Transparency Market Research states that the key players operating in the global virtual pipeline systems market are expected to enter strategic partnerships to stay ahead of the cutthroat competition. Some of the leading players in the global market are General Electric, Luxfer Holdings PLC, Hexagon Composites ASA, Pentagon Energy LLC, and Galileo Technologies S.A. Players are also expected to make significant investments discovery and development of natural gas sources in the coming years. Efforts to work toward a greener environment are expected to be an important part of expanding business in the near future.
According to the research report, the global virtual pipeline systems market is likely to be worth US$1,821.3 mn by the end of 2025 from US$1,070.0 mn in 2016. Between the forecast years of 2017 and 2025, the global market is expected to surge at a CAGR of 6.2%.
Transportation Industry to Remain Integral to Global Virtual Pipeline Systems Market
The market for virtual pipeline systems is primarily driven by the aging pipeline infrastructure and stringent environmental emission control regulations. The recent global pipeline industry is enormous and still expanding; however, it is apt for modernization as a majority of the infrastructure has been in place for decades. Rise in demand for virtual pipeline systems can be primarily ascribed to the accelerating demand for transportation of energy resources. Increasing concerns about renewability of energy sources has affected the natural gas industry positively. The transportation of oil and natural gas in a brisk, albeit safe manner has never been such an urgent requirement. Pipelines are the primary choice of supply of energy sources as they are the most common approach. Physical pipelines, being confined to specific geography, are not found to be effective in terms of unfeasible terrains or technically inaccessible areas. Consequently, the virtual pipeline industry has been gaining recognition, and the virtual pipeline systems market is projected to expand rapidly in the near future.
However, high risk associated with the transportation of natural gas is anticipated to hinder the growth of the virtual pipeline systems market. LPG is normally stored at ambient temperature, but it must be pressurized to keep it in liquid form. If a pressurized container of LPG leaks or is opened, the LPG will flow rapidly through the opening and will flash, creating a cold, dense vapor cloud. In contrast, LNG is typically stored at low pressure at its boiling point of –260°F. LNG containers must be insulated to keep the LNG in liquid form. As a consequence of the low storage pressures of LNG containers, a breach typically causes liquid to flow out at lesser velocities than LPG. The resulting cryogenic LNG liquid spill will boil to create a cold, dense vapor cloud. This is anticipated to act as a restraint to the virtual pipeline systems market during the forecast period.
Regulations Regarding Carbon Emissions to Offer Lucrative Opportunities
However, environmental legislation and direct intervention from governments and international bodies has augmented the growth of the virtual pipeline systems market. The EPA (Environmental Protection Agency) has revised and implemented various norms for the reduction of vehicular emissions and to improve the prevalent quality and efficiency of the fuels used. Therefore, OEMs have shifted their focus toward the usage of natural gas as a fuel source for heavy weight commercial vehicles and light passenger vehicles. Consequently, the virtual pipeline systems market has expanded at a significant growth rate due to adherence to the various norms and regulations about carbon emission.
This review is based on Transparency Market Research’s report, titled “Virtual Pipeline Systems Market (Application - Industrial, Transportation, and Commercial and Residential) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2017- 2025”.
The global virtual pipeline systems market has been segmented as follows:
Global Virtual pipeline systems Market: By Application
- Commercial & Residential
Global Virtual pipeline systems Market: By Region/Country/Sub-region
- North America
- Asia Pacific
- Middle East & Africa
- Latin America