Leak Detection and Repair (LDAR) Market Size, Share, Growth, Forecast 2030

Leak Detection and Repair (LDAR) Industry Perspective:    

The global leak detection and repair (LDAR) market size was evaluated at $18.97 billion in 2022 and is slated to hit $27.48 billion by the end of 2030 with a CAGR of nearly 4.77% between 2023 and 2030.

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Leak Detection and Repair (LDAR) Market: Overview

Leak Detection and Repair (LDAR) is a kind of system that is utilized for repairing pumps, agitators, connectors, valves, and compressors. This, in turn, will help in the reduction of harmful air pollutants and volatile organic compounds emissions. Apart from this, LDAR tools also help in reducing accidents in the oil & gas and petroleum sectors, thereby creating a healthy workspace. An increase in the extraction of natural gas & petroleum from reservoirs is prone to high leakage risks and this has translated into humungous demand for leak detection and repair systems in the chemical & specialty chemicals sector.

Key Insights

• As per the analysis shared by our research analyst, the global leak detection and repair (LDAR) market is projected to expand annually at the annual growth rate of around 4.77% over the forecast timespan (2023-2030)
• In terms of revenue, the global leak detection and repair (LDAR) market size was evaluated at nearly $18.97 billion in 2022 and is expected to reach $27.48 billion by 2030.
• The global leak detection and repair market is anticipated to record massive growth over the forecast period owing to a large number of oil & gas emitting firms making use of artificial intelligence algorithms for determining leaks and this has prompted the demand for technologically innovative LDAR systems.
• In terms of component, the equipment segment is slated to register the fastest CAGR over the analysis period.
• Based on technology, the volatile organic compounds (VOC) analyzer segment is predicted to lead the segmental surge over the forecast timeline.
• Based on product, the handheld gas detectors segment is anticipated to dominate the segment over the projected period.
• Region-wise, the Asia-Pacific Leak Detection and Repair (LDAR) market is projected to register the highest CAGR during the assessment timeline.

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Leak Detection and Repair (LDAR) Market: Growth Factors

The massive use of advanced LDAR systems in the oil & gas sector triggered the global market expansion

A large number of oil & gas emitting firms make use of artificial intelligence algorithms for determining leaks and this has prompted the demand for technologically innovative LDAR systems. This, in turn, will prompt the global leak detection and repair (LDAR) market demand. A large number of venture capital funding organizations are allocating funds to companies whose key focus is to offer AI-driven LDAR solutions to their end-users, thereby enlarging the scope of growth of the global market. Citing an instance, in the last quarter of 2021, SCF Ventures, a venture capital company, focusing on offering capital to firms in the energy-providing business, declared that its investments in Qube Technologies, a key player manufacturing products monitoring constant carbon emissions in the atmosphere. Such moves will not only contribute to global green initiatives but will enhance the demand for leak detection and repair systems across the globe. The massive use of UAV-based leak detection and repair systems in various end-use industries will pave the way for the immense growth of the market globally.

Leak Detection and Repair (LDAR) Market: Restraints

Rise in demand for renewable energy can refrain industry growth across the globe over 2023-2030

The growing focus of various governments on renewable energy generation can impede the global leak detection and repair (LDAR) industry demand. Citing an instance, in the first quarter of 2021, the government of the UK invested nearly US$106 million in next-gen green technologies. Additionally, it is also focusing on the green energy sector and the development of green products as well as the large-scale use of renewable energy sources to reduce the environmental degradation caused as a result of carbon emissions.

Leak Detection and Repair (LDAR) Market: Opportunities

Growing demand for innovative LDAR systems to generate new growth opportunities for the global market

A large number of government authorities are promoting the use of advanced leak detection and repair technologies, thereby generating new growth opportunities for the leak detection and repair (LDAR) market across the globe. Citing an instance, in the second half of 2020, the U.S. introduced legislation referred to as the PIPES Act that forced oil & gas pipeline operators to use advanced leak detection & repair systems to ensure pipeline security & safeguard the environment.

Leak Detection and Repair (LDAR) Market: Challenges

Unfavorable weather conditions and harsh environments can prove to be a big challenge for LDAR systems in detecting leaks

Unpredictable climatic conditions and extreme temperatures are among the major challenges that the global leak detection and repair (LDAR) industry is likely to face in the coming years as they can impact the sales of the product. Apart from this, the rise in the costs of the products has restricted its utility in the oil & gas sector, thereby impeding the growth of the industry sphere globally.

Leak Detection and Repair (LDAR) Market: Segmentation

The global leak detection and repair (LDAR) market is sectored into component, technology, product, and region.

In component terms, the global leak detection and repair market is segregated into services and equipment segments. In addition to this, the equipment segment, which garnered nearly 45% of the global market share in 2022, is projected to record the highest CAGR in the ensuing years. The growth of the segment in the ensuing years can be due to the integration of new technologies such as AI and cloud connectivity with LDAR equipment. Furthermore, the use of the component for monitoring GHG and carbon emissions will drive segmental growth.

Based on product, the global leak detection and repair industry is bifurcated into handheld gas detectors, vehicle-based detectors, UAV-based detectors, and manned aircraft detectors segments. In addition to this, the handheld gas detectors segment, which contributed remarkably towards the global industry share in 2022, is set to establish a leading position in the global industry in the years to come. The segmental expansion over the assessment timeframe can be subject to escalating product penetration in the oil & gas sector as the former offers a slew of benefits such as compactness, lightweight, portability, and rapid & reliable detection of gas leaks. Apart from this, handheld gas detectors are used for detecting leaks of gases including carbon dioxide, methanol, and ammonia gas.

Based on technology, the global leak detection and repair market is divided into laser absorption spectroscopy, volatile organic compounds (VOC) analyzer, acoustic leak detection, optical gas imaging (OGI), mobile leak monitoring, and audio-visual-olfactory inspection segments. Additionally, the volatile organic compounds (VOC) analyzer segment, which accumulated nearly 60% of the global market revenue in 2022, is expected to record the highest gains in the upcoming years. The growth of the segment in the forthcoming years can be subject to the growing need for identifying the leaks of gases such as N-pentane, propane, N-butane, and N-octane emitting volatile organic compounds.  

Leak Detection and Repair (LDAR) Market: Report Scope

Leak Detection and Repair (LDAR) Market: Regional Insights

North America is likely to establish a numero uno position in the global market over the forecast period

North America, which accounted for half of the global leak detection and repair (LDAR) market share in 2022, will be the leading region during the assessment timeline. Moreover, the growth of the regional market over the anticipated timespan can be subject to strict leak-detection laws enforced in the U.S. and the acceptance of new leak-detecting systems by various end-use firms in the region. Large-scale product penetration in the oil& gas sector in countries such as the U.S. will proliferate the regional market size.

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The Asia-Pacific leak detection and repair industry is set to register the highest CAGR in the next couple of years due to the presence of key players in the region. Apart from this, rise in the natural gas production in India and China has contributed majorly to the regional market size. Furthermore, strict laws governing VoC emissions in the emerging economies of the region to reduce environmental degradation are projected to spearhead the expansion of the industry in the Asia-Pacific zone.

Leak Detection and Repair (LDAR) Market: Competitive Space

The global leak detection and repair (LDAR) market profiles key players such as:

• Palo Alto Research Center
• Physical Sciences Inc.
• Microdrones GmbH
• Aeris Technologies Inc.
• Maxion Technologies Inc.
• AECOM
• Avitas Systems
• IBM Thomas J. Watson Research Center
• LI-COR Inc.
• Ball Aerospace & Technologies Corp.
• Rebellion Photonics
• Gas Ops Leak Detectives LLC
• (G.O.L.D. LLC)
• PrecisionHawk
• Summit Inspections Services Inc.
• Boreal Laser Inc.
• Chicago Bridge & Iron Company N.V.
• Kairos Aerospace
• Picarro Inc.
• Guideware Systems LLC
• GHD Inc.
• ENCOS Inc.
• Bridger Photonics Inc.
• ABB Ltd.
• VelocityEHS
• ERM Group Inc.
• SeekOps Inc.

The global leak detection and repair (LDAR) market is segmented as follows:

By Component

• Services
•  Equipment

By Technology

• Volatile Organic Compounds (VOC) Analyzer
•  Optical Gas Imaging (OGI)
•  Mobile Leak Monitoring
• Laser Absorption Spectroscopy
• Acoustic Leak Detection
•  Audio-Visual-Olfactory Inspection

By Product

• Handheld Gas Detectors
• Vehicle-Based Detectors
• UAV-Based Detectors
• Manned Aircraft Detectors

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa