Pipeline Transportation Software Market size is expected to cross USD 32 Billion by the end of 2035, growing at a CAGR of 9% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of pipeline transportation software was over USD 20 Billion. The primary factor for market growth is the rapid growth of the oil and gas industry. As the oil and gas industry is expanding continuously, the need for a proper transportation system to transfer oil and other oil products over the world generates the need for pipeline transportation software for the conduction of efficient transportation. Thus, the boost in the oil and gas industry is therefore estimated to fuel the market growth during the forecast period. For instance, it was estimated that the global oil and gas industry generated a revenue of USD 13 billion in 2021 and is expected to grow and reach almost 51 billion by 2030 with a CAGR value of 17%.
The global pipeline transportation software market is growing at a significant rate owing to the rising capital investment in transportation for ensuring efficient and reliable transportation of large quantities of oil and gas through pipelines to remote locations with the help of pipeline transportation software. Moreover, pipeline transportation software has various advantages such as the ability to monitor the flow rate of oil and gas products and the efficiency of operating and managing the tanks, compression, pumps, and other facilities which is expected to positively contribute to market growth. Other advantages such as the ability to complete automation of loading and unloading operations along with low operating costs, and enhanced management of processes are also estimated to fuel market growth. In addition to other factors, the rising number of accidents owing to the mismanagement in the transportation process is projected to generate positive opportunities for the usage of pipeline transportation software in the upcoming years.
Growth Drivers
Growing Consumption of Oil and Oil Products – In the recent period, the consumption of oil and oil products has grown considerably owing to their usage in a wide spectrum of activities and industries ranging from construction, manufacturing, automotive, energy, and many others. As the demand for oil is growing, the need for proper transportation is also needed which generates a high demand for pipeline transportation software. This factor is estimated to bring lucrative growth opportunities for market growth during the forecast period. The statistics shared by the Energy Information Administration (EIA) stated that at the global level, liquid fuel consumption is estimated to increase from an average of 99.4 million barrels per day in 2022 to almost 100.9 million barrels per day in 2023.
Upcoming Pipeline Projects by Government – Governments of different nations are focusing on developing pipelines that can carry fluids from one place to another with ease and without hassle. The success of such pipeline projects depends on the technological services being used. Therefore, high investment is made in the development of advanced pipeline transportation software for conducting smooth operations. For instance, the Indian government has completed the first phase of laying a 1,245 km LNG gas pipeline which covers Madurai, Ennore, and Nagapattinam.
Requirement of Agricultural Commodities – Pipeline transportation software is very much beneficial for irrigation purposes over hilly areas and in urban areas. Also, pipeline transportation is a better alternative for canals and other channels as it takes pollution and environmental issues into consideration. Therefore, the rapid growth of the agriculture and food industry is expected to the fuel market growth during the analysis period. It was estimated that agriculture, food, and related industries contributed roughly USD 1 trillion to the U.S. gross domestic product (GDP) in 2021.
High Investment in Pipelines and their Infrastructure – It was estimated that between 2014 to 2025, the average direct capital investment for the construction of new gas pipeline infrastructure was approximately USD 55 billion per year across the globe.
Increased Expenditure on Research and Investment Activities - The World Bank released the global expenditure made in the Research & Development (R&D) sector which showed that in 2020 it was 2.63% of the total GDP. This is an increase from year 2.14% of the total GDP in 2016.
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~9% |
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Base Year Market Size (2022) |
~ USD 20 Billion |
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Forecast Year Market Size (2035) |
~ USD 32 Billion |
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Regional Scope |
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Pipeline Type (Oil & Gas, Sewage, Water, Chemicals)
The global pipeline transportation software market is segmented and analyzed for demand and supply by pipeline type into oil & gas, sewage, water, chemicals, and others. Out of the types of pipelines, the oil & gas segment is estimated to gain the largest market share of about ~41% in the year 2035. The primary factor for segment growth is the rising oil and gas industry along with the demand for crude oil, petroleum, and other oil products from various end-use industries such as automotive, energy, construction, manufacturing, and others. It is stated that in 2022, the United States consumed an average of about 20 million barrels of petroleum per day or a total of about 10 billion barrels of petroleum that year. Oil and gas are highly inflammable substances that must be transported carefully. Therefore, pipeline transportation software is used for consolidated scheduling accounting and reduced data management complexity in the transportation process. This factor is therefore estimated to create a positive outlook for segment growth during the forecast period.
Solution (Security Solutions, Automation Control, Tracking Solutions, Network Communication Solutions)
The global pipeline transportation software market is also segmented and analyzed for demand and supply by solution into security solutions, automation control, tracking solutions, network communication solutions, and others. Out of these, the automation control segment is attributed to grow the largest with a share of 34% by the end of the forecast period. Automation control plays an important role in the remote operation capabilities of pipelines that transmits fuels, oils, liquids, and other things between continents. This factor is estimated to propel segment growth during the forecast period.
Our in-depth analysis of the global market includes the following segments:
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By Pipeline Type |
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By Solution |
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By Services |
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North American Market Forecast
The market share of pipeline transportation software in North America, amongst the market in all the other regions, is projected to be the largest with a share of about ~35% by the end of 2035. The major factor for market growth in the region is the presence of a strong oil and gas industry base along with a high demand for oil products which requires advanced pipeline transportation software for proper transportation of oil and gas along with their products that require an advanced pipeline transportation software. In addition to this, U.S. and Canada have major crude oil reserves, which requires efficient pipeline for transportation. Moreover, the growing adoption of automation and software is further expected to fuel market growth.
APAC Market Statistics
The Asia Pacific pipeline transportation software market is estimated to be the second largest, registering a share of about ~24% by the end of 2035, on the back of increasing infrastructural developments in the region, along with improving waste-water management systems. Moreover, pipeline transportation is gaining prominence in highly populated countries, such as India, and China, on the back of rising sewage generation. In addition to others, the rising government initiatives for building new pipelines to carry out processes in various verticals are also estimated to bring lucrative growth opportunities for market growth during the forecast period.
Europe Market Forecast
Further, the market in the European region, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. Russia, a developing nation holds a potential market for oil and gas pipeline transportation to curb the supply and demand of energy, which is estimated to be the major factor for market growth during the forecast period. Other factors include rapid industrialization and urbanization which helps in rising awareness level about the advantages of pipeline transportation software for varied purposes and the escalation of investments by major key players in the research and development sector.
TechnipFMC and Saipem announced a global commercial agreement in order to jointly execute Subsea Umbilicals, Risers, and Flowlines Trimble launched a model-based estimating workflow for mechanical piping to facilitate greater project insight and visibility.
Author Credits: Abhishek Verma, Hetal Singh
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