Pipeline and Process Services Market Size, Share & COVID-19 Impact Analysis, By Asset Type (Pipeline (Transmission and Distribution), Process (FPS, Refinery & Petrochemical, and Storage & Processing)), By Operation (Pre-Commissioning, Maintenance, Decommissioning), and Regional Forecast, 2021-2028

The global pipeline and process services market size was USD 3.30 billion in 2020. The impact of COVID-19 has been unparalleled and staggering, with pipeline construction activities witnessing a negative demand across all regions during the pandemic. Based on our analysis, the global market unveiled a slight decline of -2.9% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is anticipated to grow from USD 3.39 billion in 2021 to USD 4.90 billion in 2028 at a CAGR of 5.4% during the 2021-2028 period. The rapid rise in CAGR is attributable to this market’s growth and demand, returning to pre-covid levels once the pandemic is over.

Pipeline & process services include several activities during the life cycle of an oil & gas pipeline. These activities include pre-commissioning, where the laid pipeline undergoes several processes to determine its full functionality. Several safety checks are also performed, ensuring no harm to living bodies and the environment through which the pipelines pass.  Pipeline service providers maintain the pipeline to its best shape during its working period, varying from 20 to 25 years. 

Disruption in Oil & Gas Operations to Impact Global Pipeline & Process Services Market Growth

The spread of COVID-19 had a heavy impact on most industries, especially the oil and gas industry. Unavailability of laborers, loss in operational time, and national lockdowns were some factors that directly led to a decline in demand for crude oil and natural gas consumption across countries. Owing to this, an oversupply situation was created in the oil and gas supply chain, leading oil and gas prices to fall to a record low level in the year 2020. May 2020 saw the price of crude oil touch USD 20.37 per barrel, which is the lowest since February 2002. Considering the pipeline and process service industry, the maintenance operations of pipelines were being carried out using the internet of things. Still, the major blow was on the ongoing construction activities, which have now witnessed an extension in their delivery dates. On the same, not the upcoming investments have also been halted, which have negatively impacted the market.

LATEST TRENDS

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Strict Regulations Over Operation of Pipelines to Propel Growth

The pipelines transport combustible fuels such as gas and oil, and any leakage through the pipeline would lead to a huge loss to the environment and even life. These pipelines also run through seas where lots of water animals are present. Therefore, these pipelines need to follow strict regulations to carry out safe transmission & distribution and protect the areas they pass.

The imposition of regulations promotes a competitive and safe market, leading to the betterment of the whole oil & gas supply chain, leading to high demand for advanced pipeline & process services worldwide. For example, all the pipelines in the United States have to obey the Onshore Pipeline Regulations (OPR) and National Energy Board Act (NEB Act), which include timely supervision and pressure testing. Numerous revisions have been made to these since they were carried into effect, in 1999.

Growing Crude Oil & LNG Trade to Lead to Construction of New Pipelines

Several countries are rich in oil and gas reserves, while several countries are deprived of the same. Therefore, to suffice the energy demand and finance, countries are dependent on each other for the trade. Further, the rising energy demand in past years resulted in a rise in pipelines being constructed for oil and gas transmission and oil and gas production.

The leading oil and gas producers list includes countries such as the U.S., Russia, the G.C.C., and others, who supply crude oil to many countries such as Peru, UK, China, India, and many more. This trend is predicted to carry on during the forecast period, with population explosion. This will result in the further development of transmission pipelines for local and global trade to avail energy in different regions. This acts as a lucrative opportunity for market growth.

DRIVING FACTORS

Increasing Energy Demand Across Various Application Sectors to Augment Growth

According to a UN report, by the year 2050 the total world urban population is anticipated to be 68%, which will spike the energy demand to very high levels. This change in energy demand is witnessed currently by countries as they have increased imports of fossil fuels. Further, the increasing number of migrant people from rural to urban areas has increased energy demand across every application sector, such as transportation and power generation. Renewable energy sources are still at nascent stages of development, and therefore the maximum portion of this hiked energy demand is being fulfilled by fossil fuels. This has ramped up production rates, construction of supply lines and transportation lines, fueling the pipeline and process services market growth.

Increasing Adoption of LNG to Surge Growth in Pipeline Infrastructure

The demand for LNG has been increasing in countries leading to the development of advanced pipeline infrastructures. The global need to reduce carbon emissions and the current incapability to directly switch to renewable sources has led to the increasing utilization of LNG. It has fewer carbon emissions and is more environmentally friendly than oil and coal. Following this, developing nations are focused on increasing natural gas usage across industrial, commercial, and residential sectors, directly driving the demand for their distribution pipelines.

RESTRAINING FACTORS

Increasing Penetration of Renewables in Overall Energy Mix Poses Threat to Market Growth

One of the major threats to the market is the increasing acceptance of renewable sources for power generation across every nation in the world. Wind and Solar power are the prime threats as these have witnessed an exponential rise in their adoption over the last decade. This increasing adoption of renewables to curb carbon emissions directly omits the need for exploration activities for oil and gas, which will act as a blockade to the global pipeline & process services industry.

Every country has set some renewable energy objectives to be achieved in the coming years. Some are listed here. The government of the United Kingdom aims to have 50% of its electricity to be generated through renewable sources by 2025. Germany has the aim to produce a minimum of 65% of total energy from sustainable energy solutions by 2030. China aims to suffice 16% of energy demand through renewables by 2030. Brazil has the goal to generate 42.5% of its energy using renewable resources by 2023.

SEGMENTATION

By Asset Type Analysis

Numerous Installed Pipelines Across Globe Will Lead Pipeline to Hold Lion Share in the Market

The pipeline & process services market based on asset type is broadly categorized into pipeline and process.

The pipeline segment is further bifurcated into transmission and distribution. The installed pipeline infrastructure across the globe is humongous used for oil and gas trade within countries and to distribute oil and gas within a nation. This has led to the domination of the pipeline segment, and this trend is expected to be continued during the forecast period. 

The process segment is further classified into floating production and storage vessels (FPS), refinery, petrochemical, and storage & processing.

By Operation Analysis

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Regular Maintenance and Change of Parts Will Lead to Domination of Maintenance Segment

Based on operation, the market for pipeline & process services is segmented into pre-commissioning, maintenance, and decommissioning.

As the maintenance services for a pipeline are provided over its whole life span of approximately 25 years, the maintenance segment dominates the market.

The other services, such as pre-commissioning and decommissioning, are provided at the start when the pipeline is laid and the end of life of a pipeline. Therefore, these hold a less share in the global market.  

REGIONAL INSIGHTS

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The global market has been analyzed across North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa.

The United States, which has the maximum hydrocarbon pipeline infrastructure, has led the market for several years. Owing to the expansion of oil and gas fields in the country, the market is anticipated to grow even further at a healthy rate. Apart from the U.S., Canada is the other major country on regional and global levels. These two countries are ranked among the top 10 countries globally in pipeline infrastructure. Therefore, North America, which accounted for 1.44 billion in 2020, is expected to lead the market for pipeline & process services in the forthcoming years.

The North Sea has been the major focus of countries such as Norway, UK, Denmark, Italy, and others have also contributed, which has led Europe to occupy a significant share in the global market. Russia's presence in the region that produces fossil fuels largely adds up to an increase in the market share of the region.

Asia Pacific is anticipated to have the maximum pipeline construction over the coming decade, which will open lucrative opportunities and drive the market in the region. China’s crude oil production in 2020 reached 194 million tons as per the National Energy Administration (NEA). This rise in production, coupled with an increase in transportation and refinery activities, is anticipated to bolster the market in the country. India and other southeast Asian countries are expected to contribute towards the same.

Numerous transmission, gathering, and distribution lines are present in Latin America & the Middle East and Africa regions. Several countries such as Brazil, Mexico, Saudi Arabia, UAE, and others are home to leading oil-producing nations at onshore and offshore locations that will propel the demand for the product during the forecast period.  

KEY INDUSTRY PLAYERS

Bluefin Group and Baker Hughes to Lead with Wide Customer Reach and Brand Stability

The market has several players focused on delivering optimal solutions for pipelines & their related processes. Various process enhancement techniques are being introduced by major players such as Bluefin Group and Baker Hughes. The other players in the market focus on research and development activities, enhancing the performance characteristics and providing them with a certain edge over other players in the market. Following the rules of the governing bodies and managing pipeline operations at optimal pressure and temperature is the focus of every player present in the market. As the pipeline structures expand due to increasing energy demand, the market will have lucrative opportunities for many companies to have a global footprint.

LIST OF KEY COMPANIES PROFILED:

• Bluefin Group (United States)


• Baker Hughes (United States)


• Atlus Intervention (Norway)


• CR Asia Group (Thailand)


• Eunisell Limited (Nigeria)


• Alphaden Energy & Oilfield Limited (Nigeria)


• Cypress Pipeline & Process Services (United States)


• Halliburton (United States)


• Chenergy Services Limited (Nigeria)


• Techfem (Italy)


• EnerMech (United Kingdom)


• BGS Energy Services (United States)


• Hydratight (United Kingdom)


• IPEC, Pipeline & Process Services (Iran)


• IKM Group (Norway)

KEY INDUSTRY DEVELOPMENTS:

• July 2020 - IKM Group signed a contract from Johan Castberg for Nitrogen-Helium leakage testing and PSV calibration. The company also accepted additional bolt work, hot oil flushing, chemical cleaning, drying, cutting pipes, machining of flanges, and machining pipe wedges, etc.


• September 2020 – EnerMech was awarded a contract in the Southern North Sea for a period of 12 months. EnerMech has committed to deliver various pipeline and process specialist services like nitrogen, bolting and flange management, removal of all resources used in the project, and pipework removal. The company will contribute significantly to the setting up of new pipelines, and assist in controlled bolting and leak testing.

REPORT COVERAGE

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The global pipeline & process services market report highlights leading regions worldwide to offer a better understanding of the user. Furthermore, the market research report provides insights into the latest industry trends and analyzes technologies deployed rapidly at a global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the industry.

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