Geohazard Market Size, Share & COVID-19 Impact Analysis, By Service (Site Investigation, Risk Assessment, Modelling, and Others), By End-User (Oil & Gas, Marine, Residential & Commercial, Infrastructure, and Others), and Regional Forecast, 2021-2028

The global geohazard market size was USD 629.9 million in 2020. The global impact of COVID-19 has been unprecedented and staggering, with geohazard services witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a significant decline of -17.3% in 2020. The market is projected to grow from USD 658.3 million in 2021 to USD 910.2 million in 2028 at a CAGR of 4.7% in the 2021-2028 period. The increase in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

A geohazard is a type of geological condition that poses possibilities to cause significant damage to over the surface structures. These geological conditions are formed over the years through the effect of environmental changes along with variations in lithological temperatures and pressures. Consequently, a combination of various technologies is required to assess, identify, and combat the geological problems before the setup of new infrastructures to mitigate any risks. The disaster management services utilize different data collection methods to correctly assess technical and social issues and reduce the impact of a wide range of geological hazards such as volcanic activities, tsunamis, earthquakes, landslides, and floods.

Inhibitions in New Project Investments Hamper the Industry amid COVID-19 Pandemic

The sudden outbreak of COVID-19 across the globe has significantly affected the financial conditions of various nations. Governments worldwide have implemented stringent policies, such as national and state-level lockdowns, along with social distancing norms to limit the expansion of the virus. Consequently, the countries have experienced deterioration in investment opportunities owing to the shutdown of business operations along with cash deficits in industrial operations.

Moreover, the affected population is confined to certain facilities to contain the spread of viral infection across the general public. Besides, the ability of individuals as well as medical staff to cope up with unnatural events has been significantly hampered due to the pandemic conditions. Consequently, various organizations are striving to enhance their understanding to estimate the risk vulnerabilities of extreme climates and geohazards to the infected individuals within restricted locations.

For instance, in June 2020, a funded initiative called CONVERGE under the University of Colorado Boulder, U.S., directed its special working group to assess the intensity and vulnerability of personnel against geological hazards during the pandemic. The group is also set to adopt various monitoring systems to examine and advance understandings for optimizing the hazard-related preparations amid the COVID-19.

LATEST TRENDS

Long-term Agreements by Major Organizations to Play a Pivotal Role

The geohazard market has observed the introduction of various short and long-term contracts to monitor the subsurface conditions. Various government and non-government organizations have undertaken initiatives to combat unforeseen problems. For instance, in January 2021, the Ministry of Road Transport & Highways (MoRTH), India, announced a Memorandum of Understanding (MoU) with the government-owned Defense Research and Development Organization (DRDO). The contract aims at enhancing the sustainable geohazard management capabilities to safeguard against the hostile impacts of problems, such as avalanches and landslides, on the national highways.

Rising Collaboration between Industry Players Will Stimulate the Geohazard Market Growth

Various types of data acquisitions and assessment techniques, such as remote sensing, database gathering, mapping software, and others, have gained significant traction in the global market. Numerous organizations have launched joint efforts to precisely undertake all data points to predict a seismic activity more accurately. For example, in December 2020, CGG announced a strategic partnership with TGS and PGS to establish a joint ecosystem to contact their subsurface multi-client data libraries. The partnership aims to boost their efficiencies by enabling single-point access to their data for effective search, visualization, and download of specific data.

DRIVING FACTORS

Constant Evolution of End-user Industries to Propel the Market Growth

Various industry verticals need a significant planning procedure to enhance their preparedness against unforeseen geohazard events. The surveys and analysis are completed as a part of the initial study periods in these industries to ensure safe functions by correctly anticipating the geological conditions. For instance, in December 2020, a hydrocarbon industry giant, Equinor, announced its plans to invest about USD 343 million for the development of the oil & gas field in the North Sea. Consequently, the introduction of new projects and such increasing investments in the industry verticals will trail the boosting demand for geohazard services.

Growing Concerns to Integrate Advanced Technologies with New Structures to Boost Demand

Various countries across the globe have unveiled their efforts to enhance the safety of citizens by improving the planning and execution of safety guidelines in infrastructure projects. The presence of geological aberrations, such as faults and fractures, has insisted administrations frame objectives to incorporate innovative technologies across infrastructures. For instance, the Saudi Geological Survey, a holding under the government of Saudi Arabia, aims to follow certain targets to improve the geohazard assessment capabilities in the nation. The organization has presented objectives to continuously monitor natural hazards occurrence, comprehend causes of hazards, and prepare a rapid response to deliver all the stakeholders with advanced technical expertise.

RESTRAINING FACTORS

Unanticipated Investment Decline and High Product Cost May Hamper Market Growth                   

The market has observed the installation of high-cost equipment such as sensors and receivers. Any defects in the operating tools can considerably result in erroneous studies along with generating high replacement or repair costs that could obstruct the market growth. Furthermore, the services are significantly complex and thus require substantial capital, which may dampen the pace.

SEGMENTATION

By Service Analysis

Modeling Services to Gain Significant Momentum over the Forecast Period

 Based on service, the market can be majorly categorized into site investigation, risk assessment, modeling, and others. The modeling segment is projected to experience a significant rise owing to its ability to integrate innovative methods to predict the susceptibility of any region and provide solutions to increase the resiliency of the structure.

Additionally, site inspection services are also widely utilized in the projects to perform feasibility analysis on geological deformities that may harm the final structure at sooner or later stages. Besides, risk assessment techniques are also one of the most crucial operations as they conclude the extent of consequences faced by the determined site over the project life.

By End-User Analysis

Oil & Gas Segment is Likely to Dominate the Global Market

Based on the end-users, this industry can be majorly divided into oil & gas, marine, residential & commercial, infrastructure, and others. The oil & gas segment is anticipated to lead the industry with a major share in the market. The discovery of new reserves, the establishment of advanced petrochemical complexes, and the introduction of new pipelines are among the major factors backing the segment growth. The increasing efforts by the government organizations as well as private marine agencies to monitor and predict a geological hazard are set to add to the marine segment rise.

Subsequently, the infrastructure segment is also projected to increase significantly owing to stringent laws by the administrative authorities to prepare a detailed layout for geological conditions before establishing the large assets. Furthermore, residential & commercial sector growth is propelled by the increasing rate of urbanization along with the design and construction of new advanced structures to accommodate the paradigm shift.

REGIONAL INSIGHTS

Geographically, the market has been analyzed across five key regions, including North America, Asia Pacific, Europe, the Middle East & Africa, and Latin America. Asia Pacific is set to witness significant expansion and account for the dominating position in the industry. The region is backed by the increasing energy demand, soaring investment opportunities, substantial marine activities, developing residential, commercial, & industrial sectors, and many other driving factors.

North America's market is also projected to observe considerable growth owing to the presence of various industry players funding in the oil & gas industry and the development of new infrastructures. Additionally, various regional organizations and institutions have also introduced scientific research plans adding to the regional industry growth. For instance, the U.S. Department of Energy (DoE) follows the Natural Phenomena Hazards Program to guide its facilities against the likelihood of dangerous geological conditions.

Furthermore, the Middle East & Africa is likely to exhibit significant development during the forecast timeline. The regional growth is largely attributable to favorable administrative policies, boosting infrastructure & tourism sectors, low oil & gas drilling costs, and a significant rise in marine activities.

KEY INDUSTRY PLAYERS

Fugro to Increase its Foothold through Organic & Inorganic Expansion Strategies

The market is significantly competitive, with different players operating at national, regional, and international levels. The companies are focusing on introducing new technologies to expand their comprehension ability for complex geological conditions and initiate advanced mitigation procedures. Fugro, a geo-data collecting and analyzing company, is emphasizing substantially to expand its global reach by acquiring contracts across different countries. The company has also shown its interests in partnership agreements along with introducing new solutions.

For instance, in September 2020, the company announced to receive a 3-year contract from the Indian national hydrocarbon company, Oil and Natural Gas Corporation Limited (ONGC). Fugro confirmed the order for the fourth consecutive time, which includes the developments on the west and east coasts of the country. The company is set to provide a wide range of services for ONGC to fortify its position in the Indian offshore industry.

LIST OF KEY COMPANIES PROFILED:

• Geosyntec Consultants (U.S.)


• Fugro (Netherlands)


• Penspen (UK)


• Geo Serve Arabia (Saudi Arabia)


• SRK Consulting (Canada)


• Benthic (U.S.)


• RINA (Italy)


• WSB (U.S.)


• Lloyd's Register (UK)


• Applus+ Velosi (Kuwait)


• GeoStabilization International (U.S.)


• Schlumberger (U.S.)


• Geofem Ltd (Cyprus)


• Gardline Limited (UK)


• Maccaferri (Italy)


• via+ Visitless Integrity Assessment Ltd. (Canada)

KEY INDUSTRY DEVELOPMENTS:

• December 2020 – Geosyntec announced to inaugurate a new office in Woodlands, Texas, to cater to the increasing demand. The new facility is dedicated to concentrating on a wide range of services such as geological characterization and geohazard monitoring, assessment, reduction, along with the development of a procedure for pipeline geohazard programs.


• May 2020 – The U.S.-based hydrocarbon company, Hilcorp, declared to attain authorization from the U.S. Bureau of Ocean Energy Management (BOEM) to conduct a geohazards survey in offshore Southcentral Alaska. The process will assess shallow drilling hazards, seafloor obstructions, and archaeological resources, with an aim to get approval from BOEM for further exploration of assets.

REPORT COVERAGE

The geohazard market research report offers an elaborative analysis of numerous factors affecting this market. These include opportunities, growth drivers, threats, key developments, and restraints. In addition to this, it further helps in analyzing, segmenting, and defining the market based on different segments such as service and end-user. It strategically analyzes several strategies such as product innovations, mergers, alliances, joint ventures, and acquisitions adopted by players in the industry.

Report Scope & Segmentation