Oil Pipeline Infrastructure Market Size - By Application (Onshore, Offshore), By Operation (Transmission, Gathering), By Diameter {≤ 8 Inch, >8-24 Inch, > 24 Inch), & Global Forecast, 2023 - 2032

Oil Pipeline Infrastructure Market Size - By Application (Onshore, Offshore), By Operation (Transmission, Gathering), By Diameter {≤ 8 Inch, >8-24 Inch, > 24 Inch), & Global Forecast, 2023 - 2032

Oil pipeline infrastructure market size is anticipated to expand at 3.5% CAGR from 2023 to 2032, owing to the ongoing exploration and extraction of oil and gas reserves in remote and challenging locations.

With traditional oil reserves becoming depleted, energy companies are venturing into remote and inhospitable regions, such as deep-sea offshore locations and arctic environments, to access untapped hydrocarbon resources. The expansion of pipeline networks is also crucial for the efficient and cost-effective supply of the resources. This trend has led to substantial investments in pipeline infrastructure, including the development of specialized technology and materials to withstand the unique challenges of environments, further augmenting the market outlook. For instance, in 2023, the exploration portfolio management board planned Rs 2,700 crore investment and proposed 70 locations for release, targeting nearly 150 million tons of oil equivalent of yet-to-find resources.

The overall oil pipeline infrastructure industry is categorized in terms of application, operation, diameter, and region.

Based on application, the market size from the offshore application segment is estimated to generate substantial revenue by the end of 2032. The ongoing exploration and extraction of hydrocarbons for expanding into deeper waters has fueled the demand for advanced offshore infrastructure. Technological innovations, such as flexible and subsea pipelines, have also improved efficiency, safety, and environmental sustainability. Additionally, the jump in offshore oil and gas exploration activities in regions, including the Gulf of Mexico and the North Sea is driving massive investments, propelling the segment growth.

Oil pipeline infrastructure industry from the gathering operation segment is projected to witness steady growth between 2023 and 2032. The surging global energy demand, especially in emerging markets has instigated the paramount need for efficient and extensive gathering operations. Moreover, technological advancements in pipeline monitoring and automation for enhancing operational efficiency, reducing costs and environmental impacts will supplement the segment growth.

Asia Pacific oil pipeline infrastructure market size is anticipated to grow at robust growth rate through 2032. The rapid economic development and industrialization has surged the demand for energy resources, prompting the expansion and construction of oil pipelines. Several governments and energy companies are also investing heavily in infrastructure to ensure reliable and efficient energy supply chain. For instance, the 1,950 km Niger-Benin Oil Pipeline and the Paradip Numaligarh Crude Pipeline in India are the longest pipeline projects under construction, both scheduled to begin operations in 2024. The growing environmental concerns and the dire need for cleaner energy sources have also spurred investments in pipelines for natural gas and renewables.