O&G leak detection market to reach $3.3bn by 2022, driven by increased incidents
The leak detection market for oil and gas is expected to be valued at $3.38 billion (€3.2bn) by 2022, growing at a CAGR of 6.9%, a new market report states.
According to research firm MarketsandMarkets, the growth can be attributed to the increasing incidents of leakages in the oil and gas pipelines and storage tanks at production facilities, development and expansion of existing pipelines and construction of new pipelines, and stringent government regulations pertaining to the implementation of leak detection systems.
Acoustic/ultrasonic technology, widely used in single-phase and multi-phase flow pipelines, is expected to lead the market, owing to its advantages such as quick leak detection capabilities, suitability for leak detection in large pipelines, and the simplified sensor and software setup with minimal calibration.
The market for the extended real-time transient model (E-RTTM) technology is also expected to grow at a high rate as it can detect small leakages and it provides more accurate results and leak locations in fractions of time.
E-RTTM is one of the most widely used technologies incorporated in leak detection systems.
North America is investing significantly in oil and gas pipeline projects to cater to the growing demand for oil and gas, and as such the US is the leading country in terms of oil production and consumption and has the largest network of oil and gas pipelines.
In 2015, the US produced 767.3 billion m3 of natural gas and 12,703.55 thousand barrels of oil per day, according to British Petroleum data.
In North America, several pipeline construction projects have been awarded for the supply of oil to refineries and petrochemical industries.
The US government has mandated stringent regulations pertaining to the implementation of leak detection systems for ensuring pipeline safety and mitigating the rising environmental concerns, which has boosted the demand for leak detection systems.
Additionally, the increasing incidents of leakages in the oil and gas pipelines are contributing to the growth of the market in North America.
The major players in the leak detection market for oil and gas include Honeywell International (US), PSI (Germany), Siemens (Germany), FLIR Systems (US), Krohne Messtechnik (Germany), Schneider Electric (France), Synodon (Canada), Atmos International (UK), Clampon (Norway), TTK-Leak Detection System (France), Pentair (UK), Pure Technologies (Canada), Perma-Pipe (US), Sensit Technologies (US), and Bridger Photonics (US).