In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
Distributed fiber optics sensors offer the monitoring of wide range of variables such as temperature, strain, acoustic perturbations, and others. The fiber optic sensor is initially designed to analyze the status and performance of optical fiber networks which are used for the transmission of voice and data signals. These sensors are generally used in the region of high voltage electricity as they are poor conductor of electricity and resistant to electromagnetic interference. Apart from this, distributed fibre optic sensors are also designed to withstand high temperature as well. Due to these unique features they can be deployed to the high electromagnetic interference zone where electronic sensors cannot operate such as jet fuel, oil and gas tank and others. Fiber optics sensors provide an extra edge over conventional electronic sensors with low cost, high band, light weight and electromagnetic interference (EMI) and radio frequency interference immunity (RFI).
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With developing new technologies in emerging economies, rapid urbanization and increasing housing and security investments, the market is estimated to project a promising CAGR of 9.2% over the period of forecast i.e. 2016-2023. In terms of revenue, North-America region dominated the distributed fiber optic sensors market followed by Asia-Pacific in the year 2015. The expansion of market in this region is attributed to the high adoption rate of fiber optic sensors in the manufacturing industry and the availability of huge reserves resulting in increased drilling activities. By end-use industry, oil and gas accounted for 30% share to the global distributed fiber optics sensor market in 2015, however increasing demand for distributed fibre optics from oil and gas industry will further expand the market growth over the forecast period i.e. 2016-2023.
Fiber optics sensors have a wide range of application in energy, defence, industries, transportation, and security systems. Oil and Gas market is fuelling the demand for distributed fiber optics sensors by opening an entire new business for fiber optics sensors market. The fiber optic sensors capability of higher tolerance for harsh conditions such as high temperature is expected to be the key factor for its wide application in the upcoming 5-6 years.
Global distributed fiber optic sensor market by product is segmented into following categories:-
Based on technology, the global distributed fiber optic sensors market is segmented into:
Due to high tolerance and resistance to electricity and temperature, fiber optic sensors have wide range of application in following end-use-industry:-
Global Distributed fiber Optic Sensor market is further classified on the basis of region as follows:
Increasing investment in the infrastructure, growth in the manufacturing industry and increasing use of fiber optic sensors in smart wells are some of the key factors driving the growth of the global distributed fiber optic sensors market.
The increase in consumption of oil and gas with declining production of conventional oil reserves have influenced vendors and governments to indulge in exploration and drilling activities, therefore, leading to greater demand for fiber optic sensors in this industry.
It has been observed that distributed fiber optics sensors are replacing the electronic sensors due to the edge of higher tolerance where an electronic sensor fails; this will further expand the market growth of distributed fiber optic sensors across the globe.
Apart from this, price instability in oil industry and strict environmental regulations are some of the factors restraining the growth of the global distributed fiber optic sensors market.