Offshore Pipeline Global Market Report 2024

The offshore pipeline market size has grown strongly in recent years. It will grow from $14.82 billion in 2023 to $15.63 billion in 2024 at a compound annual growth rate (CAGR) of 5.4%. The expansion observed during the historical period can be ascribed to heightened energy demand, advancements in deepwater exploration and production, government allocations towards infrastructure development, geopolitical influences, and adherence to environmental and safety regulations.

The offshore pipeline market size is expected to see strong growth in the next few years. It will grow to $19.08 billion in 2028 at a compound annual growth rate (CAGR) of 5.1%. The anticipated growth in the forecast period is driven by the shift towards renewable energy, a rise in LNG trade, a heightened emphasis on emissions reduction, global concerns regarding energy security, as well as the development of subsea tiebacks and satellite fields. Key trends expected in the forecast period encompass the adoption of advanced pipeline inspection technologies, technological enhancements in pipeline construction, the establishment of hydrogen transportation pipelines, collaborative efforts in offshore pipeline projects, and the incorporation of composite materials in pipeline infrastructure.

The anticipated growth in the offshore pipeline market is underpinned by the escalating demand for crude oil and natural gas. Crude oil, a liquid hydrocarbon mixture found in underground reservoirs, and natural gas, primarily composed of methane (CH4) with additional components such as ethane, propane, and butane, are witnessing increasing demand. Offshore pipelines present a compelling solution for the transportation of these hydrocarbons, offering a reliable and cost-effective means to move substantial volumes over extended distances. Notably, as of March 2023, the U.S. Energy Information Administration forecasts a rise in U.S. crude oil output from 11.7 million b/d in 2022 to 12.4 million b/d in 2023, underscoring the surge in demand driving the offshore pipeline market.

The growth trajectory of the offshore pipeline market is expected to be propelled by a surge in infrastructure development. Infrastructure development encompasses the comprehensive process of planning, designing, constructing, and maintaining essential physical and organizational structures and facilities crucial for societal, regional, or industrial functionality. In the context of energy infrastructure, offshore pipelines play a pivotal role in transporting oil and gas from offshore production facilities to onshore processing units and distribution networks. A pertinent example is the U.S., where the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA), enacted in November 2021, is set to contribute significantly to infrastructure improvement. Over the next decade, the IIJA plans to invest $550 billion in enhancing roads, bridges, airports, railroads, clean water access, broadband internet, and environmental justice initiatives, further fostering the growth of the offshore pipeline market.

The offshore pipeline market is witnessing a notable trend with companies increasingly embracing technological advancements to maintain their competitive positions. An exemplary case is Saipem S.p.A., an Italian energy services company, which introduced the Integrated Acoustic Unit (I.A.U.) technology in May 2023. This cutting-edge digital instrument utilizes acoustic technology for non-intrusive, remote monitoring of subsea pipelines during laying operations. Recently endorsed by DNV, a global expert in assurance and risk management, the I.A.U. technology enhances accuracy and efficiency in anomaly detection, reducing risks associated with mechanical detectors. Its successful deployment on the Scarborough project in Australia underscores its ability to improve pipeline integrity monitoring while minimizing potential damages during pulling operations.

Leading companies in the offshore pipeline market are also focusing on product innovation to gain a competitive edge. A prime example is Decom Engineering, an Ireland-based offshore decommissioning technology company, which launched the C1-46 Chopsaw in July 2023. Representing a significant investment of over $1.2 million, this specialized cutting tool is designed for underwater environments, catering to the growing demand for larger subsea pipe-cutting capabilities. With operational capabilities in water depths of up to 2,000 meters, the C1-46 Chopsaw efficiently cuts pipes up to 46” in various materials and orientations. Its versatile deployment angles and the ability to perform cuts subsea or during wet storage eliminate the need for resurfacing.

In August 2022, Pipeline Technique (PTL) Ltd., a UK-based company specializing in onshore and offshore infrastructure welding, coating, and technological engineering, made a strategic move by acquiring three energy infrastructure businesses - CRC Evans, PIH Technology, and Stanley Inspection - from Stanley Black & Decker. This undisclosed amount acquisition enhances Pipeline Technique's offerings, allowing it to provide a more comprehensive range of services to clients. It also expands the company's capabilities and market presence by incorporating these industry-leading energy infrastructure businesses into its operations. Stanley Black & Decker, a US-based company, specializes in various industrial and consumer products, including offshore and onshore pipelines.

Major companies operating in the offshore pipeline market report are Marathon Petroleum Corporation, Enterprise Products Partners L.P., Plains All American Pipeline L.P., Enbridge Inc., Baker Hughes Company, Kinder Morgan Inc., Transneft, TC Energy Corporation, Pembina Pipeline Corporation, McDermott International Ltd., Technip FMC PLC, Saipem SpA,, Subsea 7 SA, Tmk Group, Petrofac Limited, Allseas Group SA, Fugro NV, L&T Hydrocarbon Engineering Limited, Shawcor Ltd., Sapura Energy Berhad, Bourbon Corporation SA, China Petroleum Pipeline Engineering Co. Ltd., Penspen.

North America was the largest region in the offshore pipeline market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the offshore pipeline market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the offshore pipeline market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary substances transported through offshore pipelines include natural gas, crude oil, and refined products. Natural gas, a mixture of hydrocarbon gases dominated by methane, along with ethane, propane, and butane, is transported from offshore production platforms to onshore processing facilities or directly to end consumers through these pipelines. Offshore pipelines come in various configurations, including transport lines, export lines, and other lines, and are manufactured in different diameters categorized as below 24 inches or above 24 inches. Additionally, they are installed using various methods such as S-Lay, J-Lay, and tow-in, suitable for both shallow-water and deep-water applications.

The offshore pipeline research report is one of a series of new reports that provides offshore pipeline market statistics, including the offshore pipeline industry's global market size, regional shares, competitors with an offshore pipeline market share, detailed offshore pipeline market segments, market trends and opportunities, and any further data you may need to thrive in the offshore pipeline industry. This offshore pipeline market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The offshore pipeline market consists of sales of pipeline systems, pipeline coatings, pipeline pigging systems, and pipeline anchoring and protection systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.