Virtual Pipelines Market Size was valued at USD 2.32 Billion in 2023. The Virtual Pipelines market industry is projected to grow from USD 2.45 Billion in 2024 to USD 3.65 Billion by 2032, exhibiting a CAGR (compound annual growth rate) of 5.08% during the projected timeframe (2024 - 2032). Higher natural gas output and the growing construction and building industry are the key market drivers contributing to the virtual pipelines market's growth and expansion.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The rising construction and building industry are driving market CAGR for virtual pipelines—a significant increase in non-residential building endeavors in international regions. The local marketplace for virtual pipelines is experiencing an increase in product offerings, followed by a continuous shift in market dynamics toward greater utilization of good quality and levels of virtual pipelines. The aging pipeline infrastructure is anticipated to impact the market for virtual pipeline systems. High-strength legislation about carbon emission control requirements and fast industrialization would play a significant role in favoring the expansion of this market.
Additionally, by creating more competitive goods and services for internal and external competitors, the commercial operator may utilize natural gas to compete in the marketplace o, which is more environmentally friendly than oil by-products. This will encourage their entry into new markets. As the pipeline establishes opportunities for a more appropriate industrial site and the potential of greater utilization of geographical assets at a better cost-benefit ratio, it consolidates natural gas consumption. It prepares the area for using traditional gas supply in the future. A newly built region could use the virtual-based pipeline system in this situation.
The COVID-19 crisis caused a large fall in worldwide economic activity and significant disruption to worldwide supply chains in 2020, which posed serious problems for the natural gas sector. Natural gas, refined petroleum goods, carbon dioxide, chemicals, steel, and other products that major participants in the industry handle via their pipes, devices, transporting vessels, and other facilities saw a detrimental effect on prices and demand as a result of the downturn in the economy. The post-COVID-19 recovery will focus heavily on the greening of the power sector and the growth in electrification due to efficiency in energy use that will boost the market growth. For instance, the US has a projected 482 Tn cubic feet of theoretically recoverable shale gas, based on the Energy Information Administration. In the preceding ten years, the nation's shale gas output increased by 12; this trend is projected to continue through 2035, which is expected to favor the expansion of virtual pipeline providers. Additionally, numerous governments worldwide are working with new, smaller organizations to transport gas. Therefore, demand for Virtual Pipelines is anticipated to increase throughout the projection timeframe due to the construction and building industry. Thus, driving the Virtual Pipelines market revenue.
The Virtual Pipelines market segmentation, based on Fuel Type, includes CNG and LNG. The CNG dominated the market, accounting for 64% of the market share (USD 1.4 Billion) in 2022. It is the most cost-effective substitute for pricey subterranean pipes for delivering natural gas across about 250 miles. High oil prices are also driving up the price of natural gas. Transmitting CNG using virtual pipelines is the greatest option for moving natural gas to outlying areas.
Figure 1: Virtual Pipelines Market by Fuel Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The Virtual Pipelines market segmentation, based on Mode of Transport, includes Truck, Barge, Rail, and Ship. The truck category generated the majority of market revenue of about 42% (USD 0.92 billion) in 2022. The barge category is expected to grow significantly during the projected timeframe.
The Virtual Pipelines market segmentation, based on End-Use, includes Residential, Transportation, Commercial, and Industrial. Transportation category dominated the market, accounting for 47% of the market revenue (USD 1 billion) in 2022. There will probably be a major increase in the need for natural gas due to the growing demand for clean energy. Additionally, natural gas is transported in various businesses and industries, including those operating in distant areas, such as mining operations, infrastructure upkeep, food & beverage production, and others.
By region, the research provides market evaluation into North America, Europe, Asia-Pacific, and the Rest of the World. APAC region Virtual Pipelines market will dominate this market, owing to a quick shift in people's preference for utilizing cleaner fuels instead of petroleum and coal. In addition, the substantial investment in natural gas in developing economies will boost market growth in the APAC area.
Furthermore, the major countries studied in the market report are the US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Virtual Pipelines Market Share by Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe region’s Virtual Pipelines market accounts for the second-largest market share due to the rising consumption of virtual pipelines for transportation. Further, the German Virtual Pipelines market dominates the market share, and the UK Virtual Pipelines market is anticipated to grow rapidly in the European region.
The North America Virtual Pipelines Market is expected to grow significantly during the projected timeframe. This is due to the escalating concerns about the sustainability of energy sources and the increase in research and development (R&D) spending. Moreover, China’s Virtual Pipelines market dominates the market share, and the Indian Virtual Pipelines market is expected to grow rapidly in the North American region.
Leading market players invested heavily in research and development (R&D) to increase their production capacity and develop innovative products, which will help the Virtual Pipelines market expand further. Market participants are also undertaking organic and inorganic approaches to expand and strengthen their footprint, with important market developments including new product lines, contractual deals, mergers and acquisitions, capital expenditure, and strategic alliances with other organizations. The Virtual Pipelines industry must offer cost-effective and innovative solutions to survive in a moderately fragmented market.
Manufacturing locally to increase production capacity and minimize operational expenses is one of the key business strategies organizations use in the Virtual Pipelines industry to offer lucrative benefits to their clients and capture the untapped market share. The Virtual Pipelines industry has recently offered significant advantages to the building and construction industry. Major players in the Virtual Pipelines market include GE Oil and Gas (U.S.), Kinder Morgan (U.S.), SUB161° (Australia), Eniday (Italy), Galileo Technologies S.A. (Argentina), and CNG Services Limited (U.K). SENER Group (Spain), Pentagon Energy LLC (U.S.), Xpress Natural Gas LLC (U.S.), OsComp Holdings LLC (U.S.), NG Advantage LLC (U.S.), and REV LNG LLC (U.S.), are attempting to capture market share by investing in research and development (R&D) operations to offer innovative solutions.
Kinder Morgan is one of the biggest energy infrastructure firms in North America. The business specializes in controlling and managing pipelines and terminals for oil and gas. Access to affordable, dependable electricity is key to raising living standards worldwide. In August 2022, for USD 135 million, Kinder Morgan bought North American Natural Resources together with North American Biofuels and Central. Seven amounts of gas from landfills used in electricity plants are included in the deal. Through this transaction, Kinder Morgan announces the Final Investment Decision to upgrade 4/7 gas-to-power facilities to renewable natural gas facilities for an estimated US$175 million in capital costs.
For controlling all of the problems associated with fly ash, HaloSep is a Swedish business that provides an original and sustainable solution. The method decreases the landfill volume while also recovering salt and metals. It offers an in-plant remedy that can be developed locally in a waste-to-energy facility. In June 2022, AVR investigated the viability of handling its dangerous gases and cleaning wastes locally. A proprietary method called HaloSep separates hazardous waste into fractions that can be used and safely disposed of.
August 2022: For USD 135 million, Kinder Morgan bought North American Natural Resources together with North American Biofuels and Central. Seven amounts of gas from landfills used in electricity plants are included in the deal. Through this transaction, Kinder Morgan announces the Final Investment Decision to upgrade 4/7 gas-to-power facilities to renewable natural gas facilities for an estimated US$175 million in capital costs.
June 2022: Through a partnership with the Swedish business HaloSep, AVR investigated the viability of handling its dangerous gases and cleaning wastes locally. A proprietary method called HaloSep separates hazardous waste into fractions that can be used and safely disposed of.
December 2021: The Federal Energy Regulatory Commission has received a proposal from Tennessee Gas Pipeline, a Kinder Morgan subsidiary, for implementing an environmentally friendly natural gas-supplying service at specific sites along the TGP system. It is intended to authorize both buyers and sellers of RSG supplies on TGP through abstract trading capabilities, benefiting end users, power stations, and LNG facilities linked to the TGP system.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 2.32 Billion |
| Market Size 2024 | USD 2.45 Billion |
| Market Size 2032 | USD 3.65 Billion |
| Compound Annual Growth Rate (CAGR) | 5.08% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Fuel Type, Mode of Transport, End-Use, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | GE Oil and Gas (U.S.), Kinder Morgan (U.S.), SUB161° (Australia), Eniday (Italy), Galileo Technologies S.A. (Argentina), and CNG Services Limited (U.K). SENER Group (Spain), Pentagon Energy LLC (U.S.), Xpress Natural Gas LLC (U.S.), OsComp Holdings LLC (U.S.), NG Advantage LLC (U.S.), and REV LNG LLC (U.S.) |
| Key Market Opportunities | Rising consumption of Natural Gas |
| Key Market Dynamics | Higher natural gas output Emerging economies' net natural gas imports and exports More liquefied and regasification processes terminals are being built Outdated and ineffective current infrastructure |
Virtual Pipelines Market Highlights:
Frequently Asked Questions (FAQ) :
The Virtual Pipelines market was valued at USD 2.32 Billion in 2023.
The Virtual Pipelines market is anticipated to grow and expand at a Compounded annual growth rate of 5.08% from 2024 to 2032.
Asia-Pacific holds the largest share of the Virtual Pipelines market.
The key participants in the market are GE Oil and Gas (U.S.), Kinder Morgan (U.S.), SUB161° (Australia), Eniday (Italy), Galileo Technologies S.A. (Argentina), and CNG Services Limited (U.K). SENER Group (Spain), Pentagon Energy LLC (U.S.), Xpress Natural Gas LLC (U.S.), OsComp Holdings LLC (U.S.), NG Advantage LLC (U.S.), and REV LNG LLC (U.S.).
The CNG category dominated the market in 2022.
The truck had the largest share of the Virtual Pipelines market.
Senior Research Analyst With an experience of over five years in market research industry (chemicals & materials domain), i gather and analyze market data from diverse sources to produce results, which are then presented back to a client. also, provide recommendations based on the findings. as a senior research analyst, i perform quality checks (qc) for market estimations, qc for reports, and handle queries and work extensively on client customizations. also, handle the responsibilities of client proposals, report planning, report finalization, and execution
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