The industry will benefit from new regulations regarding emissions from oil and natural gas wells.
New York, NY (PRWEB) April 23, 2015
Revenue for the Gas Detection Device Manufacturing industry has grown substantially during the past five years, although a recent downturn in energy prices has dampened the industry's fortunes. Demand for industry products is largely determined by the health of downstream markets, including the oil and gas, mining and manufacturing sectors. Operators in these markets use gas detection devices to monitor and prevent gas leaks. While demand from manufacturing has increased in line with the economic recovery, demand from the oil, gas and mining sectors has been quite volatile. As world oil and commodity prices rose during the first half of the five years to 2015, demand from downstream industries also grew substantially. More recently, however, declining commodity prices have limited new resource exploration and extraction, constraining demand for new gas detection devices. While industry revenue is projected to increase at an average annual rate of 7.4% over the past five years, it is expected to decline for a second consecutive year in 2015, falling by 1.7% to $379.7 million.
Because of the industry's highly globalized nature, international trade is crucial to the success of domestic manufacturers. According to IBISWorld Industry Analyst Dmitry Diment, “During the past five years, imports have posed a substantial threat because certain instruments can be made in countries with lower labor and production costs. Meanwhile, exports have declined as a share of industry revenue as the recent appreciation of the dollar, coupled with the decline in world energy prices, has limited international demand.”
The next five years are expected to be largely positive for industry manufacturers. Downstream demand from oil, gas and mining companies will grow as energy and commodity prices rise. “The industry will benefit from new regulations regarding emissions from oil and natural gas wells,” says Diment. “More stringent regulations will ultimately result in new and improved products from gas detection manufacturers to help downstream clients meet rising regulatory requirements.”
For more information, visit IBISWorld’s Gas Detection Device Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures gas detectors, which are used to detect the presence of gas within a particular area. These detectors are often used as a part of a broader safety system.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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