Risk Management Drives Gas Detection Market
The North American gas detection market is on a steady growth path. The market earned revenues of $777.4 million in 2014 and is projected to reach $900.4 million in 2019, according to a Frost & Sullivan report, Analysis of the North American Gas Detection Market.
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.
Oil and gas, chemical and petrochemical industries are the major users of gas detectors. The study covers the demand for fixed gas detectors, portable gas detectors and detector tubes in these verticals as well as in water and wastewater treatment, food and beverage, mining and metals, and utilities.
A substantial segment of users still consider gas detectors a hefty investment, the report says. This, coupled with intensifying competition in the market, is restricting manufacturer profits and causing substantial price erosion.
In addition, declining oil prices have significantly affected oil and gas activity, directly curbing 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.
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.
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