Pipeline Transportation Market

Global Pipeline Transportation Market Size (2024-2029):

The Global Pipeline Transportation Market was valued at US$21.51 billion in 2023 and is projected to reach US$32.28 billion by 2029 from US$23.01 billion in 2024. It registered a CAGR of 7% during the forecast period.

Current Scenario of the Global Pipeline Transportation Market

This mode of transport is mainly utilized to deliver crude and refined petroleum products like oil and natural gas. However, other fluids, such as water, slurry, sewage, and beer, can also be transported through pipelines. In some circumstances, capsule pipelining with pneumatic tubes provides a method for moving solids. Pipeline transportation offers a variety of benefits, including flexibility, total automation of loading and unloading operations, low operating costs, and environmental friendliness.

Furthermore, pipelines are appropriate for unidirectional product flow, and inflationary effects on transportation costs are modest. These reasons are propelling the pipeline transportation market, which is predicted to expand at a rapid rate. However, safety is a big concern when pipelines transport flammable or explosive materials like natural gas or oil. As a result, pipelines are vulnerable to vandalism and sabotage. In addition, pipeline transportation faces difficulties in maintaining a consistent and smooth operation, necessitating regular surveillance and monitoring. These characteristics tend to increase the growth of the global pipeline transportation market.

MARKET DRIVERS

The expansion of the pipeline transportation market is influenced by factors such as increased demand for oil and gas, decreased operating costs, large-volume transportation, and safety for hazardous liquids and gases.

The rapidly rising demand for oil and gas is a significant factor driving the market for pipeline transportation. Oil is a valuable but limited resource that is mainly utilized as a motor fuel. Lower operating costs, safe and cost-effective handling of hazardous liquids and gases, and expanded and developed infrastructure facilities are just a few of the reasons driving the industry. In addition, it does not necessitate any labour because it is a fully automated transport system.

Because of the expanding usage of augmented reality in pipeline transportation, the market for pipeline transportation is likely to experience growth in the coming years. Augmented Reality (AR) is a technology that adds digital information to a visual representation of pipeline transit. AR technology augments the world with real-time contextual information. The Pipeline Transportation Market will benefit significantly from these capabilities. Long-distance liquid or gas transfer using pipes buried underground is known as pipeline transportation. Pipeline transportation is popular in the oil and gas business because it is a cost-effective mode of transportation. Steel, cast iron, and aluminium are among the materials used to construct pipelines, depending on the substance to be transported. Pipelines are primarily utilized in the home for carrying drinking and irrigation water, as well as sewage. Pipeline transportation is more advantageous than alternative modes of transportation. Pipelines are buried beneath the ground and have a lower environmental impact than traditional modes of transportation. Pipeline networks connect to other key infrastructures such as oilfields, power plants, and airports and play an essential role in the movement of fuels, chemicals, and water worldwide. Pipeline systems have been in use since the 1880s due to their cost-effectiveness and security. Many pipelines carry chemically stable and flammable products over long distances and must span water expansions, terrains, and hills worldwide. These pipelines play a crucial part in any country's development, and safeguarding these assets and providing connectivity alternatives is critical.

MARKET RESTRAINTS

The government maintains a code of conduct for the transportation of liquids and gases, strict government rules and restrictions may stifle market growth.

As a result, alternative and less expensive modes of transport may limit the expansion of the pipeline transportation market. In addition, pipeline transportation faces difficulties maintaining a consistent and smooth operation, necessitating regular surveillance and monitoring, further limiting the global pipeline transportation market growth in the upcoming years.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Pipeline Transportation Market Analysis By Type

During 2024 - 2029, the oil and gas segment dominates the global pipeline transportation market. Because of the expanding use of pipeline transportation for the oil extraction process, oil and gas make up the largest segment of the pipeline transportation market. In addition, pipeline transport is preferred in the oil and gas industry because of its cheaper cost per unit and increased capacity. Pipelines have the ability to carry massive amounts of oil and natural gas. They are more efficient than rail, truck, or ship shipments in transporting these vast amounts of oil and natural gas. Because oil and natural gas are highly combustible and volatile, transportation must be done safely. Pipelines will considerably reduce the risk of explosion during transit in this regard. The majority of pipeline networks are underground, limiting their exposure to natural factors.

Furthermore, above-ground pipelines are built to tolerate extreme temperature and weather fluctuations without generating dangerous leaks. As a result, pipeline systems use substantially less energy to transport significantly higher volumes of oil than truck, rail, or ship transport. Moreover, with the help of modular process skid manufacturers for pipeline applications, pipelines can also simplify the oil and gas metering process. Therefore, these factors of pipelines tend to increase the oil and gas segment growth in the future.

Global Pipeline Transportation Market Analysis By Pipeline Type

Based on pipeline type, transmission pipeline is anticipated to hold the largest global pipeline transportation market share in the upcoming years. Transmission pipelines primarily transport natural gas and Crude oil from their separate collection systems to refineries, processing plants, and storage facilities. Refined petroleum products and natural gas are also transported through transmission pipes to consumers for usage or further distribution. Thus, transmission pipelines are primarily used to carry crude oil, refined petroleum products, or natural gas, with a few exceptions.

All of the equipment and facilities required for product transportation are included in transmission pipeline systems. Pipes, valves, pumps, compressors, breakout tanks, storage tanks, refining, and processing facilities, and other equipment and facilities are all included in this category. Steel pipe is used to construct transmission pipes, ranging from a few inches to many feet. Transmission pipeline systems can be built to function at pressures ranging from a few pounds per square inch (psi) to over 1000 psi, depending on the product being conveyed. They can be hundreds of feet long or hundreds of miles long.

REGIONAL ANALYSIS

The Asia Pacific region is anticipated to dominate the global pipeline transportation market in the upcoming years owing to the increased demand for oil and gas, decreased operating costs, large volume transportation, and safety for hazardous liquids and gases from countries including India and China.

North America tends to have the highest global pipeline transportation market CAGR during 2024 - 2029. Water, hazardous liquids, and raw materials are transported across North America via an extensive network of interstate and intrastate pipelines. Pipelines in the United States are projected to be 2.6 million miles long, providing trillions of natural gas and billions of tonnes of liquid petroleum products per year. 

KEY PLAYERS IN THE GLOBAL PIPELINE TRANSPORTATION MARKET

Companies playing a prominent role in the global pipeline transportation market include Alstom, ABB Ltd, Schneider Electric, Siemens, ESRI, Emerson, Trimble Navigation Limited, Rockwell Automation, FMC Technologies, Alcatel-Lucent, and Others.

RECENT HAPPENINGS IN THE GLOBAL PIPELINE TRANSPORTATION MARKET

• ABB introduced the world's fastest drone-based gas leak detection and greenhouse measuring system named Hover Guard, which helps provide safety and environmental measurement capabilities for operators of pipelines across the globe.
• Siemens Energy has received two orders in China for critical systems for gas pipeline projects. For the gas line project in Shanxi province, two variable speed drives are assigned and for another project, four centrifugal compressors are offered.

DETAILED SEGMENTATION OF THE GLOBAL PIPELINE TRANSPORTATION MARKET INCLUDED IN THIS REPORT

This global pipeline transportation market research report has been segmented and sub-segmented based on grade, product, and region.

By Type

• Coal
• Oil & Gas
• Water
• Chemical

By Pipeline Type

• Gathering pipeline
• Transmission pipeline
• Distribution pipeline

By Region

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