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The pipeline transport market size is forecast to increase by USD 26.71 billion, at a CAGR of 3.18% between 2023 and 2028. The market's growth is influenced by several key factors. One major factor is the benefits of pipelines over other modes of oil and gas transportation, such as lower operational costs and higher efficiency. Additionally, pipelines are considered more environmentally friendly compared to other transportation methods, as they reduce the carbon footprint and risk of spills. Furthermore, the increasing adoption of smart monitoring systems and corrosion-resistant materials enhances pipeline safety and longevity, driving further market expansion. These factors collectively underscore the advantages of pipelines in the oil and gas industry, highlighting their role in sustainable and efficient energy transport.
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The oil and gas segment is estimated to witness significant growth during the forecast period. Oil and gas production has historically been a significant factor in the global market. Government programs have played a major role in forming this sector. For instance, the Biden administration in the United States has raised controls and limits on new oil and gas pipelines as a result of its emphasis on clean energy and environmental sustainability.
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Government initiatives to improve infrastructure development and energy security in nations like India have sparked investments in oil and gas pipeline and transportation automation. For instance, the Nord Stream 2 project in Russia is a prime example of a government-backed initiative to improve the transportation of oil and gas. Furthermore, even while some regions are transitioning away from a reliance on oil and gas, others continue to give these pipelines top priority and support because of their need for economic and energy security. Hence, such factors are fuelling this segment which in turn will drive the growth during the forecast period.
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North America is estimated to contribute 48% 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.
One of the major factors contributing to the market in the region is the economic expansion in countries such as the US, Canada, Mexico, and others. In addition, the market in North America, particularly the US pipeline transportation market, has recently shown resilience and development. Moreover, several initiatives from the government were essential in creating this situation. For example, the Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011 improved safety standards and regulatory predictability, boosting investor confidence. Hence, such factors, coupled with strategic governmental initiatives like the mentioned Act, are driving the market in North America during the forecast period.
The market is integral for the efficient movement of oil & gas, chemicals, and other resources. Key players in OPEC countries and the European continent rely on extensive networks of transmission pipelines, distribution pipelines, and gathering pipelines. Innovations in automation & control solutions, security solutions, and integrity & tracking solutions enhance the reliability and safety of these networks. Additionally, network communications, maintenance & support services, managed services, and consulting services are crucial for operational efficiency. The market faces challenges from inflationary influences and transport cost, but remains crucial due to its environment friendliness, flexibility, and lower operating cost compared to conventional transportation methods. Oil & gas pipeline projects continue to be pivotal for global energy supply, with the International Monetary Fund highlighting their economic significance.
One of the key factors driving the market is the environmentally friendly nature of pipelines as a mode of transport. A key factor fuelling is the conviction that pipelines are a more environmentally friendly means of transportation than alternatives like shipping or trucking. In addition, the selection is mostly attributable to pipelines' smaller carbon footprint and lessened environmental impact.
For example, compared to trucks and ships, onshore oil and gas pipelines create fewer greenhouse emissions per unit of goods delivered. As a result, this makes pipelines a desirable alternative for the transportation of oil, natural gas, and other energy resources because it is in line with efforts made on a global scale to combat climate change and reduce emissions. Therefore, the adoption of onshore oil and gas pipelines is expected to drive the market during the forecast period, aligning with sustainability goals and regulatory pressures to reduce environmental impact.
A key factor shaping the market is the development of pipelines for transporting hydrogen. The expanding trend of building pipelines for transporting hydrogen is a significant development in the global market. In addition, hydrogen is essential for the decarbonizing industry and reaching environmental objectives. Therefore, the need for green hydrogen, which is created by electrolysis utilizing renewable energy sources, is fuelling this trend.
Moreover, countries like Japan are making investments in hydrogen infrastructure with plans to use offshore oil and gas pipelines to transfer hydrogen from production centers to consumption hubs. Furthermore, the shift in development in the energy sector includes the adaptation of the offshore oil and gas pipeline transport sector, as businesses and governments throughout the world embrace hydrogen as a sustainable energy source. Therefore, the adoption and expansion of offshore oil and gas pipelines for hydrogen transport are expected to drive the market during the forecast period, facilitating the efficient and sustainable distribution of hydrogen across regions.
The high cost of maintenance of pipeline and transportation infrastructure is one of the key challenges hindering the market. Pipelines require routine maintenance to maintain their reliability, safety, and efficiency because they frequently travel through a variety of terrains over great distances. In addition, inspections, corrosion control, leak repairs, damage repairs, and compliance with developing safety rules are all maintenance costs that necessitate significant financial outlays.
For example, the US, which has one of the largest pipeline networks worldwide, has to pay billions of dollars in maintenance expenses every year. In addition, due to specialized equipment and environmental considerations, pipelines in distant or environmentally sensitive places, including Arctic regions or water crossings, involve significantly greater costs. As a result, this financial load may have an adverse effect on the profitability of pipeline operators, reducing the accessibility and long-term viability of pipeline transportation as a means of delivering resources and energy. Hence, such factors are negatively impacting the growth. Therefore, it is expected to hinder the market during the forecast period.
The market research report includes the adoption lifecycle, 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 expansion strategies.
Global 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.
ABB Ltd: The company offers telecoms and control systems for TANAP gas pipeline.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 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 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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The market plays a critical role in the movement of crude oil, liquefied natural gas, petroleum products, and hazardous chemicals. Key infrastructure projects like the Nord Stream 2 pipeline and the Wahalajara system in Texas and Guadalajara illustrate the importance of a robust pipeline network. The market supports various sectors, including oil refineries, the chemical sector, and the transport of biofuels, sewage, and even beer. Despite challenges like CO2 emissions, pollution, and transshipment losses, the industry continues to expand with investments in LNG export terminals and hydrogen pipelines. Advanced materials like carbon steel and plastic tubes improve capacity and reduce hazards. Capital expenditures and initial investment remain significant, influenced by terrain and the need for reliable support services. The transition to renewable resources and addressing climate risk are shaping the future of this vital transportation system.
Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.18% |
Market growth 2024-2028 |
USD 26.71 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.66 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 48% |
Key countries |
US, Canada, China, Russia, and Ukraine |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., China National Petroleum Corp., ConocoPhillips Co., Emerson Electric Co., Enbridge Inc., Energy Transfer LP, Enterprise Products Partners LP, General Electric Co., Huawei Technologies Co. Ltd., Indian Oil Corp. Ltd., Inter Pipeline Ltd., Kinder Morgan Inc., ONEOK Inc., Plains All American Pipeline L.P., Rockwell Automation Inc., Shell plc, Siemens Energy AG, TC Energy, TechnipFMC plc, and West Shore Pipe Line Co. |
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 market 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 Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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