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The flexible pipes market size for oil and gas market is estimated to decline at a CAGR of 2.52% between 2022 and 2027. The size of the market is forecast to increase by USD 151.11 million. The growth of the market depends on several factors, including rising investment in upstream oil and gas activity, increasing focus on unconventional oil and gas E&P activities, and increasing demand for engineering-grade flexible materials.
This report extensively covers market segmentation by application (offshore and onshore), type (HDPE, PA, PVDF, and others), and geography (North America, Middle East and Africa, South America, APAC, and Europe). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing demand for engineering-grade flexible materials is notably driving the market growth, although factors such as stringent government regulations may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Flexible Pipes Market For Oil And Gas Market Driver
The flexible pipes market is experiencing rapid growth due to advances in manufacturing processes, technological innovations, and the installation of flexible pipes, especially in deepwater drilling and exploration processes. Flexible pipes made of polymers such as PE, PA, PVDF, PP, and PEEK are highly effective in deepwater applications due to their wear- and corrosion-resistance, rigidness, and ability to withstand changes in temperature and deformation caused by stress. Energy security is becoming increasingly important in many countries due to population growth and rapid industrialization, resulting in increased investments in mature oil and gas fields and the exploration of untapped resources using advanced technologies.
Unconventional hydrocarbon resources, including shale formations, oil sands, and coal seams, differ from conventional oil and gas wells in their geological characteristics and locations. They include shale oil, shale gas, coalbed methane, tight oil, and tight gas. The crude oil and natural gas obtained from shale formations are called shale oil and shale gas, respectively, while natural gas obtained from coal seams is called coalbed methane. Tight oil and gas refer to crude oil and natural gas obtained from formations with low permeability.
Significant Flexible Pipes Market For Oil And Gas Market Trend
Preference for additive manufacturing is an emerging trend in the market. Additive manufacturing, which is also known as 3D printing, is a manufacturing technology that is used to build 3D objects from computer-aided design models. It is used to manufacture industrial metal products and components. The oil and gas value chain that includes oil-producing companies and component suppliers is witnessing the rapid adoption of additive manufacturing techniques to manufacture various components, such as condenser tubes, heat exchangers, engines, pipes, metal structures, and tubing components.
Furthermore, additive manufacturing can be used to produce high-cost, low-volume components that have a complex design at a low cost. Such benefits have encouraged manufacturers to test the use of such technologies to build complex structures and components for use in the oil and gas industry. Moreover, vendors in the market are also using 3D printing equipment to manufacture flexible pipes. For instance, MAGMA GLOBAL Ltd.'s m-pipe is manufactured using a fully automated robotic 3D laser print process. The company in 2016, teamed up with Victrex's PEEK thermoplastic composite material and a laser sintering 3D printing setup, to manufacture a 3D printed flexible m-pipe for use in the oil and gas industry. Thus, such factors will propel the growth of the global flexible pipes for oil and gas market during the forecast period.
Major Flexible Pipes Market For Oil And Gas Market Challenge
The stringent regulations imposed by governments pose significant challenges to the growth of the market. The oil and gas industry is subject to increasingly strict environmental standards due to the potential hazards of well-drilling activities. These activities can cause severe environmental damage, including oil spills, air and water pollution caused by toxic emissions, and climate change due to methane emissions.
In December 2022, a major pipeline that transports oil from Canada to the Texas Gulf Coast was shut down due to an oil spill in a creek in northeastern Kansas. The Keystone pipeline leak in the creek was also the largest in the system's history, according to U.S. Department of Transportation data. The pipeline, which runs from Canada to Oklahoma, lost approximately 14,000 barrels, or 588,000 gallons, according to the operator, Canadian-based TC Energy.
As a result, the number of incidents like this is leading to increased protests from activists and residents against oil and gas drilling. The goal of these protests is to reduce the negative environmental impact of oil and gas exploration and production activities and to hold oil and gas companies accountable for accidents. As a result, these factors are likely to have a negative impact on the market's growth during the forecast period.
Key Flexible Pipes Market For Oil And Gas Market Customer Landscape
The market 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 Flexible Pipes Market for Oil and Gas Market Customer Landscape
Vendors 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.
Strohm B.V. - The company manufactures thermoplastic composite pipes for subsea production and oil field applications. The key offerings of the company include flexible pipes for oil and gas.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the offshore segment will be significant during the forecast period. Offshore applications refer to the use of flexible pipes to explore and develop petroleum reserves that are located under a water body, such as a river, sea, lake, or ocean. Using flexible pipes on offshore-based structures, including an oil platform, is generally complex and consequently more expensive.
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The offshore segment was valued at USD 652.20 million in 2017 and continue to grow by 2021. Flexible pipes are largely used in offshore applications, such as chemical injection pipes and risers. They possess properties like wear- and corrosion-resistance, rigidness, and mechanical strength to withstand changes in temperature and deformation caused by stress, which make them highly effective in underwater applications. The applications of flexible pipes in products, such as coiled tubing, umbilical pipes, and risers for offshore production activities, are projected to drive the market in the oil and gas industry. Furthermore, governments and oil companies have also undertaken several initiatives for the growth of the offshore segment. For instance, in July 2022, the US government planned to allow drilling activities in its offshore oil and gas areas along the gulf of Mexico. The government also eased regulations associated with safety in offshore oil and gas drilling activities. Therefore, these factors will boost segment during the forecast period.
Flexible pipes are used for onshore oil and gas operations conducted on land, replacing traditional steel pipes in greenfield and brownfield projects. Onshore applications utilize flexible pipes for hydrocarbon production processes, including oil and gas gathering and injection, to prevent corrosion and maintain flow characteristics. Flexible pipes offer several advantages, including ease of installation and removal, cost-effectiveness, and suitability for eco-sensitive applications. These pipes can be installed at a rate of 5-10 km (3.11-6.21 miles) per day, and they are commonly used in horizontal directional drilling due to lower operating and maintenance costs compared to rigid steel pipes. The US and UAE are investing in onshore crude oil exploration and production operations to ensure energy security by increasing production. For example, in November 2020, Saipem S.p.A. and Saudi Aramco signed a long-term agreement for onshore activities, which includes efficiency improvements at existing facilities. This initiative is part of Saudi Aramco's long-term plans to modernize its facilities in the Eastern Province of Saudi Arabia. The announcement of such projects is expected to drive the demand for flexible pipes in the forecast period.
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North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The US was the largest contributor to the growth of the flexible pipes market in oil and gas in North America in 2022. The average capital expenditure on developing new oil and gas infrastructure, primarily in the US, will likely be in the range of $790-$800 million between 2018 and 2035, owing to continued robust developments in unconventional resources and their strong market demand.
Furthermore, the US and Canada are among the large oil and gas producers in the world. Oil and gas production output in these countries has increased significantly due to unconventional E&P activities, such as drilling in shale in the US and oil sands in Canada. According to the US Energy Information Administration (EIA), the US produced around 6.5 million barrels of crude oil per day from tight oil reserves in 2018. Considerable E&P activities in unconventional sources of oil and gas, such as oil sands and shale, are responsible for increasing the overall production of crude oil and gas in North America. Thus, an increase in the E&P of such crude oil and gas resources results in a rise in the demand for flexible pipes in the region.
Furthermore, the governments of several countries in this region are also undertaking initiatives to increase oil and gas production to ensure energy security. In June 2019, National Hydrocarbons Commission, an independent oil regulator in Mexico, approved deepwater oil exploration plans for five areas operated by Shell in Mexican deepwater. This resulted in Shell committing to invest at least $397 million in these projects over the next four years. This is expected to lead to a significant new stream of oil and gas production in Mexico.
In 2020 the restrictions imposed to curb the spread of COVID-19 negatively impacted the oil and gas pipeline projects in the region. However, in 2021, with the introduction of vaccines, the number of COVID-19 cases declined in the region. This led to the lifting of restrictions, which resulted in the resumption of operations on several delayed oil and gas pipeline projects. Thus, with the resumption of operations on oilfields, the regional demand for flexible pipes for oil and gas is expected to rebound during the forecast period. Moreover, the financial stimulus packages by the governments will further drive the growth of the oil and gas industry during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Flexible Pipes Market For Oil And Gas Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Decelerate at a CAGR of 2.52% |
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Market growth 2023-2027 |
USD 151.11 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
2.65 |
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Regional analysis |
North America, Middle East and Africa, South America, APAC, and Europe |
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Performing market contribution |
North America at 36% |
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Key countries |
US, Canada, Saudi Arabia, China, and Russia |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
BRUGG GROUP AG, CGH Belgium NV, Changchun Gaoxiang Special Pipe Co. Ltd., Chevron Phillips Chemical Co. LLC, Continental AG, Davis Standard LLC, FlexSteel Pipeline Technologies Inc., General Electric Co., Hebei Heng An Tai Pipeline Co. Ltd., MAGMA GLOBAL Ltd., NOV Inc., NV Bekaert SA, Prysmian Spa, Saudi Arabian Amiantit Co., Shandong Saigao Group Corp., Shawcor Ltd., Shell plc, Strohm B.V., TechnipFMC plc, and Wienerberger AG |
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Market dynamics |
Parent market analysis, 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. |
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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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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