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The offshore oil and gas pipeline market is estimated to grow at a CAGR of 5.3% and the size of the market is forecast to increase by USD 3,754.62 million between 2022 and 2027. The growth of the market depends on several factors, including the economic benefits of offshore pipelines over other oil and gas transportation modes, the surge in E&P activities, and the rising global energy demand.
This report extensively covers market segmentation by product (oil and gas), sector (upstream, midstream, and downstream), and geography (APAC, North America, Europe, Middle East and Africa, and South America). 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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In 2017, in terms of market size, Europe dominated the market with a share of USD 5,378.60 million. Additionally, Russia was the largest contributor of market share USD 1,614.01 million. The market segment oil recorded the largest contribution in market share of USD 9,002.39 million and continues to grow.
Technavio categorizes the global offshore oil and gas pipeline market as a part of the global oil and gas storage and transportation market within the global oil and gas market. The global oil and gas storage and transportation market cover companies engaged in the transportation and/or storage of gas, oil, and/or refined products. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The economic benefits of offshore pipelines over other oil and gas transportation modes are notably driving the offshore oil and gas pipeline market growth, although factors such as fluctuations in global crude oil and natural gas prices 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 Offshore Oil and Gas Pipeline Market Driver
The economic benefits of offshore pipelines over other oil and gas transportation modes are the key factor driving the global offshore oil and gas pipeline market growth. The primary objective of offshore oil and gas pipelines is to transport crude oil, natural gas, and petroleum products to the desired destination. The destinations are mostly located close to consumption centres.
Other modes of oil and gas transportation include marine vessels such as crude oil tankers and gas tankers. Offshore pipelines, however, are preferred to other modes for the long-distance transportation of offshore oil and gas. The economic benefits of offshore pipelines over other modes will drive the growth of the global offshore oil and gas pipeline market during the forecast period.
Key Offshore Oil and Gas Pipeline Market Trend
Technological advents in offshore oil and gas pipelines will fuel the global offshore oil and gas pipeline market growth. Although offshore oil and gas pipelines are one of the most efficient methods to transport oil and gas, 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 global offshore oil and gas pipeline market during the forecast period.
Key Offshore Oil and Gas Pipeline Market Challenge
Fluctuations in global crude oil and natural gas prices are a major challenge to the global offshore oil and gas pipeline 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 global offshore oil and gas pipeline market during the forecast period.
Key Offshore Oil and Gas Pipeline Market Customer Landscape
The 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 Offshore Oil and Gas Pipeline 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
allseas.com - 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 offshore oil and gas pipeline 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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Transportation and trade activities rely heavily on the availability and supply of energy. 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 of Offshore Oil and Gas Pipelines, which is driven by an increase in the global demand for the offshore oil and gas pipeline industry.
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Europe is projected to account for 50% of global market share growth by 2027. 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 offshore oil and gas pipeline market in Europe, largely driven by the numerous offshore oil and gas pipeline projects in the North Sea. For instance, in May 2022, BP PLC, a global oil and gas firm based in the UK, invested $150 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 offshore oil and gas pipeline market in Europe during the forecast period.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The outbreak of COVID-19 led to a decline in the demand for offshore oil and gas pipelines in Europe. In 2020, the COVID-19 pandemic, coupled with extreme volatility in crude oil and gas prices, negatively impacted the growth of the market in Europe. Therefore, several offshore oil and gas pipeline projects were delayed or put on hold. This severely affected the growth of the regional offshore oil and gas pipeline market. However, the governments of several countries, such as Germany, the UK, and France, lifted lockdown restrictions in 2021 owing to the initiation of vaccination drives and a decline in the number of COVID-19 cases in the region. This resulted in the resumption of offshore oil and gas production operations by oil and gas companies in Europe. However, the rising geopolitical tensions between Russia and Ukraine have negatively impacted the growth of the market in Europe in 2022. Such factors are expected to hamper the growth of the offshore oil and gas pipeline market in Europe during the forecast period.
Our report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by product, sector, and region.
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Offshore Oil and Gas Pipeline Market Scope |
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Report Coverage |
Details |
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Page number |
163 |
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Base year |
2022 |
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Historical year |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.3% |
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Market growth 2023-2027 |
USD 3,754.62 million |
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Market structure |
Fragmented |
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YoY growth (%) |
5.0 |
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Regional analysis |
Europe, the Middle East and Africa, APAC, South America, and North America |
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Performing market contribution |
Europe at 50% |
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Key consumer countries |
US, Turkey, Saudi Arabia, China, Russia, and Norway |
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Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
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Key companies profiled |
Allseas Group SA, ArcelorMittal SA, Atteris Pty. Ltd., Fugro NV, JFE Holdings Inc., John Wood Group PLC, Larsen & Toubro Ltd., McDermott International Ltd., National Petroleum Construction Co., Nippon Steel Corp., PAO Severstal, PAO TMK, SAIPEM SpA, Salzgitter AG, Sapura Energy Bhd, Shengli Oil & Gas Pipe Holdings Ltd., Subsea 7 SA, TechnipFMC plc, Tenaris SA, and United Metallurgical Co. |
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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 Product
7 Market Segmentation by Sector
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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