Enjoy complimentary customisation on priority with our Enterprise License!
The oil and gas pipeline market size is forecast to increase by USD 55.64 million, at a CAGR of 4.6% between 2023 and 2028. The report includes historic market data from 2018-2022. The market experiences increasing demand for technological advancements in pipeline inspection, digitalization of pipeline networks, and the development of new exploration policies. These trends reflect industry efforts to enhance efficiency, safety, and compliance with evolving regulatory frameworks. As demand grows for advanced inspection technologies and digital infrastructure, stakeholders must navigate policy changes to capitalize on emerging opportunities in pipeline development and exploration.
For More Highlights About this Report, Download Free Sample in a Minute
Digitization of pipeline networks is an emerging trend in the market. Oil and gas pipelines carry crude oil, natural gas, and petroleum products including gasoline and diesel to the points of consumption. In addition, these pipelines are essential for new reservoir development as they aid in carrying the hydrocarbons from the oilfields to the market. Furthermore, with the development of new reservoirs, more oil and gas can be produced from oilfields.
Moreover, this will drive the demand for pipelines to transport oil and gas to the processing facilities and from there to refineries. In addition, the length of pipelines is increasing due to the developments taking place in the upstream this sector. Furthermore, new pipelines are being constructed worldwide to support the transport of this to various destinations. Hence, such factors are driving the market growth during the forecast period.
The onshore segment is estimated to witness significant growth during the forecast period. Onshore segments are manufactured in onshore areas to transport oil and gas and other resultant products to various destinations to meet energy demand. In addition, onshore drilling activities play an important role in the development of the upstream sector. Furthermore, in onshore oil and gas E&P operations, the operating cost of drilling oil and gas is much lower than in offshore oil and gas drilling activities.
Get a glance at the market contribution of various segments Download PDF Sample
Moreover, this is because offshore oil and gas well drilling needs the use of more advanced technologies. In addition, the construction cost of onshore pipelines is much lower than that of offshore pipelines. Furthermore, the construction of onshore pipelines is more feasible than offshore pipelines. In addition, oil and gas E&P companies are also investing more in onshore oil and gas E&P activities, which are likely to increase the production of oil and gas and, subsequently, increase the output of refinery products. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 33% 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. Oil and gas demand in developing countries including India and China has increased in recent years, which resulted in increased oil and gas E&P activities in the region. In addition, the increase in consumption of oil and gas is driving large investments in the pipeline sector.
Moreover, China is one of the largest consumers and producers of oil, including crude oil, all other petroleum liquids, and biofuels. For instance, in 2021, China had a 16% share of the total global oil consumption and was the second-largest global consumer of oil. In addition, the rising price of crude oil is also leading to an increase in investments from members in the value chain of the E&P sector to gain high and stable profitability. Therefore, drilling projects are increasing. Hence, such factors are driving the market growth during the forecast period.
The market is witnessing significant developments such as the Baltic Pipe Project and capacity expansions to meet demand for natural gas across end-use sectors including electricity generation. With a focus on energy security and environmental benefits, the market facilitates international trade and LNG exports, supported by existing infrastructure and offshore activities. Fossil fuel types drive pipeline capacities, ensuring reliable oil and gas demand fulfillment. As new pipeline projects emerge, the market experiences installation growth, monitored by the global energy monitor. This trend reflects the market's pivotal role in natural gas consumption and LNG trade worldwide.
Rising energy consumption globally notably drives market growth. The consumption of oil and gas is increasing due to the rising global energy demand. In addition, the consumption of oil and gas is expected to grow in the coming years due to rising industrialization and rapid urbanization in developing countries such as India and China. Furthermore, there has been rapid growth in global energy demand in recent years due to robust economic growth.
Therefore, in 2022, global energy consumption grew by 2.1% over 2019. In addition, the global demand for oil and natural gas is also increasing steadily, owing to global economic growth. For example, global oil consumption reached a million barrels per day in 2023. Furthermore, the growth in industrialization, especially in developing countries, will drive the demand for energy. Hence, such factors are driving the market growth during the forecast period. Additionally, end-use sectors, energy security, and environmental benefits are significant considerations in the market trends.
Risks associated with oil and gas pipelines are a major challenge hindering the market growth. Pipelines are the most preferred mode of transportation for crude oil and natural gas from oil and gas production centers to consumption centers. In addition, pipelines need less energy to operate than rail tanks and trucks and have a lower carbon footprint. Thus, the pipelines play an important role in crude oil and natural gas transportation.
Moreover, the use of pipelines to transport the produced oil and gas is an old practice, and the industry has been using it for several decades. However, since several of these oil and gas pipelines are very old, their continued use involves many risks. In addition, corrosion is the main reason for the failure these pipelines. Furthermore, such, corrosion leads to leakage of oil and gas from the pipelines, which can have a significantly negative impact on the surrounding environment as well as the people. Hence, such factors are hindering the market growth during the forecast period.
The market research 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.
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.
BP Plc: The company offers oil and gas pipeline construction of up to 48 inches in diameter in urban, rural, remote high altitude, and even desert areas. some of the featured projects include the NGTL 2021 Expansion Program 100 km south of Grande Prairie Alberta, SoCalGas PSEP Performance Partnership in Southern California, North Fork Nooksack Line Lowering in Deming, Washington and others.
The research report also includes detailed analyses of the competitive landscape of the market and information about 21 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is witnessing significant growth driven by factors such as the increasing demand for natural gas reserves and the expansion of pipeline networks to meet power generation needs. With a focus on carbon emission reduction, there's a surge in liquefied natural gas (LNG) and renewable resources transportation through cross-country pipelines. Investments in existing infrastructure and offshore activities support oil and gas pipeline installation growth, particularly in regions rich in shale gas deposits. The market addresses challenges like price pressure by providing affordable transportation solutions while accommodating various fossil fuel types to meet global energy demands.
Further, the oil and gas pipeline market is experiencing significant growth, with a focus on enhancing capacity expansions and pipeline network expansion to meet the rising demand for natural gas consumption across various end-use sectors. Initiatives like the Baltic Pipe Project and investments in new pipeline projects are aimed at ensuring energy security and promoting environmental benefits through the adoption of renewable sources and alternative energy sources. Companies are leveraging smart pipeline monitoring systems and robotic techniques to address challenges such as corrosion-resistant materials and mitigate risks like leaks and spills while optimizing supply chain and pipeline technology for efficient operations.
Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.6% |
Market Growth 2024-2028 |
USD 55.64 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.74 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 33% |
Key countries |
US, Canada, China, India, and Russia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ArcelorMittal SA, Barnard Construction Co. Inc., Bechtel Corp., Bharat Petroleum Corp. Ltd., BP Plc, Erndtebcker Eisenwerk GmbH and Co KG, GAIL (India) Ltd., Indian Oil Corp. Ltd., Larsen and Toubro Ltd., MasTec Inc., National Petroleum Construction Co., Primoris Services Corp., Reliance Industries Ltd., Rezayat Group, Sumitomo Corp., Vallourec SA, AL JABER PRECISION ENGINEERING and CONTRACTING, Amana Contracting and Steel Buildings LLC, Engineers India Ltd., IL and FS Engineering and Construction Co. Ltd., and APA |
Market dynamics |
Parent market analysis, Market forecasting, 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 the 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 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
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.