increasing trade in oil and gas products, and growing pipeline infrastructure.

Unstable oil prices, however, may hinder cash flows to oil producers, which will likely have a negative on upcoming oil pipeline projects.

This downturn will then restrain the demand for pipeline leak detection systems in the industry.

The natural gas segment is expected to be the largest in the market over the forecast period, owing to increasing production of shale gas and the growing number of gas-based economies worldwide.

By technology, Credence projects the negative pressure wave segment to be the dominant market segment due to ease of installation coupled with low installation costs.

This article was written by Ilari Kauppila, editor of Fluid Handling International





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