GLOBAL LEAK DETECTION SYSTEM MARKET SIZE (2023 - 2030)

The Global Leak Detection System was valued at USD 14.13 billion and is projected to reach a market size of USD 19.1 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 4.4%.

Industry Overview:

Suppliers are creating a variety of leak detection systems to address the growing operational and environmental hazard issues users face when attempting to manage more hydrocarbons in this context of oil price recovery. A growing number of pipeline operating companies and associated stakeholders are starting to adopt the idea that investing in leak detection systems should help decrease fines, regulatory oversight, and harm to a company's reputation and public image in addition to mitigating risk by preventing catastrophic leaks and the related negative financial and operational implications. Owner-operators, independent E&P firms, and pipeline operators understand the significance of investing in automation and other technology solutions to boost output, improve recovery, and ensure more efficient operations with less experienced staff in the slowly recovering oil price situation. Investments in automation can also lower risk by maintaining operational integrity to lessen the likelihood of accidents or other abnormal events and to lessen their detrimental effects on the pipeline's safety, the environment, and its ability to generate a profit. Relevant oil & gas facilities include offshore platforms and onshore processing plants. To more effectively find leaks in their infrastructure, many gas emission monitoring firms utilize machine learning and artificial intelligence (AI). Using satellite data, a machine learning algorithm locates ground-level leaks and emission hazards. Operators can make data-driven decisions by identifying trends and patterns in the data obtained by machine learning over time. As a result, numerous oil and gas businesses are attempting to switch over to LDAR systems that have been technologically improved from their outdated LDAR systems. There are now more chances for market expansion as a result of various venture capital funding firms investing in businesses that offer AI-based LDAR solutions. Due to their advantages, including safety enhancement, cost savings, and environmental preservation, leak detection, and repair (LDAR) systems are becoming more and more in demand among utility companies globally. By lowering the danger of accidents brought on by explosions and fire outbreaks, LDAR systems also aid the oil, gas, and petroleum industries in creating healthier workplaces. Growth in the market is also anticipated to be fueled by expanding natural gas and petroleum infrastructure around the world.

Impact of COVID-19 outbreak on Leak Detection System Market

The COVID-19 pandemic had a detrimental effect on market expansion in 2020. Due to the prolonged lockdown in several major nations, including the U.S., Italy, the UK, and others, the COVID-19 pandemic halted the manufacturing and sales of many products in the leak detection systems business. This can be ascribed to the global slowdown in manufacturing and supply chain operations. Due to the disrupted aviation travel and decreased demand for jet fuel globally brought on by these restrictions, the market growth was hampered.

MARKET DRIVERS:

An increase in the number of pipeline and storage tank leaks at industrial facilities is driving the market

Leaks in the oil and gas industry typically occur upstream, midstream, and downstream. Oil and gas exploration and production activities have increased as a result of the rise in global oil and gas demand. A minor leak in a gas or oil pipeline might have fatal results or seriously hurt surrounding residents. It might also cause the business operating it to lose customers and goodwill. Leak detection systems are in high demand as a result of the rising number of leak accidents in storage tanks and oil and gas pipelines at production facilities.

Globally increasing oil and gas exploration and production operations are likely to propel market expansion

Numerous oil and gas exploration projects have been started as a result of the recent finding of numerous oil and gas reserves throughout the world to meet the rising global demand for oil and gas. The need for leak detection systems has increased as a result of the increased need for monitoring oil and gas installations. For instance, Neptune Energy declared the beginning of gas production from the Adorf Carboniferous development in northwest Germany in November 2020. In February 2020, the well's final depth of 3,500 meters was attained. At the location, a cutting-edge natural gas processing plant has been built. Such global exploration and production of oil and gas are anticipated to propel the expansion of the oil leak detection market.

MARKET RESTRAINTS:

Retrofitting issues with some leak detection systems may restrain the market growth

Although there has been a rise in the demand for leak detection systems in the oil and gas industry recently, the retrofitting difficulties with some leak detection systems, such as distributed temperature sensing (DTS) and distributed acoustic sensing (DAS) systems based on fiber optic, are restricting the market's growth. Retrofitting fiber-optic leak detection systems into existing pipelines is difficult and expensive. More interrogator units are needed for longer pipelines (>50km), which raises the cost of deploying sensors and interrogator systems.

The market expansion can be slowed by the lack of technological advancements in offshore leak-detecting systems

Continuous operations and quick leak detection are required of the popular subsea leak detection systems. They ought to be affordable, unaffected by the flow conditions, and buildable and installable. The majority of pipeline leak detection methods, however, are not appropriate for arctic settings. Some of these technologies are unable to give details regarding the identity, location, quantification, and classification of leakages (small, medium, and large leakages). The infrastructures for the oil and gas pipelines are typically dispersed over a vast geographic area and are managed by command and control centers using a variety of communications channels. These facilities must operate more efficiently, and leakage detection technologies that provide a deeper understanding of leaks and their characteristics are increasingly needed.

GLOBAL LEAK DETECTION SYSTEM  MARKET REPORT COVERAGE:

This research report on the global Leak Detection System Market has been segmented based on component, technology, and region.

Leak Detection System Market – By Component

• Equipment

• Services

Based on Components, the Leak Detection System Market is bifurcated into Equipment and Services. In 2021, the services sector dominated the market and generated more than 65.0% of the total revenue. In chemical industrial facilities and petroleum refineries, leaky machinery such as pumps, connectors, valves, and compressors is the main source of volatile organic compound emissions. The industry is growing as petroleum companies request LDAR services to cut back on expensive leaks.

The equipment section is predicted to increase at the fastest rate over the projection period. Improved technologies are estimated to be included in LDAR equipment, creating new opportunities for the segment's growth. Utility companies are increasingly using equipment with multi-gas solutions, cloud connections, and other similar characteristics to monitor greenhouse gases, carbon dioxide, and water vapors. The market is expanding in tandem with the increase in demand among scientists for LDAR equipment to source particular gases.

Leak Detection System Market – By Technology

• Volatile Organic Compounds (VOC) Analyzer

• Optical Gas Imaging (OGI)

• Laser Absorption Spectroscopy

• Ambient/Mobile Leak Monitoring

• Acoustic Leak Detection

• Audio-Visual-Olfactory Inspection

Based on Technology, the Leak Detection System Market is bifurcated into Volatile Organic Compounds (VOC) Analyzer, Laser Absorption Spectroscopy, Optical Gas Imaging (OGI), Acoustic Leak Detection, Ambient/Mobile Leak Monitoring, and Audio-Visual-Olfactory Inspection. The Volatile Organic Compounds (VOCs) analyzer segment dominated the LADR market in 2021 with more than 30.0% of worldwide revenue. The VOC group includes a variety of gases, including propane, N-pentane, N-butane, and N-octane. In contrast to the external environment, a VOC is more concentrated indoors. Cleaning goods, paints, glues, and printing equipment are just a few examples of items that release VOCs inside of a structure. To quickly and precisely identify VOCs, volatile organic compound detectors are typically used.

The Optical Gas Imaging (OGI) segment is anticipated to grow the quickest CAGR over the projection period. To detect minute fugitive emissions created by the oil and gas industries, a thermal imaging technique called optical gas imaging employs incredibly sensitive infrared cameras. In industries like pulp and paper, natural gas processing plants, petrochemical, and power generation plants, optical gas imaging detectors are in high demand. These detectors enable users to spot invisible gases that are more likely to swiftly escape into the environment and pose a risk to both people and the environment.

Leak Detection System Market - By Region:

• North America

• Europe

• Asia-Pacific

• Rest of the World

North America dominated the industrial I/O module market with a market share of 53.0% in 2021. The introduction of strict government laws and regulations is responsible for the region's development. The installation of a leak detection system on pipelines carrying hazardous liquids is mandated under U.S. pipeline leak detection regulations. The U.S. government's assistance to the oil and gas sectors is another factor promoting industrial development in the nation. The U.S. needs leak detection and repair systems as a result of the expanding oil and gas sector. Government subsidies to the oil and gas industries are another factor promoting regional market expansion.

The Leak Detection System Market in the Asia Pacific region is anticipated to expand significantly throughout the forecast period. Leak Detection Systems are anticipated to be in high demand among utility firms in the Asia Pacific area as a result of the rising demand for oil and oil-related products throughout the region. Leak detection and repair systems are becoming increasingly necessary as natural gas output rises in nations like China. The market for leak detection for oil & gas is expanding as a result of an increase in oil & gas exploration and production projects as well as the extension of oil & gas pipelines.

Major Key Players in the Market

1. Honeywell International Inc.

 2. Siemens AG

 3. PSI AG

4. Flir Systems, Inc.

5. Schneider Electric SE

 6. Krohne Messtechnik GmbH

 7. Synodon Inc.

 8. Clampon AS

 9. Atmos International

10. TTK-Leak Detection System 

Notable happenings in the Global Leak Detection System Market in the recent past:

• Product Launch- In June 2020, Atmos developed a special regulation program compliance solution For its clients. Customers desiring to achieve full API 1130 compliance in leak detection systems will receive specialized support from the service.
• Product Launch - In October 2020, ABB unveiled the first all-encompassing gas leak detection solution for utilities. To pinpoint hazardous gas leaks, the new ABB MicroGuard solution will cooperate with ABB's MobileGuard. This proprietary laser-based technology's quicker and simpler identification will lessen fatalities, environmental harm, and material loss.
• Partnership- In December 2020, Senet, a developer of a software platform for cloud-based services, established a partnership with the IT firms CNIguard and Semtech. Through this agreement, the businesses provide utilities throughout the United States with LoRaWAN natural gas leak detection systems.