Pipeline Integrity Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The pipeline integrity management market is expected to register a CAGR of around 3.21% during the forecast period, 2022 - 2027. The pipeline integrity management market is one of the worst-hit industries during the COVID-19 pandemic. Since the pipeline projects witnessed delays due to imposed lockdown restrictions in major countries like the United States, India, and other countries. The decreased gas demand due to the decline in electricity consumption and travel restrictions also affected gas consumption in several countries negatively. Major factors driving the market studied are the rising exploration and production (E&P) development of unconventional oil and gas sources leading to the pipeline expansion, the bid to maintain output from aging pipeline systems, and the need to cater to the rising energy demand by increasing the oil and gas pipeline infrastructure. The increasing preference for marine vessels over subsea pipelines for the oil and gas trade between countries separated by sea has negatively impacted the demand for the market studied.

Key Highlights

• Natural gas is expected to witness a significant increase globally, resulting in an increased demand for natural gas pipeline infrastructure, which in turn culminates in the growth of the pipeline integrity management market during the forecast period.
• More than 80% of the pipelines are located onshore. The United States has a mandate for pipeline maintenance every year. Therefore, these large number of projects are expected to contribute to a major opportunity for pipeline integrity management services.
• Asia-Pacific is dominating the market, mainly due to the shale boom. This has resulted in huge demand for the expansion of the pipeline network and its capacity.

Key Market Trends

Increasing Demand for Natural Gas Pipeline Infrastructure

• The pipeline is the most economical way of transporting natural gas, crude oil, and petroleum product over a long distance. The consumption of natural gas increased significantly, reaching 3,822.8 billion cubic meters (bcm) in 2020, owing to the increasing demand for natural gas in multiple industries, including power generation and transportation. This trend is expected to continue in the coming years and is likely to drive the gas pipeline infrastructure across various countries.
• Russia continued to be the largest LNG exporter globally, with exports of 197.2 billion cubic meters of gas per year in 2020. The LNG trade is expected to witness a significant increase globally, resulting in increased demand for the natural gas pipeline network as well.
• By 2030, owing to factors such as environmental benefits and the quest for energy security in regions such as Middle East & Africa and Asia-Pacific, the demand for natural gas is expected to witness a significant growth among all fuel types.
• Moreover, in January 2020, the Indian government approved USD 774 million for a natural gas pipeline network in the northeast region as part of a national gas grid being built to span remote locations in the country. The 1,656 km pipeline is expected to cost up to INR 92.65 billion and is expected to be completed by 2023.
• The development of new sources of natural gas, such as shale gas deposits, and the resulting price pressure are increasing the international trade of natural gas. LNG trade is expected to witness a significant increase globally, resulting in an increased demand for natural gas pipeline networks as well, which, in turn, culminates in the growth in the pipeline integrity management market.

Asia-Pacific to Dominate the Market

• The energy consumption in Asia-Pacific is expected to increase by up to 48% by 2050. According to the International Energy Agency (IEA), China is expected to contribute 30% of the world’s energy increase until 2025. Moreover, natural gas imports have been continuously rising in China and reached 138.371 bcm in 2020, thus, meeting the increasing domestic demand.
• China’s state-owned firms, including CNPC and China National Offshore Oil Corporation, have plans to maximize production at local gas fields, further driving the pipeline demand in the region.
• India is also modifying its gas pipeline infrastructure to meet the growing demand. In the annual budget for 2021, the Indian government announced a pipeline project for the union territory of Jammu and Kashmir. Apart from this, the nation aims to increase the natural gas share to 15% in the energy basket and expects USD 66 billion investment in building the gas infrastructure, including gas pipeline, CGD, and LNG regasification terminals.
• Moreover, in December 2020, the Indian government announced a USD 60 billion investment for creating gas pipeline infrastructure, which covers the expansion of Compressed Natural Gas pipeline networks (CGD) in 232 geographical areas across the country by 2024.
• In China, investment in the pipeline sector has gained momentum after the shale gas boom. Therefore, this has further increased the need for sophisticated pipeline networks, calling for efficient operation and maintenance. However, corrosion of pipelines remains a significant challenge for pipeline operators. This, in turn, culminates as a good opportunity for the growth of the Pipeline Integrity Management Market in the forecast period.

Competitive Landscape

The pipeline integrity management market is fragmented with a large number of players. Some of the key companies in the market include TD Williamson Inc., Emerson Electric Co., Baker Hughes Company, TÜV Rheinland, and SGS SA.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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