Oil and Gas Pipeline Market size was USD 74.6 billion in 2024 and is estimated to reach USD 210 billion by the end of 2037, expanding at a CAGR of 8.3% during the forecast period, i.e., 2025-2037. In 2025, the industry size of oil and gas pipeline is assessed at USD 80.7 billion.
The overall energy landscape is shaped by four disruptors: macroeconomic variables including rising materials costs and high interest rates, evolving policies and regulations, the emergence of new technologies, and geopolitical factors. These disruptors influence the demand and supply, along with the trade and investments in the crude oil and natural gas (O&G) sector. With the addition of the Organization of the Petroleum Exporting Countries (OPEC+) output cutback of 2.5 million barrels per day (mbpd) in early November 2023, the U.S. Henry Hub natural gas prices rebounded to USD3.50/mmBtu and pushed Brent oil prices over USD 90/bbl.
Despite the abovementioned disruptions, the global oil demand increased between 2.3 mb/d to 101.7 mb/d in 2023 and this masked the impact of the macroeconomic climate. With Europe accounting for half the decline, the global 4Q23 demand growth was revised down by 400 kb/d and the slowdown continued in 2024, with global gains halving to 1.1 mb/d. Furthermore, the oil & gas sector faces pivotal opportunities to adapt to the evolving clean energy transitions and stringent energy economy regulations. Even under present-day policy settings including the Paris Agreement, the worldwide demand for both oil and gas is expected to peak by the end of 2030.
The rise in the oil and gas demand across the world is fuelling the need for safe and efficient pipelines. For instance, as per the International Energy Agency (IEA), in 2023, the global oil demand averaged over 102 million barrels per day. Several factors are contributing to the rising oil demand such as rapid urbanization and industrialization, a rise in shipping trade, and high energy consumption, worldwide. Thus, to ensure a stable supply of oil and gas the demand for advanced pipelines is gaining traction.
To reduce the dependency on a single oil and gas supplier, countries are investing in the diversification of oil and gas supply sources and routes, which is directly boosting the need for modern oil and gas pipelines. For instance, according to the European Commission, to mitigate the dependency of EU countries on a single oil and gas supplier, the Southern Gas Corridor project was carried out. This project was commissioned at the end of 202o and delivered 8.1 billion cubic meters of gas to Europe in 2021 and 11.4 billion cubic meters in 2022. The building of new routes drives investments in infrastructure development, increasing the need for the latest technologies and materials including advanced oil and gas pipelines.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
8.3% |
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Base Year Market Size (2024) |
USD 74.6 billion |
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Forecast Year Market Size (2037) |
USD 210 billion |
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Regional Scope |
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Application (Onshore, Offshore)
Offshore oil and gas pipeline segment is projected to account for oil and gas pipeline market share of more than 75.4% by the end of 2037. The majority of oil and gas reserves around the globe are located in offshore areas such as in the Gulf of Mexico and offshore Brazil, which offers high-profit opportunities for offshore oil and gas pipeline companies. According to the Bureau of Ocen Energy Management, the Gulf of Mexico generates around 97% of all the U.S. OCS oil and gas production.
Also, the onshore reserves when mature become more difficult to exploit, thus offshore exploration is being adopted to meet the future energy demand. Advanced offshore oil and gas pipelines are the most cost-effective way to transport resources from fields to processing facilities. Once installed, the offshore pipelines offer lower operational costs and effectively transport large volumes of oil and gas over long distances. The low maintenance costs make these pipelines more economical for large-scale projects.
Oil Type (Crude Oil Pipeline, Natural Oil Pipeline)
The natural oil pipeline segment is foreseen to hold a dominating oil and gas pipeline market share through 2037. Oil is one of the vital components of the global energy mix, and exhibiting high demand in sectors such as petrochemicals, transportation, and aviation. For instance, as per the analysis by the International Energy Forum, natural oil and gas is estimated to contribute around 47% to 54% of the energy mix by 2040. The high global oil demand is majorly contributing to the natural oil pipeline sales growth. Pipelines are a cost-effective way to meet the transportation of increasing oil demand. The rising investments in the new natural oilfields and upgrades in the existing infrastructure are augmenting the demand for advanced pipelines for effective and safe transportation.
Our in-depth analysis of the global oil and gas pipeline market includes the following segments:
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Oil Type |
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Application |
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Stream Type |
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North America Market Forecast
North America oil and gas pipeline market is predicted to dominate revenue share of around 75.4% by the end of 2037. The high shale oil reserves in the region are significantly contributing to the oil and gas pipeline sales. The increasing cross-border oil and gas trades are necessitating the need for advanced transportation systems such as smart pipelines, contributing to oil and gas pipeline market growth.
The U.S. is emerging as a major exporter of liquefied natural gas (LNG) and crude oil owing to the strong existence and ongoing construction of LNG facilities. According to the U.S. Energy Information Administration, Cove Point, Sabine Pass, Cameron, and Elba Island are firmly existing LNG facilities, while Port Arthur and Golden Pass are under construction LNG projects in the country. The estimated LNG export from the under-construction projects in the United States is expected to grow 9.7 billion cubic feet per day (Bcf/d) between 2024 to 2028. Such LNG export boom and infrastructure development are fuelling the demand for advanced and reliable oil and gas pipelines, benefitting the key oil and gas pipeline market players in earning more.
Canada is leading in the oil sands sector and the huge production of crude oil in the country is positively supporting the market growth. For instance, according to the Canadian Association of Petroleum Producers, in 2023, around 58% of the country’s total oil production was from oil sands. To transport heavy crude oil to refineries and export oil and gas pipeline markets the existence of advanced and reliable pipeline infrastructure is vital. Considering the increasing production and sale of crude oil, many refineries are investing in advancing their pipeline network infrastructure, creating profitable opportunities for oil and gas pipeline manufacturers.
Europe Market Statistics
Europe is estimated to hold the second most dominating share of the global oil and gas pipeline market through 2037 owing to the high investments in the gas pipeline infrastructures. According to the Global Energy Monitor, there are around 16 gas pipelines under construction projects in Europe amounting to a total length of 3,200 kilometers (km) at the cost of USD 7.01 billion. Such huge investments in infrastructure development projects are expected to boost the demand for advanced oil and gas pipelines in Europe in the coming years.
In Germany, the upgradation of existing pipeline infrastructure and investments in the new pipeline projects is positively influencing the oil and gas pipeline market growth. The expansion of advanced pipeline infrastructure is contributing to the efficient flow of oil and gas to meet the energy demand in the country. For instance, according to the Clean Energy Wire report, with the approval of the Core Grid by the Federal Network Agency, Germany is anticipated to witness the first hydrogen flow in pipelines in 2025. The core grid is acting as a foundation of new infrastructure with a vital role in energy transition. This project is anticipated to uplift the position of Germany in Europe. The investments in maintaining and modernizing pipelines, including the development of smart pipelines with advanced monitoring and control technologies are further acting as a key driver in fueling the overall oil and gas pipeline market growth.
The expansion of LNG capacities and storage facilities in Italy is augmenting a high demand for advanced and reliable oil and gas pipelines. These pipelines are vital in connecting LNG terminals with the domestic grid, which further aids in the efficient transportation of liquefied natural gas. According to the U.S. Energy Information Administration, in 2022 around 1.7 Bcf/d of the new and expanded LNG regasification capacity were added in Italy, Netherlands, Poland, and Finland.
Key players in the oil and gas pipeline market are employing several organic and inorganic strategies to maximize their profit shares. Leading companies are investing heavily in research and development activities to introduce smart oil and gas pipelines. They are also forming strategic collaborations with other players and tech firms to develop innovative oil and gas pipelines. These moves are aiding them to attract a wider consumer base and earn high profits. Industry giants are also entering into high-potential markets to grab untapped opportunities and expand their oil and gas pipeline market reach.
Given the healthy cash flows, sustained capital discipline, robust financial health, and rapid technological advancements, the O&G companies are relatively well-positioned to focus on the energy transition in 2025. This also entails concerted efforts to abridge hydrocarbon emissions, while increasing investments in economical and scalable low-carbon solution transition of the O&G industry. This will directly impact the market dynamics of the oil and gas pipeline value chain.
Some of the key players include:
Author Credits: Dhruv Bhatia
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