The global pipeline transportation market is predicted to expand at a compound annual growth rate (CAGR) of 10.0 percent over the next five years.
A new report from MarketsandMarkets examines the global market for pipeline systems, including those for carrying fuels, chemicals, water supply and other fluids. The research firm estimates that the market will be worth $8.69 billion by 2019, an increase from $8.68 billion in 2014.
Major forces driving the pipeline transportation market include the increase in demand for oil and natural gas and the need for a safe and economical method of transporting production. In particular, this market is expected to benefit from greater demand for secure midstream solutions in the Asia Pacific region and in Latin America.
Pipelines are widely considered to be the safest and most efficient means of transporting large quantities of oil, gas, chemicals, coal and water. Approximately 85% of all oil and gas is supplied through pipelines, MarketsandMarkets said.
According to the Canadian Energy Pipeline Association, every day its member companies transport enough crude oil and petroleum products to fill 15,000 tanker truck loads and 4,200 rail cars.
The industry has accelerated the process of building pipelines as a result of the increase in demand for fuels, a rise in offshore production and demand for cheaper methods of transportation. Companies are also investing considerable sums in pipeline infrastructure due to government regulations and compliance issues. And pipeline operators are now deploying more advanced technology such as SCADA and monitoring systems, sensors, batch trackers and intrusion detection to assist in pipeline management.