According to a new market report published by Credence Research “Global Pipeline Leak Detection System Market for Oil & Gas Industry – Growth, Future Prospects, Competitive Analysis, and Forecast 2016 – 2023,” the Global Pipeline Leak Detection System Market for Oil & Gas Industry has been estimated to be valued at US$ 2.1 Bn by the end of 2016, and is expected to reach US$ 3.2 Bn by 2023, expanding at a CAGR of 6.4% from 2016 to 2023.
Global leak detection system market is expected to gain momentum with growing pipeline network and increasing demand for fossil fuels. Advancement in technology has facilitated the pipeline operators to remote monitoring of pipeline operations. Global pipeline network is about 3.5 million kilometers which is responsible for movement of oil & gas products across the globe. Pipelines are considered to be the safest and the most efficient mode of transportation of hydrocarbons as they are hazardous in nature and any spillage or leakage can results in huge loss to the product owner as well as to the environment.
Leakage is considered as the most common problem in pipeline operations which not only results in product loss but also can results accidents with huge potential to damage nearby environment. Recent accident happened in recent past such as explosion in gas pipeline in Minnesota, U.S., and eruption of natural gas pipeline in Nebraska in 2014 has bought in legislation for the pipeline carrying hazardous products to mandatory have leak detection system. Thus, global leak detection system market for oil & gas industry is anticipated to driven by factors such as increasing natural gas production, increasing trade of oil & gas products coupled with growing pipeline infrastructure and associated regulatory policies. However, volatile oil prices restricting cash flow of the oil producers which is likely have a negative impact on upcoming pipeline project which in turn is expected to restrain the demand for pipeline leak detection system in oil & gas industry.