Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
A gas leak detector is specialty equipment that can detect the presence of gases in an area as part of a system. This type of equipment is used to detect a gas leak or other emissions that may interfere with a control system leading to shut down. Such equipment used advanced technologies such as ultrasonic, electrochemical, and infrared. Gas leak detectors are used in various sectors including oil & gas, chemicals, power generation, shopping malls, restaurants, and hotels, residential, etc. Furthermore, gas leak detectors can either be fixed or portable.
The global gas leak detectors market is estimated to account for US$ 4,695.7 Mn in terms of value by the end of 2027.
Market Dynamics- Drivers
- Rising investment in oil & gas and chemical industry is expected to drive growth of the global gas leak detectors market during the forecast period
Natural gas and crude oil gas are primary raw materials for the production of energy. The development of gas infrastructures such as pipelines, gas stations, and warehouses is expected to increase the demand for gas worldwide. As a result of this, the demand for gas leak detectors is expected to increase significantly. Hence, these factors are expected to drive growth of the global gas leak detectors market during the forecast period.
- Strict regulatory norms associated with safety are expected to propel the global gas leak detectors market growth over the forecast period
Many countries across the globe have implemented strict regulatory norms regarding safety in various industries such as chemical, food, and pharmaceuticals. Gas leak detectors are used in the aforementioned industries to detect flammable and toxic gas leaks from containers and chambers. Increasing capacity expansion of existing plants and establishment of new facilities is projected to propel demand for gas leak detectors, especially for flammable and toxic gas detection applications. Thus, these factors are expected to propel the global gas leak detectors market growth over the forecast period.
APAC held dominant position in the global gas leak detector market in 2019, accounting for 41.4% share in terms of value, followed by North America, Europe, and RoW respectively.
Figure 1: Global Gas Leak Detectors Market Share (%), in terms of Value, By Region, 2019
Market Dynamics- Restraint
- Low profit due to the intense competition is expected to restrain growth of the global gas leak detectors market during the forecast period
There is intense competition among market players. The global gas leak detectors market is highly fragmented due to the presence of domestic and international market players. This high intensity of competition among the existing global and local players results in lower profit margins from products. Hence, these factors are expected to restrain growth of the global gas leak detectors market during the forecast period.
- Lack of technological advancements in offshore leak detection systems is expected to hinder the global gas leak detectors market growth over the forecast period
Although gas leak detectors are vastly used in the oil & gas industry, lack of technological advancements still remains a major challenge. For offshore leak detection systems, highly efficient and effective gas leak detectors are required. Thus, these factors are expected to hamper the global gas leak detectors market growth over the forecast period.
Gas Leak Detectors Market Report Coverage
||Market Size in 2019:
||US$ 2,980.3 Mn
|Historical Data for:
||2016 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||US$ 4,695.7 Mn
|Geographies covered :
- North America: U.S., Canada
- Latin America: Brazil, Argentina, Mexico, Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific
- Middle East: GCC Countries, Israel, Rest of Middle East
- Africa: South Africa, North Africa, Central Africa
- By Applications:
- Industrial: Oil & Gas, Chemicals, Power Generation.
- Commercial Establishment: Shopping Malls, Hotels & Restaurants, Other Commercial.
- Residential, Others.
- By Product Type: Fixed, Portable.
- By Technology: Electrochemical, Infrared, Semiconductor, Ultrasonic, Others.
MSA Safety Inc., Tyco International plc, Emerson Electric Company, Honeywell International Inc., Drägerwerk AG & Co. KgaA, PSI AG, Bridger Photonics Inc., Siemens AG, IntelliView Technologies, Inc., Pure Technologies Ltd., and Schneider Electric SE.
- Rising investment in oil & gas and chemical industry
- Strict regulatory norms associated with safety
|Restraints & Challenges:
- Low profit due to the intense competition
- Lack of technological advancements in offshore leak detection systems
- Advent of Internet of Things (IoT) and artificial neural network technology can present lucrative growth opportunities
Companies are focused on enhancing their product portfolios through the adoption of new technologies such as Internet of Things (IoT) and Artificial Neural Network (ANN) to make gas leak detectors smarter and more efficient.
- Growing product innovation can provide major business opportunities
Key participants in the gas leak detector market are focused on R&D activities in order to introduce advanced and cost-effective products such as wireless gas detectors. For instance, Crowcon’s new gas detector is designed for the oil & gas and petrochemical industries. This device can detect multiple gases and can be linked wirelessly to transfer real-time information to the control unit.
Figure 2: Global Gas Leak Detectors Market Value (US$ Mn), 2017 - 2027
The global gas leak detector market was valued at US$ 2,980.3 Mn in 2019 and is forecast to reach a value of US$ 4,695.7 Mn by 2027 at a CAGR of 5.8% between 2020 and 2027.
- Increasing use of portable gas detectors
Manufacturers are focused on developing advanced gas leak detectors and upgrading existing products, especially for industries such as chemicals, mining, and food. Advanced portable gas detectors are used for personal protection in numerous sectors as well as for mobile testing. This is owing to the capability of these detectors to identify multiple gases ability of these detectors to detect multiple gases and store data for analysis.
- Merger and acquisition activities among market players is another major trend
Key players in the market are focused on mergers and acquisitions, in order to enhance the market presence. For instance, in June 2013, Honeywell acquired RAE Systems, Inc., a global manufacturer of portable and fixed gas detection systems and software. Furthermore, in March 2015, Scott Safety acquired Industrial Safety Technologies (IST). The objective of this acquisition was to enhance the company’s presence in key regions such as the Middle East, Gulf Coast (U.S.) and Europe.
Global Gas Leak Detector Market - Impact of Coronavirus (Covid-19) Pandemic
Due to Covid-19 pandemic, many industries witnessed significant shift in their business. Natural gas and crude oil gas are primary raw materials for the production of energy. Due to lockdown imposed by countries, the demand and price of the crude oil has fallen. For instance, in March 2020, in US the price of the crude oil has decreased from US $61.06 to US$23.36. Additionally, every country has banned international and domestic travel, due to this there is huge drop in the consumption of Aviation Turbine Fuel (ATF) across the globe. All these activities had huge impact on gas leak detectors market and there is drop in the demand of gas detectors.
Key players operating in the global gas leak detectors market are MSA Safety Inc., Tyco International plc, Emerson Electric Company, Honeywell International Inc., Drägerwerk AG & Co. KgaA, PSI AG, Bridger Photonics Inc., Siemens AG, IntelliView Technologies, Inc., Pure Technologies Ltd., and Schneider Electric SE.
- Major market players are focused on product launches, in order to expand the product portfolio. For instance, in June 2018, Honeywell International Inc. introduced a new connected gas connector that can detect leaks ultrasonically.
- Key companies in the market are focused on product launches, in order to enhance the market presence. For instance, in November 2019, United Electric Controls, a manufacturer alarm, and emergency shutdown technology introduced wireless gas detection solutions for the power industry.