by The global Offshore Pipeline Market is estimated to be valued at Us$15.50 Bn in 2023 and is expected to exhibit a CAGR Of 4.7% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Offshore pipelines refer to pipelines installed in bodies of water like seas and oceans, for purposes of transportation of oil & gas from offshore platforms, wellheads, and other installations to onshore refineries and plants. These pipelines help in connecting offshore production facilities to transportation and processing infrastructure on land. Offshore pipelines eliminate the need for offshore production facilities to store oil and gas, reduces construction and operational costs, and enables continuous production and transportation of hydrocarbons. They allow transportation of oil & gas over long distances to major demand centers. The materials used for offshore pipelines mainly include steel and polyethylene.
Market key trends:
One of the key trends in the offshore pipeline market is the replacement of aging pipelines. A substantial number of existing offshore pipelines are reaching the end of operational life as they were installed decades ago. This provides opportunities for installation of new pipelines. For instance, around 50% of global offshore pipelines are 30 years old or older and need replacement. Another key trend is the increasing installation of high-pressure gas export pipelines to support LNG trade and projects. Technological advancements enabling deepwater and ultra-deepwater exploration are also driving demand for installation of new pipelines in deeper waters. Pipeline coatings and corrosion protection solutions are advancing to enable operations in harsher conditions. Use of pipeline inspection gauges and monitoring technologies is also growing.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as high initial capital investments for infrastructure and equipment required act as entry barriers.
Bargaining power of buyers: The bargaining power of buyers is moderate as offshore pipelines are essential for oil & gas transportation and there are few alternative options.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as key raw materials such as steel and equipment are commoditized with global suppliers.
Threat of new substitutes: The threat of new substitutes is low as offshore pipelines remain the most cost-effective mode of oil & gas transportation over long distances.
Competitive rivalry: Intense competitive rivalry among existing players.
Key Takeaways
The Global Offshore Pipeline Market Demand is expected to witness high growth, exhibiting CAGR of 4.7% over the forecast period, due to increasing offshore oil & gas production activities. The market size for 2023 is US$15.50 Bn.
North America dominates the offshore pipeline market currently due to rising offshore oil & gas production in the Gulf of Mexico. Asia Pacific is expected to grow at the fastest pace during the forecast period with increasing investments in offshore oil & gas exploration and transportation infrastructure in countries such as India and China.
Key players operating in the offshore pipeline market are Saipem, Subsea 7 S.A., McDermott International, and TechnipFMC plc. Saipem leads the market with extensive experience and global operations in designing, engineering, construction, and installation of offshore pipelines.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
