Asia Pacific Pipeline Maintenance Market - Growth, Trends, Forecasts (2022 - 2027)

The Asia Pacific pipeline market is expected to record a CAGR of more than 2.2% throughout 2022-2027. The outbreak of COVID-19 in Q1 of 2020 negatively impacted the market. Lockdown restrictions imposed by various regions have caused a delay in pipeline construction and maintenance activities across the Asia Pacific. As an example, the Oil and Natural Gas Corporation (ONGC) in India delayed the pipeline replacement project phase in May 2020 because of the COVID-19 outbreak. Order to keep output from ageing pipeline systems and cater to the growing energy demand by expanding oil and gas pipeline infrastructure are just a few of the factors driving the pipeline maintenance services market. Other factors include the development of unconventional oil and gas sources leading to pipeline expansion. In the coming years, high construction costs and delays in implementing projects may restrain market growth.

Key Highlights

• The pipeline repair & maintenance segment is expected to have a significant market share. Globally, corrosion is the leading cause of pipeline damage. Corrosion is estimated to account for the majority of pipeline operational and maintenance costs, indicating corrosion control services' importance.
• Existing old pipeline is likely to offer ample opportunities to the market studied.
• China is expected to dominate the market, due to the increasing government invesments in natural gas pipeline insfrastructure.

Key Market Trends

Pipeline Repair & Maintenance Segment to have a Significant Share in the Market

• The pipeline repair & maintenance service segment is expected to have a significant market share during the forecast period. In 2021, the pipeline repair & maintenance services segment held a major share of the market, and the claim is expected to grow as most of the demand is coming for corrosion repair services. Also, increasing the share of installed pipeline capacity in major countries such as China, India, Australia and Indonesia is expected to drive the growth of repair & maintenance during the forecast period.
• In comparison to stainless steel, low carbon steel is widely used for oil and gas pipelines due to its properties, including its toughness, ductility, weldability, ability to withstand temperature changes, and cost-effectiveness. However, it has the disadvantage of being susceptible to air, soil, and water corrosion.
• Corrosion repair systems strengthen the pipe affected by corrosion and contain the fluid transported in the event of failure. They include full circumferential welded sleeves, welded patches, composite reinforcements, and pipe section replacements.
• Corrosion repair services are in high demand due to the growing share of heavy crude oil. Oil reserves for conventional oil are diminishing, while oil and gas demand is forecast to grow modestly. Therefore, to meet the growing demand, unconventional and heavy oil production is increasing, but heavy oil is harmful to pipelines carrying it, so corrosion problems are more frequent on heavy oil pipelines. Therefore, the growing share of heavy crude is expected to drive the demand for corrosion repair services during the forecast period, which is expected to drive the demand for pipeline maintenance and repair services throughout the Asia Pacific.

China Expected to Dominate the Market

• In the forecast period, China is expected to have the largest market for pipeline maintenance services, primarily due to its huge installed pipeline capacity and government investments.
• As of June 2022, according to the global energy monitor, China has the largest number of operational natural gas pipelines worldwide, with 226 and 159 natural gas pipeline projects under development.
• China is preparing to spend heavily over the next four years on expanding its natural gas pipeline system in order to transport greater volumes of natural gas to more clients and utilities. By 2025, China is expected to spend USD 1.6 trillion to USD 1.9 trillion on doubling the national gas network to 163,000 kilometres, according to Ding Zhimin, the former deputy director of the Policy & Law Department of the National Energy Administration.
• Hence, this is expected to create new opportunities for additional pipeline capacity during the forecast period, thereby boosting the pipeline maintenance services market in the country.

Competitive Landscape

Asia Pacific pipeline maintenance market is moderately fragmented. Some of the key players in the market include Dacon Inspection Services Co. Ltd, EnerMech Ltd, T. D. Williamson Inc, STATS Group, and China Petroleum Pipeline Engineering Co., Ltd.

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