The global oil & gas pipeline leak detection market is anticipated to witness significant growth. Incidence of leaks adversely affects the environment as well as the finances of the companies accountable to pay hefty amounts in the form of compensation or damage. Hence, rising awareness to prevent such leakages can fuel demand. Additionally, hefty investments in the oil and gas business put the companies at the risk of huge financial losses in case of even a minor incident. As a result, it is paramount for them to install efficient detection methods.
Considering the after-effects of oil & gas pipeline leakage, governments in major countries have formulated guidelines and regulations making maintenance and deployment of leak detection systems mandatory. The Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a rule to improve regulations for hazardous liquid pipelines. It formed new compliance requirements for system operators and owners envisioned to sustain pipe integrity and to prevent leak accidents.
The growth of the oil & gas pipeline leak detection market can be accredited to an increase in the incidents of leakage in oil & gas pipelines and storage tank production facilities. Other factors such as expansion and rehabilitation of existing and construction of new channels across the world and government regulations to implement leak detection system can further drive demand.
Apart from being installed in new pipelines, leak detection systems are progressively being used in aging pipes, owing to various factors such as higher risk of leakage, being more prone to corrosion, need of rehabilitation activities and continuous monitoring, and strict regulations and high compensations in case of hydrocarbon spills.
Corrosion is the major problem leading to pipeline leakage. It depends on the corrosive nature of the fluid being transported, bacterial corrosion and chemical attack, inadequate or defective coatings, and many others. If not controlled in time, it can lead to substantial costs in facility replacement and repairs. It can cause even more significant damage in terms of environment, injuries, and fatalities. Continuous monitoring is required to mitigate leaks caused by corrosion. This will increase the demand for leak detection system.
Based on location, the market can be segmented into onshore and offshore. Increasing investment in offshore energy recourses is anticipated to drive the global product demand over the forecast period. Fiber optic sensors, flow monitoring, infra-red leak detection, and pressure monitoring are the prominent leak detection technologies to monitor buried as well as un-buried hydrocarbon pipelines. Techniques such as tracking gauges done during the inspection process can provide valuable insights when it comes to figuring out risk related to pipeline integrity. Other technologies include Light Detection and Ranging (LiDAR), Real-time Transient Model (RTTM), Extended-Real time Transient Model (E-RTTM), and Airborne Laser Methane Assessment (ALMA), magnetic induction method, and ground penetration radar.
Middle East and Africa is projected to have ample growth opportunities, due to increasing network of pipelines coupled with rising oil & gas activities across the regions. North America may hold a dominant position owing to the presence of a developed economy like the U.S. in the oil & gas pipeline leak detection market. The country is home to prominent market players. As a result, North America is anticipated to remain one of the prosperous regions in terms of growth and market share over the years to come.
Key players operating in the oil & gas pipeline leak detection market are Siemens AG; Honeywell International Inc.; PSI AG; FLIR International; ClampOn AS; TTK Leak Detection System; Atmos International; and Krohne Messtechnik GmbH. Other prominent players include Schneider Electric SE; Synodon Inc.; Perma-pipe Inc.; and Bridger Photonics Inc.
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The ongoing pandemic has led to a decline in exploration activities in the oil & gas sector. A number of EPC projects have also witnessed an indefinite pause that has transpired into a slump in the requirement for drilling and excavation services. Economic repercussions of the trend are expected to be highly evident in the Middle East. The report will account for Covid19 as a key market contributor.