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The offshore oil and gas pipeline market size is forecast to increase by USD 4.17 billion at a CAGR of 5.58% between 2023 and 2028. Offshore pipelines are increasingly favored by oil and gas companies due to their economic benefits, including reduced transportation costs and lower environmental impact compared to alternative modes. The surge in exploration and production (E&P) activities, propelled by new reserve discoveries and the imperative to replace dwindling production from existing fields, is amplifying the demand for offshore pipelines to transport extracted oil and gas. Furthermore, the escalating global energy demand is stimulating investments in infrastructure to facilitate oil and gas transportation, thereby bolstering market expansion. As companies seek more cost-effective and environmentally friendly transportation solutions, offshore pipelines emerge as a preferred choice, poised to play a pivotal role in meeting the escalating demands of the energy sector while minimizing environmental footprint and optimizing operational efficiency. It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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The market plays a critical role in the energy sector, facilitating the transportation of hydrocarbons from deepwater drilling sites to onshore facilities. This market encompasses various aspects such as subsea pipelines, pipeline construction, and offshore drilling operations. It involves the installation, maintenance, and integrity management of pipelines and subsea infrastructure. The market also includes the design and implementation of subsea technology and equipment for offshore installations. As the demand for energy continues to grow, the market remains vital for meeting global energy needs. Our researchers analyzed the data with 2023 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.
The economic benefits of offshore pipelines over other oil and gas transportation modes are the key factor driving the market growth. Offshore oil and gas pipelines are primarily used to transport crude oil, natural gas, and petroleum products to their intended destinations, which are typically situated near consumption centers. These pipelines are a key component of subsea infrastructure and play a critical role in offshore drilling operations.
Moreover, they require careful installation, maintenance, and subsea construction, often connecting to offshore platforms for extraction and processing. While other transportation methods, like marine vessels such as crude oil tankers and gas tankers, exist, offshore pipelines are favored for long-distance transportation of offshore oil and gas. The economic advantages of offshore pipelines compared to other modes are expected to fuel market growth in the forecast period.
Technological advents in offshore oil and gas pipelines will fuel market growth. Although offshore oil and gas pipelines are one of the most efficient methods of pipeline transport, stakes are high as the operating environment is extremely challenging in offshores, and a subsea pipeline leak is more difficult to contain. Many technological advances are taking place to ensure the safety, efficiency, and reliability of offshore pipelines.
Offshore pipelines deteriorate under harsh offshore conditions and many times have to be repaired with welding operations, which results in temporary and costly pipeline shutdowns. The installation of offshore pipelines is very complex and expensive due to harsh environments. Since the walls of offshore pipes are thick to withstand extreme deepwater pressure, these pipes are extremely heavy, which makes welding and installation difficult. Technological advances in offshore oil and gas pipeline inspection ensure safe, cost-effective, and efficient operations of offshore oil and gas pipelines and increase their adoption compared to other modes of oil and gas transport. Thus, these technological advances will drive the growth of the market during the forecast period.
Fluctuations in global crude oil and natural gas prices are a major challenge to the global market growth. The dramatic fluctuations in global crude oil and gas prices lead to industry-wide disruptions in the oil and gas sector and have a negative impact on oil and gas exploration and production (E&P) activities. Fluctuations in global crude oil and gas prices have a direct impact on the profitability and performance of upstream oil and gas companies. Therefore, upstream oil and gas companies are affected by a decline in global crude oil and gas prices as, though the price at which crude oil and natural gas are sold is determined by the market, production costs in the oil and gas sector are largely fixed.
As oil and gas are extracted from the same production wells, any fluctuation in global crude oil prices impacts oil as well as natural gas E and P activities. Moreover, oil and gas are mainly traded in the international market due to an imbalance in the global demand and supply of oil and gas. Thus, due to the absence of a globally integrated market for natural gas, pricing mechanisms vary regionally. Low crude oil and natural gas prices hamper the demand for offshore oil and gas pipelines due to a reduction in production. Thus, fluctuations in global crude oil prices and natural gas prices will hamper the growth of the market during the forecast period.
The market forecasting 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 market growth and forecasting strategies.
Market Customer Landscape
Companies 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
Allseas Group SA - The company offers offshore oil and gas pipeline solutions such as Solitaire, an offshore pipeline laying vessel.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 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.
Based on product, the market is segmented into oil and gas. The market share growth by the oil segment will be significant during the forecast period. The oil segment of the global market includes offshore pipelines for the transportation of crude oil, condensate, and refinery products. Crude oil and condensate are transported from oilfield production sites to refineries, whereas refinery products are transported from refineries to the centers of final consumption.
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The oil segment was the largest segment and valued at USD 5.37 billion in 2018. Global population growth and economic development, especially in Asian countries such as India and China, have led to a rise in global energy demand. As a result, many countries are taking initiatives to increase investments in oil and gas E&P activities and raise the production of hydrocarbons. For instance, Norway has planned to expand its offshore oil E&P activities, with its Johan Sverdrup and Johan Castberg oil and gas fields expected to start production in December 2022. Thus, the increasing number of E&P activities will enhance crude oil and condensate production, which, in turn, will foster the growth of the market further during the forecast period. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segment along with their reasons for growth from 2017 to 2027. The growth of this segment is primarily attributed to the increasing adoption, which is driven by an increase in the global demand for the industry during the forecast period.
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Europe is estimated to contribute 50% 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. Western Europe and Russia dominate the market in Europe, largely driven by the numerous projects in the North Sea. For instance, in May 2022, BP PLC, a global oil and gas firm based in the UK, invested USD150 billion to develop the Murlach oil field in the North Sea by 2025. Such projects will ensure continued investment opportunities for upstream oil and gas companies in the region, offering several revenue-generation opportunities for players operating in the market in Europe during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is experiencing significant growth due to several key factors. The rising exploitation of shale gas resources and the continuous need for hydrocarbon imports are driving the demand for robust pipeline infrastructure. As urbanization increases, the automotive sector and other industries demand more refined goods, contributing to the expansion of offshore pipeline technology. Companies like Exxon Mobil, Rosneft, Dow DuPont, Snam, and Enbridge are leading the way in developing new pipeline networks to support the global energy needs. LNG projects and TPC gas pipelines are pivotal in transporting liquefied natural gas to the final destination. The Mediterranean Sea and the Gulf of Mexico are notable regions for ongoing and future exploration wells, such as the Nargis-1 exploration well by Eni.
Moreover, offshore pipelines face challenges like spillage, tides, cyclones, and threats from military adversaries, oil smugglers, and armed rebels. Ensuring pipeline integrity and mitigating risks from cybercrimes are critical, with companies employing advanced subsea processing systems and pipeline integrity services. Green energy producers and the power generation sector are also exploring offshore solutions for sustainable energy. Technological advancements in sensor and control connections enhance the efficiency of subsea pipes, while multipurpose support vessels and tension leg platforms like the Powell tension-leg platform from Talos Energy ensure operational stability. The market landscape depends on Shale gas resource, Strategic energy, WANs, LANs, Plastics. Companies such as Salzgitter Mannesmann and Lime Rock play crucial roles in providing the necessary materials and technologies for the sector. The continuous expansion and innovation in the market ensure a steady supply of energy, chemicals, medications, and polymers to meet global demands.
Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.58% |
Market growth 2024-2028 |
USD 4.17 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.1 |
Regional analysis |
Europe, Middle East and Africa, APAC, South America, and North America |
Performing market contribution |
Europe at 50% |
Key countries |
Russia, Turkey, Norway, Saudi Arabia, and China |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Allseas Group SA, ArcelorMittal SA, Atteris Pty. Ltd., Fugro NV, JFE Holdings Inc., John Wood Group PLC, Larsen and Toubro Ltd., McDermott International Ltd., National Petroleum Construction Co., Nippon Steel Corp., PAO Severstal, TMK, Saipem S.p.A., Salzgitter AG, Sapura Energy Berhad, Shengli Oil and Gas Pipe Holdings Ltd., Subsea 7 SA, TechnipFMC plc, Tenaris SA, and United Metallurgical Co. |
Market dynamics |
Parent market analysis, Market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Sector
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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