Offshore Pipeline Market To Generate $18,716 Million Revenue by 2030
- Published: January 2023
The offshore pipeline market size is expected to advance at a CAGR of 4.10% during 2022–2030, to reach USD 18,716 million by 2030. This is because offshore pipelines are the quickest and most-economical means of transporting hydrocarbons.
The global offshore oil & gas pipeline market is expected to be dominated by Europe. The key driver for the market expansion in the region is the presence of nations with high energy consumption rates, including the U.K., France, and Germany. Other major drivers are the rise in oil and gas production and the favorable economics of offshore pipelines. One of Europe's main regions for the production of oil and gas is the North Sea.
Natural gas is transported using offshore pipelines the most extensively, which is why it is expected to hold a significant share, of around 36%, in 2030. Along with the lower prices for equipment, engineering, and other services, the rise in the demand for hydrocarbons, itself partly due to their price recovery, will be favorable for the industry in the coming years.
Compared to crude carrier ships, offshore pipelines use less energy to operate. Offshore pipelines also offer a higher oil capacity, lower carbon impact, and enhanced efficiency. Additionally, as offshore oil & gas supply prices continue to fall, offshore activity remains more alluring than onshore, thus leading to a wide potential for profit for the global market. Combined with these advantages of pipelines, the sharp increase in the energy demand from developing nations contributes to the market's expansion.
Consistent Demand for Oil and Gas Drives Market
Over the projection period, a significant rise in demand is expected globally in the market for offshore pipelines. This can be linked to the surge in the demand for secure, affordable, and dependable connectivity from source to destination, as well as for natural gas and crude oil themselves. In addition, as developing nations quickly urbanize and industrialize, the need for energy and, in turn, the consumption of liquid fuels will rise. The fuels must be carried to the desired location safely and affordably, because the production and consumption sites are often far apart.
Additionally, the technological developments in undersea pipelines will drive the demand for offshore pipelines in the oil & gas industry over the forecast years. Regardless of the environmental conditions, hydrocarbons can be transmitted via offshore pipes. In many aspects, the laying of offshore pipelines has increased trade efficiency. Further, such networks’ have expanded as a result of the growth in petrochemical demand across the globe, which is itself driven by the increasing industrial production.
The biggest offshore pipeline market players are Saipem SpA, Subsea 7 S.A., McDermott International Ltd., John Wood Group PLC, TechnipFMC plc, Sapura Energy Berhad, Petrofac Limited, Allseas Group S.A., and Cortez Subsea Limited.