The oil and gas leak detection market will grow at a CAGR of 6.9 per cent between 2016 and 2022 to reach a value of US3.38 billion, according to a market research report released by MarketsandMarkets.
The growth can be attributed to the increasing incidents of leakages in the oil and gas pipelines and storage tanks at production facilities, as well as development and expansion of existing pipelines and construction of new pipelines, and stringent government regulations pertaining to the implementation of leak detection systems, MarketsandMarkets said.
Acoustic/ultrasonic technology is expected to lead the market. Acoustic/ultrasonic technology-based leak detection systems are widely used in single-phase and multi-phase flow pipelines, owing to their advantages such as quick leak detection capabilities, suitable for leak detection in large pipelines, and require simplified sensor and software set up with minimal calibration.
The market for enhanced real time transient model (E-RTTM) technology is expected to grow at a high rate between 2016 and 2022 as it can detect small leakages. It provides more accurate results and leak locations in fractions of time. E-RTTM is one of the most widely used technologies incorporated in leak detection systems, according to the report.
North America is investing significantly in oil and gas pipeline projects, with the U.S. the leading country in terms of oil production and consumption, and possessing the largest network of oil and gas pipelines. Several pipeline construction projects have been awarded for the supply of oil to the refinery and petrochemical industries across North America. The U.S. government has mandated increasingly stringent regulations pertaining to the implementation of leak detection systems, which has helped to boost demand for leak detection systems.