PIPELINE INTEGRITY MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Pipeline Integrity Market Size and Trends

Global pipeline integrity market is estimated to be valued at USD 2.39 Bn in 2024 and is expected to reach USD 3.34 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 4.9% from 2024 to 2031.

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The trend in the global pipeline integrity market is focused on the adoption of new and advanced technologies like artificial intelligence (AI), Internet of Things (IoT), and analytics solutions to improve risk detection and mitigation. Many players are offering integrity management systems with capabilities like predictive analytics, real-time monitoring, and corrosion monitoring. Growth opportunities also exist in markets like Asia Pacific with increasing pipeline network and emphasis on safety from countries like China and India. Regulations are also driving increased spend on technologies that ensure pipeline safety.

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Insights By Location- Infrastructure and operational benefits drives onshore segment growth

In terms of location, onshore segment is estimated to contribute the highest market share of 66.2% in 2024, owing to various infrastructure and operational benefits. Onshore pipelines offer ease of access for inspection, maintenance and repair activities, which helps in ensuring continued integrity. Any damage can be identified easily and addressed promptly. Onshore pipelines also allow direct connectivity to oil and gas processing facilities located nearby. This helps in cost effective and efficient transportation of crude and refined products over long distances.

Insights By Service- Inspection needs drive inspection service segment growth

In terms of service, inspection service segment is estimated to contribute the highest market share of 39.5% in 2024. Pipeline operations involve carriage of flammable and toxic substances over long distances under high pressure. Even minor damages or leakages can lead to catastrophic failures. This makes inspection of pipeline network imperative from safety, environmental and regulatory compliance perspectives. Inspection helps in proactively identifying anomalies, damages or risks of failures at early stages. It ensures timely repairs before any significant incidents.

Insights, By Product- Mature production drives oil segment growth

In terms of product, oil segment is estimated to contribute the highest market share of 37.5% in 2024. Oil dominates the current pipeline integrity, owing to decades of production, distribution and export through extensive pipeline networks. While natural gas pipeline networks are also expanding significantly, oil faced relatively less transitional challenges compared to gas. Established production, reserves and trade volumes ensure steady long-term flow of oil. This provides stable returns on huge pipeline assets already in place.

Regional Insights

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Dominating Region- North America

North America is expected to dominate the pipeline integrity market in 2024, with an estimated share of 39.5%. The market growth can be attributed to the well-established oil and gas industry and progressive pipeline regulations such as Outlines enforcement and regulatory procedures for pipeline safety in countries like the U.S. and Canada.

Fastest-Growing Region: Europe

Europe is experiencing rapid growth driven by rising energy demand and government efforts to enhance domestic petroleum production and expand pipeline infrastructure in countries like Germany and the U.K. Numerous ongoing pipeline projects have elevated the importance of integrity monitoring to ensure the safe transport of vital energy resources. Government initiatives play a key role in fostering this development by supporting infrastructure upgrades and encouraging energy security measures.

Pipeline Integrity Market Outlook for Key Countries

Federal Investments and Regulatory Support in the U.S. for Pipeline integrity

The U.S. pipeline integrity infrastructure is extensive and largely developed, creating a competitive market led by major companies that provide comprehensive integrity services. This market growth is supported by both the regulatory framework and substantial federal investments. In October 2024, the Biden-Harris Administration announced an allocation of approximately US$ 200 million for natural gas pipeline repairs and replacements, aimed at enhancing safety, lowering energy costs, and reducing methane emissions. This funding, provided through the Bipartisan Infrastructure Law, will finance 60 pipeline modernization projects across 20 states, overseen by the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA).

Advanced Technologies and Strategic Developments Boosts Demand for Pipeline Integrity in Canada

Canada's pipeline integrity market is highly developed, with operators employing advanced technologies for regular inspections to maintain compliance. Following notable pipeline leaks, the federal government has intensified efforts to improve safety standards. In 2023, TC Energy unveiled a new initiative centered on pipeline integrity management. The company plans to enhance value by establishing two premier energy infrastructure entities, with plans to separate its liquid pipelines business.

Infrastructure Modernization and Increased Funding Drive Enhanced Safety and Sustainability in the U.K.

The U.K. government announced increased funding for pipeline safety research in 2023. For instance, the National Infrastructure and Construction Pipeline 2023 emphasized that achieving substantial investment in the U.K.'s infrastructure has never been more vital than it is today. The economic, social and environmental benefits that the sector brings undoubtedly improve the lives of citizens across our regions.

Strengthening Safety and Reliability Amid Energy Transition in Germany

Germany, a large consumer of natural gas, heavily relies on pipeline integrity due to its role in European energy distribution. It focuses on maintaining high safety standards and ensuring reliable gas supply, especially given the European Union’s push for energy security. In 2023, TransnetBW announced a new pipeline integrity project aimed at enhancing safety protocols. This initiative is a part of its broader commitment to improving the reliability and safety of their infrastructure, particularly as it manages significant energy transition projects like SuedLink and Ultranet.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Global Pipeline Integrity Market Players

• Established players in this market focuses extensively on research and development to drive innovation. Companies like Rosen, Baker Hughes, and T.D. Williamson invest over 10% of their annual revenues to develop advanced integrity assessment technologies.
• Mid-level players are delivering cost-effective integrity solutions to gain market share. Companies like Pure Technologies and Enduro have specialized in providing budget-friendly ultrasonic thickness monitoring and HD video inspection systems.
• Small-scale players focus on niche markets and investing in research and development to create unique, technologically advanced solutions that address specific industry challenges. Implementing efficient operational practices to reduce costs, enabling competitive pricing without compromising service quality. Leveraging economies of scale and optimizing resource utilization to maintain profitability while offering value-driven services.

Emerging Startups in the Global Pipeline Integrity Market

• Several startups are bringing innovative technologies disruptive to pipeline integrity. Companies like Pipeotech and Innospection uses AI and machine learning in their ultrasonic inspection platforms to automate defect identification. SyncroTech provides a smart sensor system collecting pipeline vibration data to predict failures even before visual leaks. Their solutions can improve integrity decision-making through data-driven insights.
• Sustainability-focused startups are making significant strides in the pipeline industry by introducing eco-friendly innovations. For example, Aquascape IQ has developed an acoustic sensor technology powered by solar energy, enabling continuous remote monitoring of pipelines while minimizing environmental impact. Similarly, Replica Plastics manufactures pipeline components using recycled plastics, effectively reducing carbon emissions associated with traditional materials.
• Certain startups address specialized requirements by collaborating with domain experts. For instance, Anthropic collaborates with pipeline engineers to implement innovative computer vision methods for precise 3D mapping and surveying. Similarly, Underground Optics partners with researchers to develop distributed acoustic systems aimed at detecting leaks beneath obstacles.

Pipeline Integrity Industry News

• In July 2024, South Sudan and Ethiopia announced an agreement to construct a new pipeline connecting the Nile state in South Sudan and the Gambella region of Ethiopia. This will enable improved pipeline infrastructure in both countries.
• In July 2024, the U.S. Department of Justice (DOJ) proposed modifications in the Lakehead pipeline system by Enbridge Energy. Under this proposal, the company would be required to fix the previously identified cracks. Earlier, in 2016, DOJ and Enbridge reached a settlement agreement associated with the Kalamazoo River oil spill.
• On July 26, 2023, SLB and Eni, via its subsidiary Enivibes, unveiled an alliance for pipeline integrity monitoring. The partnership included deploying e-VPS technology, enabling real-time analysis and leak detection using proprietary vibroacoustic technology for global pipelines.
• On July 5, 2023, Mitsui, a Japan stock market-listed company, acquired STATS, a leader in pressurized pipeline integrity solutions. The acquisition facilitated Mitsui's strategic goal of establishing a robust presence in pipeline maintenance services. STATS CEO, Leigh Howarth, expressed excitement about the collaboration, aiming to seize opportunities in oil and gas and low carbon sectors.

Key Takeaways from Analyst

• The market is expected to witness steady growth due to stringent government regulations regarding pipeline safety and leak detection. Growing concerns around environmental damage due to pipeline leaks boosts spending on pipeline integrity solutions. However, budgetary constraints faced by oil & gas operators in the current low commodity price environment can hamper the market growth.
• North America currently dominates the global pipeline integrity market, owing to large pipeline network and proactive approach towards pipeline monitoring and maintenance in the region. The U.S. and Canada are upgrading aging pipeline infrastructure which provides numerous opportunities for integrity solution providers. Europe is another major regional market supported by EU mandatory directives for leak detection and risk assessment.
• Europe region is likely to emerge as the fastest growing market for pipeline integrity. Countries like U.K., Germany, and France are witnessing increased pipeline construction to meet rising energy demands. This can boost the need for integrity management of the expanding pipeline network in these nations. The Middle East market can also witness growth at a healthy pace with the need to inspect pipelines passing through difficult terrains and regions prone to geohazards.

Market Report Scope

Market Dynamics

Market Driver- Growing concerns about public safety and environmental regulations

With growing incidents of pipeline ruptures causing loss of lives and damage to environment, there has been increasing need for safety of pipeline infrastructure. Regulators across countries are strengthening standards and mandating pipeline operators to enhance monitoring and integrity management programs. Pipelines naturally decay over time due to corrosion, material defects or external interference, and need to be periodically inspected, maintained and repaired. According to data published by the U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA) in 2022, there were over 5,000 pipeline incidents reported between 2010 and 2020 that resulted in over 150 fatalities and US$ 8 billion in economic damages.

Market Challenge- Lack of skilled workforce

Major challenges faced by global pipeline integrity market includes lack of skilled workforce. Maintaining pipeline integrity requires specialized skills and technical knowledge of different integrity assessment techniques like ultrasonic testing, radiography, and others. However, there has been severe shortage of professionals trained in these advanced non-destructive testing methods. This can delay pipeline assessments and jeopardize safety. Aging workforce is also a concern as many experienced pipeline inspectors are expected to retire in the future.

Market Opportunity- Adoption of advanced data analytics for pipeline monitoring

Key opportunities for the global pipeline integrity market includes rising adoption of advanced data analytics for pipeline monitoring. With technological advancement, oil and gas pipeline operators are now able to collect massive volumes of real-time performance data from different in-line inspection tools, sensors and monitoring systems. Advanced analytics applied on this pipeline data can provide valuable insights into anomalies, predict potential failures and determine replacement priorities. It allows detecting issues much before these escalate and helps make informed decisions.

Market Segmentation

• By Location Insights (Revenue, USD Bn, 2019 - 2031)
• • Onshore
  • Offshore
• By Service Insights (Revenue, USD Bn, 2019 - 2031)
• • Inspection Service
  • Cleaning Service
  • Repairs & Refurbishment
• By Product Insights (Revenue, USD Bn, 2019 - 2031)
• • Oil
  • Gas
  • Refined Product
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
• • Applus
  • Baker Hughes
  • Emerson
  • IKM Gruppen
  • Lin Scan
  • NDT Global
  • Rosen
  • Schneider Electric
  • SGS
  • T.D. Williamson
  • GE Company