Pipeline Monitoring Systems Market

The pipeline monitoring system market is expected to grow at a CAGR of 7.8% and reach a value of USD 19.2 billion by 2030. This growth is driven by the increasing demand for pipeline monitoring systems in the crude & refined petroleum and water & wastewater industries.

Impact of COVID-19 on the global pipeline monitoring system market:
The outbreak of COVID-19 led to the implementation of emergency protocols and the suspension of operations and facilities worldwide in 2020. The virus, originating in Wuhan, China, spread to key regions in APAC, Europe, and North America, causing disruptions in the pipeline monitoring system market as many global corporations have headquarters in these areas. The impact of the pandemic resulted in supply chain disruptions, leading to a lack of raw materials and a limited workforce availability.

In 2020, the pipeline monitoring system market experienced a minor reduction in its growth rate due to the COVID-19 pandemic. Reduced output of raw materials, supply issues, and restricted trade movements all contributed to the market's challenges during that period. The end-use sectors, including crude and refined petroleum, as well as water and wastewater, were particularly affected by the pandemic.

Pipeline Monitoring System Market Dynamics:

Driver: Sustainable Resource Use
Developing pipeline infrastructure requires significant initial investments, and with depleting oil and gas reserves, companies are focusing on increasing production efficiency and reducing operational costs. The need to install monitoring systems throughout the infrastructure has become crucial due to increased terrorist threats and cyber-attacks. As a result, oil and gas operators worldwide are increasing their spending on infrastructure and network monitoring to ensure the security of their systems.

Restraint: Lack of Operator Awareness
Pipeline firms have been hesitant to adopt comprehensive cyber and network security solutions due to a lack of exposure and understanding. Limited awareness and the availability of security solutions in silos make it challenging for operators to choose the right pipeline network monitoring systems. Convincing operators of the value of both physical and network monitoring systems is a challenge for IT security firms.

Opportunity: Increased Demand for Pipeline Monitoring
The growing demand for oil and gas globally has led to a significant increase in pipeline infrastructure. Companies are utilizing advanced monitoring technology and sensors to detect leaks, while also focusing on deploying physical security solutions to protect pipelines from attacks. The expansion of pipeline infrastructure presents a lucrative market opportunity for monitoring system vendors.

Challenge: Lack of Funding for Aging Infrastructure
Aging infrastructure in sectors such as water, oil, gas, and chemicals suffers from poor metering, leakages, and inadequate management. The lack of funds, primarily due to limited support for research and development from federal agencies, hampers the development of aging pipeline infrastructure. Utilities are often hesitant to replace pipeline systems due to high costs and the long lifespan of existing infrastructure.

Metallic Pipes in Pipeline Monitoring Systems:
Among different pipe types, metallic pipes, including ductile iron, stainless steel, aluminum, and others, are projected to be the largest segment in the pipeline monitoring system market. Steel-based pipes are preferred due to their resistance to corrosion caused by highly oxygenated water steam, making them a popular choice in end-user industries.

Significant Demand in the Crude & Refined Petroleum Industry:
The crude and refined petroleum sector is expected to be the largest segment in the pipeline monitoring system market. With pipelines being the primary mode of transportation for crude oil, petroleum, gasoline, and petrochemicals, the demand for end-to-end monitoring and security solutions is high in this industry.

North America Leading the Global Market:
North America held the largest market share in 2020, driven by its strong presence in pipeline monitoring system innovation and the growing activities in oil and gas exploration and production. The increase in pipelines across countries like the US, Canada, and Mexico has led to a focus on preventing accidents such as oil spills and gas leaks, driving the demand for pipeline monitoring systems in the region.
Key Market Players in Pipeline Monitoring System Market
Key manufacturers in the pipeline monitoring system market are Siemens AG (US), Honeywell International Inc. (US), Huawei Technologies Co. Ltd. (China), BAE Systems (UK), and TransCanada PipeLines Limited (Canada), amongst others.

Companies covered Siemens AG (US), Honeywell International Inc. (US), Huawei Technologies Co. Ltd. (China), BAE Systems (UK), and TransCanada PipeLines Limited (Canada), among others.

This research report categorizes the pipeline monitoring system market based on pipe type, solution, technology, end-use industry and region.
Based on Pipe Type:
Metallic
Non-Metallic
Others
Based on Solution:
Leak Detection
Pipeline Break Detection
Operating Condition
Others

Based on Technology:
Ultrasonic
PIGs
Smart Ball
Magnetic Flux Leakage
Fiber Optic Technology
Others

Based on End-use Industry:
Crude & Refined Petroleum
Water & Wastewater
Others
Based on region:
North America
Europe
APAC
Middle East & Africa
South America

Recent Developments in the Pipeline Monitoring System Market:

• In May 2021, Huawei and SINO-PIPELINE International formed a strategic cooperation agreement in Shenzhen. This partnership aims to leverage SINO-PIPELINE International's business capabilities and resources along with Huawei's leading ICT technology and professional personnel. The agreement's objective is to establish a long-term strategic relationship and collaborate on projects such as intelligent pipeline networks. The partnership will assist SINO-PIPELINE International in its goal of becoming a world-class global corporation by 2030.

• In March 2021, TC Energy Corporation and TC PipeLines, LP completed their merger as outlined in their agreement and plan of merger from December 14, 2020. Through this merger, TC Energy acquired all outstanding publicly held common units of TCP, making TCP an indirect, wholly-owned subsidiary of TC Energy.

• In June 2019, PERMA-PIPE International Holdings announced the establishment of its subsidiary, Perma-Pipe Egypt, and the initiation of a new production facility in Beni Suef, south of Cairo. This expansion was undertaken to meet the growing demand for containment piping and leak detection systems in Egypt.

• In March 2019, Siemens implemented remote diagnostic services for 29 gas turbines across the Hazira-Vijaipur-Jagdishpur (HVJ) pipeline and the Vijaipur C2/C3 Plant owned by Gail India Limited.

• In March 2018, Honeywell made technology-oriented acquisitions, including Ortloff Engineers, Ltd., a company specializing in proprietary technology for maximum separation of gas and gas liquids. Honeywell continues to seek acquisition opportunities while maintaining a disciplined approach to valuation.