As governments are pushing to weave bits of emerging technology to cultivate smart city in their countries, integrating pipelines continues to feature at the top of the priority list. Embedding enhanced technological features such as advanced sensory for the in-inline inspection of the oil & gas pipes, drone monitoring and distributed acoustic sensing. Integration of advanced sensory and machine learning has brought in new technological breakthroughs benefitting the pipeline operations.
According to Persistence Market Research, the global oil and gas pipes market is expected to represent a value of over US$ 4,000 Mn by the end of 2022.
External Transportation and Distribution
(Additional information, including cross-sectional data and country-wise analysis & forecast is available in the report)
Technological Advancements to Boost Demand
Emergence of advanced techniques for smooth and protective transportation of the oil and gas materials has led manufacturers to adopt enhanced technology such as Internet of Things. Integration of Internet of Things enables the manufacturers to integrate analytical capabilities and sensing communication in the oil and gas pipes. The offshore and onshore end users will continue to capitalize on benefits of the smart technology embedded in the piping system as it provides and retrieves data related to transportation.
Extraction and Drilling Projects to Fuel Market Growth
Increasing number of the shale oil and gas extraction projects has significantly contributed towards the drilling projects. Surge in the number of extraction and drilling projects has led to a growing need for transporting water, chemicals, sand and various other materials. Transportation through trains, ships and other means has meant increasing expenses attributed to growing fuel costs. As government in various countries are taking initiative to ensure environment friendly techniques, manufacturers are increasingly using oil and gas pipelines for internal processing and transportation process. Bound to these factors, demand for the oil and gas pipes will continue to increase globally.
Manufacturers are increasingly using oil and gas pipelines and steel pipes for transporting the materials safely as it could be subject to the extreme temperature conditions and corrosive environment. Moreover, surge in demand for transporting the oil and gas materials from production area to the larger main pipeline or a storage area is expected fuel the sales of the oil and gas pipes in the global market.
Smart Pigging Technology to Underscore Lucrative Opportunities
Emerging technology has further redefined the concept of pigging. Embedded with smart technology, the intelligent pigging technique performs enhanced inspection activities including magnetic flux leakage testing and ultrasonic testing through. Through these technologies, the intelligent pigging technique inspects pitting, erosion corrosion, hydrogen induced cracking, metal loss and welding anomalies. These techniques are also used to gather information on the bends, diameter, temperature and curvature of the pipeline.
On the other hand, end users prefer opting for piping system integrated with advanced technology for safe transportation of the material and services. Installation of the oil storage devices, gas stations and pipelines equipped with advanced technology leads to high investment. Moreover, piping system integrated with enhanced technology requires maintenance at particular intervals, which will add to the overall expenses. These factors are likely to impact growth of the global oil and gas pipes market negatively over the forecast period.
Offshore Activity Segment to Generate Significant Revenues
Growing preference for protective and robust pipes that keep the transport of the oil and gas materials safe has led to increasing adoption of stainless steel materials for constructing the oil and gas pipelines. On the basis of material type, the stainless steel segment is expected to generate significant revenues, accounting for over US$ 900 Mn by the end of 2022. Moreover, this segment will register the highest CAGR in the global market throughout the forecast period.
The offshore activities will continue to witness comparatively more revenues than through the onshore activities. By end users, the offshore activities segment is expected register the highest CAGR, representing a value of over US$ 600 Mn in the global market by the end of 2017.
Based on application, the external transportation and distribution segment is expected to represent the highest revenue growth, recording a value of over US$ 900 Mn by the end of 2022. The external transportation and distribution application type segment is expected to register a robust CAGR in the global market throughout the forecast period.
Leading market players operating in the global oil and gas pipes market include Tenaris S.A., Valourec S.A., Mexichem Sab de C.V., Metalurgica Gerdau S.A., JSW Steel Limited, JFE Holdings Inc., Aliaxis Group S.A., China Steel Corporation, American Cast Iron Pipe Company and Arcelor Mittal S.A.
Global Oil and Gas Market: Overview
The global oil and gas pipes market is expected to witness moderate growth attributed to growing demand for internal processing and transportation of materials during the extraction and drilling process. With the growing need for environment friendly transportation of materials and services, demand for oil and gas piping system is expected to increase globally. Manufacturers are mainly focusing on integrating smart technology such as Internet of Things and intelligent pigging techniques that allows the end users to access data related to the transportation of the materials and services. Moreover, increasing government initiatives will further encourage progress of the oil and gas pipes
The report provides an in-depth insight on some crucial aspects of the global oil and gas pipes market while providing information on important segments, factors fueling market growth, competitive landscape and growth patterns.
Global Oil and Gas Pipes Market: Dynamics
Growth of the global oil and gas pipes market is mainly bound by various micro-economic and macro-economic factors. The report reveals that the global market is mainly driven by growing need for transporting oil and gas materials for supporting the extraction and drilling projects. Increasing demand for continuous supply of the oil and gas materials during the extraction and drilling projects safely has led the manufacturers to adopt enhanced technology and materials such as stainless steel.
The report also states that adoption of enhanced technology and increasing use of the stainless steel enables the end users to transport the oil and gas materials to the production area. Moreover, growing need for transporting and storing the oil and gas materials during the extraction and drilling process will further contribute towards growth of the global oil and gas pipes market. Piping systems integrated with the enhanced technology such as Internet of Things enables the end users to retrieve information and maintain a database regarding the transportation of oil and gas materials and information on internal processing. Internet of Things integrated in the oil and gas pipes further enable access to the smart communication and analytical capabilities. In addition, increasing government initiatives further encourage progress of the global oil and gas pipes market. Bound to these factors, demand for the oil and gas pipes will continue to increase among the offshore and onshore end users globally.
In contrary to this, the report mentions various factors that continue to inhibit growth of the global market of the oil and gas pipes. End users prefer using pipes equipped with robust materials and enhanced technology that enable transportation of the oil and gas materials safely. However, installation of piping systems equipped with advanced technology requires high investment. Moreover, maintenance of the piping system equipped with enhanced technology will further add to the cost of installation. These factors will continue to inhibit sales of the oil and gas pipes in the global market.
Global Oil and Gas Pipe Market: Segmentation
In the next section, the report reveals that the global oil and gas pipe market is segmented on the basis of material type, end use, application and region. On the basis of material type, the global market is segmented as stainless steel, PVC, HDPE and others. Based on the end use, the global market is segmented as onshore and offshore activities. By application, the global market is segmented as internal process and external transportation and distribution segment.
Global Oil and Gas Market: Competition
Key market player in the global market of oil and gas pipes are Metalurgica Gerdau S.A., JSW Steel Limited, Arcelor Mittal S.A., Tenaris S.A., JFE Holdings Inc., China Steel Corporation, American Cast Iron Pipe Company, Valourec S.A., Mexichem Sab de C.V., JSW Steel Limited and Aliaxis Group S.A.