The North American gas detection market is on a steady growth path, according to recent analysis from Frost & Sullivan. The need to avoid industrial accidents caused by undetected gas leakage, as well as increasing pressure from insurance companies, is encouraging industries to install gas detectors. Investments in research and development will help manufacturers design cheaper, long lasting and robust gas detectors, meet client specific requirements and stay competitive.
Frost & Sullivan’s ‘Analysis of the North American Gas Detection Market’, revealed that the gas detection market earned revenues of US$777.4 million in 2014 and estimates this to reach US$900.4 million in 2019. The study covers the demand for fixed gas detectors, portable gas detectors and detector tubes in the oil and gas, chemical and petrochemical industries, which are the major users of gas detectors, as well as in the water and wastewater treatment sector, food and beverage sector, mining and metals sector, and utilities sector.
"Increasing safety awareness and stronger enforcement of regulations on emission reduction are driving the gas detection market in North America," said Frost & Sullivan Chemicals, Materials and Food Research Analyst Alisha Basha. "Further, the willingness of many end users to pay a higher price for premium products that include features such as wireless gas detection, remote monitoring and software applications boosts market revenues."
Despite this, a substantial portion of users still consider gas detectors to be a large investment. This, coupled with intensifying competition in the market, is restricting manufacturer profits and causing considerable price erosion. In addition, declining oil prices have significantly affected oil and gas activity, which in turn has affected the gas detection market since the oil and gas industry is a major end user. If the fall in oil prices persists, several oil rigs across North America might be shut down and the demand for gas detection systems further curtailed.
"On the plus side, the decline in oil prices is expected to increase downstream production, thus sustaining the adoption of gas detectors," Basha continued. "However, this trend will last for a short period of time and will lose its impact when oil prices improve."
Growth will be sustained by the demand for new, cost competitive technologies that enable compliance with regulations and standards. Users will look for features such as wireless communication and remote monitoring. The market will also see a shift towards service oriented business models."Although the market is already consolidated and dominated by a few participants, acquisitions will continue to change the mature North American gas detection landscape," Basha concluded.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/29072015/north-american-gas-detection-market-is-on-a-steady-growth-path-1189/