Pipeline Transportation Software Market Trends

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

• Requirement of a High Initial Investment
• Rising Adoption of Renewable Energy – Pipelines are majorly used for transferring oil and oil products across the country. And for safe and hassle-free transportation, pipeline transportation software is being used. However, with the increasing preference for cleaner energy such as solar, wind, and other forms of energy, the investment in the crude oil industry has dropped considerably which is estimated to lower the adoption of pipeline transportation software, subsequently hampering market growth in the future.
• Increasing Stringent Government Rules