Distributed Fiber Optic Sensor Market Size, Share & Trends Analysis Report By Application, By Technology, By Vertical (Oil & Gas, Power And Utility, Safety And Security), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global distributed fiber optic sensor market size was valued at USD 1,292.7 million in 2021, according to a new report by Grand View Research, Inc. The market is expected to register a compound annual growth rate (CAGR) of 7.3% from 2022 to 2030. The rising need amongst enterprises and corporations to engage in effective sensing operations of their machine systems is offering growth opportunities to the market. The application of optic sensing has increased substantially across the various business sectors, including automotive, aerospace, civil, energy, and others. Other types of sensing technologies, such as Raman Effect-based and Rayleigh’s effect-based sensing, also have distinct operational capabilities.

The high functionality of Distributed Fiber Optic Sensor (DFOS) is encouraging more enterprises to invest in the technology and engage in R&D practices. This results in the development of new products, thereby offering the company the opportunity to capture a larger market share. Corporations aim to optimize their production practices and regulate the efficiency to overtake all other substitutes of fiber optics technology. The high cost of deployment and installation of DFOS products further promotes companies to develop competitively priced optic inspection products that are more reliable.

Technologies such as Optical Time Domain Reflectometry (OTDR) and Optical Frequency Domain Reflectometry (OFDR) characterize fiber optics by carrying out a quality inspection of the accuracy, range, and resolution of the key trends observed in the market. The integration of advanced technologies such as Real-Time Thermal Rating (RTTR) and intelligent Distributed Acoustic Sensor (iDAS) technologies are other prominent technological trends. An increasing number of investments to carry out R&D activities to introduce innovative fiber cables and provide reliable connectivity at high speed and the lowest possible price trend in the market 

The virtue of the technology to offer optimum performance in challenging end uses is one of the significant market drivers. Optical fibers enable professionals to monitor and control heavy operations used in pipelines, border security, and civil engineering. The deployment of fiber optic cables offers companies better cost-saving opportunities than metal wires due to their high transmission capacity. The high efficiency and high speed of transmission capabilities in remote and inaccessible places promote corporations to deploy the technology.

COVID-19 Impact Insights

The ongoing global pandemic, COVID-19, has impacted the distributed fiber optic sensor market significantly. The implementation of lockdown in several geographies resulted in a temporary shutdown of several industries or working with downsized teams. This has resulted in lesser production activities and lower product development, thereby lowering the adoption of fiber optics in industrial and civil engineering industries. However, the changing manufacturing practices and the need to deploy fiber optics in mission-critical scenarios offer growth opportunities to the market.

Furthermore, the use of fiber optics facilitates faster testing of novel coronavirus SARS-CoV-2, which can aid in simplifying and improving the testing process. The development of plasmonic fiber-optic absorbance biosensors is expected to help healthcare workers to follow faster and more reliable testing. This trend is expected to continue over the forecast period due to the fast transmissibility of the disease and the need to mitigate the disease.

Application Insights

The temperature sensing segment dominated the market and accounted for a revenue share of 45.3% in 2021. DFOS sensors help to generate a continuous profile of strain, acoustics, temperature, or conditions along the entire length of the fiber. The DFOS market has been segmented into acoustic/vibration sensing, temperature sensing, and others based on application. The vibration/acoustic segment is anticipated to witness significant growth over the forecast period, owing to its increasing adoption across the security application segment.

Deploying distributed temperature sensing systems (DTS) enables enterprises and organizations to engage in effective temperature measurement practices in challenging scenarios. The high accuracy of the technology being used and the ability to be deployed in several industries such as oil and gas, industrial, civil engineering, and power and utility drive the market for the technology. Acoustic and vibration sensing also captured nearly 39% revenue share in 2020, thus showcasing the importance of the technology and application for various uses. However, the high cost of deployment and technological complexities act as refraining factors for the market.

Technology Insights

The Raman Effect technology segment captured the highest revenue share of more than 38.0% in 2021. This can be accredited to the use of technology in critical situations such as the safety of large structures, coolant leak detection, and fire detection with uses in advanced data processing practices. Furthermore, the immunity of the technology to electromagnetic interference helps in continuous monitoring and prevent structural problems in extensive infrastructures such as rail track and bridges. Further Brillouin scattering, Raman Effect, Interferometric, and Bragg Grating technologies also significantly impact market growth.

The Rayleigh effect segment is expected to offer significant growth opportunities to the market. It is due to the technology's ability to measure almost all physical parameters such as strain and temperature. In this method, the scattering principle of light is used to track and highlight propagating effects, which aids in sensing physical parameters. Moreover, distributed sensing using Rayleigh scattering of light helps to turn optic fiber cable into an array of several virtual temperatures and strains that can cover long distances.

Vertical Insights

The oil and gas segment dominated the market and accounted for a revenue share of 36.0% in 2021. Also, other verticals, including power and utility, safety and security, industrial, and civil engineering, have a major impact on the market's growth. DFOS is essential in real-time and accurate downhole measurement for optimized performance, leading to real-time data-driven decision-making. The use of fiber optics for Distributed Temperature Sensing (DTS) and Distributed Acoustic Sensing (DAS) helps solve daily oil and gas field encounters, which is further offering an impetus to market growth.

The power and utility sector has gained significant revenue share due to increasing demand amongst electric utility companies for localization and hot spot detection, smart grid, and ampacity. The Brillouin scattering principle helps to detect strains and stresses in the machine system, which helps in monitoring and potential mitigating risks. The primary reason behind the use of distributed sensors in this vertical is to detect hotspots, leakages, and ground movement monitoring.

Regional Insights

North America dominated the market and accounted for a revenue share of 34.9% in 2021. This can be attributed to the significant oil and natural gas industry present in the U.S., facilitating higher adoption rates for distributed fiber optic cables. The U.S. produced nearly 34.4 trillion cubic feet of natural gas in 2020 using hydraulic fracturing and horizontal drilling techniques, both of which use high-performance optical fibers. The rising price of crude oil worldwide promotes oil and gas companies to deploy more affordable and efficient supporting systems to improve profit generation capability, which further improves the growth opportunities for distributed fiber optic sensor market.

In Europe, the market captured a substantial revenue share in 2021 due to technological advancements in the region, fostering market growth for fiber optics. The ongoing pandemic, COVID-19, has augmented the need to deploy faster internet services and better-connected infrastructure. This is promoting service providers to deploy fiber optics to meet the needs and requirements of people. The Asia Pacific market also offers significant growth opportunities to the market owing to rising construction and infrastructure activities in the region and the requirement for the safety and security of processes.

Key Companies & Market Share Insights

Rising R&D activities and increasing investments made by service providers to accelerate innovation and provide better service offerings offer an impetus to market growth. This has helped users engage in data-driven decision-making and closely administer machine systems to mitigate potential risks. Furthermore, service providers are also engaging in partnerships and collaborations to drive business practices and enhance revenue generations. For instance, in July 2020, Halliburton and TechnipFMC introduced Odassea, a distributed acoustic sensing solution for subsea wells, enabling operators to participate in intervention-less reservoir diagnostics seismic imaging to improve reservoir knowledge and reduce the total cost of ownership.

Companies have also started engaging in mergers and acquisitions to improve their product offerings and foster innovation. In December 2020, Luna Innovations acquired OptaSense to create a fiber optic sensing company, which has enabled Luna Innovations to penetrate the market more effectively. Companies are also developing new products to enhance their product offerings and generate new revenue generation channels. In February 2020, OFS Fitel, LLC introduced its new product, the AcoustiSens wideband single-mode vibration sensor fiber designed to improve Distributed Acoustic Sensing (DAS) systems functionality. Some of the prominent players in the distributed fiber optic sensor market include:

• Halliburton

• Schlumberger Limited

• Yokogawa Electric Corporation

• OFS Fitel, LLC

• Qinetiq Group PLC

• Omnisens SA

•  Brugg Kable AG

• Luna Innovations Incorporated

• AP Sensing GmbH

Distributed Fiber Optic Sensor Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global distributed fiber optic sensor market report based on application, technology, vertical, and region:

•  Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Temperature Sensing

  • Acoustic/Vibration Sensing

  • Other

• Technology Outlook (Revenue, USD Million, 2017 - 2030)

  • Rayleigh Effect

  • Brillouin Scattering

  • Raman Effect

  • Interferometric

  • Bragg Grating

• Vertical Outlook (Revenue, USD Million, 2017 - 2030)

  • Oil & Gas

  • Power and Utility

  • Safety & Security

  • Industrial

  • Civil Engineering

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • South America

    • Brazil

  • MEA