Virtual pipeline systems are arranged shipments of gas from one point to another, either overland in containers by rail or road, or by water, in ocean-going or coastal tankers and barges. Virtual pipeline systems supply natural gas to industries that are either too geographically challenging to justify an investment in pipeline construction or too small for normal LNG large-scale carriers. Virtual pipeline systems supply natural gas to industries, electricity generation plants, and commercial & residential customers almost anywhere that are accessible by road or sea. 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%.
Industrial Segment to Lead the Way with Varying Applications
The virtual pipeline systems market has been segmented on the basis of application and region. By application, the virtual pipeline systems market has been segregated into industrial, transportation, and commercial & residential. In terms of revenue, the industrial segment constituted more than 50% market share in 2016. It is further divided into sectors such as fertilizers, power generation, and other sectors that consistently in need of natural gas for smooth operations. On the other hand, the transportation segment includes automobiles, which use natural gas. The demand for natural gas-run automobiles is expected to remain are high as regulations regarding emissions are getting stricter. Implementation of government norms and laws to cut down greenhouse gases is projected to have positive impact on this segment in the forthcoming years. The commercial and residential segment require natural gas for cooling, space heating, and small scale power generation.
In terms of region, the virtual pipeline systems market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. In 2016, North America dominated the virtual pipeline systems market with more than 40% share and is expected to follow the same trend during the forecast period. Asia Pacific is expected to follow this dominance closely in the coming years as China’s economy gains momentum. The sprawling network of virtual pipelines across the country due to extensive network of CNG stations are expected to put Asia Pacific virtual pipeline systems on the map.
Developing Economies to Positively Influence Global Market as Demand for Cleaner Fuels Remains High
Furthermore, as developing countries such as Japan, India, and China work towards achieving a cleaner environment, they are likely to be key users of natural gas. This emerging trend is expected to help Asia Pacific expand at a significant rate during the forecast period. The growing inclination toward using cleaner alternatives than fossil fuels is expected to play an important role in the growth of the regional market. The rising investments in natural gas in the developing economies of Asia Pacific is also expected to have a major influence on the overall market.
Key players in the virtual pipeline systems market are expected to benefit from the formation of strategic alliances with midstream companies. Key players in the Virtual pipeline systems market include General Electric, Hexagon Composites ASA, Luxfer Holdings PLC, Galileo Technologies S.A., Pentagon Energy LLC, LightSail Energy, Cimarron Composites, SUB161°, Xpress Natural Gas LLC, NG Advantage LLC, Compass Natural Gas, Broadwind Energy, Inc., REV LNG, LLC, Global Partners LP and others.
Global Virtual Pipeline Systems Market: Snapshot
This report analyzes and forecasts the market for Virtual pipeline systems at the global and regional level. The market has been forecast based on revenue (US$ Mn) from 2017 to 2025. The study includes drivers and restraints of the global Virtual pipeline systems market. It also covers the impact of these drivers and restraints on demand for Virtual pipeline systems during the forecast period. The report also highlights opportunities in the Virtual pipeline systems market at the global and regional level.
The report comprises a detailed value chain analysis, which provides a comprehensive view of the global Virtual pipeline systems market. Porter’s Five Forces model for the Virtual pipeline systems market has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, wherein applications are benchmarked based on their market size, growth rate, and general attractiveness.
Global Virtual Pipeline Systems Market: Segmentation
The study provides a decisive view of the global Virtual pipeline systems market by segmenting it in terms of application, and region. These segments have been analyzed based on present and future trends. Regional segmentation includes the current and forecast demand for Virtual pipeline systems in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The report also covers demand for individual application segments in all the regions.
Global Virtual Pipeline Systems Market: Drivers and Opportunities
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. For instance, 60% of pipeline infrastructure in the U.S. was installed before 1970 and more than 50% of global pipelines were installed between 1950 and 1970. This aging infrastructure requires upgrade, particularly as safety concerns become a greater priority. Infrastructural reforms for pipeline in APAC are funded by governments of respective countries. Moreover, approximately 66% of the overall expenditure on the infrastructure for the transportation of oil & gas is seen in non-OECD nations, while rest of the expenditure in being done in OECD countries. Therefore, there is an increase in focus on replacement or removal of aging natural gas pipelines. This is anticipated to boost the demand for virtual pipeline network globally, during the forecast period.
Global Virtual Pipeline Systems Market: Research Methodologies
The report provides the estimated market size of Virtual pipeline systems for 2016 and forecast for the next nine years. The global market size of Virtual pipeline systems has been provided in terms of revenue and volume. Market numbers have been estimated based on key application and regional segments of Virtual pipeline systems market. Market size and forecast for each major application have been provided in terms of global and regional/country markets.
In order to compile the research report, we conducted in-depth interviews and discussions with a number of key industry participants and opinion leaders. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. We reviewed key players’ process literature, annual reports, press releases, and relevant documents for competitive analysis and market understanding. Secondary research also includes a search of recent trade, technical writing, internet sources, and statistical data from government websites, trade associations, and agencies. This has proven to be the most reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities.
Secondary research sources that are typically referred to include, but are not limited to company websites, annual reports, financial reports, broker reports, investor presentations, and SEC filings, internal and external proprietary databases, and relevant patent and regulatory databases, national government documents, statistical databases, and market reports, news articles, press releases, and webcasts specific to companies operating in the market, National government documents, statistical databases, and market reports, news articles, press releases, and webcasts specific to companies operating in the market, World Energy Council, BP Statistics, Agency for the Cooperation of Energy Regulators (ACER), Global Energy Statistical Yearbook 2017, Factiva, etc.
Primary research involves e-mail interactions, telephonic interviews, and face-to-face interviews for each market, category, segment, and sub-segment across geographies. We conduct primary interviews on an ongoing basis with industry participants and commentators in order to validate the data and analysis. Primary interviews provide firsthand information on market size, market trends, growth trends, competitive landscape, and outlook, etc. These help validate and strengthen secondary research findings. These also help develop the analysis team’s expertise and market understanding.
Global Virtual Pipeline Systems Market: Competitive Landscape
The study includes profiles of major companies operating in the global Virtual pipeline systems market. Key players in the Virtual pipeline systems market include General Electric, Hexagon Composites ASA, Luxfer Holdings PLC, Galileo Technologies S.A., Pentagon Energy LLC, LightSail Energy, Cimarron Composites, SUB161°, Xpress Natural Gas LLC, NG Advantage LLC, Compass Natural Gas, Broadwind Energy, Inc., REV LNG, LLC, Global Partners LP and others. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, recent developments, and SWOT analysis.
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