Offshore Pipeline Market: Current Analysis and Forecast (2021-2027)

The offshore pipeline market is expected to witness a CAGR of around 7% during the forecast period (2021- 2027). The growing demand for crude oil and natural gas around the world is propelling the offshore pipeline business forward. In 2018, global oil demand increased by 1.3 percent, owing to strong growth in the United States. The largest overall rise was seen in the United States and China. Furthermore, in the year 2020, air traffic volumes have expanded dramatically, particularly in China & India. The use of jet fuel has been a significant contribution to increased oil consumption. Also, according to the IEA, it accounted for 20% of overall world oil demand growth compared to the year 2019.
However, industry growth witnessed some stress and negative impact due to COVID-19. The sudden outbreak of COVID-19 has sent shockwaves across industries manufacturing, power generation, renewables, nuclear, and oil & gas. The outbreak and the resulting economic slowdown have had an intermediate impact on the offshore pipeline industry. Although the COVID-19 pandemic has forced stop all the fieldwork of several major projects, the market is nonetheless expected to remain robust with the new projects and field development in the upcoming years.
- Based on line type, the offshore pipeline market is segmented into Import/export lines and transport lines. The transport line portion is supposed to hold the biggest piece of the pie during the forecast period. Around 25,000 km of transport line pipeline network is supposed to be finished in the coming future. The increasing demand for energy and strategic reserves by the countries forces the oil companies to ensure safer and on-time delivery. To mitigate the risks associated with the transportation of crude oil and petroleum products the companies focus on the pipeline. Further, the economic viability of the transport line is one of the prominent factors contributing to the growth of this segment.
- Based on the product type, the market is classified into natural gas, crude oil, and refined product. The refined product fragment is supposed to rule the market in the determined period. The rising population and urbanization along with the automotive industries increases the demand for the refined product in the past and would continue to grow at a higher rate. Key stakeholders in the industry have spotted the offshore pipeline technology as a strategic energy infrastructural investment for the long-term economic success and help in achieving the increasing demand of the several sectors including transportation, automotive as well as commercial, and institutional bodies.
- Based on diameter, the market is categorized into below 24-inch OD and above 24-inch OD depending on the operational condition such as shallow water, deep water, or ultra-deepwater. The above 24-inch OD segment is expected to grow in the near future due to the allocation of several offshore projects globally.
- For a better understanding of the market adoption of the offshore pipeline industry, the market is analyzed based on its worldwide presence in the countries such as North America (US, Canada, Rest of North America); Europe (Germany, U.K., Spain, Russia, and the Rest of Europe); Asia-Pacific (China, Japan, India, Rest of Asia-Pacific); and the Middle East & Africa (UAE, Saudi Arabia, Kuwait, Rest of ME&A). In 2020, North America, accounted for a significant share of the market owing to high investment and active deployment of the advanced technologies in the region's offshore pipeline and distribution sector.
- Some of the major players operating in the market include McDermott International, Petrofac, Ramboll, Saipem, Fugro, Subsea 7, Seanaat, Penspen, Sapura, and wood Group.