Gas Pipeline Infrastructure Market

Global Gas Pipeline Infrastructure Market Size (2024-2029):

The Global Gas Pipeline Infrastructure Market was worth US$ 2.63 trillion in 2023 and is anticipated to reach a valuation of US$ 3.28 trillion by 2029 from US$ 2.73 billion in 2024 and is predicted to register a CAGR of 3.72% during 2024-2029.

MARKET SCENARIO

The network of pipelines used to transport industrial gases is known as industrial gas pipeline infrastructure. This essentially connects gas supply and demand. Carbon steel is used to make the natural gas pipeline infrastructure. The pipeline transformation system is made up of a sophisticated network of pipelines that are designed to carry gas swiftly and effectively in locations where there is a strong demand for gas. Because some pipelines are visible above ground and the bulk is hidden underground, most people are unaware that a massive network of pipelines exists.

Environmental gases that are required for industrial activities are known as industrial gases. During the projection period, demand for industrial gas pipeline infrastructure is expected to rise due to rising demand for hydrogen and oxygen, as well as a lack of gas manufacturing infrastructure in distant places around the world. Furthermore, future plans for hydrogen-powered cities, such as the South Korean government's plan to build three hydrogen-powered cities and the development of a hydrogen economy, will necessitate the construction of hydrogen pipelines, resulting in a demand for industrial gas pipeline infrastructure.

The need for hydrocarbons has increased as the world's population has grown. Natural gas usage has increased as a result of the ongoing shift toward cleaner energy sources. As a result, shale gas exploration efforts have increased over the world. As a result, gas pipeline infrastructure is required for natural gas transmission and distribution to end users. Natural gas is being used in a variety of sectors, including power generation, chemical production, and residential and commercial, as a result of rising urbanization and industry expansion, fueling demand for gas pipeline infrastructure. Furthermore, government subsidies to increase natural gas usage and transport natural gas to all parts of the country have attracted additional customers.

MARKET GROWTH

The availability of plentiful natural gas deposits and its lower cost compared to other fossil fuel types are likely to augment natural gas demand from a variety of end-use sectors, including power generation. As a result, the gas pipeline industry is likely to grow throughout the forecast period.

MARKET DRIVERS

The major industrial criteria boosting product demand are a paradigm shift toward clean energy sources and ongoing laws concerning carbon emissions and energy efficiency. Furthermore, decommissioning existing gas transportation channels and increasing investments to replace them with efficient conduits will enhance the industry landscape.

As a result, businesses are concentrating their efforts on increasing gas accessibility, which will boost industrial growth. Numerous governments are also pushing for increased usage of cleaner fuels to reduce carbon emissions. For example, the UK's Infrastructure and Projects Authority proposed a $7.6 billion investment in 13 gas distribution and transmission projects in 2016.

Furthermore, the Indian government promised a major US$ 66,000 million investment in gas infrastructure in December 2020. The government plans to expand natural gas's part of the energy basket to 15% by 2030, up from 6.3 percent now, implying a massive rise in gas usage from 160-170 million standard cubic meters per day. Furthermore, the government has increased LNG import capacity, installed new pipelines to transport the fuel, and extended city gas infrastructure to deliver the fuel to customers.

In the future years, the gas pipeline infrastructure market is expected to be driven by rising demand for shale gas and the immense potential of innumerable unexplored gas and oil resources around the world. The industrial outlook is expected to improve in the future, as the focus on exploration and production activities in countries with abundant shale gas deposits grows. The need for hydrocarbons is increasing as the world's population grows, which is expected to boost the worldwide market. The demand for gas pipeline infrastructure is expected to increase in the future years as companies expand around the world.

MARKET RESTRAINTS

The common pipeline development project traverses several political domains, from districts to provinces to states, creating a potentially dangerous environment.

Distributors should stick to working in one of the unique jurisdictions because each will have its own set of construction regulations and norms. The severity entangles the structure cycle, as failing to represent even one of these disparate requirements can result in significant project difficulties.

Furthermore, pipeline construction requires a significant amount of land, which might be a problem when deciding whether or not to build the pipeline. Significant highway oil and gas pipelines are usually surrounded by prominent land, making it impossible for local landowners to stop the pipeline from being built.

Many pipeline owners are experiencing financial strain as a result of high gas prices, but there is a scarcity of this gas, which leads to insufficient pipeline capacity and, as a result, reduced operational efficiencies. The initial cost of building gas pipes is quite significant. The additional equipment that must be installed in conjunction with the pipelines raises the cost even more. Furthermore, the risk of leakages is expected to act as a limitation on the worldwide gas pipeline infrastructure market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Gas Pipeline Infrastructure Market Analysis By Application

The demand for gas pipeline infrastructure at onshore locations has increased as the number of shale gas exploration activities and forthcoming natural gas distribution networks in various countries has expanded.

Global Gas Pipeline Infrastructure Market Analysis By Equipment

Because of the increased number of new pipelines and the replacement of existing ones, the pipeline will dominate the market.

Global Gas Pipeline Infrastructure Market Analysis By Operation

The worldwide gas pipeline infrastructure market can be divided into transmission lines and distribution lines based on their operation. Because natural gas is used in a variety of industrial, residential, and transportation applications, the distribution line segment has a slightly higher market share than transmission lines.

Global Gas Pipeline Infrastructure Market Analysis By Diameter

The diameter of the pipeline is determined by the requirements. For long-distance transmission, a segment of more than 36 inches is considered, and similarly, for distribution, the pipeline's diameter is determined by the end user's requirements for distribution.

REGIONAL ANALYSIS

The rising amount of shale gas production in North America, particularly in the United States and Canada, has been a driving force for the worldwide gas pipeline infrastructure industry in the region. With increased shale development after 2022, the United States has become the dominant player in this region.

For Europe and Latin America, the drive to minimize carbon footprints has been the driving force. In these two locations, replacing existing transmission and distribution networks has also aided market expansion.

Rising urbanization and energy demand have driven the Asia Pacific region's growth. China has dominated the region, with India following closely behind. The use of natural gas by government entities has aided the market's growth in this region.

KEY PLAYERS IN THE GLOBAL GAS PIPELINE INFRASTRUCTURE MARKET

Companies playing a prominent role in the global gas pipeline infrastructure market include Europipe, Gazprom, Enbridge, GAIL, APA Group, CRC Evans Pipeline, Redexis, Technip, Perusahaan Gas Negara, MRC Global, and Others.

RECENT HAPPENINGS IN THE GLOBAL GAS PIPELINE INFRASTRUCTURE MARKET

• The European gas crisis is fueling expectations among US oil and gas executives that the next super cycle of US LNG export projects will speed up, boosting their companies' expansion plans. Upstream gas producers boasted about their exposure to the international LNG market, while natural gas pipeline developers promoted new infrastructure growth potential.
• The European Union said in early March that it plans to cut its reliance on Russian gas by two-thirds by the end of this year alone, and is currently facing a global supply shortage. Africa still has substantial production potential, notwithstanding the number of gas projects being constructed or currently stalled.

DETAILED SEGMENTATION OF THE GLOBAL GAS PIPELINE INFRASTRUCTURE MARKET INCLUDED IN THIS REPORT

This research report on the global gas pipeline infrastructure market has been segmented and sub-segmented based on application, equipment, operation, diameter, and region.

By Application

• Onshore
• Offshore

By Equipment

• Pipeline
• Valves
• Compressor Station
• Metering Skid

By Operation

• Transmission
• Distribution

By Diameter

• Less than 16 inches
• 17-24 inch
• 25-36 inch
• More than 36 inches

By Region

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa