Pipeline Testing and Inspection Services Market Size (2024–2030)

The estimated global size of the Pipeline Testing and Inspection Services Market is projected to increase from USD 46.13 billion in 2023 to USD 64.27 billion by 2030. This sector is experiencing a robust Compound Annual Growth Rate (CAGR) of 4.85% from 2024 to 2030. The primary drivers of this growth include the expanding use of pipelines for the transportation of various commodities such as gas and liquid, alongside regulatory measures implemented by governments, both contributing significantly to the industry's expansion.

Industry Overview:

As of 2021, there were approximately 145,353 miles of pipelines planned and under construction globally. Among these, 94,773 miles are in the engineering and design phase, while 50,580 miles are in various stages of construction. The natural gas pipeline network is expected to grow in tandem with the increasing demand for natural gas, which is anticipated to positively impact the global pipeline services market in the forthcoming years. The growth of natural gas pipeline infrastructure is thus expected to be a key driver for the market during the forecast period. However, alternative modes of transportation, particularly through marine vessels, are anticipated to hinder market growth. Within the market, the steel segment is expected to dominate, exhibiting the highest CAGR of 5.8% throughout the forecast period. Factors such as urbanization in emerging economies like Germany, France, and the U.S. are propelling market growth on a global scale. Additionally, the advantages associated with steel, such as high strength, ease of connection, high internal pressure capacity, smooth internal surface, and favorable hydraulic conditions, are fueling its adoption across various end-user verticals, thereby boosting growth in the pipeline construction market.

Furthermore, there is a growing adoption of stainless steel pipe, alloy steel, and steel due to their characteristics such as hardness, corrosion resistance, and ability to withstand high temperatures. Major players are offering stainless steel pipes tailored for specific applications. For instance, Prosaic Steel and Alloys provide ASTM A123 stainless steel pipe, which finds applications in heat exchanger plates, sheets, and steel boilers, available in dimensions ranging from 12” to 24”. All these instances are expected to contribute to the growth of the pipeline construction market.

COVID-19 Impact on Pipeline Testing and Inspection Services Market

The COVID-19 pandemic has had a detrimental impact on the energy sector. According to the International Energy Agency (IEA), the crisis has significantly affected oil and gas exploration and production activities. This decline is primarily attributed to delays in project construction activities and disruptions in the supply chain, as major countries enforced lockdowns, implemented social distancing measures for workers, and faced economic challenges. Since July 2020, oil prices have regained momentum but still remain in the range of USD 35–40.

The pandemic has resulted in the delay of numerous projects and temporary shutdowns of pipeline projects. Additionally, the transportation of petrochemicals from refineries to end-consumption points has been hindered due to lockdown impositions aimed at controlling the pandemic. These factors have collectively impacted the growth of the downstream oil and gas industry in 2020, potentially leading to the closure of several small refineries. Moreover, with global trade and transportation coming to a halt, the supply chain faces various obstacles, resulting in significant delays and withdrawals in both ongoing construction and planned maintenance activities. Thus, COVID-19 has effectively stalled the growth of the pipeline and process services market.

Market drivers:

Demand to transport things like Gas and Liquid through pipelines driving the growth of the market

With the extent of the world populace and speedy industrialization, the demand for oil and different power assets is growing speedily. According to the International Energy Outlook posted using the Energy Information Administration (EIA), the international electricity demand is especially pushed by using non-OECD countries, such as Argentina, Brazil, India, Malaysia, Singapore, South Africa, and Thailand, with sturdy populace boom and financial development.

Government regulations regarding the transportation using pipelines will drive the market

The pipelines are significantly used to transport oil and fuel across the globe. Any kind of leakage regularly leads to fundamental harm to human lives and money. For instance, following the FRACTRACKER report, in 2019, round 614 pipeline incidents had been pronounced in the United States. This resulted in USD 259 million in damages and injured around 35 people. Therefore, to keep away from any incidence due to the combustion of pipelines, stringent guidelines have been imposed using the authorities companies to make sure well-timed protection and environment-friendly functioning of the pipelines. In the U.S., for example, the National Energy Board Act (NEB Act) and Onshore Pipeline Regulations (OPR) have imposed guidelines that neglect well-timed supervision and superior strain checking out activities.

Market restraints:

The increasing shift towards renewable energy sources, particularly in Europe, is restraining the growth of the market.

This transition towards renewable energy is dampening the growth rate of oil production, leading to slower-than-expected well-drilling activities, thus potentially hampering the Pipeline Testing and Inspection Services Market growth.

Pipeline Testing and Inspection Services Market- By Asset Type:

• Pipeline
• Process

In terms of the Asset Type, the pipeline segment held a significant share in the pipeline testing and inspection services market based on asset type in 2021. The increasing demand for crude oil has resulted in a rise in offshore exploration and drilling activities, thereby driving the growth of the market for transmission pipeline services. Concurrently, rapid industrialization and urbanization have fueled the demand for distribution pipeline services. Regions such as Europe, Asia Pacific, and the Middle East are expected to emerge as key markets for pipeline services due to the commencement of planned offshore oil and gas projects during the forecast period. For instance, the Cyprus–Greece Gas Pipeline, spanning 1,900 km, is projected to have a transport capacity of sixteen billion cubic meters per year from the offshore gas reserves in the Levantine Basin and potential gas reserves in Greece. The pipeline is slated for completion by 2030.

Pipeline Testing and Inspection Services Market - By Operation :

• Commissioning
• Decommissioning
• Maintenance

Concerning operations, Maintenance services are anticipated to maintain the largest share of the operational segment throughout the forecast period. Over time, oil and gas infrastructure depreciates, and inadequate maintenance can pose significant threats such as the risk of injury, fatalities, environmental damage, and equipment downtime. Hence, timely maintenance and repair of these assets are crucial to minimize the risk of failures, enhance profitability, and prolong asset lifespan. Alterations to the internal pipeline surface can significantly impact both pipeline throughput and the energy needed to maintain desired flow rates. A well-maintained pipeline maximizes the transport capacity of media and extends equipment longevity, thereby enhancing equipment reliability while reducing associated maintenance risks. This, in turn, improves the bottom-line profitability for pipeline owners and operators. The growing emphasis on maintaining profitability, particularly following the decline in crude oil prices, is driving the demand for maintenance services.

Pipeline Testing and Inspection Services Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East
• Africa

From a geographical perspective, the increasing demand for energy production in North America continues to drive exploration and production towards challenging environments. Notably, recent discoveries of certain new extraction methods have unlocked multiple oil & gas shale regions in extremely remote areas.

In the United States, approximately 70% of crude oil and petroleum products are transported through pipelines. In 2018, U.S. crude oil production reached 10.9 million barrels per day (mb/d), an increase of 1.6 mb/d from 2017. This is projected to reach 12.1 mb/d in 2019 and 12.9 mb/d in 2020. The majority of this increased production is expected to come from Texas and New Mexico.

Over 60% of the new electric generating capacity added in 2018 was fueled by natural gas. Nearly 90% (19.3 GW) of the natural gas-fired capacity added in the U.S. in 2018 consisted of combined-cycle generators, the most efficient natural gas-fired generation technology. Pennsylvania alone accounted for nearly 25% (4.4 GW) of all 2018 domestic natural gas additions, with Maryland, Virginia, and Florida collectively accounting for about 30%.

With the unlocking of hydrocarbon resources in low permeability shale formations, the United States has emerged as a major global producer of oil and gas, a trend expected to continue throughout the forecast period. In Canada, about 97% of natural gas and petroleum products are transported via pipelines. Consequently, the transportation of produced crude oil & natural gas from remote locations is expected to drive the overall pipeline market during the forecast period.

Pipeline Testing and Inspection Services Market Share by Company

1. Altus Intervention
2. CR Asia Group
3. Eunisell Limited
4. Alphaden Energy
5. Cypress Pipeline
6. Tech fem
7. Enermech
8. BGS Energy Services
9. Hydratight
10. IPEC
11. Pipeline and process and IKM Group

EnerMech recently secured a 12-month contract in the Southern North Sea. The company will provide a range of specialized services including pipework removal, nitrogen, bolting, and flange management, as well as the purging of all project-related assets. Additionally, it will assist with leak testing, controlled bolting, and the installation of additional pipes.

Johan Castberg awarded IKM Group a contract for N2/He leakage testing, PSV calibration, bolt work, chemical cleaning, hot oil flushing, drying, flange machining, pipe cutting, pipe wedge machining, and other associated tasks.

Intense competition among key players to introduce advanced and innovative products is driving companies to invest in product research and development and process automation. Pipelines remain a crucial component in underground transportation. Regular maintenance of pipelines is essential, prompting companies to develop new technologies to enhance efficiency and upgrade pipeline systems.

NOTABLE EVENTS IN THE GLOBAL PIPELINE TESTING AND INSPECTION SERVICES MARKET RECENTLY:

• New Initiatives - In February 2021, Baker Hughes inaugurated a multimodal facility (MMF) for oil and gas in Luanda, Angola. The facility offers a range of products and services covering the entire oil and gas value chain. It aims to support customers and projects in Angola and Southern Africa, while also catering to clients globally.
• Collaboration - In January 2022, Oceaneering and Stork secured a USD 6.5 million contract from Neptune Energy for integrity management and fabric maintenance. The contract includes services such as erosion control, pressure systems, pipeline, structural, and offshore inspection services for integrity management.