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Virtual Pipeline Market Size - By Fuel (CNG, LNG), Mode of Transport (Truck, Rail, Ship, Barge), End Use (Commercial, Industrial, Transportation), Growth Prospects, Regional Outlook & Global Forecast, 2023 – 2032

  • Report ID: GMI6816
  • Published Date: Sep 2023
  • Report Format: PDF

Virtual Pipeline Market Size

Virtual Pipeline Market size was valued at USD 1.9 billion in 2022 and is anticipated to grow at over 6.1% CAGR from 2023 to 2032. The growing need for reliable and flexible energy distribution solutions, particularly in regions with limited access to traditional pipeline infrastructure acts a major growth driver for the virtual pipeline infrastructure. These units enable the transportation and delivery of natural gas, hydrogen, and other gases to industrial, commercial, and other consumers, bridging the gap in areas where pipelines are not feasible or cost-effective.

Virtual Pipeline Market

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Additionally, the rising demand for cleaner and more sustainable energy sources is propelling the adoption of virtual pipelines, as natural gas is considered a cleaner alternative to traditional fossil fuels. The integration of renewable gases, such as biomethane and biogas, into the virtual pipeline network further supports environmentally friendly energy practices. Moreover, industries seeking to reduce emissions and transition to cleaner energy sources are driving the expansion of the virtual pipeline market. As the energy landscape evolves, the versatility and reliability of virtual pipelines make them a critical component of the energy supply chain, fostering continued market growth.

Virtual pipelines are innovative systems for the transportation and distribution of natural gas, liquefied natural gas (LNG), and other gases using flexible and mobile methods. Unlike traditional pipelines that are fixed in place, virtual pipelines utilize various modes of transportation, such as trucks, trailers, railcars, and barges, to deliver gas to consumers. These systems are particularly valuable in regions lacking pipeline infrastructure or for supplying remote industrial facilities and power generation stations.

Virtual pipelines offer a flexible and cost-effective solution for delivering clean and sustainable energy sources, making them an essential part of modern energy distribution networks. They play a pivotal role in expanding access to natural gas and other gases while reducing environmental impacts and enhancing energy security.

COVID-19 Impact

The COVID-19 pandemic has had a mixed impact on the virtual pipeline market. The market faced disruptions in supply chains, logistics, and construction activities due to lockdowns and restrictions, leading to delays in project execution. The reduced industrial and commercial activities during the pandemic also affected the immediate demand for gas transported via virtual pipelines.

However, the pandemic underscored the importance of energy resilience and backup supply systems, driving interest in virtual pipelines as reliable energy solutions during emergencies. As economies recover and the focus on cleaner and more sustainable energy sources intensifies post-pandemic, the virtual pipeline market is expected to rebound, with increased emphasis on energy security and the adoption of cleaner fuels. However, uncertainties related to future waves of the pandemic and evolving market dynamics remain factors to consider in the post-COVID-19 virtual pipeline landscape.

Virtual Pipeline Market Trends

The virtual pipeline industry over the years have witnessed a substantial growth in demand owing to the growing emphasis on sustainability and the integration of renewable gases, such as biomethane and green hydrogen, into virtual pipeline networks. This aligns with global efforts to reduce carbon emissions and transition to cleaner energy sources. Technological advancements are driving the development of more efficient and environmentally friendly equipment and vehicles for gas transportation, enhancing the safety and reliability of virtual pipelines.

Regional expansion is becoming a key trend, with virtual pipelines increasingly extending their reach into emerging markets, addressing energy needs in remote areas and bolstering economic development. Lastly, collaborations and partnerships between virtual pipeline service providers, gas producers, and end-users are on the rise, facilitating the development of tailored solutions and streamlined supply chains. These trends collectively reflect the evolving landscape of energy distribution and the critical role of virtual pipelines in meeting diverse energy demands while prioritizing sustainability and resilience.

Virtual Pipeline Market Analysis

Virtual Pipeline Market Size, By Fuel, 2021 - 2032, (USD Billion)

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The virtual pipeline market form CNG segment held over USD 490 million in 2022 and is expected to observe around 6.5% CAGR through 2032, due to the transportation and distribution of Compressed Natural Gas (CNG). CNG is considered a clean and environmentally friendly fuel, making it a preferred choice in regions striving to reduce carbon emissions and air pollution. Moreover, the versatility of CNG allows it to be used in a wide range of applications, including power generation, industrial processes, and transportation, driving its demand.

Additionally, CNG virtual pipelines offer a flexible and cost-effective solution for delivering natural gas to areas lacking traditional pipeline infrastructure, particularly in remote regions or emerging economies. As industries and communities increasingly prioritize sustainability and energy security, CNG's role in the virtual pipeline market is poised to continue to expand, supporting the transition to cleaner and more accessible energy sources.

Virtual Pipeline Market Size, By Fuel, 2021 - 2032, (USD Billion)

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Virtual pipeline market from trucks segment dominated around USD 1 billion revenue in 2022 and will cross USD 2 billion by in 2032, driven by the use of trucks as a primary mode of transportation for compressed natural gas (CNG) and liquefied natural gas (LNG). Trucks offer the flexibility and mobility needed to transport gas to diverse locations, including areas with limited pipeline infrastructure. This mode of transportation has been instrumental in providing remote and underserved communities with access to clean and reliable energy sources, supporting industrial operations, and addressing energy needs during emergencies.

The versatility of truck-mounted virtual pipelines has made them a key driver in expanding the reach of natural gas and other gases to a wider range of end-users, contributing significantly to the industry's growth and adaptability in diverse geographic and industrial settings.

Virtual pipeline market from industrial sector is set to expand at a CAGR of 5.5% till 2032, fuelled by industrial end uses. Industries, including manufacturing, power generation, mining, and various heavy-duty processes, rely heavily on the consistent and efficient supply of energy resources like compressed natural gas (CNG) and liquefied natural gas (LNG). Virtual pipelines provide a vital solution to meet the demanding energy needs of these sectors, ensuring uninterrupted operations and cost-effectiveness.

As industries continue to prioritize energy efficiency, environmental sustainability, and resilience, the virtual pipeline industry has seen increased adoption in industrial settings. Moreover, the expansion of industrial activities, especially in emerging markets, has further boosted the demand for virtual pipeline solutions, solidifying the industrial sector's position as a key growth driver in this dynamic virtual pipeline market.

North America Virtual Pipeline Market Size, 2021 - 2032, (USD Million)

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North America virtual pipeline market is slated to register 5% CAGR between 3023 and 2032, owing to the region's abundant natural gas reserves, particularly in the United States and Canada. The shale gas revolution has led to increased production of natural gas, making it a readily available and cost-effective energy resource. The need to serve remote and off-grid areas, including rural communities and industrial facilities, has spurred the adoption of virtual pipelines as a flexible and efficient solution for natural gas distribution.

Moreover, environmental considerations and a growing emphasis on reducing carbon emissions have led to the increased use of natural gas as a cleaner-burning fuel compared to other fossil fuels. Additionally, the resilience of virtual pipelines during natural disasters and emergencies, ensuring a consistent gas supply, has bolstered their adoption in the region. Furthermore, regulatory support and incentives for the expansion of natural gas infrastructure and distribution networks have further fueled the market's growth.

Virtual Pipeline Market Share

Major companies in the virtual pipeline market include

  • GasGrows Solutions Private Limited
  •  Kinder Morgan
  • NG Advantage LLC.
  •  Snam SPA, Stabilis Solutions, Inc.
  •  FIBA Technologies, Inc.
  •  Hexagon Agility
  • Petroliam Nasional Berhad (PETRONAS)
  •  Gas Malaysia Virtual Pipeline Sdn. Bhd.
  •  Air Products and Chemicals, Inc.
  •  Galileo Technologies S.A.
  •  Xpress Natural Gas
  •  CNG Services Limited
  • Aggreko
  •  Gáslink - Gás Natural, S.A.

Kinder Morgan, Stabilis Solutions, and Hexagon Agility have established strong market positions in the virtual pipeline market owing to their high operation efficiency and distribution network across regions. Kinder Morgan boasts a vast network of natural gas infrastructure and extensive experience in energy transportation, enabling it to efficiently operate virtual pipelines and deliver reliable gas supplies to a wide range of customers. Stabilis Solutions specializes in providing comprehensive solutions for liquefied natural gas (LNG) distribution, including small-scale LNG production, making it a key player in the market's demand.

Moreover, Hexagon Agility is recognized for its innovative and lightweight composite natural gas storage systems, which enhance the mobility and versatility of virtual pipelines, making them an attractive choice for diverse applications. These companies have demonstrated a commitment to safety, sustainability, and meeting the evolving energy needs of industries and communities, contributing to their strong market positions in the dynamic virtual pipeline sector.

Virtual Pipeline Industry News: 

  • In August 2022, Kinder Morgan completed the acquisition of North American Natural Resources, Inc., along with its affiliated companies such as North American BiofueLLC, for a total of USD 135 million, inclusive of associated contract expenses. As part of this acquisition, Kinder Morgan gained control over power plants situated in Michigan and Kentucky. This strategic move marks Kinder Morgan's significant investment, totalling approximately USD 175 million, to transition these power plants into renewable natural gas facilities, a significant step toward sustainability and cleaner energy sources.
  • In September 2020, Petronas has introduced the Virtual Pipeline System (VPS) solution via the Regasification Terminal (RGT) located in Peninsular Malaysia. This customer-centric initiative is driving the expansion of clean energy utilization in the region. The VPS, a part of the New Energy business segment, is now available through PETRONAS Dagangan Berhad and is utilized for the delivery of Liquefied Natural Gas (LNG) to customers. This distribution method involves the use of trucks equipped with cryogenic tanks, enabling efficient and flexible LNG transportation.

This virtual pipeline market research report includes an in-depth coverage of the industry with estimates & forecast in terms of USD Million from 2019 to 2032, for the following segments:

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Market, By Fuel

  • CNG
  • LNG
  • Others

Market, By Mode of Transportation

  • Truck
  • Rail
  • Ship
  • Barge

Market, By End Use

  • Commercial
  • Industrial
  • Transportation

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • Italy
    • France
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • South Korea
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Egypt
  • Latin America
    • Brazil
    • Argentina


Authors: Ankit Gupta, Vishal Saini

Frequently Asked Questions (FAQ) :

The market size of virtual pipeline surpassed USD 1.9 billion in 2022 and is set to exceed USD 3.9 billion by 2032, attributed to the growing need for reliable and flexible energy distribution solutions, particularly in regions with limited access to traditional pipeline infrastructure.

The CNG fuel segment accounted for more than USD 490 million in 2022 and is poised to witness over 6.5% CAGR from 2023 to 2032, owing to the increasing demand for clean and environmentally friendly fuel.

North America market is set to expand at over 5% CAGR from 2023 to 2032, driven by the abundant natural gas reserves, particularly in the U.S. and Canada.

Kinder Morgan, NG Advantage LLC., Stabilis Solutions, Inc., Hexagon Agility, Air Products and Chemicals, Inc., Galileo Technologies S.A., Xpress Natural Gas, CNG Services Limited, Aggreko, Gáslink - Gás Natural, S.A., and Gas Malaysia Virtual Pipeline Sdn. Bhd are some of the leading virtual pipeline companies.

Virtual Pipeline Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 15
  • Tables & Figures: 352
  • Countries covered: 16
  • Pages: 290
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