PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1803218
PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1803218
The U.S. oil & gas pipeline construction market is experiencing substantial momentum, with its valuation reaching USD 52.5 billion in 2024. This figure is projected to nearly double, hitting USD 99 billion by 2032, advancing at a robust CAGR of 8.4% from 2025 to 2032. This significant growth is driven by the escalating demand for oil and natural gas across sectors such as electricity generation, transportation, heating, and industrial operations.
With over 3 million miles of pipelines already in place, the country is actively expanding and modernizing its infrastructure to cater to increasing energy needs. In 2024 alone, five new pipelines were completed, reflecting the market's aggressive expansion strategy. Rapid urbanization, a growing population, and rising import-export activities are pushing the need for new pipeline projects across the U.S., encompassing overground, underground, and undersea installations.
Key Insights
Natural gas transmission pipelines dominate the pipeline type segment, driven by the country's growing dependence on natural gas for energy, heating, and industrial uses. The Permian Basin-to-Gulf Coast corridor alone has attracted over USD 2.5 trillion in investment.
Liquefied natural gas (LNG) pipelines are the fastest-growing category, spurred by booming LNG exports and the increasing demand for cleaner energy alternatives.
Midstream oil pipelines hold the highest application share at 50%, owing to the surging need for transporting crude from oil fields to refineries and ports. With daily crude oil production exceeding 12 million barrels, the Permian Basin infrastructure remains critical.
Downstream gas pipelines are growing at the fastest rate as distribution networks expand to serve residential, commercial, and industrial users across the country.
Trenching & open-cut technology leads with a 55% market share due to its cost-efficiency and reliability, especially in long-distance and rural pipeline projects. The U.S. Pipeline & Hazardous Materials Safety Administration allocated over USD 200 million toward improving safety and leak detection.
Automated & smart pipelines are the fastest-growing in technology adoption, incorporating digital monitoring and predictive maintenance systems to enhance operational efficiency.
Steel continues to be the preferred pipeline material, accounting for 75% of the market. Its strength and durability under harsh environmental conditions make it indispensable, with over 90% of petroleum pipelines made of high-strength steel.
Replacement and expansion projects lead the construction type segment with a 60% share, necessitated by aging infrastructure-over half of the existing pipelines are more than 50 years old.
EPC contractors dominate the distribution channel landscape, accounting for 50% of the market. Their expertise in end-to-end project execution-planning, design, construction, and compliance-makes them integral to large-scale pipeline builds.
The South region leads the geographical analysis with a 40% market share, powered by oil-rich states like Texas, Louisiana, and Oklahoma. These states are key hubs for energy production, refining, and exports, fueling massive pipeline development activities.
The West is emerging as the fastest-growing region due to newer drilling operations and infrastructure expansion aimed at improving connectivity with refineries and ports.
Leading players shaping the U.S. oil & gas pipeline construction landscape include Bechtel Corporation, Fluor Corporation, Kinder Morgan, Enbridge Inc., and ONEOK, Inc., with the latter recently acquiring significant infrastructure assets in a USD 5.9-billion deal to boost its Permian Basin operations.