Leak Detection and Repair Market

Global Leak Detection and Repair Market Outlook (2022-2032)

The  leak detection and repair market has garnered a market value of US$ 18.22 Bn in 2022, anticipated to register a positive CAGR of 4.1% in the forecast period 2022-2032 and reach a value of US$ 27.23 Bn.

Attributes	Details
Leak Detection and Repair Market Size (2022)	US$ 18.22 Bn
Sales Forecast for Leak Detection and Repair (2032)	US$ 27.23 Bn
Global Market Growth Rate (2022 to 2032)	4.1% CAGR
Key Companies Profiled	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.

Demand Analysis of Leak Detection and Repair from 2015-2021 Vs Future Outlook 2022-2032

From 2015 to 2021, the global leak detection and repair market registered significant gains, reaching a valuation of US$ 17.5 Bn in 2021. The industry flourished at a historical CAGR of 3.9%.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. 

During the COVID-19 pandemic, prospects declined temporarily, attributed to global industry shutdowns in the wake of mandatorily imposed lockdowns to curb the spread of the virus. Cessation of on-site manufacturing activities led to a decline in periodic checks for leak detection and repair, leading to a contraction. However, since mid-2021, prospects have begun to elevate, given the relaxation of lockdowns and curbs.

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. Considering these factors, the market is projected to witness high growth over the coming years, registering a CAGR of 4.1% to top US$ 27.23 Bn by 2032.

What is driving the Market Demand for Leak Detection and Repair?

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.

Country-wise Analysis

How is the US Propelling Sales of leak detection and repair?

The US market for leak detection and repair is one of the largest markets, accounting for a market share of 54%. 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 the regional market growth.

What Drives the Demand for Leak Detection and Repair in India?

The Indian regional market is expected to witness significant growth over the forecast period. The increasing demand for oil and oil products is expected to drive the demand for LDAR among utility companies in the region. According to Fact.MR, India is expected to flourish at a CAGR of 5%.

The increasing production of natural gas in countries, such as India, is also creating the need for leak detection and repair systems. According to the Indian Brand Equity Foundation, oil demand in India is projected to register a 2x growth to reach 11 million barrels by 2045. The subsequent expansion of oil and gas pipelines is expected to drive market growth in the region.

Category-wise Insights

Which Leak Detection and Repair Product Leads the Market?

The handheld gas detectors segment dominates the market and accounts for more than 36% 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.

Which Type of Technology Accounts for Maximum Revenue Generation?

Volatile Organic Compounds Analyzer to Capture Bulk of Market Revenue

The volatile organic compounds (VOCs) analyzer segment dominates the LADR market, accounting for more than 33% 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. 

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.

Competitive Landscape

The competitive landscape of the leak detection and repair market is shaped by product innovation and strategic mergers & acquisitions. Front Runners are emphasizing capacity enhancements and global footprint expansion to leverage lucrative prospects in developing economies. 

• In August 2021, Southern California Gas Company (SoCalGas) signed an agreement for $12 million with high-tech laser company, Bridger Photonics, Inc. (Bridger). The company is using Bridger's Gas Mapping LiDAR to detect, pinpoint, and quantify methane emissions throughout SoCalGas’s distribution area. 
• In June 2021, Clean Air Engineering, Inc. announced that they have signed a channel partnership agreement. Through this partnership, CleanAir will combine Picarro’s industry-leading ethylene oxide (EO) monitoring technology with its best-in-class services to provide industrial clients with advanced solutions for EO measurement and monitoring. 

Key Market Segments Covered in Leak Detection and Repair Industry Research

• By Component :

  • Equipment
  • Services

• By Product :

  • Handheld Gas Detectors
  • UAV-based Detectors
  • Vehicle-based Detectors
  • Manned Aircraft Detectors

• By Technology :

  • Volatile Organic Compounds (VOC) Analyzer
  • Optical Gas Imaging (OGI)
  • Laser Absorption Spectroscopy
  • Ambient/Mobile Leak Monitoring
  • Acoustic Leak Detection
  • Audio-Visual-Olfactory Inspection