Leak Testing Market

Leak Testing Market Outlook (2022 to 2032)

[370 Pages Report] The global leak testing market was valued at USD 7.8 Billion in 2021. Sales are estimated the to grow at a CAGR of 4.8%, reaching a valuation of USD 13.0 Billion by 2032. Detectors by hardware type segment are expected to account for more than 30.3% of the total leak testing market by the end of the forecast period.

Growing demand for oil and gas is a key factor anticipated to boost the growth in the leak testing market. As industries such as oil and gas, water treatment, power plant, etc are evolving, many upcoming projects require advanced leak testing to reduce risk by maintaining operational integrity. This helps to reduce the frequency of accidents and other abnormal events and help mitigate their negative impact on safety, environment, and profitability of the pipeline.

The Europe market is expected to dominate the global leak testing market in terms of revenue in 2022 and the trend is anticipated to continue over the assessment period. Germany is projected to hold a 21.4% share of the Europe market.

Attributes	Details
Global Leak Testing Market Base Year Value (2021A)	USD 7.8 Billion
Estimated Market Size (2022E)	USD 8.1 Billion
Projected Market Valuation (2032F)	USD 13.0 Billion
Value-based CAGR (2022 to 2032)	4.8%
Collective Value Share: Top 5 Countries (2022)	33.4%

Increasing demand for clean water for municipal and industrial purposes, stringent regulations associated with the wastewater discharge, and rapid growth and investment in the industrial sector are key factors expected to propel the growth in the leak testing market. Also, the substantial growth in the usage of water in industrial sectors such as oil & gas, pharmaceuticals, and chemicals is estimated to drive sales.  

The leak testing market represents 43.6% of the global non-destructive testing market.

2017 to 2021 Leak Testing Market Historic Outlook Vs 2022 to 2032 Forecast

Demand in the global leak testing market totaled USD 7.8 Bn in 2021. As per FMI analysis, sales in the leak testing market are anticipated to grow at a4.3% CAGR by volume between 2022 and 2032.

Leak detection for oil & gas continues to evolve, with an increasing number of organizations perceiving leak testing systems as a positive investment in safety. Many countries have also developed regulatory requirements for leak detection, marking it vital.

An increasing number of pipeline operating companies and related stakeholders are beginning to realize that investments in leak testing and detection solutions not only will mitigate risk by helping in preventing catastrophic leaks and the associated financial and operational implications, but also will help reduce fines, regulatory oversight, and damage to a company’s reputation.

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Which are the Key Opportunities for Leak Testing Manufacturers?

At present, rapid development of the petroleum industry is increasing the demand for petroleum pipes. Consequently, pipeline leakages caused by manmade errors or natural events have become a challenge for the oil and gas industry. Detecting leaks early avoid larger, more damaging spills, and helps reduce operational costs. Manufacturers are using ultrasound leak detection technology due to its efficiency and accuracy in the non-destructive testing of pipelines to meet these challenges.

They are also providing high-speed DAQ products that collect enormous amounts of data needed for real-time ultrasound pipeline monitoring.

Companies are looking to develop leak detectors for multiple gases (up to 10-15 gases) and have capabilities to work in harsh temperatures, can erase erroneous false alarms, and give proper and reliable readings within cycle time. Also, ergonomics for leak detectors are taken into consideration, which is compelling manufacturers to launch hand-held devices.

Which Trends are Infleuncing Sales of Leak Testing Equipment?

Leak detectors with various other in-built functions such as multiple alarms, tightness tests, load tests, serviceability tests are available in the market. Multi-performing leak detectors combine high performance and easy operation with reliability. Easy operation, ultra-fast response time, and short recovery time are among the outstanding features of these compact multi-performing units.

Besdies this, direct detection technologies are gainin tracion among end users. These are fixed or portable monitors which are installed on-site, close to machines/anticipated leak airstream, to detect the concentration of refrigerants in the air. Leak detectors with the longest sensor life up to 10 years, bar graph LED displays, and leak detection up to 2 oz./year are being developed to cater to the demand from the end-users.

Further, the development of ultrasound detectors will augment the growth in the market.  These detectors sense the ultrasound emitted by leaked gas at high pressure. Compressed air production is an expensive process due to the low level of efficiency, and compressed air losses as a result of leaks provide a lot of potential for increasing energy efficiency.

State-of-the-art broadband ultrasound testing technology is an important tool that helps to detect leaks. Ultrasound testing techniques are used for simple and fast leak detection on compressed air, inert gas, and vacuum systems.

Digital  ultrasound testing device combine innovative sensors and software for preventive maintenance that can be operated intuitively and paves the way for new processes for new applications.

What are the Challenges in the Global Leak Testing Market?

The availability of low-cost and low-quality substitute products for leak detectors is common across many regions. Since these products are easily available at low costs, end-users don’t think twice about buying them for temporary use. Many local manufacturers develop similar products but do not meet the standard regulatory norms and guidelines for leak testing.

Using low-quality testing equipment or maintenance-free detectors can result in false predictions, both positive and negative. These products don’t provide accurate data and stop performing after a certain period of time. These factors lead to various unforeseen conditions in small industrial premises. An upsurge in low-value leak testing equipment is restraining the market growth.

Country-wise Insights

What is Driving the USA Leak Testing Market?

Manufacturers in the USA are Preferring Gas Leak Tester

The USA accounted for around 77.3% of the North America leak testing market in 2021. The market is estimated to create an absolute dollar opportunity worth USD 642.9 Million by the end of the forecast period.

Increasing consumption of oil & gas necessitates the expansion of the energy infrastructure and a re-evaluation of the USA in the global energy market.  Significant disposable income and increasing awareness regarding leak testing, particularly in the oil and gas, power plant, and chemical sectors, among engineers will boost sales of leak testing equipment and services in the country.

What is the China Leak Testing Market Outlook?

Increasing Adoption of Coolant Leak Testers in China Will Augment Growth

Sales in China are expected to grow at a CAGR of 5.5% and are forecast to account for more than 40.5% of the East Aisa leak testing market in 2022.

The China energy market is dominated by state-owned oil and gas companies. China is the world’s second-largest consumer of oil and gas, but only the sixth largest producer of the same. As a big oil consumer, China's oil consumption is increasing year by year with fluctuating growth rates.

With the rapid growth of China’s oil and natural gas consumption, oil and gas companies will need to boost their output to meet energy needs and reduce the reliance on oil imports. Faced with declining domestic oil reserves, the need to improve efficiency and productivity is gaining traction. This is expected to fuel sales of leak testing equipment and services in China.

Category-wise Insights

Which Methodology has the Most Potential in the Leak Testing Market?

Demand for Hydrostatic Leak Testing Equipment to Bolster

By methodology, the hydrostatic will dominate the market through the forecast period, holding 29.7% of the total market share by 2032.

Hydrostatic (hydro) testing is a process where components such as piping systems, gas cylinders, boilers, and pressure vessels are tested for strength and leaks. Hydro tests are often required after shutdowns and repairs in order to validate, so that equipment will operate under desired conditions once returned to service.

The need for hydrostatic testing equipment has increased in different industries such as power plant, chemical and oil and gas industries. Manufacturers of hydrostatic testing equipment and service providers are focusing on research and development activities as well as acquisition activities to expand their market presence globally and effectively mitigate challenges.

Which is the Most Used Hardware in the Global Leak Testing Market?

Adoption of Leak Detectors to Remain High

In terms fo hardware, demand in the detectors segment is set to grow at a 4.8% CAGR by value and is estimated to create an absolute dollar opportunity worth USD 3316.3 Million.

Manufacturers are launching leak detectors that are suitable for every sector such as chemical, automation, oil, and gas, etc. With the development of new generation leak detectors, companies are integrating leak detectors with cloud computing.

Competitive Landscape

The global leak testing market is gaining momentum with the presence of several large, medium, and small-scale system developers, manufacturers, and service providers. Prominent leak testing manufacturers are collaborating and partnering with other service providers to expand their regional presence.  

Leak Testing Market Report Scope

Attributes	Details
Estimated Market Size (2022)	USD 8.1 Billion
Projected Market Valuation (2032)	USD 13 Billion
Value-based CAGR (2022 to 2032)	4.8%
Forecast Period	2022 to 2032
Historical Data Available for	2017 to 2021
Market Analysis	USD Billion for Value
Key Regions Covered	North America, Latin America, Europe, East Asia, South Asia Pacific, and Middle East & Africa
Key Countries Covered	The USA, Canada, Mexico, Brazil, Germany, France, Italy, Spain, The UK, Russia, China, Japan, South Korea, India, ASEAN, Oceania, GCC, Turkey, South Africa, and Northern Africa.
Key Market Segments Covered	Hardware Type, Methodology, End Use, and Region
Key Companies Profiled	Drägerwerk AG & Co. KGaA; Honeywell International Inc; Emerson Electric Co; MSA Safety Inc; INFICON; SGS SA; Uson, L.P; Testo SE & Co KGaA; Vacuum Instrument Corporation; CETA TESTSYSTEME GmbH; ATEQ Corporation; Pfeiffer Vacuum GmbH; LACO Technologies Inc; TCR Advanced Engineering Private; Applied Technical Services LLC; Helium Leak Testing, Inc; APT Angewandte Prozessortechnik GmbH; TASI Group
Report Coverage	Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives

Key Segments Covered in Leak Testing Industry Analysis

By Type:

• Hardware
• Software
• Services

By Hardware Type:

• Detectors
  • Pressure Decay Leak Testing System
  • Tracer Gas Leak Testing System
  • Mass Flow Leak Test System
  • Vacuum Decay Leak Testing System
• Sensors
  • Pressure Sensor
  • Liquid Leak Sensor
  • Micro-Flow Sensor
• Accessories
  • Digital Vacuum Gauge
  • Portable Leak Finder
• Others

By Methodology:

• Hydrostatic
• Air Pressure
• Gas Based
  • Hydrogen
  • Halogen
  • Helium
  • Radioactive
• 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

Frequently Asked Questions

How much is the global market for leak testing currently worth?

The global leak testing market is currently valued at US$ 8.1 Bn.

What is the predicted growth rate for the leak testing market from 2022 to 2032?

Sales of leak testing equipment are slated to surge at a CAGR of around 4.8% from 2022 to 2032.

Which are the most lucrative leak testing markets?

The U.S., China, Germany and India are expected to drive the leak testing market.

Who are the top 5 leak testing market players?

Tier-1 firms such MSA Safety Inc., Honeywell International Inc., Emerson Electric Co, Drägerwerk AG & Co. KGaA, Pfeiffer Vacuum GmbH are the top 5 manufacturers of leak testing.

How is the China leak testing market faring?

Demand for leak testing by volume in China is expected to surge at 5.5% CAGR through 2032.