Leak Detection And Repair Market Size, Share & Trends Analysis Report By Component (Services, Equipment), By Technology (VOC Analyzer, OGI), By Product, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global leak detection and repair market size was valued at USD 19.71 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 4.5% from 2023 to 2030. The market growth can be attributed to the increasing demand for leak detection and repair (LDAR) systems among utility companies worldwide due to their benefits, such as safety improvement, cost-saving, and environmental protection. LDAR systems also help oil and gas and petroleum companies make workplaces healthier by decreasing the risk of accidents caused due to explosions and fire outbreaks. Increasing developments in natural gas and petroleum infrastructure worldwide are also expected to drive market growth.

Many gas emission monitoring companies use machine learning and Artificial Intelligence(AI) to detect leaks in their infrastructure more efficiently. A machine learning algorithm identifies leaks and emission risks on the ground using satellite imagery. The data obtained from machine learning allows operators to identify trends and patterns over time, thereby helping them make data-driven decisions. As a result, various oil & gas companies are trying to replace their traditional LDAR systems with technologically enhanced LDAR systems. Various venture capital funding companies are investing in companies focused on providing AI-based LDAR solutions, creating new opportunities for market growth.

For instance, in November 2021, SCF Ventures, a venture capital firm focused on providing capital to companies operating in the energy services sector, announced its investment in Qube Technologies, a continuous emission monitoring technology provider. Qube Technologies’ continuous emission monitoring technology enables oil and gas operators to better detect, reduce, and measure methane emissions. The investment would help Qube Technologies accelerate its deployment of continuous monitoring systems and further enable industries to reduce emissions. However, the increasing focus of governments on the development of renewable energy generation projects is expected to hinder market growth over the forecast period.

For instance, in March 2021, the U.K. government announced that it was investing about USD 105.7 million in next-generation green technologies. This funding is part of the government’s USD 1.17 billion Net Zero Innovation Portfolio. In addition, the government also launched three new innovative challenges across areas of the green energy sector, such as floating offshore wind energy, biomass production, and energy storage technology.

COVID-19 Impact Analysis

The COVID-19 pandemic negatively impacted market growth in 2022. This can be attributed to the slowdown in supply chains and manufacturing processes worldwide. Furthermore, in 2021 the market slightly declined as countries reinstated restrictions as COVID-19 cases started rising. These restrictions resulted in the slow recovery of oil demand due to affected air travel and jet fuel demand worldwide, which hindered the market growth.

Component Insights

On the basis of components, the global LDAR market has been bifurcated into services and equipment. The services segment dominated the market in 2022 and accounted for more than 64.0% share of the global revenue. Leaking equipment, such as pumps, valves, connectors, and compressors, are the leading sources of volatile organic compounds emissions in chemical manufacturing facilities and petroleum refineries. The leakage poses a threat to workers and causes air pollution. As a result, petroleum companies demand LDAR services to minimize the expensive leaks, driving the segment growth.

The equipment segment is anticipated to register the fastest growth rate over the forecast period. The integration of enhanced technologies in LDAR equipment is expected to create a new opportunity for the growth of the segment. Equipment with multi-gas solutions, cloud connectivity, and other such features are being increasingly used by utility companies to monitor Greenhouse Gases (GHG), water vapors, and carbon dioxide. At the same time, the increase in demand for LDAR equipment among scientists for sourcing individual gases is also driving the segment growth.

Product Insights

The handheld gas detectors segment dominated the market in 2022 and accounted for more than 38.0% share of the global revenue. Handheld gas detectors are increasingly in demand among oil and gas companies owing to their benefits, such as fast and reliable detection, compact and lightweight structures, and ease of use. These detectors are used for detecting different gases, such as methanol, carbon dioxide, ammonia, and methane. The rising natural gas production, coupled with the increasing trade of oil and gas products, is increasing the demand for handheld gas detectors in the oil & gas industry.

On the basis of products, the global market has been divided into handheld gas detectors, UAV-based detectors, vehicle-based detectors, manned aircraft detectors. The UAV-based detectors segment is anticipated to register the fastest CAGR over the forecast period. The use of UAV-based detectors to navigate dangerous areas is one of the critical advantages of these aerial solutions, which drives the segment growth. In addition, oil and gas companies demand UAV-based detectors due to improved safety and efficacy. UAV-based detectors are used for detecting gases, such as benzene, ethanol, heptane, octane, methane, and others.

Technology Insights

The Volatile Organic Compounds (VOCs) analyzer segment dominated the LADR market in 2022 and accounted for more than 30.0% share of the global revenue. Different gases, such as propane, N-butane, N-pentane, and N-octane, are considered under the VOC category. The concentration of a VOC is high in an indoor environment compared to the outdoor environment. A VOC is mainly emitted from products inside a building, such as cleaning supplies, paints, glues, and printing equipment. Volatile organic compounds detectors are mainly used for the rapid and accurate detection of VOCs.

The Optical Gas Imaging (OGI) segment is expected to register the fastest CAGR over the forecast period. Optical gas imaging is a thermal imaging technology that utilizes highly sensitive infrared cameras to detect small fugitive emissions from the oil and gas industries. The demand for optical gas imaging detectors is high in industries, such as pulp and paper, petrochemical, natural gas processing plants, and power generation plants. These detectors enable users to detect the invisible gases that escape faster in the environment and can prove harmful to the environment as well as personnel.

Regional Insights

North America dominated the market in 2022 and accounted for a market share of 53.0%. The growth of the region can be attributed to the presence of stringent government regulations and norms. The pipeline leak detection regulation of the U.S. requires the installation of a leak detection system on hazardous liquid pipelines. The government’s support for the oil and gas industries in the U.S. is also driving the country’s industrial growth. The growing oil and gas industry is thereby creating the need for leak detection and repair systems in the U.S. In addition, government subsidies to the oil and gas industries are also driving regional market growth.

The Asia Pacific regional market is expected to witness significant growth over the forecast period. The increasing demand for oil and oil products across Asia Pacific countries is expected to drive the demand for LDAR among utility companies in the region. The increasing production of natural gas in countries, such as China, is also creating the need for leak detection and repair systems. The subsequent expansion of oil and gas pipelines is expected to drive market growth in the region.

Key Companies & Market Share Insights

The competitive landscape of the market is highly fragmented in nature. The market players focus on product innovation strategies to strengthen their market positions. Companies are making efforts to test innovative ways for remotely monitoring methane emissions. Moreover, businesses are also focusing on providing enhanced IoT-based leak detection and repair systems. These enhanced IoT-based leak detection and repair systems are enabling companies to strengthen their market positions. Market players come together to provide leak detection solutions to utility companies worldwide.

This helps them strengthen their market position and expand their client base. For instance, in December 2020, Senet, a cloud-based services software platform provider, announced its partnership with CNIguard, a technology company, and Semtech, a semiconductor provider. Through this partnership, the companies delivered LoRaWAN natural gas leak detection solutions to utilities across the U.S. Some of the prominent players in the global leak detection and repair market include:

• Aeris Technologies, Inc.

• IBM Thomas J. Watson Research Center

• Bridger Photonics, Inc.

• LI-COR, Inc.

• Duke University

• Colorado State University

• Palo Alto Research Center

• Maxion Technologies, Inc.

• Rebellion Photonics

• Physical Sciences, Inc.

• Avitas Systems

• PrecisionHawk

• SeekOps, Inc.

• Advisian

• Ball Aerospace & Technologies Corp.

• Gas Ops Leak Detectives, LLC (G.O.L.D. LLC).

• Guideware Systems, LLC.

• Summit Inspections Services, Inc.

• GHD, Inc.

• ERM Group, Inc.

• AECOM

• Guardian Compliance

• ABB Ltd.

• Chicago Bridge & Iron Company N.V.

• Heath Consultants

• ENCOS, Inc.

• Team Inc.

• VelocityEHS

• Picarro Inc.

• Microdrones GmbH

• Boreal Laser Inc.

• Kairos Aerospace

Leak Detection And Repair Market Report Scope

Segments Covered in the Report

The 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 leak detection and repair market report based on component, product, technology, and region:

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

  • Equipment

  • Services

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

  • Handheld Gas Detectors

  • UAV-Based Detectors

  • Vehicle-based Detectors

  • Manned Aircraft Detectors

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

  • Volatile Organic Compounds (VOC) Analyzer

  • Optical Gas Imaging (OGI)

  • Laser Absorption Spectroscopy

  • Ambient/Mobile Leak Monitoring

  • Acoustic Leak Detection

  • Audio-Visual-Olfactory Inspection

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

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

    • Venezuela

  • Middle East & Africa