Leak Detection And Repair Market Size, Share & Trends Analysis Report By Component (Services, Equipment), By Product (Handheld Gas Detectors, UAV-Based Detectors), By Technology, By Region, And Segment Forecasts, 2024 - 2030

Leak Detection And Repair Market Trends

The global leak detection and repair market size was estimated at USD 20.47 billion in 2023 and is expected to grow at a CAGR of 4.6% from 2024 to 2030. The growing demand for leak detection and repair (LDAR) systems among utility companies worldwide, owing to their benefits, such as cost-saving, safety improvement, and environmental protection, is a major driver behind the growth of the market. LDAR systems are widely used in petroleum and oil and gas companies to make workplaces healthier by reducing the risk of accidents caused by fire outbreaks and explosions.

Increasing developments in petroleum and natural gas infrastructure worldwide are also anticipated to boost the market’s growth. LDAR solutions are used by natural gas and petroleum companies for detecting and locating leaks in petroleum and natural gas pipelines before they become a potential hazard. According to the U.S. Energy Information Administration’s State-to-State Capacity Tracker, in 2022, collectively from five projects, interstate natural gas pipeline capacity of 897 million cubic feet per day was added in the U.S. These five projects include Florida Gas Transmission’s Mobile County Project, Columbia Gulf Transmission’s Louisiana XPress Project, Florida Gas Transmission’s Southwest Alabama Project, Gulfstream Natural Gas’s Gulfstream Phase VI Expansion Project, and ANR Pipeline Company’s Wisconsin Access Project.

Several gas emission monitoring companies use machine learning and artificial intelligence 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 leak detection and repair systems.

Various key companies are focused on developing handheld LDAR systems, creating new opportunities for market growth. For instance, in October 2023, GasDog.com, a gas detection equipment and services provider, announced the launch of its latest products - toxic gas detectors and combustible gas detectors. These detectors were designed to transform gas safety measures, providing industries and individuals with cutting-edge technology to monitor and detect gas emissions effectively. These are portable or handheld detectors that provide accurate and reliable gas detection and monitoring for safety in various environments.

However, the increasing focus of governments on the development of renewable energy generation projects is expected to hinder market growth. For instance, in November 2022, the UK government announced that it was investing about USD 82.5 million to help speed up the development of new green technologies. On the other side, the high cost of gas detection systems is another factor that could hamper the market’s growth.Though gas leak detection equipment provides benefits such as increased occupational safety and comfort, the cost of monitoring multiple gases and replacing sensors can be expensive. For organizations that require the detection of one or two gases, the total cost of ownership for equipment, maintenance, and replacement of parts can be quite costly.

Industry Dynamics

The market growth stage is medium, with an accelerating pace. The leak detection and repair industry can be characterized by a high degree of innovation with rapidly evolving technological advances. An increasing use of Artificial Intelligence (AI) and Machine Learning (ML) in leak detection systems is boosting the industry’s growth. For instance, ML algorithms create models that quickly detect potentially dangerous gas leaks by evaluating massive volumes of sensor data. These algorithms also adjust to environmental changes, which improves their accuracy.

The leak detection and repair industry is also characterized by a high level of partnerships, collaborations, and product launch activities by key companies. Companies are adopting this strategy to enhance their leak detection product and service offerings in the global market while developing technologically advanced leak detection systems.

The regulatory trends play a substantial role in influencing the leak detection and repair industry. Stringent safety regulations for occupational safety regulations have been implemented by organizations such as the Occupational Safety and Health Administration (OSHA) (U.S.) and Health and Safety Executive (UK) for the adoption of gas leak detection systems in industrial facilities.

There are no direct substitutes available for leak detection and repair services. LDAR components and services offer benefits such as accurate and quick leak detection. They also save time and money on repairs, making service substitutes low in the industry.

End user concentration is high in the leak detection and repair industry. Increasing adoption of LDAR products and services in industries such as pharmaceutical and medical, food and beverage, university and laboratory, manufacturing, construction, and aerospace sector is increasing the end user concentration in the industry.

Component Insights

The services segment dominated the market in 2023 with a revenue share of more than 64%. 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 CAGR from 2024 to 2030. 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, water vapors, and carbon dioxide. At the same time, the increase in demand for leak detection and repair (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 2023. 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.

The UAV-based detectors segment is anticipated to register the fastest CAGR from 2024 to 2030. 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 (VOC) Analyzer segment dominated the market in 2023. Different gases, such as propane, N-butane, N-pentane, and N-octane, are considered under the volatile organic compound category. The concentration of a VOC is higher in an indoor environment compared to the outdoor environment. A VOC is mainly emitted from products inside a building, such as cleaning supplies, paints, glue, and printing equipment. VOC detectors are mainly used for the rapid and accurate detection of volatile organic compounds.

The Optical Gas Imaging (OGI) segment is expected to register the fastest CAGR from 2024 to 2030. 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 leak detection and repair market dominated globally and accounted for a market share of 53.0% in 2023. 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 these countries. In addition, government subsidies to oil and gas industries are also driving the regional market growth.

U.S. Leak Detection And Repair Market Trends

The leak detection and repair market in the U.S. is expected to grow at a significant CAGR of 4.9% from 2024 to 2030. The growth of the country 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 leak detection and repair market in Canada is expected to grow at a significant CAGR of 6.0% from 2024 to 2030. Rapid growth in the country’s oil and gas sector is driving the demand for leak detection and repair tools and services. As per the Canadian Government, Canada is the fifth-largest producer of natural gas and the fourth-largest producer of crude.

Asia Pacific Leak Detection And Repair Market Trends

The Asia Pacific leak detection and repair marketis expected to witness significant growth from 2024 to 2030. 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.

The leak detection and repair market in China is expected to grow at a significant CAGR of 4.0% from 2024 to 2030. Growing government initiatives aimed at supporting local oil & gas companies with overseas investment, driving the growth of the natural gas market, and boosting the production and efficiency of the oil & gas industry through the adoption of gas leak detection equipment, which bodes well for the market’s growth.

The India leak detection and repair market is anticipated to grow at a significant CAGR of 6.4% from 2024 to 2030. Increasing industrialization, rural electrification, urbanization, and growing automobile sales are some of the major factors driving the demand for leak detection and repair systems.

The leak detection and repair market in Japan is expected to grow at a significant CAGR of 6.2% from 2024 to 2030. Growing technological advancements and rapid economic growth of the automotive industry are major factors behind the market growth in the country.

Europe Leak Detection And Repair Market Trends

The leak detection and repair market in Europe is expected to grow at a significant CAGR of 3.4% from 2024 to 2030. The implementation of stringent government policies and the growing awareness of the harmful impacts of greenhouse gas pollution are major factors driving the growth of the market.

The UK leak detection and repair market is expected to grow at a significant CAGR of 4.4% from 2024 to 2030. The government’s regulatory guidance on the safe installation, maintenance, and use of gas systems, including fittings, appliances, and flues, is boosting the growth of the market.

The leak detection and repair market in Germany is expected to grow at a significant CAGR of 3.9% from 2024 to 2030. Advancements in unmanned aerial vehicles, industrial automation, and robotics are expected to drive market growth.

MEA Leak Detection And Repair Market Trends

The leak detection and repair market in MEA is anticipated to grow at a significant CAGR of 3.8% from 2024 to 2030. The increasing oil and gas production and export activities in countries such as the Kingdom of Saudi Arabia, UAE, and South Africa are driving the demand for leak detection and repair systems.

The leak detection and repair market in KSA is expected to grow at a significant CAGR from 2024 to 2030. The presence of local leak detection and repair service providers in the country is boosting the market’s growth. For instance, Gas Equipment & Contracting Company (GECE) is a Riyadh-based provider of high-quality gas & fuel system solutions. The company offers gas leak detection and repair services for homes or businesses.

Key Leak Detection And Repair Company Insights

Some of the key companies operating in the market include Heath Consultants Incorporated, GHD, Inc., ABB Ltd., and Team Inc.

• Heath Consultants Incorporated is a U.S.-based private company that provides line-clearing services and methane detection systems for gas suppliers. The company’s services mainly focus on the manufacturing of leak detection products for utility protection and damage prevention in oil & gas industries.

• GHD Inc. is a U.S.-based company that serves industries such as water, transportation, environment, property and buildings, and energy and resources. It offers a range of services in the oil and gas industry, helping to manage hazardous greenhouse gases. The projects that it undertakes entail a list of services for each inspection, and the company also undertakes maintenance of the plant after the completion period.

Chicago Bridge & Iron Company N.V., ERM Group, Inc., Guardian Compliance, Avitas Systems, and Ball Aerospace & Technologies Corp. are some of the emerging companies in the leak detection and repair market.

• Chicago Bridge & Iron Company N.V. offers conceptual design, technology, engineering, procurement, construction, modularization, fabrication, and commissioning services.

• Guardian Compliance provides leak detection services. The company offers various tools, including IR-based cameras, for detecting gas leakages. It develops customized programs for reporting gas leakages and builds cross-referencing tools for ease of access between old and new inventory records. It also offers specialized software and hardware instruments to improve the accuracy of data acquisition.

Recent Developments

• In January 2024, CO2Meter, a prominent manufacturer of gas detection solutions, announced the launch of an industrial gas detector developed to monitor gases in industrial environments. The CM-900 series is designed to measure high carbon dioxide or low oxygen to protect staff and employees working around and near hazardous gases from situations such as accidental leaks.

• In September 2023, DOD Technologies, a provider of commercial and industrial gas detection systems, equipment, and services, launched the ChemLogic Revive CL4R Four-Point Toxic Gas Detection System developed to replace and upgrade fixed four-point monitors. This system uses ChemLogic colorimetric technology to identify gas leaks, drawing ambient air samples from up to 500 feet away.

• In January 2023, ChampionX Emissions Technologies, a prominent provider of emissions detection solutions for the oil and gas industry, launched AURA OGI, a highly innovative Optical Gas Imaging (OGI) camera. The AURA OGI MidWave InfraRed intelligent camera takes images with higher resolution compared to other cameras on the market. This advanced technology makes gas leak detection more efficient by using built-in smart navigation and routes.

Leak Detection And Repair Market Report Scope

Gloabl Leak Detection And Repair Market Report Segmentation

The report forecasts revenue growth at global, regional, and country levels and analyzes the latest industry trends in each of the sub-segments from 2017 to 2030. For 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

    • UK

    • Germany

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Latin America

    • Brazil

    • Mexico

    • Venezuela

  • Middle East & Africa

    • Kingdom of Saudi Arabia

    • UAE

    • South Africa