Pipeline Construction Market Trends

Global Pipeline Construction Market Overview

Pipeline Construction Market Size was valued at USD 45.7 billion in 2022. The Pipeline Construction industry is projected to grow from USD 47.89 Billion in 2023 to USD 73.03 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.8% during the forecast period (2023 - 2032).

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Pipeline Construction Market Trends

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  Growing Demand for Energy is a Significant Driver for Pipeline Construction

  
  

The growing global demand for energy, particularly oil and gas, is a significant driver for oil and gas pipeline construction market. Pipelines provide a cost-effective and efficient means of transporting large volumes of oil and gas from production sites to refineries, processing plants, and distribution networks. As the world's population continues to grow and industrialization expands, the demand for energy, particularly oil and gas, is increasing, which is further driving the pipeline industry. Pipelines are crucial for transporting these energy resources efficiently and cost-effectively from production areas to consumption centers. Pipelines are the most efficient mode of transporting large volumes of oil, gas, and other fluids over long distances. Compared to alternative transportation methods such as trucks, trains, or ships, pipelines offer higher capacity, lower energy consumption, and reduced operational costs. As energy demands increase, construction of pipeline become essential for meeting transportation requirements.

For countries with significant energy reserves, construction of pipeline allows them to access markets and export their resources to international buyers. Pipelines connect production regions with refineries, processing plants, export terminals, and distribution networks, facilitating the movement of energy resources to global pipeline industry. This access to export opportunities can drive pipeline construction projects. While there is a growing focus on renewable energy sources, oil and gas remain crucial components of the global energy mix. As countries transition towards cleaner energy sources, pipelines can support the transportation of alternative fuels like natural gas, hydrogen, or biofuels. Pipeline excavation and construction activities to transport these emerging energy sources is driven by the need for diversification and transitioning to more sustainable energy systems.

Infrastructure Development in Emerging Countries Drives the Demand for Pipeline Construction

Infrastructure development plays a crucial role in supporting economic growth, improving connectivity, and meeting the needs of growing populations. Pipelines are a vital component of infrastructure networks, facilitating the transportation of resources, particularly oil, gas, and water, over long distances. As countries seek to increase their energy capacity and meet rising energy demands, the construction of pipeline becomes necessary to ensure efficient and reliable energy supply. Governments and companies invest in pipeline excavation and construction projects to enhance connectivity, facilitate economic growth, and meet the increasing demand for energy resources.  Pipelines are crucial for supporting industrial development and expansion. Industries such as petrochemicals, manufacturing, and mining often require a steady supply of resources, including oil, gas, and water. Pipeline excavation and construction enables the efficient and continuous delivery of these resources to industrial sites, fostering economic growth and job creation.

Pipelines are used for water transportation in various infrastructure projects. They are employed to supply water from sources such as reservoirs, rivers, or desalination plants to urban areas, agricultural lands, and industrial facilities. The water pipeline construction is essential for expanding water supply infrastructure and ensuring access to clean water. Pipelines can be integrated into transportation infrastructure projects. For example, pipeline networks can connect airports, seaports, and rail terminals to fuel storage facilities, enabling the efficient refueling of vehicles and vessels. This integration reduces dependence on traditional fuel transportation methods and contributes to a more sustainable and resilient transportation system.

Pipeline Construction Market Platform Segment Insights

Pipeline Construction Market Pipe Type Insights

Based on Pipe Type, the Pipeline Construction Market segmentation includes metallic and non-metallic. Metallic pipe type dominated the Pipeline Construction market in 2022 and is expected to grow at a highest CAGR during the forecast period. Metallic pipelines are pipelines constructed using various types of metals, such as steel, stainless steel, cast iron, or aluminum. These pipelines are widely used for the transportation of fluids, including oil, gas, water, and other liquids or gases in various industries. Oil and gas pipelines are a major application, transporting crude oil, natural gas, and refined petroleum products from production sites to refineries, processing plants, and distribution networks.

Non-metallic pipelines are commonly made from materials such as high-density polyethylene (HDPE), polyvinyl chloride (PVC), fiberglass reinforced plastic (FRP), reinforced thermoplastic pipes (RTP), and composite materials. These materials offer specific properties that make them suitable for pipeline applications. Non-metallic pipelines find applications in industries such as water and wastewater management, oil and gas, chemical processing, mining, and agriculture. They are used for the transportation of fluids, including water, sewage, chemicals, slurries, and various industrial fluids.

Figure1: Pipeline Construction Market, by Pipe Type, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Pipeline Construction Market Application Insights

The Pipeline Construction Market is segmented based on liquid pipeline and gas pipeline. Gas pipeline held the largest market share in 2022 and is expected to dominate the pipeline construction market during the forecast period (2023-2032). A gas pipeline is specifically designed for the transportation of natural gas or other gases over long distances. Gas pipelines play a crucial role in the energy sector, enabling the efficient and reliable delivery of natural gas from production areas to consumers, including residential, commercial, and industrial users. Gas pipeline technology continues to advance, leading to improved pipeline monitoring systems, leak detection technologies, and pipeline integrity management.

Liquid pipelines, also known as crude oil pipelines or petroleum pipelines, are pipelines specifically designed for the transportation of liquid petroleum products, such as crude oil, refined petroleum products, and natural gas liquids (NGLs). These pipelines are a vital component of the energy infrastructure and play a crucial role in the transportation of liquids from production sites to refineries, processing plants, storage terminals, and distribution networks. Liquid pipelines are primarily used for the transportation of crude oil, which is extracted from oil fields and transported to refineries for processing into various petroleum products.

Pipeline Construction Market End User Insights

The End User segment of the Pipeline Construction market is segmented into oil and gas, chemical and petrochemical, water and wastewater, energy (power and utilities), others. Oil and gas industry dominated the pipeline construction market in 2022. Global energy demand continues to rise, driven by population growth, economic development, and industrialization. Oil and natural gas remain crucial sources of energy, and oil and gas pipeline construction provide the most efficient and cost-effective means of transporting these resources to meet growing demand. Pipelines play a crucial role in the oil and gas industry, facilitating the transportation of crude oil, natural gas, and refined petroleum products from production sites to refineries, processing plants, storage terminals, and distribution networks.

Chemical and petrochemical industry is expected to grow at a highest CAGR during the forecast period (2023-2032). The global demand for chemicals and petrochemicals continues to rise, driven by population growth, urbanization, and industrialization. Chemicals and petrochemicals are essential inputs in various sectors, including manufacturing, construction, automotive, healthcare, and consumer goods. Pipelines are utilized to transport a wide range of chemicals, including petrochemicals, specialty chemicals, industrial gases, and liquid bulk commodities. These chemicals are crucial for manufacturing processes, such as plastics production, pharmaceuticals, fertilizers, and other chemical products.

Pipeline Construction Market Regional Insights

By Region, the Pipeline Construction market is segmented into North America, South America, Europe, Asia Pacific, and Middle East and Africa. The Asia Pacific Pipeline Construction market held the highest market share in 2022 and is expected to exhibit a significant CAGR growth during the forecast period. The Asia Pacific pipeline industry has witnessed significant growth in recent years, driven by the expanding oil and gas industry, rising energy demand, infrastructure development, LNG infrastructure development, cross-border pipelines, renewable energy expansion, urbanization, and government initiatives, among many factors.

The Asia-Pacific region has vast reserves of oil and natural gas, including offshore fields, shale gas resources, and emerging exploration areas. The development and production of these resources require the construction of pipelines to transport them from production sites to refineries, processing plants, and distribution networks. The growing oil and gas industry drives the demand for oil and gas pipeline construction in the Asia Pacific region. Pipeline contractor and stakeholders are actively involved in meeting the region's energy transportation needs and contributing to its economic growth.

North America Pipeline Construction market is expected to grow at the fastest rate during the forecast period. The North America pipeline industry has been experiencing exponential growth due to the factors such as shale gas and oil production, expanding energy infrastructure, crude oil and natural gas exports, energy security goals, cross-border pipelines, regulatory frameworks, infrastructure upgrades, technological advancements, and environmental considerations. The advent of shale gas and oil production in North America, particularly in the United States, has driven the demand for pipeline excavation and construction. Shale gas and oil reserves, such as the Marcellus and Permian basins, require pipelines to transport the extracted resources from production sites to refineries and distribution centers.

Figure 2: Pipeline Construction Market Size By Region 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe has a well-developed natural gas infrastructure, with an extensive network of pipelines that transport natural gas across the continent. The construction of pipelines is crucial for connecting natural gas production sites, import terminals, storage facilities, and distribution networks, ensuring a reliable and secure supply of natural gas to European countries. Europe is actively working to diversify its gas supplies to reduce dependency on a single source or route. This has led to the construction of new pipelines and interconnections, such as the Southern Gas Corridor and Balticconnector, enabling the transportation of natural gas from new suppliers and facilitating gas trade among European countries.

South America has a growing natural gas sector, with an increasing demand for natural gas as a cleaner energy source. The construction of pipelines is essential for transporting natural gas from production sites to consumption centers, power plants, and industrial facilities. Countries like Argentina, Brazil, and Bolivia have invested in pipeline infrastructure to meet the rising demand for natural gas. South America is home to significant oil reserves and production. Pipelines play a crucial role in transporting crude oil from production areas to refineries, export terminals, and domestic markets. Countries like Brazil, Colombia, and Venezuela have extensive pipeline networks for oil transportation.

The Middle East is home to abundant oil and gas reserves, making it a major player in the global energy market. The construction of pipelines is crucial for transporting crude oil, natural gas, and petroleum products from production sites to refineries, export terminals, and domestic consumption centers. Major pipeline industry projects in the region include the Trans-Arabian Pipeline (Tapline) and the East-West Pipeline in Saudi Arabia. Africa is rich in natural resources, including oil, gas, and minerals. Pipelines are crucial for transporting these resources from production areas to refineries, export terminals, and domestic markets. Major pipeline industry projects in Africa include the West African Gas Pipeline (WAGP) and the Chad-Cameroon Pipeline.

Pipeline Construction Market Key Players & Competitive Insights

The competitive landscape of the pipeline market report is characterized by the presence of both global and regional players. The pipeline construction market has witnessed consolidation through mergers and acquisitions, with larger companies acquiring smaller players to strengthen their market position and expand their capabilities. This trend has led to the formation of major players with diversified offerings and extensive geographic reach. In the pipeline construction market, pipeline contractors are increasingly adopting advanced technologies to improve project efficiency, safety, and environmental sustainability. This includes the use of digital tools for project planning and management, advanced pipeline monitoring systems, and innovative construction techniques.

The major Pipeline Construction companies in the pipeline market report include Metal Forge India, Prosaic Steel and Alloys, Bechtel Corporation, Cogbill Construction LLC, CCI Leidingsystemen B.V, Yena Engineering B.V., Enka Insaat Ve Sanayi, Larsen & Turbo Limited, Seonghwa Industrial Co Ltd, Sung Il Sim Co. Ltd., among others. Companies with a broad geographic presence have an advantage in accessing diverse markets and opportunities. They can leverage their global or regional footprint to expand their market share and diversify their project portfolio. Local and regional pipeline contractors have a competitive advantage in their respective markets due to their understanding of local regulations, cultural nuances, and specific project requirements.

Key Companies in the Pipeline Construction Market include

• Metal Forge India


• Prosaic Steel and Alloys


• Bechtel Corporation


• Cogbill Construction LLC


• CCI Leidingsystemen B.V


• Yena Engineering B.V.


• Enka Insaat Ve Sanayi


• Larsen & Turbo Limited


• Seonghwa Industrial Co Ltd


• Sung Il Sim Co. Ltd.

Pipeline Construction Market Industry Developments

• In June 2023, Larsen & Toubro (L&T) has bagged a large offshore contract from ONGC for the seventh development phase of their pipeline replacement projects. This contract, awarded through international competitive bidding, reposes ONGC's confidence in L&T Hydrocarbon Engineering (LTHE) capabilities and commitment to support ONGC in the strategic oil and gas sector, and contribute to the country's energy security. The contract involves engineering, procurement, construction, installation and commissioning of 350 km subsea pipelines and related offshore works spread out across the country's west coast offshore fields of ONGC.


• In March 2022, Tellurian Inc. (Tellurian) announced that it has issued a limited notice to proceed to Bechtel Energy Inc. (Bechtel) under its executed Engineering, Procurement and Construction (EPC) contract to begin construction of phase one of the Driftwood LNG terminal, a liquefied natural gas (LNG) export facility near Lake Charles, Louisiana. Bechtel’s first activities include demolition, civil site preparation and construction of critical foundations, and Baker Hughes will progress manufacturing two of the natural gas turbines required for phase one of the project.


• Between 2014 and 2019, a joint venture of ENKA and Bechtel worked on the South Caucasus Pipeline Expansion (SCPX) Project, which was designed to increase the volume of gas flowing from the Shah Deniz field in the Azerbaijan sector of the Caspian Sea to Georgia and Türkiye. The project, including the construction of two compressor stations, a pressure reduction and metering station, and associated access roads, required over 24 million person-hours of work.

Pipeline Construction Market Segmentation

Pipeline Construction Market Pipe Type Outlook

• Metallic


• Non-Metallic

Pipeline Construction Market Application Outlook

• Liquid Pipeline


• Gas Pipeline

Pipeline Construction Market End User Outlook

• Oil and Gas


• Chemical and Petrochemical


• Water and Wastewater


• Energy (Power and Utilities)


• Others

Pipeline Construction Market Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• South America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of South America
  
  
  
  


• Europe
  
  
  
  • UK
  
  
  • Germany
  
  
  • France
  
  
  • Rest of Europe
  
  
  
  


• Asia Pacific
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • Rest of APAC
  
  
  
  


• Middle East & Africa
  
  
  
  • Saudi Arabia
  
  
  • UAE
  
  
  • South Africa
  
  
  • Rest of MEA