The global leak detection system market is expected to gain momentum with the growing pipeline network and increasing demand for fossil fuels. Advancements in technology have facilitated the ability of pipeline operators to remotely monitor pipeline operations. The global pipeline network is about 3.5 million kilometers long and is responsible for the movement of oil and gas products across the globe. Pipelines are considered to be the safest and most efficient mode of transportation of hydrocarbons, as they are hazardous in nature, and any spillage or leakage can result in huge losses to the product owner as well as to the environment. Leakage is considered the most common problem in pipeline operations, which not only results in product loss but also can result in accidents with a huge potential to damage the nearby environment.
Accidents that have happened in the recent past, such as the explosion in a gas pipeline in Minnesota, U.S., and the eruption of a natural gas pipeline in Nebraska in 2014, have prompted legislation making it mandatory for pipelines carrying hazardous products to have leak detection systems. Thus, the global market for leak detection systems for the oil and gas industry is anticipated to be driven by factors such as increasing natural gas production, increasing trade of oil and gas products, growing pipeline infrastructure, and associated regulatory policies. However, volatile oil prices are restricting the cash flow of the oil producers, which is likely to have a negative impact on an upcoming pipeline project, which in turn is expected to restrain the demand for pipeline leak detection systems in the oil and gas industry.
North America is expected to be the largest region in the global pipeline leak detection system market for the oil and gas industry, which is anticipated to contribute over 60% by the end of 2016 due to the wide pipeline infrastructure of over 2.3 million kilometers that is used to transport crude oil, natural gas, and other petroleum products.
The global leak detection system market for the oil and gas industry has been projected to be valued at US$ 2.1 billion by the end of 2016 and is expected to expand at a CAGR of 6.1% during the forecast period of 2016–2023.
Purpose of the Report
The purpose of this strategic research study titled “Global Pipeline Leak Detection System Market for Oil and Gas Industry: Growth, Future Prospects, Competitive Analysis, and Forecast, 2016–2023” is to provide company executives, industry investors, and industry participants with in-depth insights to enable them to make informed strategic decisions regarding the opportunities in the global production oilfield services and equipment market.
- Industry Investors
- Research Professionals
- Emerging Companies
- Pipeline Leak Detection Service Providers
- Oil and gas exploration and production companies
- Downstream and midstream companies
- Research Institutes
Overall, the research study provides a holistic view of the global pipeline leak detection system market for oil and gas industry growth, offering market size and estimates for the period from 2013 to 2023, keeping in mind the above-mentioned factors.
On the basis of product type, the global pipeline leak detection system market for the oil and gas industry is categorized into the following types:
- Natural Gas
- Crude Oil
- Petroleum products (white oils)
Increasing international trade in oil and gas products has resulted in the movement of large volumes. Pipeline infrastructure is gaining momentum with the increasing trade of hydrocarbons across the globe. High volumes of oil and gas products with minimal losses can be transferred from one location to another. Products such as crude oil, natural gas, and finished products such as gasoline, high-speed diesel, aviation turbine fuel, LPG, and others can be easily transported using pipelines.On the basis of product type, the global pipeline leak detection system market for the oil and gas industry can be segmented into three main categories: natural gas, crude oil, and petroleum products.
Among product types, the natural gas segment is expected to be the most dominant and fastest-growing segment owing to the increasing production of shale gas coupled with increasing demand for natural gas from a growing number of gas-based economies. The global natural gas pipeline network is about 2.8 million kilometers, which is projected to expand at a high rate due to various upcoming projects such as the construction of the fourth leg of the Uzbekistan-China natural gas pipeline, the third-stage development of the Galkynysh field, the Turkmenistan natural gas pipeline project, and others. Such capacity expansion in pipeline projects is projected to fuel the demand for pipeline leak detection systems by 2023. Increasing transportation of finished products such as LPG, gasoline, high-speed diesel, and aviation turbine fuel is anticipated to fuel the growth of the petroleum product segment over the forecast period (2016-2023).
On the basis of technology, the global market for pipeline leak detection systems in the oil and gas industry is categorized into the following types:
- negative pressure wave
- Fiber Optic Cable
- Vapor sensing tubes
- Mass-Volume Balance Method
- Others (Infrared Radiometer, Thermal Cameras)
An increasing pipeline network for the transit of hazardous petroleum products coupled with strict regulatory policies regarding the handling of petroleum products is anticipated to intensify the demand for leak detection systems. Pipeline leakage incidents in the recent past have influenced oil producers to use technology to ensure quick detection of leakage in the pipeline. In 2014, incidents such as the explosion of a gas pipeline in Minnesota, U.S., and the eruption of a natural gas pipeline in Nebraska, U.S., influenced the U.S. government to bring in a regulation making it mandatory for the pipeline carrying hazardous products to have a leak detection system. Leading players in the global pipeline leak detection system market offer products with various technologies, such as negative pressure waves, E-RTTM, and others.
On the basis of technology, the global pipeline leak detection system market can be segmented into negative pressure wave, E-RTTM, fiber optic cable, vapor sensing tubes, mass-volume balance method, and others (infrared radiometers, thermal cameras).
Among technologies, the negative pressure wave segment is anticipated to be the most dominant segment due to its easy installation and low installation cost. However, the technology has reached a mature stage and is anticipated to lose market share to other segments by 2023. Following it, E-RTTM is expected to be the fastest-growing segment owing to its high leak detection accuracy, which encourages oil producers to use E-RTTM technology. Other segments are anticipated to register moderate growth over the forecast period.
On the basis of geography, the global pipeline leak detection system market for the oil and gas industry is segmented into the following categories:
- North America
- Rest of Europe
- Rest of Asia-Pacific
- Latin America
- Rest of Latin America
- Middle East and Africa
- GCC Countries
- South Africa
- Rest of Middle East and Africa
Pipelines are considered the safest and most efficient mode for the transportation of petroleum products. High volumes of oil and gas products are transported to various parts of the world through pipelines. Increasing awareness about the safe transportation of petroleum products has influenced oil producers to adopt technological assistance in pipeline operations, such as pipeline leak detection systems. Globally, a pipeline network of over 3.5 million kilometers is used to transport various oil and gas products. Global pipeline leak detection systems are anticipated to grow significantly over the forecast period (2016–2023).
The global market for pipeline leak detection systems for the oil and gas industry is segmented on the basis of geography. North America is expected to contribute the highest revenue share in the global pipeline leak detection system market for the oil and gas industry, which is estimated to be more than 60% of the total revenue share by the end of 2016 as a wide pipeline network of over 2.3 million kilometers is used to transport more than 70% of the natural gas, crude oil, and other petroleum products in North America. Growing pipeline networks coupled with increasing oil and gas production in the region are expected to spur the demand for pipeline leak detection systems by 2023.
Moreover, in October 2015, the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration passed legislation requiring pipelines carrying hazardous products to have a leak detection system in place. Such legislation is anticipated to fuel the demand for leak detection systems in the region. Following it, MEA is anticipated to be the second-largest region in the global pipeline leak detection market in 2016. Increasing oil production along with growing exports of oil and gas products is projected to intensify the significant growth of the region over the forecast period. Moreover, upcoming pipeline projects such as the India and Iran undersea gas pipeline deal of US$ 4.5 billion are projected to increase the demand for pipeline leak detection systems over the forecast period (2016–2023).