The offshore pipeline market comprises submarine oil and gas pipelines installed at sea to transport hydrocarbons from offshore oil and gas platforms, fields, and reservoirs to onshore oil refineries and terminals. Offshore pipelines offer a more economical means of transportation of hydrocarbons as compared to tankers or vessels. Submarine pipelines significantly reduce oil spills from tanker accidents and carbon footprint from marine transportation. The materials for offshore pipelines include steel, fiberglass composite, and high-density polyethylene as they offer corrosion resistance, durability, and high tensile strength required to withstand underwater pressures.
The global offshore pipeline market is estimated to be valued at US$ 15.05 Bn in 2023 and is expected to exhibit a CAGR of 8.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the offshore pipeline market is the growing investments in deepwater and ultra-deepwater projects. Oil and gas companies are shifting their E&P focus towards frontier basins and remote geographies with huge reserves trapped under thick seabeds at extreme underwater depths. Developing the required subsea infrastructure and laying pipelines at such depths pose significant technical challenges. However, favorable government policies and incentives in many developing economies have attracted huge investments towards deepwater projects. For instance, Brazil alone invested over US$ 80 billion towards the pre-salt reserves development between 2011 to 2020. Growing deepwater exploration activities will drive the adoption of advanced pipeline materials and laying technologies.
Threat of new entrants: The offshore pipeline market requires high capital investment in R&D, infrastructure setup, and transportation fleet setup which acts as a barrier for new companies to enter this market.
Bargaining power of buyers: The buyers in this market include oil & gas companies and energy traders. The bargaining power of buyers is moderate as switching costs are high for buyers in this market.
Bargaining power of suppliers: Major suppliers for offshore pipeline market include steel pipe manufacturers, coating solution providers, and engineering design companies. The bargaining power of a few global suppliers is high due to specialized product offerings and long-term contracts.
Threat of new substitutes: Currently, there are limited substitutes for offshore pipelines for long distance oil & gas transportation. Alternative transport modes like tankers pose some substitution threat.
Competitive rivalry: The competition is high among existing pipeline service providers to gain new offshore pipeline projects and transportation contracts from oil & gas companies.
The Global Offshore Pipeline Market Demand is expected to witness high growth over the forecast period supported by increasing offshore oil & gas exploration activities. The demand for pipeline transportation of oil and gas is rising especially from deepwater and ultra deepwater reserves.
Regional analysis: The Asia Pacific region is expected to dominate the offshore pipeline market during the forecast period. Countries like India and China are extensively investing in new offshore oil & gas blocks and fields. Canada and Brazil are also emerging as high growth regions for offshore pipelines market.
Key players: Key players operating in the offshore pipeline market include Becton, Dickinson and Company, Pfizer Inc., Novo Nordisk A/S, Gerresheimer AG, B. Braun Medical Inc., Grifols S.A, Baxter International, Inc., Fresenius Kabi AG, Mylan N.V., Bayer AG, F. Hoffmann-La Roche AG, Farmoquimica S.A., Novartis International AG, Eli Lily and Company, União Química Farmacêutica, Nacional S.A., Cristália, Aspen Pharmacare Holdings Limited, Blau Farmaceutica S.A., Halex Istar Indústria, Farmacêutica SA, Eurofarma, Ache Laboratorios Farmaceuticos SA, Laboratorio Teuto Brasileiro S/A, EMS Pharma, and Hipolabor Farmaceutica Ltda.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it