The global pipeline maintenance service market is expected to grow at a CAGR of approximately 2.8% during the forecast period. The outbreak of the COVID-19 in Q1 of 2020 had negatively impacted the market. Lockdown restrictions imposed by various government across the globe has caused a delay in pipeline construction and maintenance activities across the world. For Example, In India, in May 2020, Oil and Natural Gas Corporation ONGC announced the delay in the pipeline replacement project phase due to the COVID-19 pandemic. Factors such as increasing 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 growing energy demand by expanding oil and gas pipeline infrastructure are some of the factors driving the demand for the pipeline maintenance services market. However, high construction costs and delays in the implementation of projects are expected to restrain the market's growth in the coming years.
- The pipeline repair & maintenance segment is expected to have a significant market share. Corrosion is the biggest contributor to pipeline damages globally. Corrosion is expected to have the most significant share of operational and maintenance costs of a pipeline, indicating the importance of corrosion control services.
- In the coming years, offshore regions such as the North Sea and the Gulf of Mexico will likely experience a high volume of pipeline decommissioning and abandonment. Moreover, it is estimated that within 30 years, more than 470 pipelines in the North Sea alone will require partial or complete removal. This, in turn, is expected to create a massive opportunity for the pipeline maintenance services market around the globe.
- North America is expected to dominate the market, with most of the demand coming from the United States and Canada.
Key Market Trends
Pipeline Repair & Maintenance Segment to have a Significant Share in the Market
- The pipeline repair & maintenance service segment is expected to have a significant market share during the forecast period. In 2020, the pipeline repair & maintenance services segment held a 35% share of the market, and the claim is expected to grow as most of the demand is coming for corrosion repair services. Also, increasing the share of installed pipeline capacity in major regions such as NorthAmerica will drive the growth of repair & maintenance during the forecast period.
- Low carbon steel is the most widely used material for oil and gas pipelines worldwide, owing to its properties, such as toughness, ductility, weldability, ability to withstand temperature changes, and cost-effectiveness, as compared to stainless steel. But it is susceptible to corrosion in the presence of air, soil, and water, which is a significant disadvantage.
- The corrosion repair systems are designed to strengthen the pipe affected by corrosion and contain the transported fluid in the event of failure. The corrosion repair systems include full circumferential welded sleeves, welded patches, composite reinforcements, and pipe section replacements.
- One of the significant drivers for corrosion repair services is the growing share of heavy crude. The reserves for conventional oil are declining, while the demand for oil and gas is expected to register modest growth. Therefore, to meet the growing demand, unconventional and heavy oil production is increasing. The transportation of the heavy oil is harmful to the pipeline carrying the oil. Therefore, the heavy oil pipelines witness more frequent corrosion-related problems. Thus, the growing share of heavy crude is expected to drive the demand for corrosion repair services during the forecast period, which in turn will demand the use of pipeline repair & maintenance services across the globe.
- Hence, the demand for pipeline repair & maintenance will dominate the market during the forecast period with high demand for services from Canada and the United States.
North America to Dominate the Market
- North America is expected to have the largest market for pipeline maintenance services during the forecast period, primarily owing to huge installed pipeline capacity and government regulations.
- The United States has the largest network of pipelines in the world. Approximately one-third of the total pipeline market in the country is used to transport crude oil, delivering millions of gallons of oil equivalent/day to various refineries and export terminals.
- As of 2020, there are 232 gas pipelines in the region. It is being used to transport natural gas across the country and other countries.
- Moreover, over the past five years, the geographic focus of oil production shifted from the United States to Canada, which in turn will drive the market for Canada. As of 2020, 70 operating oil and gas pipelines are regulated by the CER that cross the Canada-US border: 31 oil and 39 natural gas.
- The oil pipeline transportation industry grew mainly due to the steady oil production. Directional drilling, hydraulic fracturing, and other advanced drilling techniques have increased the number of profitable oil reserves.
- Further, Canada's pipeline system is highly interconnected with the United States' pipeline system. This relationship has served both countries well in terms of the pipeline networks. It is expected to continue to do so in the future with many expansions and new pipeline projects planned. For Example, Pacific Trail Pipelines (PTP) Management Inc. is building a 471-kilometer natural gas pipeline to deliver natural gas from Summit Lake B.C. to the proposed Kitimat LNG facility site at Bish Cove. The pipeline's capacity would be 1 billion cubic feet per day (BCF/day).
- Hence, this is expected to create new opportunities for additional pipeline capacity during the forecast period, thereby boosting the pipeline maintenance services market in the region.
The pipeline maintenance services market is fragmented. Some of the key players in this market include Baker Hughes A GE Co, EnerMech Ltd, T. D. Williamson Inc., STATS Group, and Dacon Inspection Services Co. Ltd. among others.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Table of Contents
1.2 Market Definition
1.3 Study Assumptions
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Installed Pipeline Historic Capacity and Forecast in Kilometers, Until 2027
4.4 Recent Trends and Developments
4.5 Government Policies and Regulations
4.6 Market Dynamics
4.7 Supply Chain Analysis
4.8 Porter's Five Forces Analysis
4.8.1 Bargaining Power of Suppliers
4.8.2 Bargaining Power of Consumers
4.8.3 Threat of New Entrants
4.8.4 Threat of Substitutes Products and Services
4.8.5 Intensity of Competitive Rivalry
5.1.2 Flushing & Chemical Cleaning
5.1.3 Pipeline Repair & Maintenance
5.2 Location of Deployment
5.3.1 North America
5.3.4 South America
5.3.5 Middle-East and Africa
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Pipeline Operators
184.108.40.206 ExxonMobil Corporation
220.127.116.11 BP Plc
18.104.22.168 China National Petroleum Corporation
22.214.171.124 Kinder Morgan Inc.
126.96.36.199 Chevron Corporation
188.8.131.52 Shell Plc
6.3.2 Pipeline Maintenance Services Providers
184.108.40.206 Baker Hughes A GE Co
220.127.116.11 EnerMech Ltd
18.104.22.168 STATS Group
22.214.171.124 Dacon Inspection Services Co. Ltd
126.96.36.199 Intertek Group PLC
188.8.131.52 IKM Gruppen AS
184.108.40.206 Oil States Industries Inc.
220.127.116.11 T. D. Williamson Inc.
A selection of companies mentioned in this report includes:
- ExxonMobil Corporation
- BP Plc
- China National Petroleum Corporation
- Kinder Morgan Inc.
- Chevron Corporation
- Shell Plc
- Baker Hughes A GE Co
- EnerMech Ltd
- STATS Group
- Dacon Inspection Services Co. Ltd
- Intertek Group PLC
- IKM Gruppen AS
- Oil States Industries Inc.
- T. D. Williamson Inc.