Oil and Gas Pipeline Market

Oil and Gas Pipeline Market Size

The Oil and Gas Pipeline Market size was valued at USD 86.83 billion in 2023 and is projected to grow from USD 91.65 billion in 2024 to USD 139.54 billion by 2031, exhibiting a CAGR of 6.19% through the forecast period. Rising global energy demand, driven by industrialization, urbanization, and population growth, necessitates extensive oil and natural gas pipeline networks for efficient energy transportation.

In the scope of work, the report includes products offered by companies such as Tenaris., TMK, Vallourec, Evraz, Baosteel Co.,Ltd., TechnipFMC plc, NOV, Welspun, Rezayat Group, DiScho Vermögensverwaltung GmbH & Co. KG, and others.

The oil and gas pipeline market is a crucial segment of the global energy infrastructure, enabling the efficient transportation of oil, natural gas, and other energy resources. This market underpins energy security and stability while ensuring reliable resource distribution to industries and consumers worldwide.

The market encompasses the design, construction, operation, and maintenance of pipeline networks that transport oil, natural gas, and other energy resources across vast distances. These pipelines connect production areas, such as oil fields and gas reservoirs, with refineries, distribution points, and end consumers.

Covering both onshore and offshore systems, the market ensures efficient and reliable energy supply. The oil and gas pipeline industry supports energy security and enables companies to meet domestic and international demand, thereby contributing to the stability of the global energy sector.

Analyst’s Review

Key players in the oil and gas pipeline market are focusing on strategic expansion through investments in infrastructure, technological innovations, and operational efficiency improvements, supported by government policies and incentives.

Key initiatives include the modernization of aging pipelines, adopting advanced monitoring systems, and enhancing operational safety, often with governmental backing. The replacement of outdated pipelines with more efficient models also remains a key focus.

• In October 2024, the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) allocated USD 196 million in grants under the Biden-Harris Administration’s Bipartisan Infrastructure Law. This funding will support 60 natural gas pipeline modernization projects across 20 states, highlighting governmental commitment to infrastructure upgrades.

In response to increasing energy demand, these players are diversifying their offerings, exploring new regions, and strengthening partnerships for large-scale projects. Their strategies emphasize ensuring reliable energy delivery while maintaining sustainability and reducing environmental impact.

• In April 2024, Ramco secured a long-term contract with Equinor to supply significant volumes of oil and gas pipes for operations in key regions such as the Barents Sea. This partnership highlights Ramco's focus on strategic growth, sustainability, and technological development.

Oil and Gas Pipeline Market Growth Factors

The discovery of new conventional oil and gas reserves fuels the growth of the oil and gas pipeline market. Exploration in untapped or challenging regions increases demand for transportation infrastructure, prompting the development of new pipelines and the expansion of existing networks to efficiently deliver these resources to refineries, processing plants, and consumers.

These discoveries spur investments in pipeline construction, maintenance, and technological innovations, bolstering market expansion.

• In August 2024, India’s ONGC announced five new discoveries, including both onshore and offshore reserves. These findings, such as the PURN-1 and West Matar-2 wells, expand exploration opportunities and highlight the growing need for enhanced pipeline infrastructure to transport the newly identified resources.

Geopolitical risks, including political instability and changing regulations in key regions, pose significant challenges to the expansion of the oil and gas pipeline market. These risks can lead to project delays, cost increases, or cancellations, particularly in politically unstable areas. To mitigate these risks, companies can diversify their operations across stable regions, conduct comprehensive risk assessments, and develop contingency plans.

Building strong relationships with local governments, ensuring regulatory compliance, and securing long-term agreements can further stabilize operations and reduce the impact of geopolitical uncertainties.

• In October 2024, the UN Security Council addressed the geopolitical risks related to the Nord Stream pipeline explosions, highlighting challenges for oil and gas pipeline projects in politically unstable regions. This discussion underscores the increasing importance of securing energy infrastructure amid rising global tensions and the need for resilient energy policies in the face of geopolitical volatility.

Oil and Gas Pipeline Industry Trends

The oil and gas pipeline market is increasingly focusing on sustainability in response to growing environmental concerns and regulatory pressures. Companies are adopting eco-friendly practices, such as using low-carbon materials, reducing emissions, and ensuring better energy efficiency.

Additionally, there is a notable shift toward developing pipeline systems that minimize environmental impact, including reducing the risk of leaks and spills. This trend is essential for meeting stricter environmental regulations, enhancing corporate responsibility, and contributing to the global effort to reduce the carbon footprint in energy transportation.

• In January 2024, GRDF installed the world’s first fully sustainable gas pipeline in Clermont-Ferrand, made from INEOS bio-based HDPE derived from wood processing residues. This bio-polymer reduces carbon footprint, meets ISCC certification standards, and offers a recyclable, eco-friendly alternative to conventional materials.

Smart pipeline technologies are revolutionizing the oil and gas sector by enhancing operational efficiency and safety. These advanced systems use sensors, real-time monitoring, and data analytics to detect leaks, monitor pressure, and predict potential failures before they occur.

By providing early warnings of maintenance needs, they enable predictive maintenance, reducing downtime and operational costs. Additionally, smart pipelines improve safety by facilitating rapid responses to emergencies, minimizing environmental risks, and ensuring regulatory compliance, leading to more reliable and sustainable pipeline operations.

• At MWC Barcelona 2024, SONATRACH, in collaboration with Huawei, introduced a smart oil and gas pipeline fiber sensing solution. Leveraging distributed fiber optic technology. This innovation enables real-time, high-precision inspections, reducing operational costs, enhancing safety, and improving pipeline management, with continuous, 24/7 monitoring.

Segmentation Analysis

The global Market has been segmented based on location, type, and geography.

By Location

Based on application, the market has been segmented into onshore and offshore. The onshore segment led the Oil and Gas Pipeline market in 2023, reaching a valuation of USD 54.94 billion. This growth is largely attributed to the increasing demand for energy resources, particularly in emerging economies.

The growing demand for transporting crude oil and natural gas from production fields to refineries, distribution centers, and consumers is highlighting the need for onshore pipelines. Technological advancements in pipeline construction, monitoring, and safety measures have improved operational efficiency and safety, attracting more investment.

Additionally, onshore pipelines offer lower costs and faster installation compared to offshore systems. The focus on energy security and regional infrastructure development further supports the growth of onshore oil and gas pipeline projects.

By Type

Based on technology, the market has been bifurcated into crude oil pipeline and gas pipeline. The crude oil pipeline segment secured the largest revenue share of 68.88% in 2023.

Crude oil pipelines are gaining traction due to increasing global demand for crude oil and the need for efficient transportation systems. As production rises, particularly from non-conventional sources such as shale, the demand for pipelines to transport crude to refineries and distribution centers increases.

These pipelines are cost-effective and offer high-capacity transportation over long distances, making them an ideal solution for transporting large volumes of oil. Additionally, advancements in pipeline technology, safety measures, and a focus on energy security are contributing to the growth of the segment.

Oil and Gas Pipeline Market Regional Analysis

Based on region, the global Market has been classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

The Asia-Pacific Oil and Gas Pipeline Market held a substantial share of around 37.25% in 2023, with a valuation of USD 32.35 billion. This dominance is reinforced by the region’s rapid industrialization, growing energy demand, and expanding infrastructure development.

Countries such as China and India are creating a strong demand for energy, necessitating the development of extensive pipeline networks for efficient oil and natural gas transportation. Moreover, the region is prioritizing modernizing aging infrastructure and expanding pipeline networks to ensure energy security.

Additionally, the presence of major energy producers and increasing cross-border trade, has positioned Asia-Pacific as a key market for oil and gas pipelines.

• In March 2024, JX Nippon Oil & Gas Exploration Corporation and Chevron New Energies signed a Memorandum of Understanding (MOU) to explore the export of CO2 from Japan to Carbon Capture and Storage (CCS) projects in Australia and the broader Asia Pacific region. The partnership aims to evaluate the feasibility of the CCS value chain, including CO2 capture, transportation, and potential development of storage sites in multiple countries.

Europe Oil and Gas Pipeline Market is expected to witness significant growth over the forecast period, registering a CAGR of 6.09%. Europe is emerging as a fast-growing region due to its strategic focus on diversifying energy sources and improving energy security. European countries are intensifying efforts to reduce dependency on external energy supplies by significantly investing in expanding pipeline networks to enhance intra-region energy trade.

Additionally, the region’s focus on sustainability and decarbonization is accelerating the development of efficient, eco-friendly pipeline technologies. Government policies supporting infrastructure projects and efforts to modernize existing pipelines are propelling regional market growth.

Competitive Landscape

The global Oil and Gas Pipeline Market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions.

Strategic initiatives, including investments in R&D activities, the establishment of new manufacturing facilities, and supply chain optimization, could create new opportunities for market growth.

List of Key Companies in Oil and Gas Pipeline Market

• Tenaris.
• TMK
• Vallourec
• Evraz
• Baosteel Co.,Ltd.
• TechnipFMC plc
• NOV
• Welspun
• Rezayat Group
• DiScho Vermögensverwaltung GmbH & Co. KG

Key Industry Developments

• October 2024 (Expansion): Enbridge Inc. announced plans to build, own, and operate the Canyon Oil and Canyon Gas pipelines for BP’s Kaskida development in the U.S. Gulf of Mexico. The $700 million project, set to be operational by 2029, aims to expand Enbridge’s footprint, strengthen its natural gas portfolio, and generate stable cash flow.

 The global Oil and Gas Pipeline Market has been segmented as:

By Location

• Onshore
• Offshore

By Type

• Crude Oil Pipeline
• Gas Pipeline

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • U.K.
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America