Increasing Drilling and Extraction Activities Boosting Oil and Gas Pipes Market Growth
Date : Feb 25, 2020 Author : PMR Editorial Staff Category : Automation
The global market for oil and gas pipes is majorly propelled by an increasing number of shale gas and oil extraction.
The global market for oil and gas pipes is majorly propelled by an increasing number of shale gas and oil extraction. In addition, rising trans-continental oil and gas projects are another of growth. As transportation via ships, and trains result in ascending fuel expenses, governments across the globe are introducing regulations for assuring sustainability. Consequently, industrial operators are relying on oil and gas pipelines for internal processing and transportation of various materials. This, in turn, has led to surging demand for oil and gas pipes.
In its recent market intelligence study, Persistent Market Research suggests that the global oil and gas pipes market is projected to grow at a promising CAGR of ~5% over the stipulated timeframe (2017-2022), exceeding US$ 4 Bn. The market growth is primarily driven by an upsurge in oil and gas exploration projects, as well as rising demand for crude oil from various industries.
Stainless Steel Remains the Preferred Material
Materials, including polyvinyl chloride (PVC), and high-density polyethylene (HDPE), offer high durability, and cost-efficiency. However, they are facing regulatory backlash due to their toxic effects on the surroundings. Influenced by the situation, market players are increasingly turning to stainless steel for manufacturing oil and gas pipes. The report finds that stainless steel oil and gas pipes are expected to register a dexterous CAGR throughout the foreseeable period, surpassing US$ 900 Mn.
Owing to excellent corrosive and temperature resistance, stainless steel can be used in extreme and harsh conditions. Stainless steel oil and gas pipes offer easy maintenance, making them a primary choice for onshore and offshore applications. In addition, stainless steel exhibits complete recyclability. As such, manufacturers of oil and gas pipes are banking on stainless steel in a bid to achieve sustainability as well as legal compliance.
Market Players Leveraging Advanced Technologies to Gain Competitiveness
The need for innovative solutions for enhanced transportation of oil and gas materials is influencing market players to leverage advanced technologies, including Internet of Things (IoT). With the onset of IoT, manufacturers can integrate sensing features, and analytical capabilities with oil and gas pipes. In addition, such advanced solutions are enabling onshore and offshore end users to gather data regarding transportation.
The advent of innovative technologies is reshaping the concept of pigging. Advanced pigging methods facilitate users with improved monitoring processes, such as ultrasonic testing, and magnetic flux leakage testing. They also monitor welding deformities, metal loss, erosion-corrosion, and hydrogen-induced cracking. Furthermore, advanced pigging techniques collect insights about the curvature, diameter, and bends of the pipelines.
However, these new-age devices pose the challenge of high initial expenses. They require regular maintenance, which further adds to the expenses. As a consequence, oil and gas pipes equipped with advanced solutions are yet to become mainstream, particularly in developing economies.
North America to Garner Stakeholders’ Attention
On the back of increasing onshore exploration activities, market players continue to reap worthwhile returns in North America. The US has launched over 100 projects of natural gas exploration and transportation pipelines. Further, swelling intra-country and inter-country onshore pipeline activities in the US and Canada to fulfill the burgeoning need for oil and gas are grabbing oil and gas pipes market players.