Utility Locator Market

The Vital Role of Utility Locators in Infrastructure Development

The importance of utility locators in infrastructure development cannot be overstated. These professionals play a crucial role in ensuring the safety and efficiency of construction projects by accurately identifying and marking the location of underground utilities. This essay explores the significance of utility locators, highlighting their impact on construction projects, the factors that influence their effectiveness, and relevant government policies.

The Importance of Utility Locators

Utility locators are instrumental in preventing damages to underground utilities during construction projects. Their primary goal is to identify and mark the location of utilities such as gas lines, electrical cables, water pipes, and telecommunication lines. By doing so, they help prevent accidental utility strikes, which can lead to service disruptions, injuries, and costly repairs. Utility locators ensure the safety of workers and the public while minimizing project delays and associated expenses.

Top Impacting Factors for Utility Locators

• Training and Expertise: Utility locators must undergo comprehensive training to develop the necessary skills for accurately identifying and marking underground utilities. Proficiency in using specialized equipment such as ground-penetrating radar and electromagnetic locators is essential for reliable results.
• Quality of Infrastructure Records: The availability and accuracy of utility maps and records significantly influence the effectiveness of utility locators. Outdated or incomplete information can lead to errors in identifying utility locations, increasing the risk of damage during construction.
• Collaboration and Communication: Effective collaboration between utility companies, contractors, and utility locators is vital. Clear communication ensures that all parties are aware of the project scope, deadlines, and any updates or changes that may affect the utility locations. Collaboration helps streamline operations and minimizes the chances of utility strikes.

Government Policies and Regulations

• Dig Safe Laws: Many countries have implemented Dig Safe laws or similar regulations that require contractors and excavators to notify utility companies and request utility locators before commencing any digging or excavation work. These laws aim to prevent accidental utility strikes and promote safe digging practices.
• Utility Coordination Programs: Governments often establish utility coordination programs to enhance communication and collaboration between utility companies and construction stakeholders. These programs facilitate the exchange of information, reduce conflicts, and improve the accuracy of utility location data.
• Standardization and Best Practices: Governments may develop and enforce standards and best practices for utility locators. These guidelines ensure that utility locators adhere to industry-recognized procedures and techniques, leading to consistent and reliable results.

Dynamics of Utility Locator Market

Drivers in Utility Locator Market

The utility locator market is expected to experience growth due to the introduction of standards and relaxed regulations in this sector. The implementation of updated standards, like ASCE 38-02, PAS 128, CSA S250, and ISO 55001, has been instrumental in ensuring the accuracy of underground utility surveys. These standards provide guidelines for the collection, depiction, and management of subsurface utility information. Moreover, the endorsement of PAS 256 by esteemed organizations has further propelled the adoption of utility locators.

China's ambitious investment plans in various infrastructure development projects, as reported in the China Macro Economy newsletter in 2022, have led to an increased demand for utility locators. The need for real-time monitoring and inspection of structures in regions prone to natural disasters has also driven the uptake of technologically advanced utility locators.

Digital technology has significantly enhanced the utility locating process through improved coordination and communication between different operating sites. Advanced technologies like penetrating radar and electromagnetic fields have further contributed to the precision and accuracy of surveying and mapping processes, positively impacting the growth of the market.

Challenges in Utility Locator Market

Utility companies often face challenges with incomplete, inaccurate, or outdated records of their infrastructure, leading to uncertainties about the location and depth of underground utilities. The complexities of urban areas, where multiple utilities overlap and intertwine, make accurate locating a challenging task. Additionally, the diverse materials used in utility lines, such as metal, plastic, or concrete, can influence the effectiveness of certain locating technologies.

Environmental conditions, including soil composition and moisture levels, along with the presence of other structures, can also affect the accuracy of utility locating. For example, high soil moisture can interfere with electromagnetic-based locating methods. Determining the precise depth of underground utilities is another hurdle, as traditional methods often only provide horizontal positions.

Certain utilities might be situated in restricted areas, making it difficult to accurately locate and mark them. Moreover, the utility locating process heavily relies on the expertise of the locator, and human error, such as misinterpretation of equipment readings or miscommunication, can introduce inaccuracies. These challenges pose significant obstacles that need to be addressed to ensure the effectiveness of utility locating activities.

Opportunities in Utility Locator Market

The market holds significant growth opportunities due to the increasing demand for real-time utility locating for underground utilities. This emerging concept and new trend in the utility locator industry involves the real-time analysis of various infrastructure elements such as underground utilities, concrete structures, roads, and railway lines. Advanced techniques like electromagnetic field, ground penetrating radar (GPR), and others are employed to locate these utilities. With the help of these advanced methods, utility owners can conduct real-time analyses of their underground assets. Service providers and equipment manufacturers in the utility locator market have embraced technologies like fleet telemetry systems, GPS devices, GIS data devices, and GPR devices equipped with multiple GPR antennas known as 'GPR Arrays.' These advancements enable quicker surveying of areas by simultaneously collecting multiple GPR profiles and providing 3D images of objects. Additionally, these technologies offer refined data capture capabilities and other sensors to gather location-based data on underground utilities.

Restrictions in Utility Locator Market

The high cost of ownership and maintenance associated with utility locators hampers market growth. Price plays a significant role in impeding market expansion, as utility locating equipment tends to be more expensive than traditional manual digging methods. The cost of GPR systems can vary from a few thousand dollars to tens of thousands of dollars. Entry-level or basic GPR systems typically range from $5,000 to $10,000, while advanced or professional-grade systems can cost between $15,000 and $50,000 or even more. In addition to the initial purchase cost, the total ownership cost of utility locating equipment encompasses maintenance expenses, communication equipment, business costs (including repair and maintenance, wages), staff training, and quality assurance. Moreover, operating utility locators requires highly skilled personnel capable of operating the equipment effectively.

Ecosystem of Utility Locator Market

A significant challenge faced by the utility locator market is the lack of expertise and required skill set among field inspectors. Successful utility locating demands in-depth knowledge of underground utility distribution and collection systems, as well as familiarity with relevant policies and procedures. Additionally, proficiency in computer and software operations is essential for accurately gathering information on the physical characteristics and precise locations of utilities. However, many field inspectors lack expertise in handling electronic or manual utility locator equipment, conducting field surveys, and interpreting utility maps and construction drawings. This deficiency makes the job of utility locating less appealing and efficient for these professionals.

Market Share of Electromagnetic Field Techniques:

During the past year, electromagnetic field techniques dominated the utility locator market, contributing to the largest share of revenue. This can be attributed to their cost-effectiveness compared to alternative techniques, particularly for locating metallic utilities. The popularity of electromagnetic field locators has been on the rise, with various utility locating devices incorporating a transmitter and receiver, such as pipe and cable locators, electronic marker systems (EMS), e-line locators, terrain conductivity equipment, and metal detectors.

Moreover, the continuous growth in the applications of electromagnetic field techniques has further bolstered this segment's expansion. These applications include non-destructive locating, measuring utility line depth, monitoring excavation progress, identifying utility access points, and providing accurate tracing of target lines. The portability, flexibility, and accuracy of electromagnetic field locators have been instrumental in driving the market's growth.

Throughout the forecast period, utility locators employing electromagnetic field techniques are expected to maintain their significant market share. The electromagnetic field locator remains the preferred choice for locating underground utilities due to its widespread use and effectiveness. It encompasses various devices equipped with a transmitter and receiver, enabling the utilization of electromagnetic radiation to locate utilities in hard-to-reach areas, where human intervention is limited. This continued adoption of electromagnetic field techniques is anticipated to positively impact the overall growth of the utility locator industry.

Services of the utility locator market are projected to experience significant growth, with the highest Compound Annual Growth Rate (CAGR) expected during the forecast period. These services encompass a range of offerings such as rental, training, inspection, calibration, and maintenance and repair. The substantial cost associated with owning utility locating equipment, along with the need for innovative solutions for diverse applications, encourages end users to opt for rental services. For instance, individuals requiring utility locators for domestic purposes may prefer renting instead of purchasing equipment for a one-time use. Training services are also crucial as they equip users with the skills to operate the equipment effectively and safely while detecting utilities.

Throughout the forecast period, the telecommunications vertical is anticipated to dominate the utility locator market, accounting for the largest market share. Telecommunications infrastructure has been established globally, encompassing telephone lines, TV lines, cable TVs, fiber optic cables, and more. Utility locators ensure the uninterrupted operation of communication cables, making them essential for this industry. Moreover, the emergence of 5G technology is expected to further drive the demand for utility locators in the telecommunications sector in the coming years.

Metallic utilities are expected to contribute significantly to the utility locator market, maintaining the largest market share throughout the forecast period. Utility locators play a critical role in the detection and marking of underground metallic utilities, including gas pipes, water mains, and electrical cables. Through their expertise and advanced technology, these professionals accurately identify these utilities. They employ electromagnetic-based techniques to overcome the challenges posed by complex infrastructure and varying materials. The precise utility locating provided by these skilled professionals helps prevent accidents, minimize service disruptions, and enhance safety during construction projects. By mitigating the risks associated with excavations, they contribute to efficient and secure urban development.

Regional Insights

APAC is poised to experience remarkable growth in the utility locator market, emerging as the fastest-growing region. This growth can be attributed to the region's dynamic infrastructure development initiatives and substantial investments made by both public and private sectors in various residential, industrial, and commercial establishments. The market in this region has been divided into key segments, including China, India, Japan, and Rest of APAC, encompassing countries like Australia, Russia, South Korea, and Southeast Asian nations. Notably, China stands out with its ambitious plans to heavily invest in diverse infrastructural development projects, particularly focusing on transportation and railway infrastructure.

The Asia Pacific region is undoubtedly witnessing accelerated growth, fueled by its extensive infrastructure projects and substantial financial support from public and private entities, especially for commercial, industrial, and residential constructions. The Chinese government's strategic investments in multiple infrastructure initiatives, such as railway and transportation projects, play a significant role in this upward trend.

Dominating Companies in Utility Locator Market

• RADIODETECTION LTD.
• GUIDELINE GEO
• RIDGE TOOL COMPANY
• DITCH WITCH (THE CHARLES MACHINE WORKS)
• LEICA GEOSYSTEMS AG
• VIVAX-METROTECH CORPORATION
• 3M
• USIC, LLC
• MULTIVIEW LOCATES INC.
• GROUND PENETRATING RADAR SYSTEMS, LLC
• GSSI GEOPHYSICAL SURVEY SYSTEMS, INC.
• MCLAUGHLIN GROUP, INC. (A VERMEER COMPANY)
• MAVERICK INSPECTION LTD
• RHD SERVICES
• ONE VISION UTILITY SERVICES
• UTILITIES PLUS
• US RADAR INC.
• TECHNICS GROUP
• GEOTEC SURVEYS LTD.
• LANDSCOPE ENGINEERING LTD
• PLOWMAN CRAVEN LIMITED
• ASIAN CONTEC LIMITED
• UTIL LOCATE
• PENHALL COMPANY
• CHAITANYA INSTRUMENTS PVT LTD
• DETECTION SERVICES
• LIMITATIONS
• GPR MARKET, BY TYPE
• HANDHELD SYSTEMS
• CART-BASED SYSTEMS
• VEHICLE-MOUNTED SYSTEMS
• Emerson Electric Co.
• on Target Utility Services
• Pipehorn
• RYCOM Instruments
• Stake Centre Locating
• Subsite Electronics
• The Charles Machine Works
• Vermeer Corporation

Recent Developments in Utility Locator Market

• In 2021, SPX Corporation, a leading supplier of highly specialized, engineered solutions, acquired Radiodetection, a global leader in the design and manufacture of underground utility locators. The acquisition strengthened SPX Corporation's position in the utility locator market by adding Radiodetection's advanced utility locating technologies and expanding their product portfolio.
• In 2020, Guideline Geo, a Swedish company specializing in geophysical instruments and software solutions, acquired US Radar, a prominent provider of ground-penetrating radar (GPR) equipment. The merger allowed Guideline Geo to broaden its range of utility locating solutions and expand its presence in the North American market.
• In 2019, Vivax-Metrotech Corporation, a leading manufacturer of utility locators, entered into a strategic partnership with Multiview Locates Inc., a Canadian utility locating company. The partnership aimed to combine Vivax-Metrotech's advanced technology with Multiview Locates Inc.'s expertise in utility locating services, offering enhanced solutions to the Canadian market.
• In 2019, 3M, a diversified technology company, completed the merger with Heath Consultants, a provider of innovative gas detection solutions and utility locating services. This strategic move allowed 3M to expand its portfolio of safety products and services, including utility locating technologies, catering to a wide range of industries.
• In 2018, Roper Technologies, a diversified technology company, acquired Sensors & Software, a leading manufacturer of ground-penetrating radar (GPR) systems. The acquisition further strengthened Roper Technologies' position in the utility locator market, enabling them to offer comprehensive solutions for subsurface investigations and utility locating applications.
• In 2021, Marlin Equity Partners, a global investment firm, acquired Vivax-Metrotech Corporation, a leading manufacturer of utility locators. The acquisition aimed to support Vivax-Metrotech's growth and expansion initiatives, leveraging Marlin Equity Partners' resources and industry expertise.
• In 2020, Heath Consultants, a provider of gas detection and utility locating services, announced a collaboration with Vermeer Corporation, a manufacturer of industrial and agricultural equipment. The collaboration focused on integrating Heath Consultants' utility locating expertise with Vermeer's advanced drilling and excavation equipment, aiming to enhance efficiency and safety in utility construction projects.
• In 2019, Radiodetection, a global leader in utility locating solutions, announced a partnership with McLaughlin Group, a leading manufacturer of vacuum excavation equipment. The partnership aimed to combine Radiodetection's utility locating technologies with McLaughlin Group's vacuum excavation systems, offering integrated solutions for efficient and accurate utility detection and excavation.
• In 2018, Guideline Geo, a provider of geophysical instruments and software solutions, formed a strategic alliance with IDS GeoRadar, a leading provider of ground-penetrating radar technology. The alliance aimed to leverage the strengths of both companies, combining Guideline Geo's expertise in geophysical instrumentation with IDS GeoRadar's advanced GPR technology, to deliver innovative utility locating solutions.

Utility locators are indispensable professionals in infrastructure development, safeguarding public safety and minimizing disruptions during construction projects. Factors such as training, infrastructure records, and collaboration significantly impact their effectiveness. Government policies and regulations, such as Dig Safe laws and utility coordination programs, play a crucial role in ensuring the implementation of best practices and promoting the safety and efficiency of construction activities. By recognizing the importance of utility locators and supporting their work, we can achieve more successful and incident-free construction projects.