PUBLISHER: Allied Market Research | PRODUCT CODE: 1239610
PUBLISHER: Allied Market Research | PRODUCT CODE: 1239610
The global pipeline equipment market was valued at $12.5 billion in 2021 and is projected to reach $18.7 billion by 2031, registering a CAGR of 4.2% from 2022 to 2031.
Pipeline equipment means all pipe, fittings, pumps, telephone and telegraph lines, and all other material and equipment used or intended to be used as part of or incident to the construction, maintenance, and operation of a pipeline for the transportation of oil, gas, water, or other liquid or gaseous substance. The various types of piping equipment include gaskets, valves, flanges, actuators, pipes, and fittings.
The abundance of natural gas reserves and its lower cost when compared to other fossil fuel types are expected to increase the demand for natural gas from a variety of end-use industries, including the power generation sector. Therefore, it is anticipated that during this period, the market for gas pipelines will expand. Russia and Pakistan will build a new gas pipeline as part of a $2 billion agreement. India and Russia also signed a $40-billion agreement regarding natural gas exports to India. Such significant projects are expected to propel the pipeline sector.
Offshore oil and gas fields have been created because of the depletion of onshore resources and the rise in demand for fossil fuels for transportation, power generation, and the manufacture of various chemicals. The global offshore rig count is the result of growing government and private sector investment leading to the exploration of offshore oil and gas fields. The demand for sophisticated drilling and transportation equipment for oil and natural gas to onshore for other facilities has increased because of the rise in rig count. The market for pipeline equipment is expanding primarily due to the advantages mentioned above.
Fuel and other product transportation via pipeline is more effective and less dangerous than conventional transportation; however, pipeline construction is very expensive, necessitating the use of pipeline equipment of the highest caliber. In addition, compared to the rate of returns, the lifespan of the pipeline systems is very short. As a result, most manufacturers of pipeline equipment are investing in research to create effective machinery that can be used in pipeline equipment. During the projected period, the factor is anticipated to restrain market growth for pipeline equipment.
The expansion of oil and gas resources both onshore and offshore, as well as the rise in demand for high-end pipeline equipment products in the new areas of unconventional resources, will create favorable business development opportunities. Investors are being encouraged to invest in the exploration of unconventional fuel resources by the shale gas revolution in the U.S. To meet future energy demands, both the government and private organizations have expressed a strong interest in finding new oil well reserves. During the forecast period, there will be a rise in policies aimed at reducing reliance on hydrocarbon imports by locating conventional and unconventional reserves within national borders, which will present several opportunities for the pipeline equipment market.
The global pipeline equipment market analysis is segmented on the basis of application, end use, and region. By application, the market is divided into liquid pipelines and gas pipelines. By end use, it is divided into oil and gas, chemicals, water & wastewater, energy, and others. By region, the market is segmented into North America, Europe, Asia-Pacific, and LAMEA
Key players in the pipeline equipment industry include: Destec Engineering Limited, Siderforgerossi, LTS Energy, Arnco, Avesta Steels & Alloys, RBV Energy, Fittinox S.R.L., Arabian Oilfield Supplies & Services, Aqueterra Group Ltd., Weir Oil & Gas, and AFG Holdings Inc. These players have adopted various strategies to gain a higher share or retain leading positions in the market.
The COVID-19 pandemic led to a decline in the demand for the pipeline equipment market due to a decrease in the demand for power generation and chemical manufacturing industries across the globe. In addition, the shutdown of manufacturing industries and the demand for power from various industries have a significant impact on the market. Pipeline projects witnessed delays due to imposed lockdown restrictions in major countries like the U.S., India, and other countries. The decreased gas demand due to the decline in electricity consumption and travel restrictions also negatively affected gas consumption in several countries.
The rising oil and gas consumption and pipeline capacities are being expanded, and new pipeline projects are being commissioned in developing countries to counter pandemic situations in the future. The above-mentioned factors will drive the growth of the global pipeline equipment market.