Oil and Gas Pipeline Leak Detection Equipment Market Predicted to Surpass US$3.65 Bn By 2024 Increasing From 2015
A few large companies that dominate the global oil and gas pipeline leak detection equipment market features a highly consolidated vendor landscape, says Transparency Market Research (TMR) in a new report. Honeywell International Inc., Schneider Electric SE, and Siemens AG are the torchbearers with these companies holding 35% of the market in 2015.
“Top players in the market are strategizing for acquisitions and divestments for sustainable business growth,” says TMR’s lead analyst. Siemens AG, for example, acquired Rolls-Royce’s Energy compressor and aero-derivatives gas turbines business in 2014 to fill a technological gap in its own gas turbine portfolio.
Leveraging core strengths and focus on expansion of oil and gas sector is another popular growth strategy adopted by companies in this market. For instance, Honeywell International recently bagged a contract for the Trans-Anatolian Gas Pipeline because of its expertise in integrated control and safety systems.
- Business Implications of Rising Environmental Considerations Fuel Growth
Environmental concerns and policies regarding pipeline leakages is the prime factor driving the global oil and gas pipeline leak detection equipment market. This is because past incidents of pipeline leakage have been detrimental to the extent that it has wiped off complete flora and fauna of the leak site. Obligations on part of pipeline operators after a leak has happened is another important factor driving this market. Pipeline operators not only suffer business losses and but also need to pay high compensations to affected bodies.
The information Presented in this Review is Based on Press-Release by TMR
- Volatile Oil Prices Hinder Growth
Proving to be a hindrance to the growth of oil and gas leak detection equipment market is volatile oil prices that hamper execution of new pipeline projects. Generally, new pipeline projects are planned are put under construction if only oil prices are high enough for the project to be profitable. However, unforeseen changes in oil prices such as the recent drop in oil prices in 2015, has proved to be detrimental with considerable cut short in pipeline length for new as well as under-construction pipelines.
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