Global Distributed Fiber Optic Sensing (DFOS) Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Distributed Fiber Optic Sensing (DFOS) Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Distributed sensing is a technology that enables continuous, real-time measurements along the entire length of a fiber optic cable. Unlike traditional sensors that rely on discrete sensors measuring at pre-determined points, distributed sensing does not rely upon manufactured sensors but utilizes the optical fiber. The optical fiber is the sensing element without any additional transducers in the optical path.

The interrogator operates according to a radar-style process: it sends a series of pulses into the fiber and records the return of the naturally occurring scattered signal against time. In doing this, the distributed sensor measures at all points along the fiber.

As the fiber is the sensor, it is also a cost-effective method that can be easily deployed even in the harshest and most unusual environments.
Distributed sensing is usually used for acquiring temperature, strain and acoustic data.

Market Overview:

The latest research study on the global Distributed Fiber Optic Sensing (DFOS) market finds that the global Distributed Fiber Optic Sensing (DFOS) market reached a value of USD 1088.77 million in 2022. It’s expected that the market will achieve USD 1623.92 million by 2028, exhibiting a CAGR of 6.89% during the forecast period.

Negative impact of Covid-19 on supply chain as well as market demand

The COVID-19 pandemic has created a number of challenges for distributed fiber optic sensing manufacturers, especially those that depend on workers whose jobs cannot be carried out remotely. Amid plummeting oil prices and demand, supply chain bottlenecks, slowing spending and volatile credit markets, some companies have closed facilities and are considering the extent of layoffs to help contain the spread of the virus, as well as for economic reasons. Clearly, the manufacturing sector has been hard hit by the outbreak for two main reasons. First, many manufacturing jobs are performed on site and cannot be performed remotely. Second, the slowdown in economic activity has reduced the demand for industrial products in North America and globally. For distributed fiber optic sensing companies, the suspension or slowdown of production activity in downstream companies will reduce the demand for distributed fiber optic sensing products. At the same time, for companies that adopt a global supply chain strategy, the outbreak of COVID-19 has hampered the supply of raw materials for equipment. But at the same time, the current complex macro environment is accelerating the energy transition, and data-driven solutions are critical for downstream industries. Customers, including the petrochemical industry, need to be able to demonstrate safe, compliant operations and minimize operational costs. This creates growth opportunities for DFOS.

Wide range of applications

Key applications of distributed fiber optic sensing include: power cable monitoring, fire/heat detection, pipeline and LNG monitoring, well and reservoir monitoring, rail monitoring, perimeter monitoring, and Geo- and hydrological applications. Distributed fiber optic sensing has been gaining significant momentum in pipeline industry adoption. The primary application of this technology has been in preventative leak detection, but intelligent new applications such as pipeline flow rate monitoring are now emerging and promise to deliver extra value to the pipeline operators. Relying on optical sensing technology in a challenging environment, increasing applications in the vertical field of oil and gas, and growing demand in the vertical field of civil engineering and transportation infrastructure.

Lack of awareness and technical difficulties

Lack of awareness about distributed fiber optic sensors and technical difficulties faced during the installation and working of distributed fiber optic sensors is another factor that is holding back the growth of this market. End-user acceptance and awareness of their value-added potential are probably the biggest challenges facing fiber optic sensors in this segment. On the other hand, the rapid adoption of DFOS has encouraged manufacturers and suppliers to invest in R&D activities to launch new products. They are also working to optimize production processes and conditioning efficiencies to curb all other alternatives to fiber optic technology. Due to the high price of the production and installation process of DFOS products, manufacturers are developing competitively priced and more reliable optical inspection products. However, factors such as the technical complexity of the optical inspection process and other challenges are hindering market growth. These sensors are robust, resistant to electromagnetic interference, highly sensitive and lightweight, and are therefore widely used. Depending on their mode of operation, these sensors can be further bifurcated and, at the same time, further increase in complexity.

Region Overview:

In 2021, the share of the Distributed Fiber Optic Sensing (DFOS) market in North America stood at 35.32%.

Company Overview:

Schlumberger is one of the major players operating in the Distributed Fiber Optic Sensing (DFOS) market, holding a share of 8.38% in 2022.

Schlumberger

Schlumberger provides technology for reservoir characterization, drilling, production and processing to the oil and gas industry. The Company's segments include Reservoir Characterization Group, Drilling Group, Production Group and Cameron Group. The Reservoir Characterization Group consists of the principal technologies involved in finding and defining hydrocarbon resources. The Drilling Group consists of the principal technologies involved in the drilling and positioning of oil and gas wells. The Production Group consists of the principal technologies involved in the lifetime production of oil and gas reservoirs and includes Well Services, Completions, Artificial Lift, Integrated Production Services (IPS) and Schlumberger Production Management (SPM). The Cameron Group consists of the principal technologies involved in pressure and flow control for drilling and intervention rigs, oil and gas wells and production facilities.

Halliburton

Halliburton Company provides services and products to the upstream oil and natural gas industry throughout the lifecycle of the reservoir, from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the field. It operates through two segments: the Completion and Production segment, and the Drilling and Evaluation segment. The Completion and Production segment delivers cementing, stimulation, intervention, pressure control, specialty chemicals, artificial lift and completion services. The Drilling and Evaluation segment provides field and reservoir modeling, drilling, evaluation and wellbore placement solutions that enable customers to model, measure, drill and optimize their well construction activities. It serves national and independent oil and natural gas companies.

Segmentation Overview:

By type, DTS segment accounted for the largest share of market in 2021.

DTS

Distributed Temperature Sensing (DTS) uses fiber optic sensor cables, typically over lengths of several kilometers, that function as linear temperature sensors. The result is a continuous temperature profile along the entire length of the sensor cable. DTS utilizes the Raman effect to measure temperature. An optical laser pulse sent through the fiber results in some scattered light reflecting back to the transmitting end, where the information is analyzed.

DAS

Distributed Acoustic Sensing (DAS) detect vibrations and capture acoustic energy along optical fibers. Existing fiber optic networks along the asset are utilized and turned into a distributed acoustic sensor, capturing real-time data and helping operators take right actions. Classification algorithms are used to detect and locate events such as leaks, cable faults, intrusion activities, or other abnormal sounds.

Application Overview:

In the Distributed Fiber Optic Sensing (DFOS) market, 45.39% of the total value was generated through the Petrochemical Industry segment by application in 2021.

Key Companies in the global Distributed Fiber Optic Sensing (DFOS) market covered in Chapter 3:

Bandweaver
Schlumberger
LIOS (NKT Photonics)
Silixa
AP Sensing
Halliburton
Yokogawa
Suzhou AGIOE
OptaSense
Baker Hughes
OZ Optics
Wuhan Ligong Guangke Co
Omnisens
Fotech Solutions
Future Fibre Technologies (Ava Group)
Hifi Engineering
Hunan GuangSheng

In Chapter 4 and Chapter 14.2, on the basis of types, the Distributed Fiber Optic Sensing (DFOS) market from 2018 to 2029 is primarily split into:

DTS
DAS
Others

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Distributed Fiber Optic Sensing (DFOS) market from 2018 to 2029 covers:

Power Industry
Bridges and Tunnels
Petrochemical Industry
Other

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)