While the leak detection industry is broad — spanning a number of different industries — including Oil & Gas and water management systems, the area in which the industry’s growth will be experienced most is the Oil & Gas industry. According to a recently released report, the leak detection market for the Oil & Gas industry is projected to reach $2.71 billion by 2020, with an estimated CAGR of 7.1 percent gauged from 2015 through 2020.
Specifications and Applications
When it comes to the Oil & Gas industry, leak detection equipment is designed to detect and locate leaks in the system. The primary function of leak detection equipment is to help operators and pipeline managers identify and localize leaks for the purpose of repair, and to minimize loss and damages due to leaks. With governments throughout the globe instituted more stringent regulations to protect the citizenry and the environment, Oil & Gas companies are being forced to develop more effective ways to guard against leaks. The demand for cleaner emissions by governments and environmental organizations has Oil & Gas companies investing more in leak detection equipment in order to avoid costly fines and penalties.
There are some challenges with the current leak detection technology that frustrate the efforts of Oil & Gas companies that are trying to effectively mitigate leakage. The primary challenge with the current technology is that it should have the capacity to perform identification, quantification, localization and classification (harmless, harmful, medium risk, etc.); however, there is not one piece of technology that can perform all of these tasks, and combining sensors does not guarantee the desired results.
Despite the challenges, there are certain factors that the experts consider to be highly influential in the development of the current leak detection industry growth through 2020.
1. The Demand for Cleaner Emissions
Each year, there is an increase in awareness as it pertains to global environmental issues, and subsequently an increase in the demand for companies and individuals to be more environmentally responsible. There is probably no other industry feels this pressure as much as the Oil & Gas industry.
2. The Drive to Create a Comprehensive Leak Detection System
This is actually an instance in which the challenges with a specific technology is driving sales within a specific industry. Because the creation of a comprehensive piece of technology that has the capacity to perform all leak detection functions, Oil & Gas companies will be spending an exorbitant amount of money as they attempt to find the right combination to ensure that their leak detection systems perform optimally.
3. Competition is Driving Quality in the Market
Because the competition in the leak detection is intense, the level of quality among the competitors in consistently increasing — driving sales and industry growth.
Although there are some technological challenges in leak detection technology, the rapid growth in the industry is expected to continue, based on demand, and the influence of global environmental agencies.