The global gas pipeline infrastructure market size was valued at USD 2568.35 billion in 2020 and is expected to reach USD 3185.4 billion at a compound annual growth rate (CAGR) of 3.2 % from 2020 to 2027 Growing natural gas demand across key industries including power generation, residential and commercial, manufacturing, and the chemical is anticipated to boost the usage of gas pipeline infrastructure over the forecast period. Paradigm shift toward clean energy sources is expected to further support the industry growth.
Rising government investments to enhance accessibility along with the need to upgrade the existing pipeline network across several regions is anticipated to augment the industry landscape. According to BP Statistical Review of World Energy 2019, European nations traded 478.9 billion cubic meters natural gas through pipeline infrastructure. The growing trade movement will further boost the demand for additional infrastructure of gas pipelines.
The distibution pipeline segment accounted for the largest volume share of 70.5% of the global market in 2019. Rising consumption in end-use segments such as growing number of gas-fired power plants, chemical sector, manufacturing sector, and residential and commercial sector is expected to propel the segment growth.
The transmission pipeline segment is expected to witness a CAGR of 3.2% in terms of revenue, over the forecast period. The segment is expected to witness strong growth in countries such as the U.S., Russia, China, and other European nations, with significant amount of inter-regional trade through imports and exports. However, slow growth of market liberalization might hinder the segment growth. For instance, National Oil Companies (NOCs) hold transmission pipeline access in China, without access to third party line rights.
The compressor station segment was valued at USD 623.6 billion in 2019, owing to increasing trend of expanding pipeline capacity and extending new gas sources to tap additional volumes. Compressor stations on transmission pipelines are built every 80 to 150 kilometres along the pipeline length, allowing pressure to be increased in order to keep the gas moving.
The Gas Pipeline Infrastructure market is segmented on the basis of operation, application and region. On the basis of operation market is segmented into Gathering, Transmission, and Distribution. On the basis of application market is segmented into Storage, Transportation Compressor Station, and Metering Station.
North America occupied the largest volume share of 54.8% of the total market in 2019. Presence of highly integrated transmission and distribution infrastructure that can transport natural gas to and from any state across the region has attracted leading pipeline companies to operate in North America. The U.S. is the major hub of gas pipeline infrastructure occupying over 80% of the total pipeline length across the region.
Canada is anticipated to attain the highest revenue-based CAGR of 3.9% over the forecast period. Expansion and replacement of existing pipeline infrastructure are among the primary factors responsible for the regional market growth. For instance, in February 2020, Canada’s Federal Court of Appeal cleared the way for the Trans Mountain pipeline expansion, which would increase its capacity from 300,000 bpd to 890,000 bpd adding 600 miles to the pipeline.
Key players are: Enbridge; Gazprom; TransCanada Pipelines Limited; Kinder Morgan; Pembina Pipeline Corporation; Saipem; Engas; and Alliance Pipeline