Hydrostatic Testing Market

Hydrostatic Testing Market Snapshot

[277 Pages] The hydrostatic testing market is to grow with a year-on-year growth of 4.7% in 2022 reaching a value of about US$ 582.2 Mn by 2022 end.

The global business is anticipated to witness a considerable value CAGR of 4.8% during the period 2022 and 2028. Hydrostatic testing is the most common method for inspecting meter skids, compressed gas cylinders, pressure relief valves, boilers, tubing, pipelines, and other pressurized containers for leaks and structural integrity. It's typically used to test low-pressure stainless steel canisters as well as determine whether or not the equipment has any leaks at the time of the test and whether or not it's safe to return to operation.

FMI has identified North America to remain a key market for hydrostatic testing over the forecast period owing to increasing demand from end-use applications. The region is estimated to witness a value of CAGR of 5.9% in the industry of hydrostatic testing.

How The Market Progressed Till June 2022?

Future Market Insights presents a half-yearly comparison and insightful analysis of the hydrostatic testing market growth rate. The market has been primarily influenced by certain industrial factors including increased oil and gas exploration operations, pipeline safety, downstream operations, and urbanization, all are expected to enhance demand for pressure testing equipment and services in oil and gas facilities.

Over the last several years, the number of acquisitions and expansion activities are also enhancing the supply of hydrostatic testing.

According to FMI analysis, global hydrostatic testing is expected to grow with a magnitude of 4.5% during the first half of 2021, which is expected to witness an increment of 27 bps points in the growth over the first half of 2022. Recent years have seen an increase in environmental and safety issues.

As a result, several end-users are taking steps to maintain a safe working environment and to set up a system that allows them to reduce harm by implementing various preventative measures. These are the key factors that have contributed to the growth of hydrostatic testing services.

Along with positive prospects of the market, some likely challenges are lying ahead of the market including the production of high-quality hydrostatic testing equipment such as test pumps, pressure gauges, and relief valves at lower prices than those made by established brands.

Furthermore, rising Mexican oil and gas exploration and drilling operations will raise competition with foreign investors, as well as demand for hydrostatic testing services across a variety of end-use sectors.

2013-2021 Hydrostatic Testing Market Outlook Compared to 2022-2028 Forecast

Increased oil and gas exploration activities and pipeline safety in the U.S. and the Middle East and Africa are expected to increase demand for pressure testing equipment and services in oil and gas facilities.

Furthermore, the safe operation of gas and petroleum pipelines necessitates meticulous construction, design and verification of structural integrity. Pipeline failure results in financial losses as well as environmental damage and in severe cases, death.

As a result, the need for hydrostatic testing equipment has increased in this industry. Manufacturers of hydrostatic testing equipment and service providers are always focused on research and development as well as acquisition activities to expand their market presence globally and effectively mitigate challenges.

The demand outlook for hydrostatic testing between 2013 and 2021 remains at 3.9% as the pandemic crisis has impacted the market. The development of high-quality hydrostatic testing equipment such as test pumps, pressure gauges and relief valves at lower prices as compared to those manufactured by established brands, is identified to be one of the key challenges in the hydrostatic testing equipment market.

The growth of hydrostatic testing market is likely to grow at a growth rate of 4.5% by Volume over the assessment period of 2022-2028.

Which key factors drive the usage of hydrostatic testing in various end-use industries?

Growing investments across the oil and gas industry's value chain are one of the key factors anticipated to support demand for pipeline pressure testing equipment and services around the world.

Furthermore, increased Mexican oil and gas exploration and drilling activities will create significant competition with foreign investors as well as increase demand for hydrostatic testing services across the various end-use industries.

Environmental and safety concerns are becoming more prevalent in recent times. As a result, several end-users are taking steps to ensure a safe working environment and establish a system in which they can minimise damage by adopting preventative measures. These are the major attributes behind the rise of hydrostatic testing services in recent times.

How higher pricing will impact the market growth of hydrostatic testing?

One of the significant challenges in the worldwide hydrostatic testing equipment market is the production of high-quality hydrostatic testing equipment such as test pumps, pressure gauges, and relief valves at cheaper prices than those manufactured by other manufacturers.

One of the key hurdles for small and medium players is the greater initial cost of testing. Besides, the most important piece of equipment in the oil and gas industry is hydrostatic testing equipment. Hydrostatic pressure testing equipment manufactured at competitive pricing is a big challenge for players all over the world.

Nikhil Kaitwade

Principal Consultant

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What was the Impact of the COVID-19 Crisis on the Hydrostatic Testing Market?

SARS-introduction COV-2 in 2020 has had a massive impact on the global economy. Due to the oil price war, the worldwide market has been impacted by an unprecedented decline in demand and supply in the oil and gas business and the influence of Covid-19 has resulted in supply chain disruptions.

Furthermore, due to extensive lockdowns and movement restrictions, economic activity had come to a halt. The closure of end-use industries has an impact on hydrostatic testing's global growth rate in 2020 but subsequently, the demand will flourish with the rise of testing services in near future.

Hydrostatic Testing Market Country-wise Insights

Which is the most prominent market for Hydrostatic testing?

In 2022, U.S. Hydrostatic Testing Market is expected to register 4.7% year-on-year growth by volume, in North America, owing to the rising demand from upstream and downstream oil & gas production facilities. Furthermore, regulatory backgrounds in the U.S. such as the U.S. Department of Transportation and the PHMSA (Pipeline and Hazardous Materials Safety Administration) are supporting the demand for hydrostatic testing services. The industries in the country of the U.S. are expanding due to rising investments and the importance of safety concerns. As a result, the country of U.S. is a significant contributor to the expansion of the North America Hydrostatic Testing Market

What is the potential in Germany for hydrostatic testing?

Germany is playing a significant role in the growth of the Western Europe Hydrostatic Testing Market as the country is the prominent provider of testing services. It is expected to remain one of Europe's leading markets in terms of both growth and hydrostatic testing production. Increased oil and gas production in Germany as well as a rising GDP rate are predicted to boost demand for hydrostatic testing services and equipment in Germany. The market in Germany is estimated to dominate the Western Europe Hydrostatic Testing Market throughout the forecast period (2028) with a 3.3% CAGR on a value basis.

What is the scenario of Hydrostatic testing in China?

China's infrastructure development has fuelled demand for building materials and services. The rapid population increase and the resulting expansion of the residential sector necessitate a constant supply of water, which is fuelling the growth of the hydrostatic testing market in China. In addition to the government's increased interest in water management projects, the private sector is becoming more conscious of water management, which is boosting the country's market growth. Throughout the projected period, China is expected to hold a considerable market share in the worldwide hydrostatic testing market. China’s Hydrostatic Testing Market is expected to grow at a CAGR of 3.0% throughout the forecast period.

Hydrostatic Testing Market Category-wise Insights

Which Product Type is most preferred in the Hydrostatic Testing Market?

The pumps segment is projected to create an absolute dollar opportunity of more than US$ 180.2 Mn from 2022 to 2028. Pumps are expected to be the most popular product among market participants, because of their growing use in hydrostatic testing in the oil and gas industry. It is used to ensure that water systems such as industrial pumps, water meters, plumbing lines, pressure vessels, solar systems, sprinkler systems, as well as pipe networks, do not leak during normal operation in residential and commercial buildings.

Which end-use type makes the most value from Hydrostatic Testing Market?

The oil & gas industry is projected to create an absolute dollar opportunity of more than US$ 108.5 Mn from 2022 to 2028. Oil and gas enterprises are expected to dominate the global market over the projection period in terms of end-use categories. Because the oil and gas industry necessitates a huge pipeline network, the government also promotes hydrostatic testing services to maintain worker safety and reduce financial losses due to oil and gas pipeline leaks. Rising investments in both upstream and downstream oil and gas projects are projected to drive demand for pipeline pressure testing equipment and services. Increased demand from upstream and downstream oil and gas production facilities has assisted the market's expansion.

Hydrostatic Testing Market Competitive Landscape

There has been an increase in the number of acquisitions and growth operations to strengthen the supply of hydrostatic testing over the last few years. Several major firms are also working to improve the efficiency of hydrostatic testing for diverse purposes. Various manufacturers have emerged in worldwide businesses, particularly in the U.S., China, and Germany. Companies are concentrating on broadening their products into a variety of end-use applications and expanding their global footprint. It will assist them in increasing income and establishing a strong brand presence.

For Instance,

• In February 2020, the Exhibition in Tokyo discussed various technologies, components, materials and devices for hydrogen and fuel cells are presented. Additionally, the latest trends and applications in the hydrogen market will be discussed.
• In 2020, Curtiss-Wright Corporation has agreed to acquire the stock of Dyna-Flo Control Valve Services Ltd. (Dyna-Flo) for CAD$81 million (US$62 million) in cash. Dyna-Flo is a leading designer and manufacturer of linear and rotary control valves, isolation valves, actuators, and level and pressure control systems for the chemical, petrochemical, and oil and gas markets.
• In 2019, Pumps Australia has recently developed and manufactured a new range of Rotary Cleaning products, not purely limited to floor cleaners.
• In August 2016, Curtiss-Wright Corporation introduced New Grip Tight Elbow Plug for testing pipelines, pipe spools, and piping systems terminating in long radium elbows. The utilization of these plugs eliminates the need to weld on pumps, resulting in significant time/cost savings

The latest study conducted by Future Market Insights covers all the strategies and success factors of key manufacturers of the market.

*The list is not exhaustive, and is only for representational purposes. Full competitive intelligence with SWOT analysis is available in the report.

Scope of Report

Hydrostatic Testing Market by Category

By Product Type:

• Pumps
• Pressure Gauges
• Master Gauges
• Backup Gauges
• Relief Valves
• Others

By Design:

• Manual
• Powered
• Gas
• Electric
• Diesel
• Pneumatic

By Output Pressure:

• Below 35 Bar
• 35-200 Bar
• 200-400 Bar
• Above 400 Bar

By End Use:

• Oil & Gas
• Plant Processing
• Water
• Aircraft
• Construction
• Fire & Safety
• Others

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• China
• India
• Japan
• SEA & Pacific
• MEA