Gas Pipeline Infrastructure Market Analysis

Gas Pipeline Infrastructure Market Analysis

The onshore gas pipeline infrastructure market accounted for 80% of the revenue share in 2022 and is expected to cross USD 3.3 trillion by 2032. The rising global energy demand, driven by population growth, urbanization, and industrialization, is boosting the need for reliable and efficient transportation of natural gas. Onshore gas pipelines play a crucial role in meeting this increasing demand for energy. Governments and energy companies are prioritizing energy security by diversifying their energy sources, which in turn boosts the product deployment owing to its ability to offer secure and reliable means of transporting natural gas, reduction in dependence on imported energy and enhancement of energy.

Supportive government policies, incentives, and regulatory frameworks can significantly influence the growth of the onshore gas pipeline infrastructure market. Governments may provide financial incentives, streamline permitting processes, and promote investments in gas infrastructure projects. Aging gas pipeline infrastructure requires upgrading and modernization to ensure safety, efficiency, and compliance with evolving standards. Retrofitting, expansion, and rehabilitation projects drive the demand for new onshore gas pipelines, thereby driving the overall market size.
 

The gas pipeline infrastructure market from distribution pipelines segment held over USD 2.3 trillion in 2022 and is poised to expand at a CAGR of 2.5% through 2032. Gas pipeline distribution systems are essential for delivering processed natural gas from the city gate to end consumers, including commercial enterprises and residential customers.

To ensure nationwide accessibility of gas, state and central governments have set targets and plans for the development of effective distribution infrastructure in cities. This network consists of distribution mains and small service lines operated by local distribution companies (LDCs) or investors. The service lines are responsible for delivering gas to homes and businesses, forming the majority of the underground pipeline network.

The advancement of trenching technology has improved operations in crowded cities and scenic areas. When laying distribution lines across cities and residential properties, multiple clearances and local protests are common challenges. However, the introduction of guided drilling systems has reduced destruction and damage caused by floor excavation, minimizing inconvenience to local communities. Additionally, advanced Supervisory Control and Data Acquisition (SCADA) systems have enhanced operational efficiency through comprehensive measurement and timely access to information.

The gas pipeline infrastructure market is categorized based on diameter into four segments: <16 inches, 17-24 inches, 25-36 inches, and >36 inches. Among these, the medium-size pipelines ranging from 25 to 36 inches are expected to witness significant deployment growth in the coming years, led by rapid industrialization and advancements in exploration and production (E&P) technology.

The increasing demand for clean energy and the growing interstate trade of natural gas to meet high-demand regions further contributes to the expansion of medium-size gas pipeline infrastructure. Governments' efforts to allocate funds for upgrading and expanding the existing network facilitate efficient transportation of natural gas, supporting clean energy initiatives and addressing the growing energy needs. This expansion aims to ensure a robust and well-connected gas pipeline infrastructure across regions, promoting reliable and sustainable energy resources.
 

North America gas pipeline infrastructure market is predicted to observe around 0.5% CAGR during the forecast period, primarily due to the ongoing shale gas recovery across U.S. The abundance of shale gas resources in North America, particularly in the United States, has led to a significant increase in natural gas production. This boom in shale gas production has driven the need for expanded pipeline infrastructure to transport and distribute the gas to various regions. North America has a growing energy demand, driven by population growth, urbanization, and industrialization. Gas pipelines play a crucial role in meeting this increasing demand for natural gas as a cleaner and more efficient energy source.

North America's surplus natural gas production has created export opportunities to global markets. The development of pipeline infrastructure, particularly to support liquefied natural gas (LNG) export terminals, is crucial for capitalizing on these export opportunities. In addition, the midstream sector, which includes gas transportation and storage, has been attracting significant investment in North America. Investors are keen on supporting the expansion and modernization of gas pipeline infrastructure to capture the opportunities in the energy market. Furthermore, advancements in pipeline construction, monitoring, and automation technologies are improving the efficiency, safety, and environmental performance of gas pipeline infrastructure, encouraging further investment and growth.