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$ 9.69 Bn by 2028, expanding at a CAGR of 6.5% during the forecast period from 2020 to 2028. 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. 

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 2020 to 2028. 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 2019. 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 2019. 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.

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 (2018–2028; US$ Bn)

• Oil & Gas
• Water & Wastewater (Utilities)
• Others (Food & Beverage, etc.)

Technology Segment (2018–2028; US$ Bn)

• Perimeter Intrusion Detection 
• Ultrasonic
• Pig Tracking
• Smart Ball
• Magnetic Flux Leakage
• Others

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Pipeline Monitoring Systems market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Pipeline Monitoring Systems market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Pipeline Monitoring Systems market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Pipeline Monitoring Systems market?
• Which is the largest regional market for Pipeline Monitoring Systems market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Pipeline Monitoring Systems market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Pipeline Monitoring Systems market worldwide?