Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Pipeline Pigging Services market.
Trusted Business Insights presents an updated and Latest Study on Pipeline Pigging Services Market 2019-2026. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Pipeline Pigging Services market during the forecast period (2019-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
Industry Insights, Market Size, CAGR, High-Level Analysis: Pipeline Pigging Services Market
The global pipeline pigging services market size was valued at USD 9.7 billion in 2018 and is anticipated to witness a CAGR of 5.7% over the forecast period. Pipeline pigging is a practice of using a device, known as the pig, to clean the pipes and perform various maintenance activities. These service reduces high cost repair expenditure, assisting in extending the life of a product, and minimizing safety risks.
Growing concern regarding pipeline safety and energy infrastructure along with increasing government mandates and regulations for safe and secure transportation of oil and gas is projected to boost the growth of the business. Rising application in various end-use industries including oil and gas, lube oil, and chemical is anticipated to further drive the growth.
U.S. pipeline pigging services accounted for the largest market share in 2018, and the growth trend is projected to continue over the forecast period, on account of aging oil and gas pipeline network in the country. The U.S. currently has 2,225,032 km long network across the country, making it the longest oil and gas distribution network in the world. Most of these pipelines were built before 1960. Aging infrastructure in the country is predicted to fuel the regional demand by 2025.
In the oil and gas industry, pipeline inspection and maintenance programs play a vital role as negligence or failure can lead to accumulation of debris, thereby resulting revenue losses to the operator. Pipeline pigging services help in maintaining the integrity of the asset, resulting in pigging services gaining momentum in operation and maintenance system.
Advancements in pigging technologies coupled with growing focus towards R&D activities are expected to improve oil and gas maintenance services. For instance, intelligent pigging technology provides smart pigs to rectify cracks and leakage detections, metal loss/corrosion detections, among other operations, thereby enhancing the market.
Strategic partnerships among service providers would accelerate the adoption of new technologies into the pipeline pigging services market. For instance, in May 2018, Shell Midstream Partners, L.P. LLC entered into a purchase and sale agreement with Amberjack Pipeline Company LLC. The deal was valued at USD 1.22 billion, and as per the terms of the agreement, Shell acquired ownership interests of 75% in Amberjack Series A and 50% in Amberjack Series.
Service Insights of Pipeline Pigging Services Market
The pigging service segment was valued at around USD 4.1 billion in 2018. Increased demand for pigging services can be attributed to its ability to clean and prevent pipeline failures which occur as a result of deposit formations accumulated after transportation of oil and gas. Pigging also helps to minimize financial losses in terms of man-hour, safety, and equipment and aids to enhance pipeline performance.
The intelligent pigging segment accounted for the largest market share in 2018 and is anticipated to witness highest CAGR during the forecast period. Smart pigs perform advanced inspection activities and gather data on pipeline curvature, diameter, bends, and temperature. Provision of non-destructive examination techniques such as magnetic flux leakage testing to inspect for metal loss, hydrogen induced cracking, pitting, and weld anomalies will further stimulate the segment growth.
Pipeline safety regulatory compulsions require states to undertake intrastate inspection and enforcement responsibilities under a yearly certification which will fuel the demand for intelligent pigging services. For instance, the U.S. Department of Transportation and Federal Energy Regulatory Commission regulates and monitors the practices of oil companies engaged in interstate transportation.
Application Insights of Pipeline Pigging Services Market
Metal loss/ corrosion detection application segment accounts for the largest market share in 2018 and is projected to exhibit highest CAGR of 6.6% over the forecast period. Corrosion is one of the major issues which affects the operability of oil and gas pipeline system. Owing to which majority of vendors use pigging as a preliminary step for inspection of pipeline.
To carry out the inspection, vendors utilize various technologies such as Magnetic Flux Leakage (MFL) and Ultrasonic Testing (UT) with the help of devices such as intelligent pigs which aid in corrosion detection for oil and gas pipeline. These multi-channel tools containing transducers, allow for internal pipe wall scanning and ensure efficient data collection.
The crack and leak detection application segment was valued over USD 1.7 billion in 2018 and is set to witness robust growth over the next seven years. Advancements in crack detection pig technology will primarily drive the growth for the segment. For instance, Shear Wave UT has launched a product which provides real-time inspection, resulting in enhanced efficiency of pigging services.
The geometry measurement and bend detection segment is anticipated to witness robust growth owing to the ageing of oil and gas network in major regions. It is resulting in demand for geometry pig which is used to collect data such as bend radius and angle, wrinkles, ovality, and dents along with indications of prominent internal corrosion by making measurements of the inside surface of the pipe.
End Use Insights
The oil segment was valued at around USD 3.2 million in 2018 owing to the deployment of pipes for crude oil transportation from wellhead to processing and gathering facilities and further to refineries and tanker loading facilities. Global crude oil production rose by 2% in 2019 as compared to the 1.5% rise in 2018. Production boost will result in increased oil pipeline usage thereby stimulating the demand for pipeline pigging services.
Gas pipeline pegging accounted for the fastest growing industry segment with a CAGR of 6.5% over the forecast timeframe. Natural gas transportation from producing regions to consumption regions is majorly done through an extensive network. Moreover, global natural gas production increased by 5.2% in 2018, thereby boosting the demand. Major countries including U.S., Russia, Canada, and China account for the longest gas pipelines with U.S. occupying 65% of the total global length. Furthermore, advancements in intelligent pigging technology such as electro-magnetic acoustic transducer locating cracks in gas lines is likely to enhance the market adoption of pipeline pegging services over the forecast period.
Regional Insights of Pipeline Pigging Services Market
The market in North America was valued at USD 4.9 billion in 2018, wherein U.S. was the major contributor. Most of the oil and gas fields in North American countries such as U.S. and Canada are located at remote area thus resulting in higher deployment of oil & gas distribution network. Requirement for efficient transportation of petroleum products from production site to storage locations will result in increasing the regional demand for pipeline pigging services. Moreover, government initiatives coupled with infrastructural developments in the U.S. will further propel the growth of the market.
Asia Pacific is estimated to be the fastest-growing region with a CAGR of more than 7% over the forecast period. Growing energy demand from emerging countries such as China, Australia, and India, will bolster the oil and gas industry growth in coming years, which will eventually drive the market in Asia Pacific region.
According to National Development and Reform Commission (NDRC), China is planning to expand its oil and gas network to around 240,000 km by 2025 with aim to encourage investment in the sector and to secure future energy supply need in the country. Owing to increasing distribution network the demand for pipeline pigging services in the country is expected to grow substantially during the forecast period, which will further boost the regional market.
Market Share Insights of Pipeline Pigging Services Market
Key market players include T.D. Williamson, Baker Hughes, Rosen Group, NDT Global, Enduro Pipeline Services, Intertek Group, Applus, Lin Scan, Dacon Inspection Services, and Onstream Pipeline Inspection. Key companies in the industry are adopting various organic and inorganic growth strategies with a view to expand their service portfolio and gain market share.
In January 2019, T.D. Williamson, one of the leaders in pigging industry, launched 4-inch inspection tool for low pressure and small diameter pipelines. The tool helps in reducing inspection time and cost by producing accurate and comprehensive metal loss and geometry data in a single run. This would further aid the company to gain market share further in the forecast period.
Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Pipeline Pigging Services Market Research Report
This report forecasts revenue and revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, this market research report has segmented the global pipeline pigging services market report on the basis of service, application, end use, and region:
Service Outlook (Revenue, USD Million, 2019 – 2030)
Application Outlook (Revenue, USD Million, 2019 – 2030)
Metal Loss / Corrosion Detection
Crack & Leakage Detection
Geometry Measurement & Bend Detection
End Use Outlook (Revenue, USD Million, 2019 – 2030)
Quick Read Table of Contents of this Report @ Pipeline Pigging Services Market Size, Global Market Research and Industry Forecast Report, 2025 (Includes Business Impact of COVID-19)
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