Pipeline Construction Global Market Report 2024

The pipeline construction market size has grown strongly in recent years. It will grow from $47.68 billion in 2023 to $50.39 billion in 2024 at a compound annual growth rate (CAGR) of 5.7%. Historical growth can be attributed to the development and production of oil and gas resources, a substantial increase in the demand for safe, economical, and reliable infrastructure for oil and gas transportation, and heightened investments in pipeline projects.

The pipeline construction market size is expected to see strong growth in the next few years. It will grow to $62.89 billion in 2028 at a compound annual growth rate (CAGR) of 5.7%. Anticipated growth in the forecasted period is driven by climate change initiatives, public perception and opposition, geopolitical stability, exploration of resources, and the implementation of energy transition policies. Major trends expected during this period encompass technological advancements, the expansion of the oil and gas industry, a heightened focus on research and development, and increased integration of automation and robotics.

The spike in energy consumption is a key driver behind the growth of the pipeline construction market. The increasing demand for energy is attributed to factors such as growing affluence, urbanization, and improved accessibility to electricity. Industries involved in energy production rely on pipelines to efficiently transport energy supplies, including natural gas, propane, and gasoline. According to the World Energy Investment Report published by the International Energy Agency (IEA), a France-based international forum for sustainable energy, there was a global increase of 4.6% in energy consumption in 2021. Furthermore, the report highlighted that global energy investment reached an annual figure of $1.9 trillion. This substantial surge in energy consumption is expected to drive the pipeline construction market as the need for efficient energy transportation infrastructure becomes increasingly paramount.

The anticipated growth in demand for oil and gas production is set to propel the pipeline construction market in the coming years. Oil and gas production involves the fundamental process of converting crude oil and natural gas from wells into finished petroleum products for consumer use. In this context, pipeline construction plays a crucial role by facilitating the transportation of hydrocarbons from extraction sites to processing facilities, refineries, distribution points, and supplying natural gas to industries, power plants, and households. For example, data from the US Energy Information Administration in March 2023 indicated an increase in crude oil output, reaching 12.4 million barrels per day (b/d) in 2023 compared to 11.7 million b/d in 2022. Furthermore, in September 2022, the average daily consumption of natural gas in the US was 86.6 billion cubic feet (Bcf/d) in 2022, representing the highest annual consumption compared to the previous year. This surge in demand for oil and gas production is a significant driver fueling the growth of the pipeline construction market, as the industry seeks to enhance its infrastructure for the efficient transportation of these critical energy resources.

The pipeline construction market is witnessing a notable trend favoring product innovations as a means to gain traction. Key industry players are actively engaged in developing inventive solutions to solidify their market presence. Notably, in November 2022, CYENS Centre of Excellence, a prominent Cyprus-based research and innovation center, introduced the beta version of DgiStreamer, an innovative imaging/video pipeline-interface tool. This GUI (graphical user interface) software stands out as a comprehensive standalone pipeline builder compatible with GStreamer and Deepstream. DgiStreamer offers a user-friendly drag-and-drop functionality, streamlining the assembly of pipeline-building elements, thereby simplifying the pipeline construction process. Its swiftness and user-friendliness surpass existing alternatives while accommodating complex configuration types, marking a significant advancement in pipeline construction technology.

Key players in the pipeline construction sector are strategically focusing on the integration of cutting-edge solutions such as vibroacoustic wave detection systems to establish a competitive advantage. These advanced systems are designed to offer real-time analysis, monitoring, and leak detection capabilities for pipelines. Notably, in March 2023, Eni S.p.A., an Italy-based oil industry leader, introduced the Eni Vibroacoustic Pipeline Monitoring System (E-VPMS). This proprietary technology is specifically developed for the continuous real-time monitoring of oil and gas pipelines. E-VPMS utilizes vibroacoustic wave detection technology, enabling simultaneous monitoring of fluid behavior within the pipeline and the propagation of acoustic waves along the pipe wall. Integrated with multiple sensors strategically placed at discrete intervals along the pipeline, this system is primarily deployed at block valve stations for buried pipelines used in the transportation of crude oil, refined products, and injection water. Its sophisticated alarm system promptly transmits notifications to operational teams in real time, alerting them to any incidents or events, thereby facilitating timely intervention and maintenance.

Leading companies in the pipeline construction market are concentrating on executing advanced pipeline projects to gain a competitive advantage. The advancement of cross-border hydrogen pipelines entails constructing infrastructure to enable the transportation of hydrogen across international borders. As an example, in November 2022, Techfem S.p.A., an Italian engineering company specializing in the energy sector, revealed its involvement in the development of cross-border hydrogen pipelines. The company contributed various design packages and pre-project advisory services for the establishment of extensive, high-pressure networks dedicated to the transmission of pure hydrogen over long distances.

Major companies operating in the pipeline construction market report are Energy Transfer LP, Nippon Steel Corporation, Enterprise Products Partners L.P., Enbridge lnc., Larsen & Toubro Ltd., Kinder Morgan Inc., Joint Stock Company Transneft, Tenaris S.A, Pembina Pipeline Corporation, TechnipFMC PLC, TMK Group, Primoris Services Corporation, Enka İnşaat ve Sanayi A.Ş., Ledcor Group, Mott Macdonald Group Ltd., Forterra Inc., McDermott International Inc., Bonatti S.p.A., Spiecapag, CRC-Evans Pipeline International Inc., Prosaic Steel & Alloys, Gateway Pipeline LLC, Pumpco Inc., Cogbill Construction LLC, Sung IL Sim Co Ltd., Cecon Group, Barnard Construction Company Inc., Metal Forge India, CCI Leidingsystemen B.V., Yena Engineering B.V., Seonghwa Industrial Co. Ltd., ChelPipe Group, Shengli Oil & Gas Pipe Holdings Limited, Sunland Construction Inc., Bechtel Corporation, Snelson Companies Inc., TC Energy Corporation.

North America was the largest region in the pipeline construction market share in 2023. The regions covered in the pipeline construction market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the pipeline construction market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of pipeline construction are metallic and non-metallic pipelines. Metallic pipelines are commonly used in water delivery systems, natural gas pipes, and wastewater systems. The metallic character of elements, which relates to their propensity to lose electrons and form positive ions or cations, is a factor in the properties of these pipelines. Various equipment used in pipeline construction includes valves, pipeline components, metering skids, and compressor stations. Pipeline construction serves the purposes of transmission and distribution operations, with applications spanning liquid and gas pipelines. These constructions find utility in various industries, including oil and gas, chemical, water and wastewater, energy, and other sectors.

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

The pipeline construction market includes revenue earned by entities by constructing cast iron pipes, petroleum oil pipelines, gas pipelines, slurry pipelines, and oily sewers. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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.