Onshore Oil & Gas Pipeline Market size is expected to reach USD 40 Billion by the end of 2036, growing at a CAGR of 6% during the forecast period, i.e., 2024-2036. In the year 2023, the industry of onshore oil & gas pipeline crossed around USD 26 Billion. The primary factor that will drive the growth of the onshore oil & gas pipeline market is the extreme demand for oil and gas pipelines in different industries worldwide. As of November 2023, there were 797 land rigs in different world regions, with 22 rigs situated offshore. The number of international oil rigs accelerated remarkably in 2022, as authorizations on Russian exports and greater complete requirements led to more investigation activity in the world. Moreover, in 2025, it is anticipated that 28 percent of the crude oil generated internationally will be manufactured offshore, while the rest 72 percent of crude oil will be generated onshore.
Increasing energy consumption is raising the consumption of oil and gas pipelines and the onshore oil & gas pipeline market is anticipated to show a significant growth rate during the forecast period due to this. As of 2022, energy consumption is still about 80% from fossil fuels. The Gulf States and Russia are major energy traders, with important consumers being the European Union and China, where internally sufficient energy is generated to gratify energy requirements. Energy consumption generally increases about 1-2% per year, apart from solar and wind energy which middle 20% per year in the 2010s. The energy system has converted drastically since the Industrial Revolution. People noticed this conversion of the international energy supply in the communicative chart demonstrated here. It graphs international energy consumption from 1800 forwards. It is dependent on historical calculations of primary energy consumption from Vaclav Smil, as well as updated figures from BP's Statistical Review of World Energy.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
∼6% |
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Base Year Market Size (2023) |
∼USD 26 Billion |
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Forecast Year Market Size (2036) |
∼USD 40 Billion |
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Regional Scope |
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Product (Crude Oil, Natural Gas NGL, Refined Products)
Onshore oil & gas pipeline market from the natural gas NGL segment is slated to account for 53% of the revenue share by 2036. This growth will be noticed primarily due to the increased use of natural gas in different sectors involving power generation and transportation. The transport segment alone can contribute to over 50% of the costs generated through the value chain of globally traded natural gas. As an outcome, natural gas NGL and compressed natural gas CNG tanks remained for a long time a local commodity, used up comparatively close to its production centers. In the Asia Pacific’s journey towards a more tenable future, LNG appears as a key agent, presenting a bridge to balance, flexibility, and decarbonization. Additionally, the biggest gas-to-wire project is recently constructed in Brazil in the Açu port of Rio de Janeiro. The project incorporates a 1.3GW blended cycle plant united into an LNG regasification terminal, a transportation line, and a substation linked to the national grid.
Sector (Up-Stream, Mid-Stream, Down-Stream)
In this segment, the upstream segment in the onshore oil & gas pipeline market is expected to hold 45% of the revenue share by the end of 2036 owing to the increasing upstream project of oil and gas across the world. A total of 789 oil and gas upstream projects are projected to initiate operations from 2023 to 2027. Of these 520 are latest build projects and 269 are developments of existing fields. Asia commands among the regions with more than 180 projects projected to begin operations by 2027. Oil and gas research encircles the techniques and methods included in locating possible sites for oil and gas drilling and lineage. Early oil and gas discoveries depended upon surface symptoms such as natural oil seeps, but advancements in science and technology have made oil and gas research more efficient. Geological surveys are executed by implementing different measures from testing subsoil for onshore research to utilizing seismic imaging for offshore exploration.
Our in-depth analysis of the global onshore oil & gas pipeline market includes the following segments:
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Product |
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Application |
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Sector |
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APAC Market Analysis
The onshore oil & gas pipeline market in the APAC market has the largest share and will also hold that position with almost 48% share. The oil and gas requirement centers provide an increase in the requirement for a cost-efficient and protected mode of shipping. The possibility of CCUS is focused on the Asia–Pacific region. The region has more than 1,300 emitter organizations and more than 20 possible hubs. Five years ago, only two of 23 operational projects worldwide were in this region, but this number has surpassed tripled. There are now nine CCUS conveniences operating in the region, mainly in China and Australia, concentrated on the segregation of discharges from natural gas processing and the chemical sector.
North American Market Statistics
North America region will also encounter a huge surge during the forecast period in the onshore oil & gas pipeline market. The developing oil and gas drilling activities will take to the accelerated production of crude oil and natural gas which requires to be transported through pipelines from the wellhead to accumulation stations and processing capabilities, and from there, to refineries and tanker loading capabilities owing to the increasing growth in this region. Moreover, average US oil production touched 12.8 million bbl/day in 2023, increased by 6.9% from last year. Next year, it’s anticipated to remain at the same level. Gas generation was at 103.0 billion cu ft/day in 2023, a 5.0% development from last year, and according to the forecast that generation will be only somewhat higher in 2024, touching 103.1 billion cu ft/day. Basically, pipelines are needed to transport crude oil and natural gas over long distances.
Author Credits: Payel Roy, Dhruv Bhatia
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