Offshore Pipeline Market Share and Forecast by 2027

[Research Report] The offshore pipeline market was valued at US$ 11.97 billion in 2019 and is projected to reach US$ 15.01 billion by 2027; it is expected to grow at a CAGR of 3.1% from 2020 to 2027.

The global offshore pipeline market comprises a substantial number of market players, resulting in a fragmented global market. Bechtel Corporation; Fugro; John Wood Group PLC; Larsen & Toubro Limited; McDermott International, Inc.; Petrofac Limited; Saipem S.p.A.; Sapura Energy Berhad; Subsea 7 S.A.; and TechnipFMC plc are a few of the players operating in the market with the considerable customer base, big contracts, and strong market position. These players significantly invest in the expansion of their business competencies to sustain their market position..

Currently, the global offshore pipeline market is dominated by Europe and North America accounting for the ~60% of the global market share collectively. The increasing demand for cost-effective transportation method for oil and gas is one of the major factors expected to boost the demand for offshore pipeline in the oversea oil & gas sector across these two regions.

Published Report - Offshore Pipeline Market: Strategic Insights

Impact of COVID-19 Pandemic on Offshore Pipeline Market

The COVID-19 outbreak is adversely affecting various industries across the world. Major countries in Europe, Asia Pacific, and North America are imposing strict measures on business activities and transportation. These factors are putting restrictions on supply and demand for various pipeline systems and services; which are hindering the revenue growth of the global offshore pipeline market players, and it is likely to continue till early 2021.

Offshore pipeline Market Insights

Rise in Demand for Natural Gas and Crude Oil

The demand for natural gas and crude oil is constantly increasing  across the world. For instance, the demand for oil was increased by 1.3% globally in 2018 due to the robust growth of oil industry in the US. According to the International Energy Agency forecasts, the oil demand in Q3 of 2019 was rose by 1.1 million of barrels per day (Mbd), which was more than double as compared to the previous quarter. The US and China have presented the most considerable growth. The surge in petrochemical demand across the US resulted in increased consumption. Growing industrial production with high demand for trucking services drive the need for petrochemicals, which fuels the growth of the offshore pipeline market. The growth in air traffic volumes worldwide, particularly in Asia's developing economies, is another factor increasing oil consumption.

Diameter-Based Market Insights

Based on diameter, the offshore pipeline market is bifurcated into more than 24 inches and less than 24 inches. The more than 24 inches segment is expected to register a higher CAGR during the forecast period. It is anticipated that ~35,000 km of 24 inches pipeline network will be completed globally during 2018–2023, which is supporting the market growth for more than 24 inches diameter segment. The hydrocarbon flow and pressure are controlled based on the diameter of the pipe. A few of the major contractors in the market are the National Petroleum Construction Company (NPCC), Saipem, and McDermott International.

Line Type-Based Market Insights

The offshore pipeline market, by line type, is segmented into transport line, export line, and other lines. The transport line segment is anticipated to dominate the market during the forecast period. Offshore pipelines are a key component of any offshore oil and gas project. These pipelines are used to transport oil and gas products from underwater wells to the platform, and consequently oil and gas from the platform to the shore for further process and distribution.

Product-Based Market Insights

The offshore pipeline market, by product, is segmented into oil, gas, and refined product. The refined product segment is expected to dominate the market during the forecast period owing to its increasing demand, particularly from the developing economies across the world. Oil pipelines are used for carrying crude oil to refineries from subsea or within the oilfield. These include export lines, feeder lines, and flowlines. These pipelines are not very large in length. Further, the market for oil segment is expected to grow owing to the construction of new refineries due to increasing discoveries of new oilfields worldwide.

Players operating in the offshore pipeline market focus on strategies such as market initiatives, acquisitions, and product launches to maintain their positions in the market. A few developments by the key players are:

In 2020, Sapura Energy Berhad won several new contracts for its Engineering and Construction (E&C) division with a combined value of ~766 million Malaysian ringgit (US$ 180 million). One of those projects is a contract for the PRP7 Pipeline Replacement Project by Brunei Shell Petroleum Co. Sdn Bhd.

In 2019, Subsea 7 announced the award of a sizeable contract by Aker BP for the Hod Field Development Project, located 12 km from the Valhall area in the southern part of the North Sea. The contract scope includes EPCI for pipelines, umbilicals, and tie-ins using key vessels from Subsea 7’s modern fleet.

Offshore Pipeline

Published Report - Offshore Pipeline Market Players Density: Understanding Its Impact on Business Dynamics

The Published Report - Offshore Pipeline Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Offshore Pipeline Market – by Diameter

• More than 24 inches
• Less than 24 inches

Offshore Pipeline Market – by Line Type

• Export Line
• Transport
• Others

Offshore Pipeline Market – by Product

• Oil
• Gas
• Refined Products

Offshore Pipeline Market – by Geography

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific (APAC)
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of APAC
• Middle East and Africa (MEA)
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA
• South America (SAM)
  • Brazil
  • Argentina
  • Rest of SAM

Offshore Pipeline Market – Company Profiles

• Bechtel Corporation
• Fugro
• John Wood Group PLC
• Larsen & Toubro Limited
• McDermott International, Inc.
• Petrofac Limited
• Saipem S.p.A.
• Sapura Energy Berhad
• Subsea 7 S.A.
• TechnipFMC plc