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The oil and gas transportation market size is forecast to increase by USD 46.67 billion at a CAGR of 5.63% between 2023 and 2028. The market is driven by the expansion of hydrocarbon reserves and the development of trans-regional projects. Offshore exploration and production continue to be a significant contributor to oil production, necessitating advanced solutions for offshore transportation and pipeline safety. The increasing use of conventional fuels and the growing popularity of natural gas vehicles require strong infrastructure for the transportation of these fuels. Maintenance and support, automation, and control systems are essential for ensuring efficient and safe transportation. However, the market faces challenges such as the technical complexities involved in transporting crude oil and natural gas, including pressure management and temperature control. Ensuring pipeline safety remains a critical concern due to the potential hazards associated with oil and gas transportation.
The market is driven by the increasing energy demand due to urbanization and industrialization. The market is witnessing significant growth with the adoption of automated pipelines and high tech tankers for transportation of natural gas and oil. Pipeline technology plays a crucial role in the market, with cross-border pipelines facilitating the transport of natural gas from producing regions to consuming markets. The use of liquefied natural gas (LNG) as a cleaner alternative to oil is gaining popularity, leading to the development of hydrogen pipelines for short-distance transportation. However, the market faces challenges such as carbon emissions, oil spills, and water contamination, leading to environmental damage.
Further, the market is also investing in renewable energy sources to reduce carbon emissions and promote sustainability. Renewable energy sources such as wind and solar are expected to disrupt the traditional market. Maintenance and support, automation and control, security solutions, integrity and tracking, remote operation, and investment in energy infrastructure are key areas of focus for market players. In conclusion, the market is undergoing significant changes due to technological advancements, increasing energy demand, and the shift towards renewable energy sources. The market is expected to continue growing, with a focus on reducing carbon emissions, improving safety, and enhancing operational efficiency.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The pipelines segment is estimated to witness significant growth during the forecast period. In the global oil and gas transportation market, pipelines stand out as a fundamental mode of transporting vital hydrocarbon resources across vast distances. These networks of pipelines play a pivotal role in moving crude oil, natural gas, and refined petroleum products efficiently and securely. Pipelines offer several advantages over other transportation methods. They provide a cost-effective means of transporting large volumes of oil and gas over long distances, minimizing the transportation costs per unit. Moreover, pipelines offer a more eco-friendly approach to the transportation of hydrocarbons by reducing carbon emissions when compared to modes like trucks or ships.
Further, pipelines are widely used transportation methods to move petroleum and refined petroleum products. For instance, in the US, 70% of crude oil and petroleum products were shipped by pipeline. In Canada, 90% of natural gas and petroleum products were transported by pipelines. This includes both long-distance inter- and intra-state transmission systems. For delivery into common carrier transmission systems, it also includes local or regional gathering systems, which aggregate production for delivery.
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The pipelines segment accounted for USD 85.85 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The wave in oil and gas demand, particularly in developing countries like India and China, has significantly increased exploration and production activities in the region. This trend is driving substantial investments in the oil and gas transportation sector, with a focus on pipeline technologies to facilitate short, medium, and long distance transportation of crude oil and refined products. China, as one of the world's largest consumers and producers of oil, holds a 16% share of global oil consumption and a 5% share of global oil production as of 2021 and 2022, respectively. Pipeline infrastructure plays a crucial role in transporting these resources over long distances, while railcars and trucks are utilized for short and medium distance transportation. The oil and gas industry continues to evolve, with a growing emphasis on sustainable and cost-effective transportation solutions, including the implementation of sulfur cap regulations to reduce emissions.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The expansion of oil terminals is the key driver of the market. The market encompasses automated pipelines and high-tech tankers, playing a crucial role in the energy sector by facilitating the movement of crude oil and natural gas. With the increasing global energy demand, there is a growing emphasis on reducing carbon emissions and transitioning to renewable energy sources. In response, the transportation infrastructure for natural gas, including cross-border pipelines and liquefied natural gas (LNG) terminals, is expanding.
Notably, Saudi Aramco, a leading oil and gas company, recently announced the expansion of its investment program, Aramco Namaat, with 23 new partnerships and one joint venture in sectors such as advanced materials, technology, industrial and energy services, and sustainability. These initiatives underscore the industry's commitment to cleaner fuel and reducing greenhouse gas emissions.
Investments in infrastructure development in oil and gas transportation is the upcoming trend in the market. The market is witnessing significant investments in infrastructure development to optimize efficiency, safety, and reliability. This trend includes the expansion and construction of new pipelines, terminals, storage facilities, and transportation routes. Companies and governments are allocating substantial funds to accommodate evolving energy demands, connect new production sites to end markets, and improve connectivity between regions. Modernization efforts focus on integrating advanced technologies into oil and gas transportation infrastructure, such as automated pipelines, smart monitoring systems, and digitalization.
Additionally, there is a growing emphasis on using cleaner fuels, like natural gas, and reducing carbon emissions in the transportation sector. This shift is particularly evident in the increasing use of liquefied natural gas (LNG) and cross-border pipelines to transport natural gas. Furthermore, the integration of renewable energy sources into the global energy mix is expected to impact the market, as the need for transportation infrastructure for these sources grows. Overall, the market is evolving to meet the demands of a changing energy landscape while minimizing its environmental footprint.
Technical challenges associated with transportation of crude oil and natural gas is a key challenge affecting the market growth. The market is witnessing significant advancements with the integration of automated pipelines and high tech tankers to ensure efficient and eco-friendly energy transport. As the world transitions towards cleaner fuel sources and reducing carbon emissions, the importance of transportation infrastructure in the global energy sector is increasingly recognized. Natural gas, a key component of this transition, is transported through various means such as cross border pipelines and liquefied natural gas (LNG) tankers.
Further, operators of pipelaying vessels are employing advanced technologies like welding apparatus, inspection tools, remotely operated vehicles, risers, flowlines, control systems, and guidewires to lower pipelines into the ocean floor. The integration of renewable energy sources is also expected to impact the market, as the focus shifts towards reducing greenhouse gas emissions.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BP Plc - The company offers oil and gas transportation service such as pipeline, ship or rail car. Additionally, BP offers fleet of specialist gas carriers, including the NW Shearwater, to transport liquefied natural gas.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is a vital component of the energy sector, facilitating the movement of crude oil and refined products from exploration and production sites to processing and refining facilities, distribution and marketing centers, and end-users. The market encompasses various transportation systems, including pipelines, railcars, and trucks, each catering to different transportation distances. Pipelines, a key infrastructure in the market, employ advanced pipeline technologies for safe and efficient transportation of natural gas and crude oil over long, medium, and short distances. Onshore pipelines connect exploration and production sites to processing and refining facilities, while cross-border pipelines facilitate trans-regional energy transit hubs. The increasing demand for cleaner fuel and the need for sustainability have led to the exploration of renewable energy sources and the development of hydrogen pipelines.
However, challenges such as carbon emissions, pipeline incidents, oil spills, and water contamination necessitate continuous investment in pipeline safety and maintenance and support services. The market is influenced by various factors, including energy demand, urbanization, industrialization, and the shift towards natural gas vehicles. The transportation of liquefied natural gas (LNG) via high-tech tankers is gaining popularity due to its ability to reduce greenhouse gas emissions compared to conventional fuels. The market also faces environmental concerns, requiring investment in network communication solutions, automation and control, and security solutions to ensure pipeline integrity and tracking.
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Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.63% |
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Market Growth 2024-2028 |
USD 46.67 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.79 |
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Regional analysis |
APAC, North America, Middle East and Africa, Europe, and South America |
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Performing market contribution |
APAC at 36% |
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Key countries |
US, Saudi Arabia, China, India, and Russia |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
BP Plc, Chevron Corp., Enbridge Inc., Energy Transfer LP, Euronav NV, Exxon Mobil Corp., FRONTLINE PLC, International Seaways Inc., Kinder Morgan Inc., MITSUI and CO. LTD., Nippon Yusen Kabushiki Kaisha, Pembina Pipeline Corp., PetroChina Co. Ltd., Petroleo Brasileiro SA, Saudi Arabian Oil Co., Scorpio Tankers, Shell plc, TotalEnergies SE, Tsakos Energy Navigation Ltd., and Valero Energy Corp. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Mode of Transportation
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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