According to a recent report from Persistence Market Research, the Distributed Acoustic Sensing (DAS) market is expected to grow at 20.2% CAGR and surpass $US2 billion in revenue by 2025. The report found that the Middle East and Africa is expected to account for a revenue share of 38.1% in 2017. Meanwhile, North America will become the second largest market globally, although the US will maintain its dominance in terms of demand with nearly 75% market share.
What is particularly encouraging though, is that a lot of this forecast growth is coming from innovative new application areas for DAS technology that go beyond the technology’s roots in the oil and gas sector. Although oil and gas is obviously still forecast to be a primary source of revenue for DAS, we are now seeing serious inroads being made with deployments of DAS in the perimeter security and rail markets in particular.
Fotech has been working with its global partners to enhance perimeter security across a range of locations. It has been estimated that the perimeter security market will hit $21 billion by 2020 and our work in this area has been particularly significant as threats to secure facilities become more sophisticated in their nature. Indeed, there are now over 100 Fotech systems operating on fence perimeters across the globe.
Interestingly, the report highlighted a “surge in adoption” of distributed acoustic sensing in the railway sector and suggested that it is a likely source for significant growth in the global DAS market in the next eight years. This is a market opportunity that we tapped into through our exclusive partnership with Frauscher Sensor Technology at the end of 2016. We worked closely with them to launch their Frauscher Tracking Solution – a pioneering tool that uses Fotech’s DAS technology to monitor a wide range of activities along the track.
We also still expect to see further growth from more ‘traditional’ oil and gas markets. This continued market growth can be attributed to a number of key factors, from DAS’ ability to withstand harsh environments better than existing monitoring tools (such as CCTV and ground radars), to the increasing global energy demand. The report also acknowledges DAS’ benefits in ‘drilling, exploration, production, completion and management of reservoir’ processes, as it allows operators to locate and record what is happening at every point of their operation, adding a new layer of intelligence to the monitoring process.
It is clear that market conditions are a lot healthier than they were this time last year and the aggressive forecasts are a vindication of that. The fact that significant growth is expected in new markets is exciting and it will be interesting to see the technology’s impact as it’s rolled out across different verticals over the coming year.