Mishaps in the Oil and Gas Industry Will Drive Demand for Pipeline Monitoring Systems Around the World
The global pipeline monitoring systems market is expected to reach $8.62 billion by 2026, expanding at a 6.9% CAGR from 2018 to 2026. Expanding the pipeline network for the transportation of petroleum products is identified as the major factor driving demand for pipeline monitoring systems worldwide. In addition, stringent regulatory policies that mandate the safe handling of petroleum products during transportation are further stimulating demand for monitoring solutions. Accidental mishaps like the explosion in a 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 the 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 and Gas Industry to Drive Growth Prospects
Oil and gas represent the largest end-use segment in the global market for pipeline monitoring systems. It is expected to register the 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 the increasing production of shale gas worldwide. Today, the global natural gas pipeline network spans approximately 2.8 million kilometers. 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 natural gas, crude oil, and other petroleum products in North America. With several upcoming pipeline projects, the network is estimated to expand. Pipeline network expansion, coupled with perpetual growth in oil and gas production, is expected to spur demand for pipeline monitoring solutions in the region. In addition, stringent regulations that mandate the use of monitoring solutions for applications, including leak detection, ground movement monitoring, and external interference monitoring, bode well for the market's growth in the region.
For instance, in October 2015, the U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration passed a regulation that mandates the use of monitoring solutions for pipelines carrying hazardous products. The pipeline monitoring systems market in North America will also benefit from the replacement of obsolete systems with state-of-the-art equivalents. Due to growing environmental concerns and pipeline network expansion in these regions, Asia Pacific and MEA are expected to grow faster during the forecast period. The upcoming deal between India and Iran for an undersea gas pipeline worth US$ 4.5 billion, for example, will increase demand for new pipeline monitoring solution installations.
Small-ball technology is slated to yield favorable gains.
Ultrasonics 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 ultrasonic technology is largely credited to its widespread usage in the oil and gas industry, especially for leakage detection applications. Smart ball technology, on the other hand, is poised for rapid adoption due to superior features such as easy deployment (easy distribution of balls through pipelines) and long inspection capability in a single use. In addition, the technology is also gaining prominence among oil and gas producers for detecting leakages.
Key Players and 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., Syrinx, and Thales Group.
Periods of History and Forecast
2016 : Historic 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. The CAGR (compound 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 an all-around view of the global pipeline monitoring systems market based on end-use applications and geography. Key segments covered in the report are as follows:
Vertical End-Use Segment (2016-2026; US$ BN)
Oil and Gas
Water and Wastewater (Utilities)
Others (Food & Beverage, etc.)
Technology Sector (2016-2026; USD Billion)
Perimeter intrusion detection
Ultrasonic
Pig Tracking
Smart Ball
magnetic flux leakage
Others
Geography (2016-2026; USD Billion)
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 and Africa (MEA)
Latin America
Key questions are answered in this report.
What was the global market size for pipeline monitoring systems in 2016 and 2017?
What is the 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 market for pipeline monitoring systems?
Which is the most promising, attractive, and least-explored end-use segment in the global market for pipeline monitoring systems?
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?
Frequently Asked Questions:
The market for Pipeline Monitoring Systems Market is expected to reach US$ 8.62 Bn by 2026.
The Pipeline Monitoring Systems Market is expected to see significant CAGR growth over the coming years, at 6.9%.
The report is forecasted from 2018-2026.
The base year of this report is 2017.
ABB Ltd., Future Fiber Technologies, General Electric Company, Honeywell International Inc., Huawei Technologies Co. Ltd., Radiobarrier, Schneider Electric SE, Siemens AG, Senstar, Inc., Syrinx, and Thales Group. are some of the major players in the global market.
