Distributed Temperature Sensing Market, by Fiber Type (Single-Mode Fiber, Multimode Fiber), Operating Principle (OTDR, OFDR), Application (Oil & Gas Production, Power Cable Monitoring, Process and Pipeline Monitoring, Fire Detection, Environmental Monitoring), Regional Analysis (North America, Europe, Asia-Pacific, LAMEA): Global Opportunity Analysis and Industry Forecast, 2020–2027

The global distributed temperature sensing market forecasts a revenue generation of $1,196.5 million by 2027, rising from $648.3 million in 2019 at a healthy growth rate of 7.8%. Asia-Pacific distributed temperature sensing market is expected to grow at a CAGR of 8.5% by registering a revenue of $290.7 million, during the forecast period. Extensively increasing industries coupled with the presence of market players and their heavy investment in innovations are anticipated to accelerate the growth of the Asia-Pacific market.

Distributed Temperature Sensing Market Analysis:

Distributed temperature sensing (DTS) is an optoelectronic technology that measures temperature over the length of the optical fiber cable at any time utilizing the fiber itself as the sensing element. The significant feature of a DTS system is that it offers a continuous (or distributed) temperature measurement along the length of the cable.

Impact Analysis of COVID-19 on the Distributed Temperature Sensing Market

The viral infection of the coronavirus disease (COVID-19) has dramatically affected a wide range of sectors such as food and beverages, retail, semiconductors, and automotive. The business and industrial processes across regions have been massively disrupted due to the outbreak of the COVID-19 pandemic. It is predicted that demand for DTS technologies will rise after the chaos of pandemic settles; this is mainly because of the product innovations during the COVID-19 pandemic period. For example, in March 2020, Sumitomo Electric Industries, Ltd., a leading manufacturer of electric wires and optical fibers, made an announcement to launch its OPTHERMO FTS3500 fiber-optic distributed temperature sensing system. FTS3500 system has a long-life and durable optical fibers along with the capability to monitor wide-range, long-distance temperature distribution. Moreover, the system is built with lightweight and narrow sensors that offer excellent workability. These continuous product developments and effective strategy implementations may provide lucrative investment opportunities for the global DTS market, throughout the pandemic timeframe.

Promising Safety & reliability of DTS systems for monitoring applications may drive the market

The growth of the global DTS market is mainly driven by its  low operational expenses. Moreover, the DTS systems are safe for use in hazardous zones such as those bearing explosive gas atmosphere and others; therefore, such sensors are ideal for use in industrial sensing applications. These factors may lead to driving the demand for DTS systems, which may eventually increase the growth of the global market during the projected period. In addition, various market players are following effective strategies such as technological development and product launch to strengthen their footprint in the global market. For example, in November 2018, ABB, a pioneering technology leader in electrification products, announced the launch of non-invasive, highly accurate temperature sensing systems. This new temperature sensor utilizes innovative technology with proven components along with having great significance in the oil & gas, food & beverage, and chemical industries. The above-stated factors may drive the growth of the global DTS market during the review period.

To know more about distributed temperature sensing market drivers, get in touch with our analysts here.

The high costs of DTS solutions are projected to obstruct the global DTS industry growth

The higher initial expenses associated with the DTS technologies are expected to decrease the growth of the global market over the projected period. In addition, complexities in fault detection and troubleshooting processes are also anticipated to decline the demand for DTS systems, which may eventually restrain the global market growth during the analysis timeframe.

The key role of DTS systems in hydrogeological research to generate vast opportunities in the Global DTS in the global marketplace

DTS technologies play a key role in the monitoring of downhole temperature to hydrogeological study at unprecedentedly high frequency. The DTS has been majorly applied in the subsurface thermal property estimation, site investigations of groundwater flow, and in the well flow. In addition, DTS systems are significantly used to perform heat pulse tests, thermal advection tests, and hybrid cable flow logging. The application of DTS has huge importance over discrete point temperature measurements, mainly in deep wells, along with the potential for method developments in conjunction with other hydrogeophysical investigations. These factors may lead to generate huge investment opportunities in the global market, in the future years.

To know more about distributed temperature sensing Market Opportunities, get in touch with our analysts here.

Distributed Temperature Sensing Market, by Fiber Type:

The single-mode fiber type shall have significant market growth and it shall register a revenue of $855.9 million by 2027, increasing at a CAGR of 8.3%.

Source: Research Dive Analysis

The single-mode fiber type for a global distributed temperature sensing market shall have an exponential growth in the global market and it is expected to surpass $855.9 million by 2027, rising from $447.6 million in 2019. The single-mode fiber temperature sensing systems are highly significant over conventional sensors due to their ability to monitor temperature across large surfaces, like a submarine or underground areas. In addition, this advanced sensing system allows measurements at high temperatures coupled and can withstand in hydrogen-based darkening effects. The multi-mode fiber type for the global market is estimated to generate a revenue of $340.6 million, throughout the forecast period. The multi-mode fiber temperature sensing system is recognized as an ideal solution because this system is highly preferable for medium to long-range (5-30 km) industrial monitoring applications. Also, these sensing systems are highly reliable, safe, and user friendly.

Distributed Temperature Sensing Market, by Operating Principle:

The OTDR based system shall have rapid growth in the global market; this is mainly because these systems are cost-effective and easy-to-use.

Source: Research Dive Analysis

The OTDR sub-segment for the global market will have a substantial growth and it is expected to surpass $851.2 million during the analysis period. In the OTDR (Optical Time Domain Reflectometry) principle, a laser pulse is generated from semiconductor lasers and sent into the fiber. The backscattering of light is primarily analyzed for monitoring of temperature. Therefore, the OTDR principle is significantly utilized for measuring the losses in the telecom sector. This factor may further drive the growth of this sub-segment over the forecast period. Contrary to this, the OFDR sub-segment for the global distributed temperature sensing market is anticipated to generate a revenue of $345.3 million, during the forecast period due to its high refresh rate along with significant spatial resolution.

Distributed Temperature Sensing Market, by Application:

The oil & gas production industries for the distributed temperature sensing shall have rapid growth in the global market.

Source: Research Dive Analysis

The oil and gas production sub-segment will have a significant market share and is expected to reach upto $325.4 million during the forecast period. Distributed optic sensing technologies play a crucial role in providing important information at all points with the wellbore to enhance the efficiency and integrity of wells. DTS systems provide a complete temperature profile to understand the integrity of casing, tubing, and completion components. These factors are expected to increase the demand for temperature sensing systems, which may further be predicted to fuel the market growth over the projected period. On the other hand, the power cable monitoring application will be a rapidly growing sub-segment during the projected period and is estimated to register a revenue of $301.0 million by 2027. DTS technologies are mainly used for the improvement of the intelligent cable monitoring system for underground electricity distribution systems. Moreover, the rising use of smart grids along with real-time innnovations for underground distribution power cables are also projected to provide growth opportunities for the global distributed temperatue sensing market in the projected timeframe.

Regional Insights:

The Asia-Pacific market has witnessed substantial growth in the global market, and it will reach up to $290.7 million by the end of 2027, increasing at a growth rate of 8.5%.

Source: Research Dive Analysis

Asia-Pacific distributed temperature sensing market has a rapid growth in the market. It has registered a revenue of $150.0 million in 2019 and it is expected to grow at a healthy CAGR of 8.5%, generating a revenue of $290.7 million during the forecast period. An increasing need for industrial safety measures coupled with a massive expansion of the Asian industrial sector is estimated to bolster the distributed temperature sensing market growth, in the coming years. Moreover, the massive expansion of a network of power transmission cables in Asian economies is anticipated to fuel the demand for distributed temperature sensing in APAC over the forecast period. For instance, according to the global transmission report, the energy demand in Asia is projected to rise by 2.4% annually over the next 20 years, particularly in East Asia and South Asia region. Such factors are anticipated to increase the adoption of DTS systems in the Asian market during the analysis period. However, North America distributed temperature sensing market had a dominating share in the global market. It generated a revenue of $206.2 million in 2019 and it is expected to generate a revenue of $361.3 million during the forecast period. The presence of leading manufacturers such as Halliburton and Honeywell has made this region a considerable market for distributed temperature sensing.

Competitive Scenario in the Global Distributed Temperature Sensing Market:

Advanced product development coupled with mergers & acquisitions are the frequent strategies followed by significant market players

Source: Research Dive Analysis

Leading distributed temperature sensing market players are NXP Semiconductors., Stmicroelectronics n.v., Qualcomm Technologies, Inc., Infineon Technologies AG, Texas Instruments Incorporated., Sony Corporation, Atmel Corporation (Microchip Technology Inc.), Johnson Controls., Robert Bosch GmbH, and Honeywell International Inc.

Distributed temperature sensing global leaders are concentrating highly on strategic tie-ups, advanced product developments, and other effective strategies.

Porter’s Five Forces Analysis for Distributed Temperature Sensing Market:

• Bargaining Power of Suppliers: The bargaining power of the suppliers is less owing to the cut-throat competition. Furthermore, the concentration of suppliers is high as compared to companies operating in the DTS technologies. Therefore, suppliers will have LOW bargaining power.
• Bargaining Power of Buyers: The companies operating in the global distributed temperature sensing market is low. Thus, the negotiation power of buyers ultimately falls. Therefore, the bargaining power of buyers is LOW
• Threat of New Entrants: Emerging companies operating in the market are following various strategies such as technological advancements, product development, and strategic tie-ups. In addition to this, supportive policies of governmental bodies for DTS technologies are also offering support to the startups. Therefore, the threat of new entrants is HIGH
• Threat of Substitutes: There is no alternative for this market so far. Thus, the threat from substitutes of the distributed temperature sensing system is LOW.  
• Competitive Rivalry in the Market: Industry players of the market are implementing the different strategies to gain a prominent position in the global market. These companies are focusing significantly on the capacity of expansion, product promotion, and many others. Furthermore, the presence of top distributed temperature sensing solution providers such as Honeywell, NXP Semiconductors, and Infineon Technologies AG is also influencing the global market. Therefore, the competitive rivalry among the competitors is HIGH.