Distributed Fiber Optic Sensor Market Size Share & Trends Analysis Report By Vertical (Oil & Gas, Industrial), By Technology (Raman Effect, Rayleigh Effect), By Application, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global distributed fiber optic sensor market size was valued at USD 1.14 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 8.4% from 2021 to 2028. 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 impels 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 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), 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 will boost the market growth.

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 has adversely affected the market. The implementation of lockdown in several geographies resulted in a temporary shutdown of many industries or working with downsized teams. This has resulted in lesser production activities and reduced product development, thereby lowering the adoption of fiber optics in the 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 same.

Application Insights

In terms of market size, the temperature sensing segment dominated the market with a revenue share of 44.0% in 2020. DFOS sensors help generate a continuous profile of strain, acoustics, temperature, or conditions along the entire length of the fiber. Based on application, the market has been segmented into acoustic/vibration sensing, temperature sensing, and others. The vibration/acoustic segment is anticipated to witness the fastest CAGR from 2021 to 2028 owing to the increasing adoption of vibration/acoustic sensors in the security application segment.

The segment captured nearly 39% revenue share in 2020, thus showcasing the importance of the technology and application for various uses. 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 & gas, industrial, civil engineering, and power & utility, drive the segment growth. However, the high cost of deployment and technological complexities act as refraining factors for the segment.

Technology Insights

The Raman Effect technology segment captured the highest revenue share of more than 39% in 2020. 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 prevents structural problems in extensive infrastructures, such as rail track and bridges. Further Brillouin scattering, Raman Effect, Interferometric, and Bragg Grating technologies also significantly drive the market growth.

The Rayleigh effect segment is expected to register the fastest CAGR from 2021 to 2028 on account of the high demand for this technology due to its 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 strain, which can cover long distances.

Vertical Insights

The oil & gas segment dominated the global market with a revenue share of over 36% in 2020 and will retain the dominant position throughout the forecast period. 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 DTS and Distributed Acoustic Sensing (DAS) helps solve daily oil & gas field encounters, which is further offering an impetus to the segment growth. Other verticals, such as power & utility, safety & security, industrial, and civil engineering, will also have a major impact on the market growth.

The power & utility sector has gained a significant revenue share due to high product demand from electric utility companies for localization and hotspot detection, smart grid, and ampacity. The Brillouin scattering principle helps 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 global market in 2020 with a revenue share of 35%. This can be attributed to the presence of the well-established oil and natural gas industry 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 & gas companies to deploy more affordable and efficient supporting systems to improve profit generation capability, which further creates growth opportunities for the DFOS market.

The market in Europe captured a substantial revenue share in 2020 due to technological advancements. The ongoing pandemic 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. Asia Pacific is estimated to record the fastest CAGR from 2021 to 2028 owing to the growing need for the safety & security of processes and rising construction & infrastructure development activities in the region.

Key Companies & Market Share Insights

Rising R&D activities and increasing investments made by service providers to accelerate innovation and provide better service offerings provide 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 DAS 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.

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. In February 2020, OFS Fitel, LLC introduced its new product, the AcoustiSens wideband single-mode vibration sensor fiber designed to improve DAS systems functionality. Some of the prominent players in the global distributed fiber optic sensor market include:

• Halliburton

• Schlumberger Ltd.

• Yokogawa Electric Corp.

• OFS Fitel, LLC

• Qinetiq Group PLC

• Omnisens SA

• Brugg Kable AG

• Luna Innovations, Inc.

• AP Sensing GmbH

Distributed Fiber Optic Sensor Market Report Scope

Segments Covered in the Report

This report forecasts revenue growths at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global distributed fiber optic sensor market report on the basis of application, technology, vertical, and region:

• Application Outlook (Revenue, USD Million, 2017 - 2028)

  • Temperature Sensing

  • Acoustic/Vibration Sensing

  • Other

• Technology Outlook (Revenue, USD Million, 2017 - 2028)

  • Rayleigh Effect

  • Brillouin Scattering

  • Raman Effect

  • Interferometric

  • Bragg Grating

• Vertical Outlook (Revenue, USD Million, 2017 - 2028)

  • Oil & Gas

  • Power & Utility

  • Safety & Security

  • Industrial

  • Civil Engineering

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • South America

    • Brazil

  • Middle East & Africa