MARKET SIZE OF LEAK DETECTION SYSTEMS (2024 - 2030)

The Leak Detection System market attained a value of USD 14.13 billion and is anticipated to achieve a market size of USD 19.1 billion by the culmination of 2030. Across the forecast period spanning from 2024 to 2030, the market is forecasted to register a Compound Annual Growth Rate (CAGR) of 4.4%.

INDUSTRY OVERVIEW:

Manufacturers are introducing a diverse array of leak detection systems to tackle the escalating operational and environmental risks encountered by users in their efforts to handle greater volumes of hydrocarbons amidst the backdrop of oil price recovery. An increasing number of pipeline operating firms and affiliated stakeholders are embracing the notion that investments in leak detection systems not only aid in reducing fines, regulatory scrutiny, and reputational damage but also mitigate risks by averting catastrophic leaks and their subsequent adverse financial and operational repercussions. Stakeholders such as owner-operators, independent Exploration and Production (E&P) entities, and pipeline operators acknowledge the importance of investing in automation and other technological solutions to enhance productivity, optimize recovery, and ensure more efficient operations amid the gradually recuperating oil price environment. Automation investments additionally mitigate risks by upholding operational integrity to minimize the occurrence of accidents or other anomalous events and mitigate their adverse impacts on pipeline safety, environmental conservation, and revenue generation. Key oil and gas infrastructures encompass offshore platforms and onshore processing plants. To enhance leak detection in their infrastructure, numerous gas emission monitoring companies leverage machine learning and artificial intelligence (AI). Utilizing satellite data, a machine learning algorithm identifies ground-level leaks and emission threats. Operators can make informed decisions by discerning trends and patterns in the data gleaned through machine learning over time. Consequently, numerous oil and gas enterprises are transitioning towards Leak Detection and Repair (LDAR) systems that have been technologically enhanced from their obsolete counterparts. The market is witnessing increased prospects for expansion owing to various venture capital firms investing in enterprises offering AI-based LDAR solutions. LDAR systems, renowned for their safety enhancement, cost-effectiveness, and environmental conservation attributes, are witnessing growing demand among utility companies globally. By mitigating the risk of accidents stemming from explosions and fire outbreaks, LDAR systems also aid the oil, gas, and petroleum industries in fostering safer work environments. Market growth is further anticipated to be fueled by the burgeoning expansion of natural gas and petroleum infrastructure worldwide.

IMPACT OF COVID-19 OUTBREAK ON LEAK DETECTION SYSTEM MARKET:

The COVID-19 pandemic exerted an adverse impact on market expansion in 2020. The prolonged lockdowns in several major nations, including the United States, Italy, and the United Kingdom, among others, disrupted the manufacturing and sales of numerous products within the leak detection systems domain. This disruption can be attributed to the global slowdown in manufacturing and supply chain operations. Furthermore, the market growth was impeded by disrupted aviation travel and diminished global demand for jet fuel induced by these restrictions.

MARKET DRIVERS:

The escalating incidence of pipeline and storage tank leaks at industrial facilities is propelling market growth.

Leaks within the oil and gas sector typically manifest upstream, midstream, and downstream. The surge in global oil and gas demand has spurred heightened oil and gas exploration and production endeavors. Even minor leaks in gas or oil pipelines can yield fatal consequences or inflict significant harm on neighboring communities, besides potentially tarnishing the reputation and customer base of the operating entity. The mounting occurrence of leak accidents in storage tanks and oil and gas pipelines at production facilities is fueling the demand for leak detection systems.

The global uptick in oil and gas exploration and production operations is poised to drive market expansion.

The recent discovery of numerous oil and gas reserves worldwide, coupled with the escalating global demand for oil and gas, has prompted the initiation of numerous oil and gas exploration projects. The heightened need for monitoring oil and gas installations has consequently led to an increased demand for leak detection systems. For instance, the commencement of gas production from the Adorf Carboniferous development in northwest Germany by Neptune Energy in November 2020 underscores this trend. The completion of drilling to a final depth of 3,500 meters was achieved in February 2020, alongside the establishment of a state-of-the-art natural gas processing plant at the site. Such global exploration and production endeavors within the oil and gas sector are anticipated to propel the expansion of the oil leak detection market.

MARKET RESTRAINTS:

Retrofitting challenges associated with certain leak detection systems may curtail market growth.

Despite the recent surge in demand for leak detection systems within the oil and gas industry, retrofitting challenges with certain systems, such as distributed temperature sensing (DTS) and distributed acoustic sensing (DAS) systems based on fiber optics, pose constraints on market growth. Retrofitting fiber-optic leak detection systems into existing pipelines is both arduous and costly. Longer pipelines (>50km) necessitate additional interrogator units, thereby escalating the deployment costs of sensors and interrogator systems.

The lack of technological advancements in offshore leak detection systems could impede market expansion.

The prevalent subsea leak detection systems necessitate continuous operations and prompt leak detection capabilities. These systems must be cost-effective, impervious to flow conditions, and feasible for construction and installation. However, the majority of pipeline leak detection methodologies are unsuitable for Arctic environments. Several of these technologies fail to furnish comprehensive insights concerning leak identity, location, quantification, and classification (i.e., small, medium, and large leaks). Given that oil and gas pipeline infrastructures are typically dispersed across extensive geographic regions and managed by command and control centers utilizing diverse communication channels, there is a burgeoning need for leak detection technologies that offer enhanced insights into leaks and their characteristics, thereby facilitating more efficient operations.

Leak Detection System Market – By Component

• Equipment
• Services

Segmentation-wise, the Leak Detection System Market comprises Equipment and Services categories. In the year 2021, the services segment took precedence in the market, contributing to over 65.0% of the total revenue. Within chemical industrial complexes and petroleum refineries, malfunctioning machinery such as pumps, connectors, valves, and compressors stands as the primary source of volatile organic compound emissions. The industry is witnessing growth as petroleum companies increasingly seek LDAR services to mitigate costly leaks.

Projections indicate that the equipment segment will experience the swiftest growth rate over the forecast period. The integration of advanced technologies into LDAR equipment is expected to unlock fresh avenues for segmental expansion. Utility enterprises are progressively adopting equipment featuring multi-gas solutions, cloud connectivity, and similar attributes to monitor greenhouse gases, carbon dioxide, and water vapors. Concurrently, the market is expanding in response to scientists' heightened demand for LDAR equipment tailored to detect specific 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

Categorically, the Leak Detection System Market is segmented 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 based on technology. The Volatile Organic Compounds (VOCs) analyzer segment led the LADR market in 2021, commanding over 30.0% of global revenue. This segment encompasses various gases such as propane, N-pentane, N-butane, and N-octane. Unlike their ambient counterparts, VOCs are more concentrated indoors. Products like cleaning agents, paints, adhesives, and printing materials are among the sources of indoor VOC emissions. Volatile organic compound detectors are commonly employed to swiftly and accurately identify VOCs.

The Optical Gas Imaging (OGI) segment is poised to register the highest CAGR over the forecast period. Optical gas imaging utilizes highly sensitive infrared cameras to detect minute fugitive emissions generated by the oil and gas sectors. Demand for optical gas imaging detectors is particularly high in industries like pulp and paper, natural gas processing plants, petrochemicals, and power generation facilities. These detectors enable users to detect invisible gases prone to rapid dispersion into the environment, posing risks to both human health and the ecosystem.

Leak Detection System Market - By Region:

• North America

• Europe
• Asia-Pacific
• Rest of the World

North America asserted dominance in the industrial I/O module market, capturing a 53.0% market share in 2021. Stringent governmental regulations have been instrumental in propelling regional growth. Mandates for installing leak detection systems on pipelines transporting hazardous liquids are stipulated under U.S. pipeline leak detection regulations. Additionally, governmental support to the oil and gas sectors in the U.S. is fostering industrial development. The expanding oil and gas sector in the U.S. necessitates leak detection and repair systems, further driving market demand. Government subsidies to the oil and gas industries are also bolstering regional market expansion.

The Leak Detection System Market in the Asia Pacific region is poised for significant expansion throughout the forecast period. Utility firms in the Asia Pacific region are expected to exhibit high demand for Leak Detection Systems owing to the escalating demand for oil and oil-related products across the region. As natural gas production surges in countries like China, the necessity for leak detection and repair systems is growing. The market for oil & gas leak detection is expanding due to increased 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

Recent Notable Developments in the Global Leak Detection System Market:

• Product Launch - In June 2020, Atmos introduced a specialized regulatory compliance solution tailored for its clients. Customers aiming for full API 1130 compliance in leak detection systems can benefit from specialized support provided by the service.
• Product Launch - In October 2020, ABB unveiled the first comprehensive gas leak detection solution for utilities. The new ABB MicroGuard solution, in collaboration with ABB's MobileGuard, utilizes proprietary laser-based technology for quicker and easier identification of hazardous gas leaks, thereby reducing fatalities, environmental damage, and material losses.
• Partnership - In December 2020, Senet, a provider of cloud-based services software platforms, partnered with IT firms CNIguard and Semtech. Through this collaboration, the companies offer LoRaWAN natural gas leak detection systems to utilities across the United States.