Market Trends of Global Gas Detection System Industry
This section covers the major market trends shaping the Gas Detection System Market according to our research experts:
Oil and Gas Sector to Have a Significant Market Share
- Various processes involved in oil and gas applications produce non-toxic gases, which, when accumulated in high concentration, deplete the oxygen, causing a hazardous condition to personnel who occupy the area and do not have access to protection. Oxygen depletion is dangerous to individuals, whereas even small concentrations of harmful toxic gases can lead to serious health implications (even death) for anyone entering an unoccupied area where such gases are present.
- Additionally, the old technologies, like handheld/personal detectors monitors, cannot detect the concentrations of combustible gases in unoccupied areas that are hazardous to personnel, equipment, and the facilities themselves.
- Oil refineries, pipelines, LPG/LNG plants, storage farms, and offshore platforms utilize a wide range of hazardous combustible and toxic gases. The need for safety measures contributes to the growth of the gas detection system market.
- Moreover, a series of successful licensing rounds and promising finds have sent a wave of optimism across the industry. Further, the oil and gas industry has invested heavily in research and development to have a grip on the latest emerging technologies.
- According to BP Statistics, crude oil consumption reached 94,088 thousand barrels per day worldwide in 2021. The increasing demand for crude oil is expected to drive the demand for gas detection systems.
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North America is Expected to Hold a Significant Market Share
- North America is the largest revenue-generating market due to the presence of major vendors and government regulations regarding limiting gas emissions. The Environmental Protection Agency (EPA) has released the New Source Performance Standards for measuring and limiting methane emissions from new, reconstructed, or modified assets.
- Also, the Department of Energy (DOE) launched an Advanced Research Projects Agency-Energy (ARPA-E) program labeled MONITOR (Methane Observation Networks with Innovative Technology to Obtain Reductions) to provide funding for next-generation methane detection methods. In December 2020, the 'Protecting Our Infrastructure of Pipelines and Enhancing Safety' Act was signed into law in the United States. The act directs gas pipeline operators to use advanced leak-detection technologies to protect the environment and ensure pipeline safety. Such initiatives by the governmental authorities have pushed the need for gas detection systems.
- In line with the encouragement for gas detection by the government, vendors operating in the region are also launching new gas detection systems for transmission pipelines. In April 2021, Abb launched a drone-based gas detection system for detecting and quantifying gas emissions along transmission pipelines.
- Additionally, there has been a rise in the cases of gas leaks which have resulted in deaths and high costs to the companies. In January 2021, at least six people died from a liquid nitrogen gas leak at a food processing plant. In all, 130 people were transferred for evaluation in a medical facility in proximity, while 10 others were sent to a hospital due to the severity of their symptoms.
- Different end-users are also partnering with the regional gas detection equipment suppliers. In July 2021, MSA Safety, a Pennsylvania-based company, announced that it had been named the official supplier of portable gas detection equipment for Royal Dutch Shell. The company has signed a three-year global framework agreement to supply portable gas detection equipment.
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