Leak Detection Solutions Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Leak Detection Solutions Market is expected to witness growth at a CAGR of 4.4% over the forecast period (2022- 2027). The COVID-19 pandemic negatively impacted market growth in 2020. A pandemic resulted in a slowdown in supply chains and manufacturing processes worldwide. These restrictions resulted in the slow recovery of oil demand due to affected air travel and jet fuel demand in the world, which hindered the market growth.

Key Highlights

• The market's growth can be attributable to an increase in demand for leak detection solutions among utility companies worldwide, owing to its advantages, including increased safety, cost savings, and environmental protection. Leak detection solutions also assist oil and gas industries to make the workplaces safer by reducing the hazards of explosions and fire breakouts. Market growth is also predicted to be fueled by increased advances in natural gas and oil infrastructure worldwide.
• For Instance, In March 2022, South West Water partnered with ASTERRA Satellite-based leak detection company provides satellite data analysis to utilize satellites to locate subterranean water breaches and cut leakage levels across its network. The method is similar to that used to search for water on other planets, such as Mars, and works by taking images of the globe with microwave sensors onboard a satellite in space and microwaves can penetrate up to 2 meters deep, the data will reveal possible leaks that are not visible above ground.
• For early leak detection, the technology has increased by using artificial intelligence, and proprietary hyperspectral gas analytics provide facility operators with an easy-to-understand, color depiction of the gas plume type, position, direction, size, and concentration of oil or gas. This enables for a quicker and more effective reaction before leaks become more serious emissions or safety concerns.
• Though the demand for leak detection systems in the oil and gas sector has grown in recent years, retrofitting issues in some leak detection systems, such as distributed temperature sensing (DTS) and distributed acoustic sensing (DAS) systems based on fiber optic, are limiting the market's growth. Fiber-optic leak detection devices are difficult and expensive to adapt to existing pipelines. Longer pipelines (more than 50km) need many interrogator units, which raises sensor and interrogator system installation costs.
• COVID-19 pandemic highlighted the need for accelerating the shift towards automation and remote inspection processes. A changing dynamics in oil prices has affected the global oil and gas industry significantly. It has affected the financial positions of key oil & gas players, as well as obstructed upcoming projects. For example, in April 2020, the Energy Ministry of Argentina suspended auctioning of projects for the development of the Vaca Muerta-Buenos Aires natural gas pipeline due to the aggrevating economic scenario of the country resulting from the pandemic.

Key Market Trends

Oil & Gas is Expected to Drive the Market Growth

• To identify leaks infrastructure more efficiently, many gas emission monitoring firms utilize machine learning and Artificial Intelligence (AI). Using satellite pictures, a machine learning algorithm detects leaks and emission risks on the ground. Machine learning data enables operators to recognize trends and patterns across time, allowing them to make data-driven choices. As a result, many oil and gas firms are attempting to replace the old leak detection solutions with technologically advanced leak detection solutions. Various venture capital firms investing in startups that provide AI-based leak detection and monitoring systems, opening new market prospects.
• For Instance, In November 2021, SCF Ventures, a venture capital firm focusing on investing in energy services firms, has announced its investment in Qube Technologies provides customers with internet-of-things (“IoT”) devices to continuously monitor for a host of gases including methane, carbon dioxide and hydrogen sulfide. Oil and gas operators can use Qube Technologies' It provide continuous emission and leak monitoring equipment to identify, decrease, and quantify methane emissions better. The funding will aid Qube Technologies' implementation of continuous monitoring systems, allowing the industry to reduce emissions even further.
• According to the International Energy Agency, reducing gas emissions such as methane from hydrocarbon operations is one of the most cost-effective and impactful methods to help reach global climate and environmental goals. Various technologies are used for leak detection solutions such as uitrasonic, pressure analysis, thermal Imaging, fiber optic, Laser absorption and LiDAR, vapour sensing, E- RTTM etc.
• Energy companies are establishing goals to manage methane emissions effectively to help address global climate change. For instance, in April 2021, Honeywell launched its gas cloud imaging (GCI) system in Europe to provide automated and continuous monitoring for leaks of hazardous and polluting gases such as methane at oil and gas, chemical industries and power generation facilities across the continent.
• In November 2021, Teledyne FLIR launched Si124, an ultrasonic leak detection camera. Air leak detection and identifying partial discharge from high-voltage systems are two of the most common applications for acoustic imaging. The Si124-LD is specific for compressed air leak detection. The FLIR Si124 can detect leaks and partial discharge up to 10 times quicker than standard methods using sound imaging from 124 built-in microphones.

North America is Expected to Register the Fastest Growth

• North America is the fastest-growing leak detection solutions market. Due to rapid industrialization growth in the oil and gas industries, the use of leak detection solutions market has a high demand and key players in North America such as Honeywell International Inc, Schneider Electric S.E is also launching new products in Leak detection solution.
• The key players present in the North American region are launching different products to detect leaks of oil, gas, and chemicals. For instance, In October 2021, Honeywell announced the release of two Bluetooth-connected gas detectors that can continuously monitor dangerous gases even in fog, rain, snow, and other inclement weather and provide facilities to keep the oil and gas petrochemicals, chemical, and other workers and industrial sites safe.
• The presence of strict government laws and norms can be credited to the region's progress. On hazardous liquid pipelines, the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration mandates the installation of a leak detection system. The United States government's backing for the oil and gas industry is also propelling the country's industrial development. As the oil and gas sector expands in the United States, it makes the demand for leak detection solution. Furthermore, government subsidies to the oil and gas sectors fuel regional market expansion.
• According to International Energy Agency(IEA), LNG contracting activity shrank by almost 30% year-on-year (y-o-y) in 2020 , while activity during 2021 potential for recovery. Final investment decisions (FIDs) were also down from 2019 record high, with one North American project sanctioned in 2020, plus Qatar’s major expansion plan confirmed in early 2021. These new investments, added to the wave of FIDs taken before 2020, should therefore prove sufficient to satisfy additional LNG demand in the coming years. which is driving factor for leak detection solution market players in North America.
• With the discovery of several oil and gas reserves worldwide in recent years, a number of oil and gas exploration projects have been initiated to fulfill the surging global demand for oil and gas. This has led to the increased requirement of monitoring oil and gas facilities, thereby leading to demand for leak detection systems. For Instance, In February 2022, BP Plc announced the startup of the Herschel Expansion project in the Gulf of Mexico. Herschel is the first of four major projects to be delivered globally in 2022. Phase 1 of the project comprises developing a new subsea production system. The first well is expected to increase platform annual gross production by an estimated 10,600 barrels of oil equivalent a day at its peak.

Competitive Landscape

The leak detection solutions market is highly fragmented, Due to rapid growth of industrlization the increse in number of oil,gas and chemical industries increased. Due to this reason the demand for leak detection solutions market increased, With several companies operating in the segment. Leading players are currently focusing on Partnerships to provide efficient and sustainable services.

• November 2021 - Schneider Electric and Prisma Photonics announced a partnership to provide services to oil and gas pipeline owners and operators prevent accidental and malicious activity by providing real-time intelligence and precise monitoring of oil and gas infrastructure. As a result, customers can drive efficiency and sustainability through energy and resource loss avoidance.

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