April 14, 2024
Offshore Pipeline Market

Offshore Pipeline Market Is Estimated To Witness High Growth Owing To Rising Demand For Development Of Untapped Resources

The offshore pipeline market involves pipes that transport oil and natural gas from deep-water and shallow water production wells to platforms and other processing facilities. Offshore pipelines provide a cost-effective means of transporting hydrocarbons from offshore oilfields to onshore processing plants and terminals. Stringent government regulations regarding pipeline safety, growing deepwater and ultra-deepwater projects, increasing demand for energy, and development of untapped hydrocarbon reserves are some of the key factors contributing to the growth of the offshore pipeline market.

The Global offshore pipeline market is estimated to be valued at US$ 17.86 Bn in 2024 and is expected to exhibit a CAGR of 8.4% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the offshore pipeline market are 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 Quìmica FarmacÃautica, Nacional S.A., Cristália, Aspen Pharmacare Holdings Limited, Blau Farmaceutica S.A., Halex Istar IndÃostria, FarmacÃautica SA, Eurofarma, Ache Laboratorios Farmaceuticos SA, Laboratorio Teuto Brasileiro S/A, EMS Pharma, and Hipolabor Farmaceutica Ltda. The rising demand for energy and shift towards deepwater drilling is expected to offer considerable growth opportunities for offshore pipeline market players over the forecast period. North America dominated the global offshore pipeline market in 2019 owing to increased offshore oil and gas exploration activities and rising number of pipeline infrastructure development projects in the US and Canada.

The key opportunities in the offshore pipeline market include rising offshore oil and gas production, especially from deepwater and ultra-deepwater fields and increasing demand for pipeline infrastructure from countries in Asia Pacific and Middle East regions. Countries including India, China, Indonesia, and Brazil are taking initiatives to develop oil and gas pipeline infrastructure to meet the rising energy needs. This is expected to drive the global expansion of the offshore pipeline market during the forecast period.

Market drivers

The demand for Offshore Pipelines Market Growth is expected to grow owing to rising development of untapped hydrocarbon resources from offshore discoveries. Growing investments in deepwater and ultra-deepwater exploration are also fueling the need for development of subsea pipelines to connect wells to platforms. According to estimates, approximately 70% of oil and gas resources that remain to be discovered are located in offshore deepwater and ultra-deepwater areas globally. This rising need to tap into reserves from remote geographical locations will propel the offshore pipeline market growth during the forecast period.

PEST Analysis

Political: Offshore oil and gas exploration requires government approvals and regulations regarding international waters are complex. Changes in energy policies and environmental laws can impact offshore pipeline projects.

Economic: Fluctuations in oil and gas prices determine the commercial viability of new offshore fields and demand for pipeline infrastructure to transport discoveries to onshore processing facilities. A stable macroeconomic climate is important.

Social: Safety and environmental protection are primary concerns for offshore pipelines. Local communities need to be engaged and their views considered regarding potential impacts on fishing, tourism or marine life.

Technological: Advances in pipe-laying vessels, installation techniques and subsea engineering help overcome technical challenges of operating in deep waters. Remote monitoring enables issues to be addressed quickly to minimize disruptions. Use of renewable energy is an emerging trend.

Geographical regions with high market concentration

The Asia Pacific region accounts for over 35% of the global offshore pipeline market value due to abundant reserves in countries like India and Southeast Asian nations. Many new pipeline projects are underway to bring gas discoveries in Indonesia, Australia and India onshore.

The fastest growing region is expected to be North America as Mexico ramps up offshore exploration and production activities. Recovery investments are ongoing in the US Gulf of Mexico while Canada is focusing on Arctic reserves. Pipeline expansions will be needed to accommodate rising offshore output

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it