North America Pipeline Maintenance Market - Growth, Trends, Forecasts (2022 - 2027)

The North America pipeline market is expected to record a CAGR of more than 2.5% throughout the forecast period 2022-2027. The outbreak of COVID-19 in Q1 of 2020 negatively impacted the market. Lockdown restrictions imposed by various government across the region has caused a delay in pipeline construction and maintenance activities across North America. Additionally, US pipeline operators like Pembina Pipeline Corp and Harvest Midstream are either delayed or stalled their projects due to the COVID-19 pandemic. Factors such as the increasing development of unconventional oil and gas sources leading to the pipeline expansion, the bid to maintain output from ageing pipeline systems, and the need to cater to the growing energy demand by expanding oil and gas pipeline infrastructure are some of the factors driving the demand for the pipeline maintenance services market. However, high construction costs and delays in the implementation of projects are expected to restrain the market's growth in the coming years.

Key Highlights

• The pipeline repair & maintenance segment is expected to have a significant market share. Corrosion is the biggest contributor to pipeline damages globally. Corrosion is expected to have the most significant share of operational and maintenance costs of a pipeline, indicating the importance of corrosion control services.
• The United States is expected to dominate the market, with the fossil fuel industry still experiencing healthy demand and profits despite skyrocketing gasoline prices.

Key Market Trends

Pipeline Repair & Maintenance Segment to have a Significant Share in the Market

• The pipeline repair & maintenance service segment is expected to have a significant market share during the forecast period. In 2021, the pipeline repair & maintenance services segment held a major share of the market, and the claim is expected to grow as most of the demand is coming for corrosion repair services. Also, increasing the share of installed pipeline capacity in major countries such as the United States, Canada and Mexico are expected to drive the growth of repair & maintenance during the forecast period.
• In comparison to stainless steel, low carbon steel is widely used for oil and gas pipelines due to its properties, including its toughness, ductility, weldability, ability to withstand temperature changes, and cost-effectiveness. However, it has the disadvantage of being susceptible to air, soil, and water corrosion.
• Corrosion repair systems strengthen the pipe affected by corrosion and contain the fluid transported in the event of failure. They include full circumferential welded sleeves, welded patches, composite reinforcements, and pipe section replacements.
• Corrosion repair services are in high demand due to the growing share of heavy crude oil. Oil reserves for conventional oil are diminishing, while oil and gas demand is forecast to grow modestly. Therefore, to meet the growing demand, unconventional and heavy oil production is increasing, but heavy oil is harmful to pipelines carrying it, so corrosion problems are more frequent on heavy oil pipelines. Therefore, the growing share of heavy crude is expected to drive the demand for corrosion repair services during the forecast period, which is expected to drive the demand for pipeline maintenance and repair services throughout North America.

United States Expected to Dominate the Market

• In the forecast period, the United States is expected to have the largest market for pipeline maintenance services, primarily due to its huge installed pipeline capacity and government regulations.
• The United States has the largest network of pipelines in the world, Approximately one-third of the total pipeline market in the country is used to transport crude oil, delivering millions of gallons of oil equivalent/day to various refineries and export terminals.
• According to the recently updated US Energy Information Administration (EIA) Liquids Pipeline Projects Database, pipeline companies completed 14 petroleum liquid pipeline projects in 2021. The total includes seven crude oil pipeline projects and seven hydrocarbon gas liquid pipeline projects.
• Among the new pipeline projects added in 2021, In the Energy Transfer Dakota Access Pipeline (DAPL) Expansion project, horsepower was added, and pump stations were modified and upgraded. As a result, DAPL capacity was increased by 180,000 barrels per day along the system. From North Dakota to South Dakota to Iowa to Illinois, the DAPL system runs. The DAPL system runs from North Dakota through South Dakota and Iowa and ends near Patoka, Illinois.
• The Federal Energy Regulatory Commission (FERC) approved three projects in the first quarter of 2022 to increase the export of natural gas from the United States via pipeline and LNG.
• Hence, this is expected to create new opportunities for additional pipeline capacity during the forecast period, thereby boosting the pipeline maintenance services market in the country.

Competitive Landscape

The North America pipeline market is moderately fragmented. Some of the key players in the market include Baker Hughes A GE Co, T. D. Williamson Inc, Oil States Industries Inc., EnerMech Ltd, and STATS Group.

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