Onshore Oil and Gas Pipeline Sales Market Outlook

The global onshore oil and gas pipeline market is poised for significant growth, with an estimated market size of USD 12.4 billion in 2023 and projected to reach USD 19.3 billion by 2035, reflecting a compound annual growth rate (CAGR) of approximately 5.5%. The market is primarily driven by the increasing demand for energy, particularly from emerging economies that are ramping up their oil and gas infrastructure. Additionally, the ongoing technological advancements in pipeline construction and monitoring are enhancing operational efficiencies, thus attracting investments in this sector. Furthermore, the rising need for efficient transportation of oil and gas products due to regulatory mandates for safety and environmental compliance contributes to the market's expansion. The growing exploration and production activities in remote areas are also propelling the demand for onshore pipelines, as they provide a reliable means of transporting hydrocarbons to processing facilities.

Growth Factor of the Market

The onshore oil and gas pipeline market is experiencing substantial growth due to various factors such as globalization, urbanization, and the rapid industrialization witnessed in many regions around the world. The drive towards energy independence has led countries to invest heavily in developing domestic oil and gas resources, necessitating the construction of extensive pipeline networks. Additionally, the increasing prices of crude oil have incentivized exploration activities, further boosting the demand for pipelines. The expansion of renewable energy sources is also influencing this market, as companies seek to integrate natural gas infrastructure to support cleaner energy transitions. Moreover, the need for efficient and safe transport mechanisms to mitigate the risks associated with oil and gas transportation contributes further to market growth. Another vital factor is the push for modernization and digitalization of pipeline technologies, including the adoption of smart pipeline monitoring systems that enhance operational reliability and safety.

Key Highlights of the Market

• The global market size is expected to reach USD 19.3 billion by 2035.
• North America is currently leading in terms of market share, owing to extensive oil and gas reserves.
• Technological advancements are creating opportunities for improved pipeline safety and efficiency.
• There is a growing focus on environmental sustainability, which is shaping pipeline construction projects.
• The market is witnessing increased investment from both public and private sectors.

By Product Type

Carbon Steel Pipeline:

Carbon steel pipelines are widely used in the onshore oil and gas market due to their excellent mechanical properties and cost-effectiveness. These pipelines are particularly favored for transporting crude oil and natural gas over long distances. The durability and strength of carbon steel make it suitable for high-pressure applications, thus ensuring the secure transport of hydrocarbons. Moreover, advancements in coating technologies have enhanced the corrosion resistance of carbon steel pipelines, further increasing their longevity and reliability in various environmental conditions. The growing trend towards pipeline monitoring systems is also benefiting carbon steel pipelines, as it ensures that any leaks or damages are promptly detected, thereby minimizing downtime and enhancing safety. Given these factors, the carbon steel pipeline segment continues to dominate the market, supported by ongoing investments in oil and gas infrastructure across the globe.

Stainless Steel Pipeline:

Stainless steel pipelines are recognized for their superior corrosion resistance, making them an ideal choice for transporting aggressive fluids such as chemicals and refined products. The use of stainless steel is particularly advantageous in applications where the transported fluids can cause degradation of other materials. The inherent strength and durability of stainless steel allow for thinner wall constructions compared to other materials, thereby reducing overall material costs. This segment is experiencing growth due to the rising demand for refined products transportation, as stainless steel pipelines can withstand high temperatures and pressures. Furthermore, the expansion of the petrochemical industry and the continuous development of oil refining techniques also contribute to the increased adoption of stainless steel pipelines. Manufacturers are focusing on improving the production processes of stainless steel, ensuring high quality and compliance with international standards, which further bolsters this segment's growth in the pipeline market.

Alloy Steel Pipeline:

Alloy steel pipelines are known for their enhanced mechanical properties, particularly in high-temperature and high-pressure applications. These pipelines offer improved strength and toughness compared to carbon steel, making them suitable for transporting oil and gas in extreme environments. The growing demand for natural gas, particularly in industrial applications, is driving the adoption of alloy steel pipelines, as they provide safety and reliability in transporting high-pressure gas. Furthermore, advancements in metallurgy are enabling the production of alloy steels with better corrosion resistance, increasing their lifespan and reducing maintenance costs. The use of alloy steel is particularly prevalent in regions with harsh climates and challenging terrains, where durability is crucial. As oil and gas exploration activities expand into more remote and demanding locations, the demand for alloy steel pipelines is expected to grow, contributing significantly to the overall market expansion.

HDPE Pipeline:

High-density polyethylene (HDPE) pipelines are increasingly being adopted due to their lightweight nature and resistance to corrosion and chemicals. These pipelines are particularly suitable for transporting water, gas, and other fluids in various applications. The flexibility and ease of installation associated with HDPE pipelines reduce the overall costs and time required for pipeline construction. Additionally, HDPE's resistance to environmental stress cracking and low thermal conductivity make it a preferred choice in areas prone to ground movement or extreme weather conditions. The growing emphasis on sustainable practices is also driving the use of HDPE, as it is recyclable and has a lower carbon footprint compared to traditional materials. As more projects aim for environmental sustainability, the application of HDPE pipelines is expected to rise, benefiting from innovations in manufacturing that enhance performance and reduce costs.

Fiberglass Pipeline:

Fiberglass pipelines are gaining traction in the onshore oil and gas market due to their superior corrosion resistance and lightweight properties. These pipelines can withstand harsh chemical environments, making them an attractive option for transporting certain types of fluids, particularly in the chemical and waste industries. The non-corrosive nature of fiberglass minimizes the risk of leaks and failures, thereby enhancing the overall safety of pipeline systems. Additionally, the ease of installation and lower maintenance requirements associated with fiberglass pipelines contribute to their growing use in various applications. The rising demand for environmentally responsible pipeline solutions is also supporting the growth of fiberglass pipelines, as they offer a lower environmental impact compared to traditional metal options. Continuous research and development efforts are focusing on improving the mechanical properties and performance of fiberglass pipelines, further expanding their acceptance in the oil and gas sector.

By Application

Crude Oil Transportation:

Crude oil transportation remains one of the predominant applications for onshore pipelines, driven by the ongoing global demand for oil. Pipelines are the most efficient and safest means to transport crude oil from extraction sites to refineries or export terminals. The rising production levels in major oil-producing regions and the exploration of new reserves have necessitated the development of extensive pipeline networks. The integration of advanced monitoring and leak detection technologies has further improved safety and operational efficiency in crude oil transportation. As countries strive to maintain energy security and independence, investments in crude oil pipeline infrastructure are expected to continue increasing. Furthermore, the global push towards energy diversification and the shift towards cleaner energy sources may influence the dynamics of crude oil transportation in the future, prompting adaptations in pipeline design and operation.

Natural Gas Transportation:

The transportation of natural gas through onshore pipelines is experiencing rapid growth, primarily due to the increasing demand for cleaner energy sources. Natural gas is often regarded as a transitional fuel that can facilitate the shift from coal to renewable energy. The expansion of pipeline networks is essential to connect natural gas production sites to consumption areas, including power generation facilities and industrial users. The introduction of liquefied natural gas (LNG) technologies has also revolutionized the natural gas transport sector, enabling the export and import of gas over long distances. As countries look to enhance their energy security and reduce greenhouse gas emissions, the role of natural gas transportation via pipelines will become increasingly significant. Enhanced pipeline infrastructure will not only support the burgeoning demand for natural gas but also facilitate the transition to a more sustainable energy future.

Refined Products Transportation:

The transportation of refined products via onshore pipelines is a critical segment of the oil and gas market, ensuring that gasoline, diesel, and other fuels reach consumers efficiently. The increasing urbanization and industrialization across various regions necessitate a reliable supply of refined products, making pipeline infrastructure essential. Pipelines provide a cost-effective and safe method for transporting these products over long distances while mitigating the risks associated with truck or rail transportation. The growing demand for refined products, driven by expanding populations and rising energy consumption, will further enhance the need for robust pipeline systems. Additionally, advancements in pipeline technology, such as enhanced monitoring and safety measures, are expected to bolster the efficiency and reliability of refined product transportation, aligning with global sustainability goals.

By Diameter

Below 24 inches:

Pipelines with a diameter of below 24 inches are commonly used for various applications in the oil and gas sector, particularly for transporting refined products and natural gas. These smaller pipelines provide flexibility and ease of installation, making them suitable for connecting local distribution networks to larger trunk lines. Furthermore, they enable the transportation of lower volumes of hydrocarbons, catering to regional markets or industrial users. The developments in technology and materials have also contributed to the growing efficiency of smaller pipelines, enhancing their structural integrity and resistance to environmental factors. As a result of the increasing need for refined products and natural gas, this segment is expected to witness steady growth, particularly in urbanized areas where infrastructure expansion is critical.

24-36 inches:

Pipelines with diameters ranging from 24 to 36 inches play a crucial role in the transportation of crude oil and natural gas over medium to long distances. These pipelines are designed to accommodate larger volumes, making them ideal for connecting major production areas to processing or distribution facilities. The construction of such pipelines is often associated with significant investments, as they require advanced engineering and compliance with stringent safety regulations. The growing demand for energy, coupled with the expansion of oil and gas extraction activities, is expected to drive the growth of this segment. Additionally, the shift toward more efficient transportation systems that can meet increasing energy needs will further bolster the adoption of pipelines in this diameter range.

Above 36 inches:

Pipelines exceeding 36 inches in diameter are typically employed for transporting large volumes of crude oil and natural gas over extensive distances. These pipelines are essential for interconnecting major production fields with refineries and export terminals, thereby facilitating the efficient movement of hydrocarbons. Due to their capacity, these large-diameter pipelines often involve significant capital investments and require advanced technology for construction and monitoring. The rising global demand for energy, especially in emerging economies, is expected to create favorable conditions for the expansion of this segment. Additionally, the increasing focus on safety and reliability in pipeline transportation, along with the implementation of state-of-the-art monitoring systems, is likely to drive innovation and growth in the large-diameter pipeline market.

By User

Oil Companies:

Oil companies are among the key end-users of onshore pipelines, as they rely heavily on efficient transportation systems to move crude oil from extraction sites to refineries. These companies invest in extensive pipeline networks to ensure the reliable and safe transport of their products while minimizing costs associated with alternative transportation methods. The increasing exploration activities, particularly in remote areas, are necessitating the development of new pipeline infrastructure to connect production sites with processing facilities. Moreover, the ongoing fluctuations in crude oil prices intensify the need for oil companies to optimize their operations, further underscoring the importance of secure and efficient pipeline systems. As the global oil demand continues to rise, the role of oil companies in the onshore pipeline market will remain pivotal, driving infrastructure development and technological advancements.

Gas Companies:

Gas companies are another significant end-user of onshore pipelines, as they depend on these systems to transport natural gas from production fields to consumers. The demand for natural gas is on the rise due to its cleaner-burning properties and the global shift towards more sustainable energy sources. To meet this demand, gas companies are investing in extensive pipeline networks to ensure the reliable delivery of natural gas to residential, commercial, and industrial users. Additionally, the development of liquefied natural gas (LNG) facilities is further propelling the need for robust pipeline infrastructure to connect production sites with LNG terminals. As environmental regulations become stricter and the focus shifts toward reducing greenhouse gas emissions, gas companies are likely to enhance their pipeline systems to support the transition to natural gas as a cleaner energy alternative.

EPC Contractors:

EPC (Engineering, Procurement, and Construction) contractors play a vital role in the onshore pipeline market, as they are responsible for designing and constructing pipeline systems for oil and gas companies. These contractors are tasked with ensuring that pipelines are built to meet safety and regulatory standards while also being cost-effective. The growing demand for new pipeline projects, driven by increased exploration and production activities, is presenting significant opportunities for EPC contractors. Furthermore, advancements in engineering technologies are optimizing the construction process, allowing for faster project completions and enhanced safety measures. As the oil and gas sector continues to evolve with new challenges, EPC contractors will be instrumental in delivering innovative solutions for onshore pipeline construction and maintenance.

By Region

Northern America dominates the onshore oil and gas pipeline market, accounting for approximately 40% of the global market share in 2023. This is primarily due to the presence of extensive oil and gas reserves and a well-established pipeline infrastructure. The region is known for its advanced technology and regulatory frameworks that promote the safe and efficient transportation of hydrocarbons. The ongoing investments in pipeline projects, coupled with the resurgence of shale gas production, are expected to reinforce North America's status as a leader in the pipeline market. Furthermore, the integration of smart monitoring systems and automation technologies is enhancing the operational efficiencies of pipelines in this region, ensuring their continued growth. With a projected CAGR of 6% from 2025 to 2035, North America is likely to maintain its position as the largest market for onshore oil and gas pipelines.

In Europe, the onshore oil and gas pipeline market is also witnessing significant growth, driven by the increasing demand for energy and the need for modernization of existing infrastructure. The region is focusing on expanding its pipeline networks to enhance energy security and reduce dependence on imports. Countries such as Russia and Norway are major producers of oil and gas, and their extensive pipeline systems play a critical role in transporting these resources to various parts of Europe. The European market is projected to grow at a CAGR of 4% during the forecast period, with investments aimed at enhancing safety and reducing environmental impacts. The European UnionÔÇÖs commitment to sustainability and energy transition is likely to influence pipeline projects, encouraging the adoption of technologies that minimize environmental footprints.

Opportunities

The onshore oil and gas pipeline market is ripe with opportunities, particularly in regions where energy demand is expected to surge. Emerging markets in Asia Pacific, including India and Southeast Asian countries, are rapidly industrializing and urbanizing, creating a pressing need for robust energy infrastructure. As governments in these regions focus on energy security and sustainability, substantial investments are likely to flow into developing new pipeline networks. These investments will not only enhance existing transportation systems but also create jobs and stimulate local economies. Additionally, the push for cleaner energy sources is driving the integration of natural gas pipelines, providing further opportunities for growth. Companies that can leverage advanced technologies, such as automation and smart monitoring systems, will be well-positioned to capture these opportunities in the evolving market landscape.

Moreover, the increasing focus on environmental regulations and safety standards presents opportunities for innovation in pipeline materials and construction methods. The development of advanced materials, such as composite and high-performance polymers, can address challenges related to corrosion and environmental stress. Furthermore, the integration of digital technologies, including predictive analytics and real-time monitoring, can significantly enhance pipeline safety and operational efficiency. As oil and gas companies strive to minimize their environmental footprints, the demand for environmentally friendly pipeline solutions will continue to rise, creating a fertile ground for companies that prioritize sustainability and innovation. The collaboration between public and private sectors in developing smart pipeline systems is likely to lead to new business models and partnerships, further accelerating market growth.

Threats

Despite the significant opportunities in the onshore oil and gas pipeline market, several threats could impede growth. One of the primary concerns is the increasing regulatory scrutiny surrounding environmental impacts and safety standards. Governments and regulatory bodies are enacting stricter regulations to mitigate the environmental risks associated with oil and gas transportation, which can lead to increased compliance costs for pipeline operators. The lengthy approval processes for new pipeline projects can also hinder timely infrastructure development, causing delays in meeting energy demands. Additionally, public opposition to pipeline projects, particularly in environmentally sensitive areas, poses challenges for the industry. Activist groups are increasingly vocal about their concerns, leading to legal battles and potential project cancellations, which can have financial repercussions for companies involved in pipeline construction and operation.

Another significant threat is the volatility of oil and gas prices, which can impact the financial viability of pipeline projects. Fluctuating commodity prices may lead companies to reconsider investments in pipeline infrastructure, resulting in project delays or cancellations. The global shift towards renewable energy sources is also a long-term threat to the traditional oil and gas pipeline market. As the world moves towards decarbonization and seeks alternatives to fossil fuels, the demand for oil and gas may decline, impacting the profitability of existing pipeline systems. Companies will need to adapt to this changing landscape by diversifying their portfolios and investing in technologies that support sustainable practices. Failure to do so may result in obsolescence in the face of evolving market conditions.

Competitor Outlook

• TransCanada Corporation
• Enbridge Inc.
• Williams Companies, Inc.
• Oneok, Inc.
• Kinder Morgan, Inc.
• Magellan Midstream Partners, L.P.
• TC Energy Corporation
• Plains All American Pipeline, L.P.
• Royal Dutch Shell plc
• BHP Group Ltd.
• Chevron Corporation
• BP plc
• ExxonMobil Corporation
• TotalEnergies SE
• Occidental Petroleum Corporation

The competitive landscape of the onshore oil and gas pipeline market is characterized by a mix of established players and emerging companies, all vying for market share in a rapidly evolving environment. Key players such as TransCanada Corporation and Enbridge Inc. lead the market with extensive pipeline networks and significant investments in infrastructure development. These companies leverage their vast experience and technological expertise to implement innovative solutions that enhance pipeline safety and efficiency. Additionally, their strong financial positions allow them to take on large-scale projects, securing long-term contracts with oil and gas producers. The competitive rivalry in the market has also led to collaborations between companies and partnerships with technology providers, fostering innovation and improving operational capabilities.

Emerging players are increasingly entering the onshore pipeline market, focusing on niche segments and innovative technologies. These companies often emphasize sustainable practices, such as using environmentally friendly materials and adopting digital monitoring systems to enhance pipeline integrity. The growing emphasis on sustainability and environmental compliance is influencing the competitive dynamics of the market, compelling established players to adapt their strategies. Additionally, the rising demand for renewable energy solutions is encouraging companies to diversify their portfolios and explore partnerships with renewable energy firms. As the market continues to evolve, the ability to innovate and respond to changing regulatory landscapes will be critical for companies aiming to maintain a competitive edge.

Major companies in the onshore oil and gas pipeline market are focusing on expanding their operational footprints through strategic acquisitions and investments in new technologies. For instance, companies like Kinder Morgan and Williams Companies are actively pursuing growth opportunities by acquiring smaller firms and enhancing their existing pipeline infrastructure. These acquisitions not only bolster their market presence but also allow them to tap into new regions and diversify their service offerings. Additionally, leading firms are investing heavily in research and development to improve pipeline materials and construction methods, ensuring they meet current and future safety and environmental standards. This commitment to innovation positions these companies favorably in the market, allowing them to capitalize on emerging trends and respond effectively to evolving consumer demands.