Utility Locator Market by Type, End-user, and Geography - Forecast and Analysis 2023-2027

Utility Locator Market Forecast 2023-2027

The utility locator market size is forecast to increase by USD 1.62 billion, at a CAGR of 4.88% between 2022 and 2027. The market's expansion hinges on various factors, notably escalating safety and security concerns related to safeguarding underground utilities, a rising preference for modern advanced utility locators over traditional tools, and increasingly strict regulations governing excavation and digging activities. The heightened emphasis on safety protocols and the need for precise utility locations in construction and infrastructure projects have fueled the demand for innovative technologies. The shift towards advanced utility locators reflects the industry's response to enhance accuracy, efficiency, and compliance with regulatory standards. These developments underscore a growing awareness of the importance of mitigating risks associated with underground utilities, driving the adoption of cutting-edge solutions in utility detection and excavation practices.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by type (electromagnetic field and GPR), end-user (oil and gas, electricity, transportation, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

Market Dynamics and Customer Landscape

The market is driven by stringent standards and laws governing utility locators, ensuring compliance and safety in underground utility management. Key drivers include the increasing demand for public utilities such as telecommunication, electricity distribution, and fiber optics. Advanced technologies like GPS, GIS, and Ground Penetrating Radar (GPR) are shaping trends by offering precise techniques for locating both metallic and non-metallic utilities. Challenges include addressing electromagnetic field interference and accurately targeting specific utilities amidst complex underground environments. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The growing safety and security concerns regarding the protection of underground utilities are notably driving the market growth. Damage caused to underground services following street works, excavation, drilling, piling, demolition, site investigation, and surveys, or any other work that involves penetrating the ground can cause accidents, fatalities, and electrocution. For instance, last decade, in the UK, more than 310 incidents were recorded of fatalities caused by underground cable strikes. This led to a significant increase in the number of search work projects through data and mapping. The increase in utility search programs stems from growing safety and security concerns over underground utilities.

Moreover, end-user industries such as telecommunication, oil and gas, energy, public work departments, and construction deploy utility locating devices such as hum detectors, radio frequency detectors, metal detectors, ground probing radar, and RFID for detection, identification, and marking underground facilities to reduce the risk of accidents. Hence, such factors are driving the market during the forecast period.

Significant Market Trends

An increase in gas pipeline laying projects is the primary trend in the market. The shift from conventional sources of energy to piped natural gas for industrial and domestic purposes has led to an increase in the number of gas pipeline-laying projects globally. For instance, in April 2022, efforts were afoot to revive the construction of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) project, a natural gas pipeline stretching 1,127 miles, to meet the natural gas requirements in these four countries. Such an increase in the number of projects in the natural gas industry will require detailed studies and surveys of underground facilities before laying pipelines to eliminate risks.

In addition, pipelines need to be regularly monitored for leakages or damage to underground gas pipelines. Since natural gas is highly flammable and can cause a significant number of fatalities in the case of an explosion, proper utility location activities must be conducted using devices. Such developments in the natural gas industry will boost market growth during the forecast period.

Major Market Challenge

Highly complex and expensive retrofit operations are major challenges impeding the market growth. One of the biggest challenges faced by market players is the high deployment costs of utility locators for end-users. This is because of the high total cost of ownership and investments needed in training workers. Besides high initial investments, it is expensive to conduct retrofitting and replacement work.

Moreover, the deployment of these devices means that associated support devices and equipment must also be modified as per the latest technology being used. Thus, apart from higher additional costs, operations also halt work temporarily, leading to further cost escalation. This lowers the adoption rate of these devices to hamper the growth of the market consequently. End-user industries cut down on purchasing new products and outsource locating operations to service providers to overcome the high cost of ownership. This will further lower the demand for new utility locators and hinder the growth of the market during the forecast period.

Market Segmentation by Type, End-User, Geography

The market is a dynamic sector driven by various factors and technologies aimed at accurately locating and managing underground utilities. Standards and laws governing utility locators play a critical role in ensuring compliance and safety during excavation and construction activities. Utility locator systems are designed to identify and map various public utilities such as telecommunication, electricity distribution, natural gas, cable television, fiber optics, traffic lights, and more. Advanced technologies like GPS, GIS, and Ground Penetrating Radar (GPR) are integral components of utility locator systems, offering precise techniques for locating both metallic and non-metallic utilities. The use of electromagnetic fields helps in targeting specific utilities accurately. The market encompasses a wide range of offerings, including equipment, services, and techniques. Equipment includes sophisticated tools such as GPR devices and GPS systems, while services range from utility mapping and surveying to training and maintenance. Techniques like Ground Penetrating Radar are particularly effective in locating utilities such as oil and gas pipelines. Overall, the Market thrives on innovation, compliance with standards, and the adoption of advanced technologies to ensure the efficient and safe management of underground utilities.

Type Analysis

The market share growth of the electromagnetic field segment will be significant during the forecast period. Utility locators made with electromagnetic field technology use electromagnetic waves to profile the resistivity and conductivity of the ground and provide images based on the values obtained. Electromagnetic field utility locators are used for detecting, mapping, and surveying metallic pipes or cables. Factors such as high efficiency and low cost of electromagnetic field locators, when compared to other technologies, have increased their adoption in locating metallic utilities such as oil and gas pipelines, wastewater pipelines, and sewer lines. Demand for technologically advanced products by market players is also boosting market growth.

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The electromagnetic field segment was valued at USD 3.20 billion in 2017 and continued to grow until 2021. Growing demand for electromagnetic field utility locators stems from the increase in the number of gas pipeline projects and underground sewage pipelines. Before laying a pipeline, a detailed survey is conducted to detect the presence of underground utilities. This will boost the growth of the market by the electromagnetic field utility locator segment during the forecast period.

End-User Analysis

The demand for utility locators in the oil and gas segment is expected to increase during the forecast period. This is primarily because of the rising demand for oil and gas pipeline projects. A few of the recent oil and gas pipeline projects include:  India is expected to lead the global planned and announced trunk or transmission pipeline length addition projects between 2021 and 2025, contributing to around 23% of global pipeline additions by 2025, according to GlobalData, a leading data and analytics company. In February 2021, the government of India announced a maiden gas pipeline project for the state of Jammu and Kashmir. The Nord Stream 2 gas pipeline is the longest upcoming pipeline project in the country, with a length of 2,460 km, and is slated to begin operations in 2021.

Geographical Analysis

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APAC is estimated to contribute 32% to the growth of the global market during the forecast period. Another region offering significant growth opportunities to market players is North America. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

The market in North America is driven by the US and Canada, countries that are early adopters of advanced technologies. The US is one of the largest manufacturers and consumers of utility locators. There are more than 20 million miles of underground utilities in the US. Also, the availability of the 811 call center across states in the US helps in safe digging to promote the growth of locating services. Locating utilities effectively ahead of construction will reduce the chances of fatalities by less than 1%.

The regional market is also supported by the growth of industries such as construction, telecommunication, oil and gas, and electric power, especially in the US, Canada, and Mexico. Also, the construction of the 415-mile TransCanada gas pipeline in 2019 will help the market grow as a detailed survey, study, and monitoring of the location must be conducted using utility locators before laying the pipeline. 

Who are the Major Market Players?

Market players are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Vermeer Corp. - The company offers utility, pipe, and cable locator named The Pipehorn Series 800 HL. The company offers high-quality industrial and agricultural equipment including balers, disc mowers, rakes, brush chippers, mini skid steers, stump cutters, trailers, and other products.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market market players, including:

• Eos Positioning Systems Inc.
• Fortive Corp.
• Geophysical Survey Systems Inc.
• Guideline Geo
• Hexagon AB
• MidAmerican Technology Inc.
• Quanta Services Inc.
• RYCOM Instruments Inc.
• SPX Corp.
• STC TECHNO AC LLC
• SubSurface Instruments Inc.
• The Toro Co.
• Utility Tool Co.
• Vivax Metrotech Corp.
• 3M Co.

Qualitative and quantitative market growth analysis of market players has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize market players as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize market players as dominant, leading, strong, tentative, and weak.

Key Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides a market research and growth analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Type Outlook 
  • Electromagnetic field
  • GPR

• End-user Outlook 
  • Oil and gas
  • Electricity
  • Transportation
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Brazil
    • Argentina
    • Chile
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is influenced by a multitude of factors and technologies aimed at efficiently and accurately detecting subsurface utilities. Laws governing utility locators play a crucial role in ensuring compliance and safety during excavation and construction activities. Utility locator systems are designed to identify various public utilities such as electricity distribution, cable television, fiber optics, traffic lights, street lights, storm drains, water mains, and wastewater pipes. These systems employ advanced techniques like ground penetrating radar, electromagnetic fields, and GPS devices to provide real-time examination of subsurface structures and concrete.

Moreover, technological advancements in digital technology have revolutionized the utility locator industry, offering tools such as fleet telemetry systems, GIS data devices, and GPR arrays that generate detailed 3D images of underground utilities. Services such as rental, instruction, inspection, calibration, maintenance, and repair support the proper functioning of utility locating equipment. The Telecommunications sector heavily relies on utility locators to identify critical infrastructure like TIP and RING, fiber optic cables, and telecommunication lines. The adoption of global utility locate equipment and adherence to standards set by organizations like the British Standards Institute (BSI) ensure uniformity and accuracy in utility locating techniques, especially for non-metallic utilities and gas lines.

Market Scope
Report Coverage	Details
Page number	164
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 4.88%
Market growth 2023-2027	USD 1.62 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	4.65
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	APAC at 32%
Key countries	US, Canada, Japan, Germany, and UK
Competitive landscape	Leading market players, Market Positioning of market players, Competitive Strategies, and Industry Risks
Key companies profiled	Asian Contec Ltd., Berntsen International Inc., BLOOD HOUND LLC, Emerson Electric Co, Eos Positioning Systems Inc., Fortive Corp., Geophysical Survey Systems Inc., Guideline Geo, Hexagon AB, MidAmerican Technology Inc., Quanta Services Inc., RYCOM Instruments Inc., SPX Corp., STC TECHNO AC LLC, SubSurface Instruments Inc., The Toro Co., Utility Tool Co., Vermeer Corp., Vivax Metrotech Corp., and 3M Co.
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the industry across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough market research report analysis of the market’s competitive landscape and detailed information about market players
• Comprehensive market growth and forecasting analysis of factors that will challenge the growth of utility locator market market players

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