Gas Pipeline Infrastructure Market Size - By Application (Onshore, Offshore), Operation (Transmission, Distribution), Equipment (Pipeline, Valves, Compressor Stations, Metering Skids), Diameter & Global Forecast, 2024 - 2032
Report ID: GMI2062
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Published Date: August 2023
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Report Format: PDF
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Base Year: 2023
Companies covered: 15
Tables & Figures: 710
Countries covered: 18
Pages: 525
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Gas Pipeline Infrastructure Market
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Gas Pipeline Infrastructure Market Size
Gas Pipeline Infrastructure Market size was valued at USD 3.9 trillion in 2023 and is anticipated to grow at over 2.7% CAGR from 2024 to 2032. The global energy demand is experiencing a significant increase due to rapid commercialization and industrialization, driving the expansion of gas pipeline infrastructure. The energy industry is in a transition phase, with environmental regulations and emissions concerns influencing its trajectory. Key trends, such as the coal to gas switch, rising demand for clean energy, and the growth of renewables, are shaping the industry's growth.
Natural gas plays a vital role in the ongoing global energy transition. However, the industry faces challenges in terms of insufficient infrastructure and high capital requirements, leading to a decline in growth. Governments worldwide are investing significantly in pipeline infrastructure development and construction to enhance accessibility, particularly with the increasing penetration of natural gas. The transmission and distribution pipeline infrastructure have seen significant advancements to meet growing demand. Regulators are also planning to develop domestic gas networks, including city gas distribution projects, to improve accessibility further. The refurbishment of existing pipeline infrastructure and the need for efficient transmission networks, driven by the reliance on international gas imports, will drive the gas pipeline infrastructure market expansion.
COVID-19 Impact
The gas pipeline infrastructure market experienced significant adverse effects from the COVID-19 pandemic, leading to an overall slowdown in industry growth. The global gas demand plummeted due to lockdowns, travel restrictions, and reduced economic activity during the pandemic. This decrease in demand resulted in an oversupply of oil & gas (O&G) and subsequent price drops, diminishing the urgency to invest in pipeline projects. Many gas pipeline infrastructure projects faced delays or cancellations as companies hesitated to make long-term investment decisions amidst market volatility and uncertain future demand.
The economic downturn and lower gas prices put financial strain on O&G companies and infrastructure developers, leading to budget cuts and reduced capital expenditures, which impacted funding for pipeline projects. Furthermore, the pandemic highlighted the need for a transition to cleaner and sustainable energy sources, potentially affecting investment decisions in traditional gas pipeline infrastructure.
Gas Pipeline Infrastructure Market Trends
The gas pipeline infrastructure industry is experiencing growth due to the increasing focus on environmental sustainability and decarbonization, which is driving a shift towards cleaner energy sources. As a result, there is a growing emphasis on developing gas pipeline infrastructure for transporting renewable gases like biogas and hydrogen. Governments and energy companies are seeking to enhance energy security by diversifying their energy sources.
Gas pipeline infrastructure plays a crucial role in diversifying energy supply, ensuring stable and reliable access to natural gas and other energy resources. Moreover, the industry is witnessing an integration of digital technologies and automation to improve pipeline operations, monitoring, and maintenance. Advanced analytics, IoT sensors, and remote monitoring systems are being deployed to optimize pipeline performance and ensure safe and efficient operations.
Liquefied Natural Gas (LNG) is gaining popularity as a flexible and transportable form of natural gas. The development and expansion of LNG infrastructure, including LNG terminals and regasification facilities, are driving the gas pipeline connections market demand to distribute LNG to end-users. In addition, safety and environmental considerations are gaining prominence in pipeline planning and operations.
There is a growing focus on ensuring the integrity and safety of pipelines, as well as minimizing environmental impacts during construction and operation. This in turn is boosting the influx of funds across the pipeline infrastructure business in order to deploy state of the art equipment to increase reliability and efficiency of the pipes and thus contribute to the overall industry growth.
Gas Pipeline Infrastructure Market Analysis
The onshore gas pipeline infrastructure market accounted for 80% of the revenue share in 2022 and is expected to cross USD 3.3 trillion by 2032. The rising global energy demand, driven by population growth, urbanization, and industrialization, is boosting the need for reliable and efficient transportation of natural gas. Onshore gas pipelines play a crucial role in meeting this increasing demand for energy. Governments and energy companies are prioritizing energy security by diversifying their energy sources, which in turn boosts the product deployment owing to its ability to offer secure and reliable means of transporting natural gas, reduction in dependence on imported energy and enhancement of energy.
Supportive government policies, incentives, and regulatory frameworks can significantly influence the growth of the onshore gas pipeline infrastructure market. Governments may provide financial incentives, streamline permitting processes, and promote investments in gas infrastructure projects. Aging gas pipeline infrastructure requires upgrading and modernization to ensure safety, efficiency, and compliance with evolving standards. Retrofitting, expansion, and rehabilitation projects drive the demand for new onshore gas pipelines, thereby driving the overall market size.
The gas pipeline infrastructure market from distribution pipelines segment held over USD 2.3 trillion in 2022 and is poised to expand at a CAGR of 2.5% through 2032. Gas pipeline distribution systems are essential for delivering processed natural gas from the city gate to end consumers, including commercial enterprises and residential customers.
To ensure nationwide accessibility of gas, state and central governments have set targets and plans for the development of effective distribution infrastructure in cities. This network consists of distribution mains and small service lines operated by local distribution companies (LDCs) or investors. The service lines are responsible for delivering gas to homes and businesses, forming the majority of the underground pipeline network.
The advancement of trenching technology has improved operations in crowded cities and scenic areas. When laying distribution lines across cities and residential properties, multiple clearances and local protests are common challenges. However, the introduction of guided drilling systems has reduced destruction and damage caused by floor excavation, minimizing inconvenience to local communities. Additionally, advanced Supervisory Control and Data Acquisition (SCADA) systems have enhanced operational efficiency through comprehensive measurement and timely access to information.
The gas pipeline infrastructure market is categorized based on diameter into four segments: 16 inches, 17-24 inches, 25-36 inches, and >36 inches. Among these, the medium-size pipelines ranging from 25 to 36 inches are expected to witness significant deployment growth in the coming years, led by rapid industrialization and advancements in exploration and production (E&P) technology.
The increasing demand for clean energy and the growing interstate trade of natural gas to meet high-demand regions further contributes to the expansion of medium-size gas pipeline infrastructure. Governments' efforts to allocate funds for upgrading and expanding the existing network facilitate efficient transportation of natural gas, supporting clean energy initiatives and addressing the growing energy needs. This expansion aims to ensure a robust and well-connected gas pipeline infrastructure across regions, promoting reliable and sustainable energy resources.
North America gas pipeline infrastructure market is predicted to observe around 0.5% CAGR during the forecast period, primarily due to the ongoing shale gas recovery across U.S. The abundance of shale gas resources in North America, particularly in the United States, has led to a significant increase in natural gas production. This boom in shale gas production has driven the need for expanded pipeline infrastructure to transport and distribute the gas to various regions. North America has a growing energy demand, driven by population growth, urbanization, and industrialization. Gas pipelines play a crucial role in meeting this increasing demand for natural gas as a cleaner and more efficient energy source.
North America's surplus natural gas production has created export opportunities to global markets. The development of pipeline infrastructure, particularly to support liquefied natural gas (LNG) export terminals, is crucial for capitalizing on these export opportunities. In addition, the midstream sector, which includes gas transportation and storage, has been attracting significant investment in North America. Investors are keen on supporting the expansion and modernization of gas pipeline infrastructure to capture the opportunities in the energy market. Furthermore, advancements in pipeline construction, monitoring, and automation technologies are improving the efficiency, safety, and environmental performance of gas pipeline infrastructure, encouraging further investment and growth.
Gas Pipeline Infrastructure Market Share
Major companies operating in the gas pipeline infrastructure market include:
The competitiveness of the gas pipeline infrastructure market is characterized by the participation of Exploration and Production (E&P) firms, Integrated Oil & Gas Companies (IOCs), and National Oil Companies (NOCs). These entities are allocating significant funds towards research and development (R&D) to develop innovative technologies and enhance their market value. Additionally, companies are pursuing growth strategies such as new project developments, mergers, and acquisitions to further intensify the competition within the industry.
Gas Pipeline Infrastructure Industry News:
This gas pipeline infrastructure market research report includes an in-depth coverage of the industry with estimates & forecast in terms of ‘000 KM and USD Million from 2019 to 2032, for the following segments:
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Market, By Application
Market, By Operation
Market, By Diameter
Market, By Equipment
The above information has been provided for the following regions and countries: