Pipeline Transportation Market size was valued at USD 21.6 billion in 2024 and is estimated to reach USD 42.9 billion by the end of 2037, expanding at a CAGR of 5.9% during the forecast timeline, i.e., 2025-2037. In 2025, the industry size of pipeline transportation is assessed at USD 22.8 billion.
The growth in the pipeline transportation market is majorly impelled by the growing energy consumption across the world due to rapid urbanization and industrialization. According to an IEA report published in 2024, the global demand for power is poised to grow at a higher rate of 3.4% by the end of 2026. The report further states, that in 2023, the additional electricity demand from outside advanced economies was led by China rose by 6.4% due to its enlarging services and industrial sectors. This is further pushing the limits of existing power grids, raising the need for transporting supplies for more electricity generation. Further, it inflates the need for pipeline network expansion, penetrating growth in this industry.
Heavy energy production and transportation on the other hand raise concerns about maintaining their operational efficacy during the supply. This has led to a growing focus on integrating technological advancements in the pipeline transportation market to mitigate these problems. Many tech companies are now introducing innovative methods and solutions for better performance and compliance. For instance, in September 2024, Baker Hughes launched CarbonEdge to optimize and streamline operations and reporting for CCUS projects. The end-to-end solution is equipped with an integrated dashboard to offer real-time data and alerts on CO2 flows across the system including pipeline transportation.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
5.9% |
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Base Year Market Size (2024) |
USD 21.6 billion |
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Forecast Year Market Size (2037) |
USD 42.9 billion |
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Regional Scope |
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Application (Oil & Gas, Water, Coal)
Oil & gas segment is estimated to account for pipeline transportation market share of more than 45.9% by the end of 2037. The segment is generating the majority of revenue due to the heavy demand for crude oil and natural gas in various industries including automotive, coatings, and manufacturing. In addition, many companies are focused on developing a reliable supply channel to serve the enlarging residential consumer base. For instance, in March 2021, PNGRB authorized around 33,764 km of natural gas pipeline network across India to create a national gas grid. The network expansion vision of the country already established 19,998 km of operating pipelines and continues the construction of the rest 15,369 km in the same year.
Type (Transmission Pipeline, Distribution Pipeline, Gathering Pipeline)
In terms of type, the transmission pipeline segment is projected to hold a significant share by the end of 2037 due to its capability to transport a heavy volume of fluids over long distances. The large-diameter pipelines are specially designed to endure the high pressure of liquid assets passing across regions and countries. By offering affordable and efficient methods of transportation of valuable resources such as crude oil, petroleum products, and natural gas, many production houses tend to invest heavily in this segment. For instance, in October 2024, YPF announced the completion of its pipeline project. It is capable of delivering 160,000 barrels of crude oil per day from the Vaca Muerta shale play to a local oil refinery and of exporting the same to Chile.
Our in-depth analysis of the global pipeline transportation market includes the following segments:
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Application |
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Type |
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Solution |
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Service |
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North America Market Analysis
In pipeline transportation market, North America region is poised to hold more than 47.5% revenue share by 2037. The region is leading global growth with its efforts to garner advanced infrastructure for exporting and importing industrial essentials. In addition, the well-developed domestic countries are proactively taking part in creating a large consumer base for this sector through their lead in global trade in these materials. According to the 2022 OEC report, the U.S. and Canada were among the largest exporters of natural gas, reaching USD 17.3 billion and USD 19 billion respectively. On the other hand, another 2022 OEC report states that the U.S. became the 2nd largest importer of crude petroleum in the world, accounting for USD 199 billion.
The U.S. is creating a great scope of business for both global and domestic leaders in the pipeline transportation market with its extensive infrastructure. This inspires companies to create better networks of exports and imports, inflating demand in this sector. For instance, in July 2024, ADCC Pipeline, the joint venture of Whistler Pipeline LLC and Cheniere Energy, Inc. started providing commercial services for supplying natural gas. The new pipeline is capable of delivering 1.7 billion cubic feet of natural gas per day to the Cheniere Corpus Christi Liquefaction facility from Agua Dulce Header in South Texas.
With a widespread network and reservoir of oil, gases, and other raw materials, Canada is expected to foster the potential for lucrative growth in the pipeline transportation market. The country is now strengthening its cross-border relationships with large consumers by increasing supply. For instance, in May 2023, Marubeni partnered with Pembina Pipeline Corporation to jointly develop a low-carbon hydrogen and ammonia supply chain from Western Canada to the Asia landscape. The project includes the development of a global-scale production facility in the Alberta Industrial Heartland. Such projects further inflate the demand in this industry.
Europe Market Statistics
The pipeline transportation market in Europe is estimated to capture a significant share by the end of 2037 with increasing need for energy security and development of new energy sources. Countries such as Russia are establishing more efficient transit points to cope with the inflating demand in this sector. This is further attracting companies to participate in leveraging the efficiency of transportation for renewable energy resources. For instance, in November 2024, Tenaris announced its participation in the SafeH2Pipe Joint Industry Project for the safe transportation of hydrogen and hydrogen blends through pipelines in Europe. With the partnering companies, Tenaris aims to develop new guidelines for material selection and qualification.
The UK is predicted to offer lucrative opportunities for global leaders in the pipeline transportation market. The country is now focusing on securing resources for green energy generation, creating scope for advancement in this sector. For instance, in November 2024, Exolum started a project to transport and store green hydrogen on a commercial scale by leveraging existing storage and pipeline network in the UK. The company aims to create an innovative transport model for liquid hydrogen by utilizing LOHC.
Germany is expected to garner notable revenue from the pipeline transportation market due to increasing investments from domestic leaders. Many companies are now participating in the country’s goal to implement clean energy sources by establishing reliable networks. For instance, in July 2024, EnBW announced its plans to invest around USD 1 billion to secure the future hydrogen economy of the country by participating in the pipeline projects. The investment was made to support the national hydrogen core network by converting existing pipelines.
The global pipeline transportation market is slowly but steadily shifting towards upgrading the supply network to import or export clean energy-generation materials such as hydrogen. In addition, traditional distribution methods and mediums are also being improved to reduce the carbon footprint. This further creates a new scope of investment for global leaders. For instance, in August 2024, ArcelorMittal launched a new steel, HyMatch for the construction of hydrogen pipelines. The advanced properties of the R&D metal are designed to support the hydrogen gas infrastructure while reducing carbon emissions in manufacturing facilities.
Such key players include:
Author Credits: Dhruv Bhatia
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