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The oil and gas transportation market size is forecast to increase by USD 46.67 billion, at a CAGR of 5.63% between 2023 and 2028. The growth rate of the market depends on several factors, such as the expansion of oil terminals, the shift in freight operations from over-the-road to intermodal, and the rising energy consumption globally. Our market report examines historical data from 2018-2022, besides analyzing the current and forecasted market scenario.
In the APAC region, escalating oil and gas demand in developing nations like India and China has spurred heightened exploration and production activities. This surge in consumption is fueling substantial investments in the oil and gas pipeline sector. Chevron Corp provides oil and gas transportation services through pipelines to refinery storage tanks via 800-foot-long marine tankers managed by the Chevron Shipping Company. Similarly, Energy Transfer LP offers oil and gas transportation services, including seaborne transportation of crude oil using tankers, very large crude carriers, and Suezmax vessels.
Market Forecast 2024-2028
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Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Oil terminals help the overall supply chain by storing crude oil and petroleum products. In addition, they serve as centers for transportation. Furthermore, the rising energy demand has resulted in an increase in the construction of several new oil terminals and pipelines (including oil and gas pipelines), especially in APAC and Africa, where the continuous need for energy is demanding new oil and gas infrastructure.
For instance, in April 2021, Saudi Aramco resumed its development work on three offshore crude expansion projects that will provide an additional 1.15mn b/d of capacity by 2024. In addition, these new exploration and production activities, along with improved and more efficient pipelines transportation. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
Several companies and governments continue to allocate substantial funds toward improving transportation networks, building new infrastructure, and upgrading existing systems to optimize efficiency, safety, and reliability. In addition, this trend encompasses various aspects, including the expansion and construction of new pipelines, terminals, storage facilities, and transportation routes. Furthermore, most of these investments aim to accommodate evolving energy demands, connect new production sites to end markets, and improve connectivity between regions.
Moreover, modernization efforts focus on integrating advanced technologies infrastructure like pipelines, such as smart monitoring systems, automation, and digitalization. In addition, these innovations enhance operational capabilities, enable predictive maintenance, and improve asset management, ultimately increasing the efficiency and lifespan infrastructure. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
The shifting from onshore to deepwater offshore drilling, which is led by some of the established exploration and production companies. In addition, with onshore oil and gas reserves declining, exploration and production (E&P) companies are moving to offshore areas. Furthermore, these companies are shifting their operations to the seabed or offshore rigs.
Moreover, operators of pipelaying vessels are currently required to handle a variety of pipelaying tasks and tools, such as welding apparatus, inspection tools, remotely operated vehicles, risers, flowlines, control systems, and guidewires for lowering the pipes into the ocean floor. Besides having to maintain a large inventory of equipment, harsh geological and environmental conditions pose challenges for operators of pipelaying vessels. Hence, these issues can lead to cost overruns and even abandonment of the pipelines, which poses a challenge to the market. Hence, such factors are hindering the market growth during the forecast period.
The pipelines segment is estimated to witness significant growth during the forecast period. In the global oil and gas transportation market, pipelines stand out as a fundamental mode of transporting vital hydrocarbon resources across vast distances. These networks of pipelines play a pivotal role in moving crude oil, natural gas, and refined petroleum products efficiently and securely. Pipelines offer several advantages over other transportation methods.
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The pipelines segment was the largest segment and valued at USD 85.85 billion in 2018. Further, the need for new gas pipeline construction has been rising in the US with the rise in natural gas production. There are roughly 300,000 miles of natural gas pipelines in the US. To enable oil from practically any field to be shipped to any refinery on-demand, strategic planning entails figuring out the fastest and most cost-effective routes where the pipelines need to be built, along with the number of pumping stations and natural gas compression stations en route, as well as terminal storage facilities. Organizations like the American Petroleum Institute (API) and the International Organization for Standardization (ISO) publish safety standards related to the design and construction of oil gas and chemical pipelines. Overall, pipelines play a critical role in the global oil and gas transportation market, facilitating the movement of highly essential hydrocarbon resources efficiently, economically, and with a lower environmental impact. Thus, the growth in the pipeline segment will boost the growth of the market during the forecast period.
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APAC is estimated to contribute 36% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market growth analysis during the forecast period. Freight cars and trucks will contribute significantly to the growth in the consumption of motor fuels. The total number of such cars is expected to grow by 140 million by 2025 and the growing number of motor vehicles will increase the demand in the region, thus contributing to the regional market growth. APAC is an emerging market. In 2021, APAC accounted for 38% of global oil demand. APAC will also be boosted by the development of both the onshore and offshore gas markets, driven by the growing regional demand and high gas prices in Japan and South Korea.
In addition, China, Indonesia, and Australia are developing shale gas and coal bed methane (CBM) projects, and the offshore market is expected to see floating liquefied natural gas (FLNG) projects and drilling projects at some deepwater areas and shallow-water gas wells. As the region depends heavily on imports this growth in demand for energy is an opportunity for international companies to tap into the burgeoning APAC market. This will drive the growth of the market in the region during the forecast period.
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 transportation services such as pipeline, ship or rail car. Additionally, BP offers a fleet of specialist gas carriers, including the NW Shearwater, to transport liquefied natural gas.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including BP Plc, Chevron Corp., Enbridge Inc., Energy Transfer LP, Euronav NV, Exxon Mobil Corp., FRONTLINE PLC, International Seaways Inc., Kinder Morgan Inc., MITSUI and CO. LTD., Nippon Yusen Kabushiki Kaisha, Pembina Pipeline Corp., PetroChina Co. Ltd., Petroleo Brasileiro SA, Saudi Arabian Oil Co., Scorpio Tankers, Shell plc, TotalEnergies SE, Tsakos Energy Navigation Ltd., and Valero Energy Corp.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research and growth analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The oil and gas midstream market is witnessing dynamic growth globally, with a focus on expanding the global operating oil and gas pipeline length to meet the rising demand for fuel transportation. As this industry evolves, addressing environmental concerns has become a pivotal aspect, particularly in the development of infrastructure for small and complex offshore fields.
The Transportation Sector plays a crucial role in the overall oil and gas transportation industry, prompting the need for new pipeline constructions and enhanced transportation facilities. The sector is also witnessing a surge in natural gas exports, emphasizing the importance of establishing an efficient pipeline network to facilitate smooth and sustainable energy transportation. In the competitive landscape of the market, companies are focusing on innovative solutions and technologies to optimize operations, ensuring the seamless flow of resources across the global energy market.
Oil and Gas Transportation Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.63% |
Market Growth 2024-2028 |
USD 46.67 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.79 |
Regional analysis |
APAC, North America, Middle East and Africa, Europe, and South America |
Performing market contribution |
APAC at 36% |
Key countries |
US, Saudi Arabia, China, India, and Russia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BP Plc, Chevron Corp., Enbridge Inc., Energy Transfer LP, Euronav NV, Exxon Mobil Corp., FRONTLINE PLC, International Seaways Inc., Kinder Morgan Inc., MITSUI and CO. LTD., Nippon Yusen Kabushiki Kaisha, Pembina Pipeline Corp., PetroChina Co. Ltd., Petroleo Brasileiro SA, Saudi Arabian Oil Co., Scorpio Tankers, Shell plc, TotalEnergies SE, Tsakos Energy Navigation Ltd., and Valero Energy Corp. |
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, 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. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Mode of Transportation
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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