The South East Asia Gas Detection Device Market, By Type (Fixed and Portable), by Device (Detector, Transmitter and Controller), By Application (Mining, Steel Mill, Petro Chemical, Construction, Automobile, Material, Food & Beverage Processing, Electronics, Marine, Utility Services, Government, Security, Medical and Environment Detection) and by Country (Singapore, Malaysia, Indonesia, Thailand, Vietnam, Myanmar, Brunei, Philippines and Rest of South East Asia) – South East Asia Forecast to 2027, is expected to be valued at US$ 408.5 million by 2027, exhibiting a CAGR of 9.7% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
A fixed gas detector is a permanently mounted device that identifies leakage of gas content. Fixed gas detectors do not require a constant human monitor or responder for the detection of gas concentration. Fixed gas detectors require a separate fixed power source to operate. Portable gas detectors are handheld devices used to provide safety to the individual user from a wide range of gas hazards across applications. Portable gas detectors are flexible in use and can be easily handled across any space as the user moves. Portable gas detectors are operated on batteries and do not require a separate power source. These devices are used in mining, steel mill, petrochemical, automobile, etc.
The South East Asia gas detection device market is estimated to account for US$ 408.5 Mn in terms of value by the end of 2027
Growing demand for reduction in facility downtime during turnaround operations is expected to propel the South East Asia gas detection device market growth during the forecast period
The demand for gas detection devices from numerous industries is increasing rapidly. This is due to reduced operational costs and low gas detection costs provided by these devices. Moreover, businesses are focused on the maximization of efficiency of processes through fast detection of hazardous gases. For instance, Mine Safety Appliances Company, LLC based in Cranberry Township, Pennsylvania, U.S., has designed a gas detection device called the Galaxy GX2 system, which offers gas detection with fast response time to enhance workplace safety in various environments with reduced maintenance costs. Hence, these factors are expected to propel the South East Asia gas detection device market growth in the near future.
Increasing use of fixed and portable gas detectors across marine industry
In Singapore, the demand for Gas Detection Device is mainly driven by the marine industry. This mainly due to the increasing use of fixed and portable gas detectors for the safety of crew members and cargo loaded onto the ships. Moreover, the stringent regulations associated with marine safety contribute to the large-scale adoption of gas detectors by shipbuilders and ship owners. For instance, according to the Energy Market Authority of Singapore, in 2015 petroleum products held a 65.3% market share in the import market, followed by crude oil, natural gas, and coal & peat with a market share of 28.5%, 6.0%, and 0.2%, respectively.
Declined profit margin due to low product differentiation is expected to hamper the South East Asia gas detection device market growth over the forecast period
The pricing strategies of aspirant companies has forced established players in the market to adopt competitive prices. Penetration pricing strategy has thus crunched the profits obtained from products and services. As a result of reduced profits, the market is expected to experience a decline in investments. Therefore, these factors are expected to hamper the market growth over the forecast period.
Increasing investments and rising distribution networks across industries
Malaysia is seeing strong domestic direct investments (DDI) and foreign direct investments (FDI) across various industries, especially in the manufacturing, mining, and petrochemical industries. In addition, many countries such as Japan, Singapore, China, and Germany are investing in Malaysia across multiple projects, which has enhanced foreign investments. This has led to the adoption of gas detectors in order to provide safety across these projects and offer a secure environment for workers. For instance, BW Technologies Malaysia (Honeywell) has been delivering a wide range of gas detectors through one of their distributors, KKI INSTRUMENTS (M) SDN BHD based in Johor, Malaysia to various Malaysia-based petrochemical companies, such as ExxonMobil Global Services Company, Kuala Lumpur Kepong Berhad, and Petroliam Nasional Berhad.
Increasing investments and project developments across the oil & gas industry
The Indonesian petrochemical industry is seeing stable growth, primarily due to regulations implemented by the Indonesian government to reduce domestic gas prices, especially for fertilizers, steel, and petrochemical companies. Growing developments in the petrochemical industry and repair & maintenance of oil & gas projects are creating strong demand for gas detectors. Petrochemical companies are using gas detectors to identify leaks across pipelines to prevent any risks associated with hazardous situations across production sites. For instance, the Energy and Mineral Resources Ministry of Indonesia is investing in multiple liquefied-compressed natural gases (LCNG), and liquefied natural gas (LNG) projects, which include the construction of fuel storage tanks. These projects are expected to result in strong demand for gas detectors during 2016–2018.
South East Asia Gas Detection Device Market - Impact of Coronavirus (Covid-19) Pandemic
Due to Covid-19 pandemic, chemical industries witnessed significant shift in their business. Chemical companies have slowed down their manufacturing operations due to labor shortage and supply of raw materials. The production of synthetic rubber especially chemicals such as paint and coatings have declined respectively. This is attributed to downfall in the construction activities and restriction on the travel which have direct impact on the demand of chemicals. Despite the downfall in the growth, chemical industries have also witnessed a significant growth due to coronavirus pandemic. Chemical companies are manufacturing fuel-grade alcohol based hand sanitizers to reduce the spread of COVID-19. For instance, in Thailand, Government of Pharmaceutical Organization (GPO) has increased the supply of alcohol based sanitizers. They are supplying 700,000 bottles (60 ml) and 900,000 bottles (450ml) per day. Growing demand of hand sanitizers has increased the demand of gas detectors which are used in the chemical industries to provide safety to the labors.
Major companies operating in the South East Asia Gas detection device market are Honeywell Analytics, Gastron Co., Ltd., Mine Safety Appliances, New Cosmos Electric Co., Ltd., Drägerwerk AG & Co. KGaA, Riken Keiki Co., Ltd., and Industrial Scientific Corporation.