Rising Occurrences of Mishaps in the Oil & Gas Industry to Spur Demand for Pipeline Monitoring Systems Worldwide
The global pipeline monitoring systems market is poised to reach US$ 8.62 Bn by 2026, expanding at a CAGR of 6.9% during the forecast period from 2018 to 2026. Expanding pipeline network for transportation of petroleum products is identified as the major factor driving demand for pipeline monitoring systems worldwide. In addition, stringent regulatory policies that mandate safe handling of petroleum products during transportation is further stimulating demand for monitoring solutions. Accidental mishaps like explosion in gas pipeline in Minnesota have convinced oil-producing companies to adopt automated solutions for end-to-end monitoring of pipeline infrastructure and pipeline operations. On the other hand, limited funds for upgrading aging pipeline infrastructure and high installation cost of these systems are the major challenges faced by the global pipeline monitoring systems market.
Market Synopsis
Regulated Demand from the Oil & Gas Industry to Drive Growth Prospects
Oil & gas represents the largest end-use segment in the global pipeline monitoring systems market. It is expected to register fastest growth during the forecast period, witnessing a growth of 7.2% CAGR during the forecast period from 2018 to 2026. The growth in this segment will be driven by the perpetually growing demand for natural gas and increasing production of shale gas worldwide. The global natural gas pipeline network is about 2.8 million kilometers today. With several forthcoming gas pipeline projects, the pipeline network is expected to expand across the globe in the coming years. The capacity expansion of pipeline projects will fuel demand for pipeline monitoring solutions. Increasing transportation of finished products such as LPG, gasoline, high-speed diesel and aviation turbine fuel offers strong growth prospects for monitoring solutions in this segment over the forecast period.
North America to Dominate; Asia Pacific to Witness Strong Growth
In terms of value contribution, North America was the largest pipeline monitoring systems market worldwide in 2017. The pipeline network of over 2.3 million km transports over 70% of the North America natural gas, crude oil & other petroleum products. With several upcoming pipeline projects, the network is estimated to expand. Pipeline network expansion coupled with perpetual growth in oil & gas production is expected to spur demand for pipeline monitoring solutions in the region. In addition, stringent regulations that mandate use of monitoring solutions for applications including leak detection, ground movement monitoring, and external interference monitoring bodes well for the market growth in the region. For instance, in Oct 2015, the U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration passed a regulation that mandates use of monitoring solutions for pipelines carrying hazardous products. The pipeline monitoring systems market in North America will also be benefitted from the replacement of obsolete systems with state-of-the-art equivalents. On the other hand, Asia Pacific and MEA are slated to register stronger growth during the forecast period due to growing environmental concerns and pipeline network expansion in these regions. For instance, the upcoming deal between India and Iran for undersea gas pipeline deal worth US$ 4.5 Bn will stimulate demand for new pipeline monitoring solution installations.
Small Ball Technology slated to Yield Favorable Gains
Ultrasonic is the most preferred technology used for pipeline monitoring. Thus, the value contribution of the ultrasonic technology segment was the highest in the global pipeline monitoring systems market in 2017. The dominance of the ultrasonic technology is largely credited to its widespread usage in the oil & gas industry, especially for leakage detection applications. On the other hand, smart ball technology is poised to experience swift rise in adoption on back of superior features offered such as easy deployment (easy distribution of balls through pipelines) and long inspection ability in a single use. In addition, the technology is also gaining prominence among oil & gas producers for detecting leakages.
Key Players & Competitive Landscape:
Some of the leading manufacturers profiled in the study include ABB Ltd, Future Fiber Technologies, General Electric Company, Honeywell International Inc., Huawei Technologies Co. Ltd., Radiobarrier, Schneider Electric SE, Siemens AG, Senstar, Inc., Syrinix, and Thales Group.
Historical & Forecast Period
2016 – Historical Year
2017 – Base Year
2018 - 2026 – Forecast Period
This research study provides qualitative as well as quantitative insights for each segment and sub-segment from 2016 to 2026, considering 2017 as the base year for the research. CAGR (Compounded Annual Growth Rate) for each segment and sub-segment is calculated for the forecast period from 2018 to 2026.
Report Scope by Segments
The report provides all round view of the global pipeline monitoring systems market based on end-use application and geography. Key segments covered in the report are as follows:
End-use Vertical Segment (2016–2026; US$ Bn)
- Oil & Gas
- Water & Wastewater (Utilities)
- Others (Food & Beverage, etc.)
Technology Segment (2016–2026; US$ Bn)
- Perimeter Intrusion Detection
- Ultrasonic
- Pig Tracking
- Smart Ball
- Magnetic Flux Leakage
- Others
Geography Segment (2016–2026; US$ Bn)
- North America
- United States
- Rest of North America
- Europe
- United Kingdom
- Germany
- France
- Rest of Europe
- Asia Pacific (APAC)
- China
- Japan
- India
- Rest of Asia Pacific
- Rest of the World (RoW)
- Middle East & Africa (MEA)
- Latin America
Key questions answered in this report
- What was the global market size for pipeline monitoring systems in 2016 & 2017?
- What is estimated forecast up to 2026?
- Which is the largest regional market for pipeline monitoring systems?
- Which end-use vertical has the largest penetration of pipeline monitoring systems?
- Which is the most preferred technology used for pipeline monitoring?
- What are the predominant trends shaping the global pipeline monitoring systems market?
- Which is the most promising, attractive, and less-explored end-use segment in the global pipeline monitoring systems market?
- Who are the leading vendors in the global pipeline monitoring systems market?
- What are the key strategies adopted by the leading manufacturers in the global pipeline monitoring systems market?
