Offshore Pipeline Market Report Growth Report and Research Analysis

Offshore Pipeline Market Forecast to 2027 - COVID-19 Impact and Global Analysis by Diameter (More than 24 inches and Less than 24 inches), Line Type (Export Line, Transport Line, and Others), and Product (Oil, Gas, and Refined Products)

Publication Month : Nov 2020

  • Report Code : TIPRE00006141
  • Category : Energy and Power
  • Status : Published
  • No. of Pages : 166
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[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.

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.

Lucrative Regions in Offshore Pipeline Market

Lucrative Regions in Offshore Pipeline Market
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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.

Offshore Pipeline Market, by Diameter – 2019 and 2027

Offshore Pipeline Market, by Diameter – 2019 and 2027
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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.

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Offshore Pipeline Market: Strategic Insights

Market Size Value inUS$ 11.97 Billion in 2019
Market Size Value byUS$ 15.01 Billion by 2027
Growth rateCAGR of 3.1% from 2020-2027
Forecast Period2020-2027
Base Year2020
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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 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
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Diameter , Line Type , and Product

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Norway, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States

Frequently Asked Questions

Which region led the offshore pipeline market in 2019?

The Europe region led the global offshore pipeline market in 2019. The growth in offshore activities in Europe is opportunistic for pipeline market growth in Europe. It is projected that the offshore developments would bring over 84% of the region’s new gas production and approximately 97% of new oil production. Further, the recovery of the economic condition is expected to drive growth in the demands for oil & gas in the region. Europe is the second largest producer of petroleum products globally, persisting an oil refining capacity of 16% of the total. The European gas industry has observed various shifts caused due to rising European LNG demand.

Which offshore pipeline line type led the offshore pipeline market?

Transport lines, also called transmission lines, are used for carrying gas or oil from one coast to another coast. These lines work similarly to a tanker carrying oil for trading purposes. These pipelines transport oil or gas from their corresponding gathering pipelines to processing, refining, or storage facilities. These are also used to carry refined petroleum products as well as natural gas to consumers for the purpose of further distribution. Thus, the transport line type dominated the offshore pipeline market by line type in 2019.

What opportunities are prevailing in the offshore pipeline market?

The discoveries of new oil & gas reserves have been witnessing exponential growth worldwide. According to Rystad Energy, in 2019, 12.2 billion barrels of oil equivalent were discovered across the globe. In 2019, the total recorded discoveries with over 100 barrels of oil equivalent accounted for 26, with offshore regions leading the new oil & gas deposits. Some of the recent discoveries include the discovery of two oil & gas fields by Saudi Aramco in the northern parts of Saudi Arabia in August 2020. In September 2020, Equinor announced the discovery of new oil & gas fields at the Swisher prospect. The company also announced the discovery of two oil fields in the Flemish Pass basin offshore Newfoundland. Thus, the discovery of offshore oil & gas reserves continue to provide significant business growth opportunities for the market players during the coming years.

The List of Companies - Offshore Pipeline Market 

  1. Bechtel Corporation
  2. Fugro
  3. John Wood Group PLC
  4. Larsen & Toubro Limited
  5. McDermott International, Inc.
  6. Petrofac Limited
  7. Saipem S.p.A.
  8. Sapura Energy Berhad
  9. Subsea 7 S.A.
  10. TechnipFMC plc

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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