Oil & Gas Pipeline Market

Market Perspective

The global Oil & Gas Pipeline Market was valued at USD 23.67 billion in 2022 and is projected to reach USD 53.54 billion by 2030, growing at a CAGR of 6.50% from 2023 to 2030.

The global oil and gas pipeline industry has witnessed significant growth and development. Due to the rising energy demand and the continuous search for new oil and gas deposits, the necessity for effective transportation infrastructure has become of utmost importance. As a result, countries around the world have been investing heavily in pipeline projects to ensure a reliable and cost-effective means of transporting these valuable resources.

This has led to the construction of long-distance pipelines that span across continents, connecting oil and gas fields to refineries and distribution centers. Additionally, advancements in pipeline technology have improved the safety and efficiency of transportation, reducing the risk of leaks and spills. These pipelines play a vital role in meeting global energy demands and contribute to the overall stability of the oil and gas market. However, the price volatility & uncertainty related to oil & gas supply may hamper the growth of the market.

Analyst’s Review on Oil & Gas Pipeline Market

The global oil and gas pipeline sector is a lucrative industry with considerable growth prospects in the foreseeable future. The industry is expected to experience substantial investments and technological advancements as a result of the rising energy demand and the necessity for efficient transportation of oil and gas resources.

The increasing need for natural gas as a cleaner alternative to coal, coupled with a growing focus on energy security and the requirement for diversifying energy sources, is fueling the demand for oil and gas pipeline infrastructure. Moreover, governments as well as industry stakeholders acknowledge the significance of ensuring reliable and efficient transportation of oil and gas products, leading to a surge in investments in pipeline construction and maintenance. Furthermore, advancements in technology, such as the utilization of smart pipeline monitoring systems and robotic techniques for pipeline inspection and maintenance, are driving the rapid expansion of the oil & gas pipeline industry.

Market Definition

Oil and gas pipelines are an intricate system of interconnected pipes that facilitate the transfer of oil and gas from production areas to refineries, storage sites, and end-users. These pipelines are of paramount importance in the worldwide energy industry as they ensure the seamless and dependable transportation of these invaluable resources over long distances.

They are typically made of steel and can span thousands of miles, crossing oceans, mountains, and deserts. These pipelines are equipped with pumps and valves that regulate the flow and pressure of oil and gas, ensuring a steady supply to meet the world's energy demands. Without these pipelines, the global oil and gas industry would face significant challenges in delivering the products that power our daily lives.

Market Dynamics

The growth of the oil and gas pipeline market is fueled by the increasing demand for natural gas and the rise in exploration and production activities. Furthermore, advancements in pipeline technology, such as the use of corrosion-resistant materials and improved inspection techniques, also play a significant role in bolstering market expansion. Additionally, government initiatives aimed at enhancing energy security and reducing reliance on foreign oil have a positive impact on the growth of the oil and gas pipeline market.

Furthermore, the growing emphasis on the advancement of alternative energy sources and the shift towards cleaner fuel options has resulted in the incorporation of natural gas pipelines into renewable energy initiatives. This incorporation not only guarantees a more environmentally friendly energy blend but also enhances the requirements for oil and gas pipelines.

Moreover, the increasing demand for effective and affordable transportation of oil and gas across various nations and territories contributes significantly to the market's progress. In general, these factors, along with the consistent development of the oil and gas sector, are anticipated to fuel the expansion of the oil and gas pipeline market in the foreseeable future. Nevertheless, regulatory and environmental obstacles may hinder the market's growth.

Segmentation Analysis

The global oil & gas pipeline market is segmented based on type, stream, application, and geography.

Based on type, the oil and gas pipeline market is bifurcated into crude oil pipeline and natural oil pipeline. The Crude oil pipeline segment is expected to hold a maximum share in 2022, as crude oil pipelines are widely used to transport unrefined oil from extraction sites to refineries or storage facilities. This segment is crucial for the overall functioning of the oil industry as it ensures a steady supply of crude oil for refining and distribution. Additionally, the growth of the crude oil pipeline segment is driven by the increasing global demand for petroleum products. As developing economies continue to industrialize and urbanize, their energy needs are growing, leading to a higher demand for crude oil.

Based on stream, the midstream segment is expected to dominate the market in the year 2022. As midstream sector plays a vital role in maintaining a consistent flow of energy resources by facilitating the transportation of oil and gas from production regions to downstream markets. In addition, the growth of the segment is fueled by the need for significant infrastructure like long-distance pipelines and storage facilities for storage and transit purposes. 

Based on application, the offshore segment is anticipated to dominate the oil & gas pipeline market in the year 2022 as the strategic location of many oil and gas reservoirs offshore necessitates the development of pipelines for extraction and transportation. In addition, advances in technology, particularly in subsea systems and deepwater drilling, have made offshore exploration more feasible and cost-effective. Despite the initial capital investment, offshore projects often yield higher production rates and larger reserves, which make them economically attractive for companies. The cost-effectiveness of these projects is a key factor driving the growth of the segment.

Geographical Analysis

Based on region, the global oil & gas pipeline market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

North America is expected to hold the maximum share of the market revenue in 2022 due to the presence of major oil and gas pipeline infrastructure in countries like the United States and Canada. Additionally, increasing shale gas production in North America is further driving the demand for oil and gas pipelines in the region. Furthermore, the growing focus on the exploration and production of unconventional resources, such as tight oil and gas, is also expected to contribute to the market growth in North America.

Asia-Pacific is anticipated to register the fastest growth rate over the forecast period due to the rapid industrialization and urbanization in countries like China and India, which is fostering the demand for oil and gas transportation. Additionally, exploration and production activities in emerging economies like Indonesia and Malaysia have also contributed to the growth of the oil & gas pipeline market in this region.

Competitive Landscape

The global oil & gas pipeline market study 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 respective market shares across different regions. Expansion & investments are the major strategic initiatives adopted by companies in this sector. Industry players are investing heavily/extensively in R&D activities, building new manufacturing facilities, and supply chain optimization. The major players in the oil & gas pipeline market are:

• Tenaris
• TMK Group
• Mott MacDonald
• ConocoPhillips Company.
• Chevron Corporation
• TechnipFMC plc
• Evraz
• Welspun
• Shell Pipeline Company LP
• NIPPON STEEL ENGINEERING CO., LTD.

Key Developments

August 2022: Oil and Natural Gas Corporation (ONGC) placed an order with Maharashtra Seamless for casing pipes. These pipelines were to be used by government-backed ONGC for its oil and gas exploration projects in states like Rajasthan, Gujarat, Andhra Pradesh, Assam, and Tripura, among others.

June 2022: Tenaris and state-run enterprise Energia Argentina agreed to finish a pipeline that would transport natural gas from Argentina’s Vaca Muerta shale seam. The contract was an ‘important milestone’ in the completion of the 563 km gas pipeline project created to link Neuquen province with Salliquelo, a region west of Buenos Aires.

The global Oil & Gas Pipeline Market is segmented as:

By Type

• Crude Oil Pipeline
• Natural Oil Pipeline

By Stream

• Upstream
• Midstream
• Downstream

By Application

• Onshore
• Offshore

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • 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