The global leak testing market was valued at approximately USD 7.8 billion in 2021. Forecasts suggest that sales will experience a steady growth trajectory, expanding at a compound annual growth rate (CAGR) of 4.8%, with the market projected to reach USD 13 billion by 2032. Within the hardware category, the detectors segment is anticipated to represent over 30.3% of the overall market by the conclusion of this period.
The increasing demand for oil and gas plays a significant role in driving the growth of the leak testing industry. As key industries such as oil & gas, water treatment, and power generation evolve, new projects require sophisticated leak testing solutions to ensure operational integrity and reduce risk. These advanced methods not only minimize the frequency of accidents and other operational disruptions but also help mitigate their adverse effects on safety, environmental impact, and profitability.
Europe is expected to lead the global leak testing market in revenue during 2022, with the trend likely to continue throughout the forecast period. Germany, in particular, is predicted to secure a 21.4% share of the European market. Several factors such as the rising demand for clean water for both municipal and industrial applications, stringent regulations governing wastewater management, and accelerated investments in the industrial sector are key drivers of market expansion. Additionally, the increased use of water in industries like oil & gas, pharmaceuticals, and chemicals is poised to further drive demand for leak testing technologies.
As of 2021, the leak testing sector comprised 43.6% of the overall non-destructive testing (NDT) market globally. Between 2017 and 2021, the market experienced steady growth, and looking forward to 2022-2032, demand is projected to grow at a 4.3% CAGR by volume, according to FMI analysis.
The leak detection segment within oil & gas continues to advance, with a growing number of organizations viewing leak testing systems as crucial investments in safety. Regulatory frameworks mandating leak detection have further cemented the importance of these systems.
Pipeline operators and other stakeholders are increasingly recognizing the value of investing in leak testing and detection technologies—not only as a means to mitigate risks associated with leaks but also to prevent financial losses, operational downtime, regulatory penalties, and reputational harm.
Regional Insights:
U.S. Market Outlook:
“U.S. Manufacturers Favor Gas Leak Detection Solutions” In 2021, the U.S. accounted for around 77.3% of North America’s leak testing market. By the end of the forecast period, the market is expected to generate an absolute dollar opportunity worth USD 642.9 million. The rising demand for oil and gas is driving the expansion of the U.S. energy infrastructure, solidifying the nation’s position in the global energy market. Increased disposable income and heightened awareness around leak testing—especially in the oil & gas, power plant, and chemical sectors—are expected to boost demand for leak testing equipment and services across the country.
China Market Outlook:
“China’s Growing Demand for Coolant Leak Detection Solutions to Propel Market Growth” In China, sales are expected to grow at a CAGR of 5.5%, with the nation projected to account for over 40.5% of East Asia’s leak testing market in 2022. China’s energy market is dominated by state-owned oil and gas enterprises. As the second-largest consumer of oil and gas worldwide, China faces increasing demand for these resources each year, despite fluctuating consumption growth rates.
As China’s consumption of oil and natural gas continues to surge, domestic companies are under pressure to boost output and reduce reliance on imports. Given the country’s declining oil reserves, the push to enhance productivity and efficiency is growing. Consequently, demand for leak testing equipment and services is expected to accelerate within the Chinese market.
Competitive Landscape:
The global leak testing market is becoming increasingly competitive, with a wide array of players ranging from large multinational corporations to medium and smaller-scale manufacturers and service providers. Leading manufacturers are forming strategic partnerships and collaborations with service providers to strengthen their market presence across different regions.
Key Segments Covered in Leak Testing Industry Analysis:
By Type:
- Hardware
- Software
- Services
By Hardware Type:
- Detectors
- Sensors
- Accessories
- Others
By Methodology:
- Hydrostatic
- Air Pressure
- Gas Based
- Others
By End-Use:
- Oil & Gas refineries
- Automation
- HVAC/ Refrigeration
- Water Treatment
- Power plants
- Chemical plants
- Thermal plants
- Others
By Region:
- North America
- Latin America
- Europe
- East Asia
- South Asia Pacific
- Middle East & Africa
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Author:
Nikhil Kaitwade (Associate Vice President at Future Market Insights, Inc.) has over a decade of experience in market research and business consulting. He has successfully delivered 1500+ client assignments, predominantly in Automotive, Chemicals, Industrial Equipment, Oil & Gas, and Service industries.
His core competency circles around developing research methodology, creating a unique analysis framework, statistical data models for pricing analysis, competition mapping, and market feasibility analysis. His expertise also extends wide and beyond analysis, advising clients on identifying growth potential in established and niche market segments, investment/divestment decisions, and market entry decision-making.
Nikhil holds an MBA degree in Marketing and IT and a Graduate in Mechanical Engineering. Nikhil has authored several publications and quoted in journals like EMS Now, EPR Magazine, and EE Times.
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