According to a new market report published by Credence Research “Global Pipeline Leak Detection System Market for Oil & Gas Industry – Growth, Future Prospects, Competitive Analysis, and Forecast 2016 – 2023,” the Global Pipeline Leak Detection System Market for Oil & Gas Industry has been estimated to be valued at US$ 2.1 Bn by the end of 2016, and is expected to reach US$ 3.2 Bn by 2023, expanding at a CAGR of 6.4% from 2016 to 2023.
The global market for leak detection systems is expected to gain traction with a rising pipeline network and increasing demand for fossil fuels. Technology advancements have made it easier for pipeline operators to track pipeline operations remotely. The international pipeline network extends about 3.5 million kilometers and is responsible for the transport of oil and gas products around the globe. Pipelines are considered to be the safest and most effective means of transporting hydrocarbons, as they are dangerous by nature, and any spillage or leakage will result in significant damages both to the owner of the material and to the environment.
Leakage is considered to be the most common problem in pipeline operations, which not only results in material loss but can also result in incidents with a huge potential for environmental damage in the vicinity. Numerous incidents in the recent past, such as a gas pipeline explosion in Minnesota, U.S.A., and a gas pipeline eruption in Nebraska in 2014, have made it mandatory for the pipeline carrying dangerous goods to have a leak detection system.
As a result, the global market for oil & gas leak detection systems is projected to be driven by factors such as increased production of natural gas, increased trade in oil & gas products, increased pipeline capacity and related regulatory policies. Nonetheless, volatile oil prices limit the cash flow of oil producers, which are likely to have a negative effect on the upcoming pipeline project, which in turn is expected to hinder demand for a pipeline leak detection system in the oil & gas industry.
The global market for oil & gas leak detection systems is segmented on the basis of technology, product type and geography. Through engineering, the negative pressure wave segment is expected to be the dominant segment due to easy installation and low installation costs. Regarding the product type segment, the natural gas segment is projected to be the largest segment in the forecast period (2016-2023) due to increased output of shale gas combined with an increasing number of energy-based economies. The key players on the market are concentrating on innovation and the development of new technology to improve the accuracy of their goods.
Overall, global pipeline leak detection system market is projected to register significant growth over the forecast period (2016-2023).
- Merger & Acquisition
- Development of new technologies