The Global Offshore Pipeline Market is projected to reach USD 19.65 billion by 2028, growing at a CAGR of 5.7% during the forecast period. The offshore pipeline industry includes pipeline installing, designing, and testing, to working. Offshore pipelines offer advantages like high-quality insulation of deep-sea pipelines, lower installation costs, better resistance against exterior deep-sea pressures, and an upsurge in oil and gas flow.
An increase in offshore production, amplified demand for oil and natural gas, and growing demand for cheaper methods of transportation have prompted companies to fast-track the process of building pipelines for transportation. Also, the increasing demand for economical, safe, and reliable connectivity will boost the growth of the offshore pipeline market.
Various climatic conditions and high construction costs are the main challenges to the development of the global offshore pipeline industry. Ultra-deep or offshore water discoveries and rising demand for refined products will generate new opportunities for the global offshore pipeline industry. To comply with this surge in demand for oil, the number of pipeline installation projects has increased. As of 2017, nearly 3,802 miles of pipelines were under construction worldwide or were in the development stage.
Global Offshore Pipeline Market, By Type
Based on the line type, the offshore pipeline market segmentation includes export and transport. The increasing transport line for the pipeline grid in various applications has resulted in the transport line segment holding the largest share of the global offshore pipeline market. Nearly 25,000 km of the transport line pipeline system has reached completion in the last few years. The increasing growth of this segment in the Asia Pacific, Europe, and the Middle East is anticipated to drive this segment over the forecast period.
Global Offshore Pipeline Market, By Product
Based on the product segment, market classification includes gas, oil, and refined products. The refined-product segment will lead the market over the forecast period. The growth is on account of increasing demand in the Asia Pacific region, which is driving the market followed by the countries in the Middle East and Africa. Also, the oil segment is expected to capture a substantial share in the global Offshore Pipeline Market over the forecast period.
Global Offshore Pipeline Market, By Region
North America is expected to contribute a major share of revenue to the global offshore pipeline market. The region will lead the global Offshore Pipeline Market in the upcoming years. Nearly 13.7% of the total global proven oil reserves are located in North America, according to statistical data from the BP Statistical Review of World Energy 2019. A sizable number of these reserves are located offshore. As the production of oil and gas from offshore reserves increases in the region, the demand for offshore pipelines is anticipated to rise.
This regional growth can also be credited to the presence of well-established petrochemical industry and the increasing use of oil and gas in North America. The U.S. shale gas exploration and production, rapid growth in innovation and technology, and methane-based technologies are the major factors responsible for the growth of the petrochemical industry, which will further boost the North American Offshore Pipeline Market in the future.
The Asia Pacific region is anticipated to offer lucrative growth opportunities for the global offshore pipeline industry, owing to the rising demand for electricity. China has a well-established infrastructure and has the third-longest and largest network of pipelines across the globe. The total length of the pipeline network in China alone is nearly around 126,000 km. China’s growth as a petrochemical consuming and producing powerhouse has augmented the intra-regional competition in the global Offshore Pipeline Market.
Crucial Developments in the Global Offshore Pipeline Market
Some Key Findings of the Global Offshore Pipeline Market Report Include:
Global Offshore Pipeline Market Segmentation:
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