Covid-19 Impact & Market Status
In the oil and gas business, the proliferation of COVID-19 had a significant influence. Crude oil and natural gas usage fell across nations due to issues such as workforce shortages, operating time losses, and lockdowns. Oil and gas prices are expected to plummet to a record low level in 2020 because of this overstock in the supply chain. The price of crude oil fell to USD 20.37 per barrel in May 2020, the lowest since February 2002. Since pipelines and process service companies rely heavily on the internet of things for their operations, this makes perfect sense. However, the most damaging impact was on the ongoing building projects, which have had their delivery deadlines pushed back. A similar effect has been seen on the market by the suspension of future investments.
When compared to stainless steel, the features of low carbon steel make it the most popular choice for oil and gas pipelines globally. These properties include toughness, ductility, weldability, temperature resistance, and cost efficiency. In addition, it is vulnerable to corrosion when exposed to the elements of the environment: air, soil, and water. Corrosion repair systems are intended to reinforce the corroded pipe and keep the fluid contained in the case of a breakdown.
North American Region to Hold the Highest Revenues during the Predicted Period
As a result of significant pipeline capacity and government restrictions, North America is likely to be the largest market for pipeline maintenance services throughout the forecast period. The pipeline system in the United States is the biggest in the world. It is estimated that one-third of the country's entire pipeline market is utilised to carry crude oil, which is delivered to refineries and export terminals every day.
There has been a movement in the location of oil production from the United States to Canada in recent years. The continuous supply of oil fueled the growth of the regional oil pipeline transportation market growth. Advanced drilling methods like directional drilling and hydraulic fracturing have boosted the amount of oil that can be extracted profitably.
In addition, the pipeline network in Canada is closely linked to the one in the United States. There are several expansions and new pipeline projects planned in the future, which will further benefit both nations' pipeline networks. As a result, the pipeline maintenance services market in the area is likely to grow throughout the forecast period as a result of this expanded pipeline capacity.
The global pipeline maintenance service market is anticipated to grow with a CAGR of 3% over the forecast period. Pipeline maintenance services are in high demand due to a variety of factors, including the increasing development of unconventional oil and gas sources, the desire to maintain output from ageing pipeline systems, and the need to meet rising energy demands by expanding oil and gas pipeline infrastructure. It is projected that building expenses and delays in project execution may slow the market's growth in future years.
Corrosion is the leading cause of pipeline damage in the world. It is projected that corrosion would account for a large percentage of a pipeline's operating and maintenance costs.
The North Sea and the Gulf of Mexico are expected to see a significant amount of pipeline decommissioning and abandonment in the future years. More than 470 North Sea pipes will need to be removed in the next 30 years alone, according to estimates. As a result of this, the pipeline maintenance services market is predicted to grow at a rapid pace throughout the world.
The global Pipeline Maintenance Services market is categorized based on service type, and location of deployment. Key players serving the global Pipeline Maintenance Services market include ExxonMobil Corporation, BP PLC, China National Petroleum Corporation, Kinder Morgan Inc., Chevron Corporation, Royal Dutch Shell PLC, Baker Hughes A GE Co, EnerMech Ltd, STATS Group, Dacon Inspection Services Co. Ltd, Intertek Group PLC, IKM Gruppen AS, Oil States Industries Inc., and T. D. Williamson Inc. among other prominent players.
Latest Innovations in the Global Market: a Snapshot
- A five-year pipeline maintenance contract in Peru has been awarded to a consortium that includes Stork, a Fluor firm. COGA awarded the contract to a partnership called Consorcio Mantenimiento de Gasoductos del Peru (CMGP) for the maintenance of the gas pipelines in Peru (CMgP). Stork Peru and SICIM are part of the consortium.
This market research study was created by compiling data from primary and secondary sources. Secondary research was conducted using a variety of sources, including (but not limited to) SEC filings, company websites, technical journals, paid data sources, financial reports, and other industry publications. In addition, to acquire first-hand data, the research methodologies perform comprehensive primary research with important industry players. Industry specialists then examine and validate the data.
Pipeline Maintenance Services Market Scope
|Forecast Unit||Value (USD)|
|Growth Rate||CAGR of 3% during 2021-2028|
|Segment Covered||Service Type, Location of Deployment, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||ExxonMobil Corporation, BP PLC, China National Petroleum Corporation, Kinder Morgan Inc., Chevron Corporation, Royal Dutch Shell PLC, Baker Hughes A GE Co, EnerMech Ltd, STATS Group, Dacon Inspection Services Co. Ltd, Intertek Group PLC, IKM Gruppen AS, Oil States Industries Inc., and T. D. Williamson Inc.|
Key segments of the global Pipeline Maintenance Services market
Service Type Overview, 2018-2028 (USD Million)
- Flushing & Chemical Cleaning
- Pipeline Repair & Maintenance
Location of Deployment Overview, 2018-2028 (USD Million)
Regional Overview, 2018-2028 (USD Million)
- North America
- United Kingdom
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- South America
- Rest of South America
- Middle East & Africa
- South Africa
- Rest of Middle East and Africa