The sensors market in the shale gas industry is expected to reach $106.8m in 2020, according to new analysis from Frost & Sullivan.
The shale gas industry relies heavily on government approval because of the several environmental concerns related to hydraulic fracturing or fracking.
Frost & Sullivan said the sensors and instrumentation market in the shale gas industry has remained small as governments are still to decide on whether fracking can be undertaken.
Oil and gas firms are also uncertain on the commercial shale gas production feasibility.
The sensors market generated revenues of $63m in 2013 and at present, wellhead, fracking and separation are being used for flow, level, pressure and temperature sensors to produce shale gas.
Frost & Sullivan measurement and instrumentation senior industry analyst V. Sankara Narayanan said: "Companies have continuously invested in the broad automation sector and have adopted sensor solutions to improve efficiency and process variable monitoring, as well as reduce maintenance costs and the total cost of ownership.
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By GlobalData"This is expected to drive the demand for sensors and instrumentation in the overall oil and gas industry, and ultimately in the shale gas industry as well."
Frost & Sullivan said the sensors play an important role in the shale gas industry by addressing various complexities in fracking, such as fracture orientation, its distance and geometry, and lateral and vertical extent.
The market for sensors in shale gas is concentrated in North America, with most activity in the US and Canada.
Narayanan added: "Overall, the market for sensors in shale gas will get a boost when the current uncertainty regarding legislation, policy and commercial readiness is resolved.
"This will allow the oil and gas companies to establish the commercial feasibility of shale gas exploration across the world and thereby engage in business with sensor manufacturers."
