Market Trends of Utility Locator Industry
Transportation Sector to Hold Significant Market Share
- As transportation is a crucial pillar in facilitating the economic development of any region, significant emphasis is given to gathering information such as subsurface site characterizations before starting the construction of transportation-related infrastructure projects to prevent possible delays and cost overruns in a project. Utility locators detect, survey, and mark the land, significantly reducing uncertainty. Digital technologies such as electromagnetic fields and GPS in utility locators aid timely coordination and communication between operational points in various processes such as mapping and survey, enhancing precision and accuracy.
- For instance, more than 56 million kilometers (35 million miles) of known underground utilities exist in the United States, and many remain unidentified. Available underground utilities include electric and gas lines, pipes (both large and small), telephone, and internet cables, all of which could be at risk if a transportation agency digs into the earth without gathering adequate information.
- Road and highway construction across the world has been growing steadily, driven by increased car ownership, government investment, and urbanization. According to the US Census Bureau, in 2022, total transportation construction spending in the United States was about USD 1,792.9 billion, up by around 10.2% from the value of 2021. Such trends create a favorable outlook for the growth of the studied market in the region.
- Investments in projects supporting the transporting infrastructure are growing at a higher rate across developing countries such as India, China, Brazil, Vietnam, etc. For instance, according to the Ministry of Road Transport & Highways, India's MoRTH constructed 5337 km of National Highways till December 2022 and was also awarded 6318 km of National Highway contracts. As these projects pass through several cities and residential areas wherein various utility infrastructures are already laid out, such trends favor the studied market's growth.
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North America is Expected to Showcase Significant Market Growth
- North America has been among the leading adopters of new technologies; hence, the region is anticipated to continue to account for a significant share of the utility locator market over the forecast period. Factors such as the increasing demand for enhanced surveillance and innovative construction equipment in advanced economies, including the United States and Canada, also support the studied market's growth in North America.
- The telecommunication sector in the United States is flourishing and experiencing collaborative measures by several major players with the technology provider to gain a first-mover advantage by rolling out the 5G service. For instance, in March 2022, Verizon and Live Nation announced a 5G technology partnership. Verizon is outfitting iconic venues across the United States with 5G Ultra Wideband built for significant scale events. As fiber optic cables play a crucial role in the development/expansion of telecommunication networks, such trends are anticipated to influence the studied market's growth positively.
- In the North American region, several major transportation infrastructure development projects are either underway or are being outlined by the regional governments, which is also creating opportunities in the studied market. For instance, the Canadian government is currently working on a new High Frequency Rail project that aims to provide clean, efficient, and safe transportation to Canadians. In early 2023, the Canadian government announced the groups that would be able to submit proposals for this project.
- Furthermore, according to the record of the NUAR (National Underground Asset Registry Advisory Group), the uncertainty of locating underground utilities costs the U.S. economy an average of USD 50 billion annually, with more than 1,500 injuries and nearly 400 deaths over the past 20 years. The uncertainty factor is a significant cause of highway construction delays due to missing or inaccurate information about underground utilities or mapping. These uncertainties of mapping utilities bolstered the growth of cutting-edge technology-based solutions in the region.
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