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The Onshore Oil And Gas Pipeline market is estimated to grow at a CAGR of 4.97% between 2022 and 2027. The size of the market is forecast to increase by USD 16.68 billion. The growth of the market depends on several factors, including the increasing global energy demand, the economic benefits of pipeline transportation, and the recent surge in exploration and production activities.
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This report extensively covers market segmentation by application (gas pipelines and oil pipelines) and type (SSAW pipes, LSAW pipes, ERW pipes, and others). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market share growth of the gas pipeline segment will be significant during the forecast period. Gas pipelines are used for transporting natural gas. The pipelines can be gathering lines, transmission lines, or distribution lines. The global oil and gas demand is increasing with an important shift toward gas as fuel for power generation and domestic consumption. Natural gas for power generation requires a continuous supply of natural gas that is achieved by constructing gas pipelines from the supply point to the power plant. With natural gas-fired power plants gaining prominence, gas pipelines will witness an increased demand during the forecast period.
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The gas pipeline segment was valued at USD 32.54 billion in 2017 and continued to grow until 2021. In developing nations, domestic cooking fuel that is supplied in the city gas distribution (CGD) network is witnessing a rapid change from liquefied petroleum gas (LPG) to natural gas. Natural gas is lighter than LPG and possesses the same burning characteristics as LPG. Also, the supply to domestic households is done through pipelines instead of LPG cylinders. This results in continuous and reliable supply, keeping logistics costs low. The increase in CGD activities in countries such as India will increase the demand for natural gas and gas pipelines during the forecast period.
The surge in exploration and production activities is notably driving the market growth, although factors such as risks involved in oil and gas transportation via pipelines 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 Market Driver
The surge in exploration and production activities is notably driving market growth. There has been an increase in oil and gas E&P activities, mainly due to the increasing investments in the oil and gas E&P sector. Increasing E&P activities are taking place in both onshore and offshore areas. In onshore areas, unconventional E&P activities, such as shale, are increasing significantly.
Moreover, the depletion of oil and gas from easily accessible onshore locations is also encouraging oil and gas E&P companies to look for less explored areas. Onshore oil reserves are approaching maturity or beginning to face depletion. This is leading upstream oil and gas companies to shift their focus to deep-water and ultra-deep-water oil and gas wells due to their large reserves and untapped potential. The future of deep-water and ultra-deep-water projects is expected to be bright because of the rising prices of crude oil. Thus, a surge in E&P activities will spur the growth of the market during the forecast period.
Significant Market Trend
Satellite-based pipeline monitoring systems are the primary trend in the market. Satellite communication is the only available and cost-effective Supervisory Control and Data Acquisition (SCADA) communication option for the effective and efficient monitoring and management of pipeline control valves in harsh terrain such as mountainous regions. For instance, SatSCADA, offered by Bentek Systems, is a satellite-based pipeline remote monitoring SCADA platform. It features satellite-based terminals that are connected to the satSCADA server via an Inmarsat Satellite Network. The SatSCADA system utilizes the Inmarsat geosynchronous satellite, which enables it to get global coverage without the need to reconfigure or recommission the system. With benefits such as safety, reliability, and rapid deployment, satellite-based monitoring and communication such as SatSCADA have widespread application potential in the future.
Major Market Challenge
Risks involved in oil and gas transportation via pipelines is the major challenge impeding market growth. The use of pipelines to transport the produced oil and gas is an old practice, and the oil and gas industry has been using it for several decades. However, since many of these oil and gas pipelines are very old, their continued use involves many risks. This is because the pipelines are built from iron alloys or steel, which tend to corrode gradually with the passage of time. Corrosion is the main reason for the failure of oil and gas pipelines, as corrosion leads to the leakage of oil and gas from the pipelines, which can have a significantly negative impact on the surrounding environment as well as the people living nearby. Fuel theft is another major risk associated with oil and gas transportation via pipelines. There have been many cases of fuel theft from oil and gas pipelines due to the lack of surveillance. Thus, the risks involved in oil and gas transportation via pipelines can pose a challenge to the growth of the market during the forecast period.
Key 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 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.
BP Plc - The company offers onshore oil and gas pipelines such as crude oil pipelines and Olympic pipelines under the Oil production and operations segment. Under this segment, the company comprises regions with upstream activities that predominantly produce crude oil.
The 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.
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APAC is estimated to contribute 43% 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.
APAC has experienced high oil demand owing to rising consumption in countries such as China, India, Japan, South Korea, and Indonesia. The growing demand for oil has put pressure on these countries as well as globally to meet the high demand in the future. This calls for the need to increase oil and gas exploration and production (E&P) activities in the region, which will drive the growth of the market during the forecast period. New exploration policies have come up in India, which are expected to boost activities in the upstream oil and gas industry during the forecast period. India aimed to double its domestic oil production by 2022 with the help of changes in policies. New exploration activities, along with existing plans, will require the laying of the crude oil and natural gas pipeline networks for easy transportation of the end products, in turn driving the growth of the market in APAC.
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.
Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.97% |
Market growth 2023-2027 |
USD 16.68 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.56 |
Regional analysis |
APAC, North America, Middle East and Africa, Europe, and South America |
Performing market contribution |
APAC at 43% |
Key countries |
US, Canada, China, India, and Russia |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Abu Dhabi National Oil Co., ArcelorMittal SA, Baosteel Group Corp., Bechtel Corp., BP Plc, Burrow Global LLC, Essar Global Fund Ltd., GAIL (India) Ltd., General Electric Co., Gulf Companies, Hyundai Heavy Industries Co. Ltd., Jiangsu Yulong Steel Pipe Technology Co., Ltd., JSW STEEL Ltd., SAIPEM SpA, Salzgitter AG, Sentiec Oyj, Shengli Oil and Gas Pipe Holdings Ltd., TechnipFMC plc, Tenaris SA, and Zhejiang Kingland Pipeline and Technologies Co. Ltd. |
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. |
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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