Pipeline systems have evolved to become the primary solution for the commercial activities. The market for the pipeline security has been boosted by the demand for sustainable use of resources and the rising frequency of breaches and theft of small quantities of the product being transported. The pipeline established for transport of commodities is estimated to span across 3.5 million kilometers across 120 countries across the world. Oil & gas, natural gas has been estimated to be the most vulnerable to attacks, and hence, the increased spending by the oil and gas corporation to install robust security infrastructure to ensure security to the pipelines has been the primary reason for the growth of the market globally.
Increased Spending of Oil & Gas Companies is expected to drive the Growth of Pipeline Security
Oil & gas industry is estimated to be the largest to commit to the use of existing pipeline networks for transport across the world. According to a study conducted by IT security firm Tripwire, more than 80% of the oil & gas companies have registered an increase in the number of cyber-attacks on their respective firms. The survey further reveals the lack of confidence in the present and existing security framework installed within the organization. The need for integrated and exhaustive security solutions has been emphasized by leading industry experts.
The number of cyber-attack incidents has been growing continuously for the last few years, with the industry (along with BFSI) quoted to be the most vulnerable sector. The sector has also been found to be the most impacted by the robust state-sponsored cyber-espionage campaigns, which can affect the physical infrastructure as well. These vulnerabilities have forced the industry players to divert significant amounts of funds for security. The implementation of holistic security solutions to provide comprehensive security and to protect the system by reducing the number of threat actors or points of entry to the infiltrators is the need of the hour in this industry.
Growing Illegal Connections among Crude Oil Businesses Emphasize the Need for Pipeline Security
The rising number of illegal connections to petroleum and oil products pipeline is a major factor affecting the market for crude oil in the global pipeline security market. This trend is particularly very severe in several regions in Eastern Europe. Due to lack of an effective system for monitoring and compliance to design specifications, there have been several major hazardous accidents in the past. Pipelines are major target for extremist groups, as even a simple explosion can lead to a blackout, affecting supply for several weeks in some cases. Hence, crude oil companies are increasingly looking for robust security systems to enhance their existing mechanism. Particularly, the use of supersensitive seismic monitoring devices, could provide early warnings if saboteurs were to approach a protected area. There has been a huge increase in the number of large-scale production projects in the oil & gas industry globally. Additionally, the fall in crude oil prices in the U.S decreasing profit margins and stable growth in GDP, is affecting the pipeline security industry.
United States has the Highest Market Owing to Demand for Natural Gas and Growing Number of Industry
The increasing number of industries and demand for natural gas is leading to growth in the pipeline network, and hence, the market for security is expected to rise drastically to secure the pipeline network. The United States is one of the largest markets for the pipeline security in the world. They hold a market share of 83.12% of the North American pipeline security market. The hazardous liquids and natural gas pipelines are critical to the nation's commerce and economy, and hence, act as a potential target for various terrorist organizations. The security threat to such essential pipelines was limited to minor theft and vandalism for a few years. Gradually, the whole security infrastructure and the network have undergone vast changes to respond to evolving security threats.
Interruption of the pipeline service can disrupt everyday life to a large extent in the country. The disruption will largely impact the environment while having negative side effects on the public health, which will ruin the economy, region, and the nation at large. The importance of pipeline security is a heightened priority for both, the government and private industry. Comprehensive solutions include, identifying threats to assets, infrastructure, employees and finances while determining the likelihood of the threat holds the high priority.
Key Developments in the Market
- November 2017 - CVR refining and Plains had acquired Ellis crude oil Pipeline systems from plains. Owing to which about 100 mile of 8 inch and 10 inch pipeline systems to CVR refining linking 70,000-barrel-per-calendar-day Wynnewood, Oklahoma, refinery
Reasons to Purchase this Report
- Rising spending on oil and gas industry acts as a driver to the global pipeline security systems market scenario
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- Detailed analysis of the type of Product that is expected to dominate the market
- The regions that are expected to witness fastest growth during the forecast period are analyzed and estimated for growth
- Identify the latest developments, market shares, and strategies employed by the major market players
- 3-month analyst support, along with the Market Estimate sheet (in Excel)
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1.1 Key Study Deliverables
1.2 Market Definition
1.3 Study Assumptions
2. Research Methodology
3. Executive Summary
4. Market Insights
4.1 Market Overview
4.2 Indusrty Attractiveness- Porter'S Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Suppliers
4.2.3 Bargaining Power of Consumers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
5. Market Dynamics
5.1 Market Drivers
5.1.1 Increased Spending of Oil & Gas Companies
5.1.2 Increased Worldwide Demand for Natural Gas
5.1.3 Rising Political Instability in the Middle East Region
5.2 Market Restraints
5.2.1 Scattered Facilities
5.2.2 High Implementation and Maintenance Costs
5.3 Market Opportunities
5.3.1 Need for Secure Midstream Solutions in the Asia-Pacific and Latin American Regions
6. Technology Snapshot
7. Global Pipeline Security Market Segmentation
7.1 By Products
7.1.1 Natural Gas
7.1.2 Crude Oil
7.1.3 Hazardous liquid pipelines/ Chemicals
7.2 By Technology and Solutions
7.2.1 SCADA Systems
7.2.2 Perimeter Security/Intruder detection System
7.2.3 Industrial control systems Security
7.2.4 Video Surveillance & GIS Mapping
7.2.5 Pipeline Monitoring
7.3 By Geography
7.3.1 North America
188.8.131.52 Rest of Europe
184.108.40.206 Rest of Asia-Pacific
7.3.4 Latin America
220.127.116.11 Rest of Latin America
7.3.5 Middle East & Africa
18.104.22.168 Saudi Arabia
22.214.171.124 Rest of Middle East & Africa
8. Vendor Market Share
9. Key Vendor Profiles
9.1 ABB Ltd.
9.2 Honeywell International Inc
9.3 Siemens AG
9.4 General Electric Company
9.5 Schneider Electric
9.6 Optasense Ltd.
9.7 Senstar Corporation
9.8 Huawei Technologies Co. Ltd.
9.9 ESRI Inc.
9.10 Thales SA
*List not Exhaustive
10. Investment Analysis
10.1 Recent Mergers and Acquisitions
10.2 Investment Scenario and Opportunities
11. Future Of Pipeline Security Systems Market