by The Offshore Pipeline Market is estimated to be valued at Us$15.50 Bn in 2023 and is expected to exhibit a CAGR Of 4.7% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Offshore pipelines are used to transport oil and gas from offshore production platforms and drilling rigs to onshore refineries and terminals. They play a crucial role in transporting hydrocarbons from offshore oil fields. Rising demand for energy coupled with lower development costs of offshore fields is augmenting the demand for offshore pipelines.
Market Dynamics:
Rising demand for energy: Growing global energy demand particularly in developing countries such as China and India is driving the demand for offshore pipelines. As per International Energy Outlook 2019, the world energy consumption is projected to grow by 50% between 2018 and 2050 with energy demand in developing countries increasing sharply. This rising energy demand will necessitate increased production from offshore sources thus augmenting the demand for offshore pipelines.
Maturation of offshore fields: Many offshore fields located in regions such as Gulf of Mexico and North Sea are maturing. In order to maintain oil and gas production from these matured fields, operators are undertaking redevelopment projects involving replacement and upgrading of existing offshore pipelines. This is expected to fuel the growth of offshore pipeline market over the forecast period.
Segment Analysis
The offshore pipeline market is dominated by the oil and gas segment. Around 70% of the global offshore pipelines are used for oil and gas transportation. The oil and gas pipelines help transport crude oil and natural gas from offshore extraction sites to onshore processing facilities. As global energy demand rises with increasing population and industrialization, extensive exploration and production of offshore oil and gas reserves have led to higher investments in offshore oil and gas pipelines.
PEST Analysis
Political: Stable regulatory environment and government support for offshore oil and gas projects have encouraged investments in offshore pipelines in many countries. However, policies around renewable energy and carbon emission cuts could impact investments in the long run.
Economic: Growing energy needs of developing economies and higher oil prices in recent years have improved project economics and driven investments in offshore oil and gas infrastructure including pipelines.
Social: Concerns around environmental pollution and disruption have slowed the approval of some offshore pipeline projects. However, job creation and energy security needs have wider social acceptance for such projects.
Technological: Advanced pipeline materials, coatings, and monitoring systems have enhanced durability and lifespan of offshore pipelines. Deepwater pipeline technologies have enabled exploration in remote geographical locations.
Key Takeaways
The Global Offshore Pipeline Market Demand was valued at US$ 15.50 billion in 2023. Driven by increasing investments in offshore oil and gas exploration and production activities, the market is expected to grow at a CAGR of 4.7% during the forecast period of 2023 to 2030.
Regional analysis: The Asia Pacific region is projected to witness the fastest growth in offshore pipelines over the next decade backed by rising energy demand from China, India and other emerging Asian economies. Countries like India are also ramping up their domestic oil and gas exploration efforts which will drive pipeline infrastructure growth.
Key players operating in the offshore pipeline market are Saipem, Subsea 7 S.A., McDermott International, and TechnipFMC plc. Saipem leads the market with largest fleet of offshore pipe-laying vessels. Subsea 7 has a major focus on subsea pipeline installation while McDermott and TechnipFMC provide integrated engineering and construction services for offshore pipeline projects.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
