North America Virtual Pipeline Equipment Market Report 2031 by Segments, Geography, Dynamics, Recent Developments, and Strategic Insights

The North America virtual pipeline equipment market size is projected to reach US$ 867.92 million by 2031 from US$ 463.34 million in 2023. The market is expected to register a CAGR of 8.2% during 2023–2031. Growing advancements in virtual pipeline technologies are likely to be among the key future trends in the market.

North America Virtual Pipeline Equipment Market Analysis

The increasing demand for energy in North America is one of the major factors fueling the growth of the virtual pipeline equipment market. According to the US Energy Information Administration, the total primary energy consumption in the US was around 94 quadrillion British thermal units (Btu). Of this, 36% of consumed energy was from natural gas. In addition, the rising demand for cleaner and sustainable energy solutions and aging pipeline infrastructure are driving the market. Also, virtual pipeline equipment manufacturers have been witnessing substantial growth opportunities due rising consumption of gases due to reasonable prices in the US following the country's rapid increase in production. Further, the growing inclination toward the consumption of natural gas is creating an opportunity for the growth of the market in the region.

North America Virtual Pipeline Equipment Market Overview

A virtual pipeline connects natural gas and other gases from a source to consumers or companies through ways other than traditional, fixed pipelines. The functionality of the system is identical to a real pipeline but uses different modes of transit. These pipelines are important in locations where building permanent pipelines may not be practical or cost-effective. Virtual pipelines can also act as a temporary alternative while permanent pipeline infrastructure is being built. They can also be used to carry different gases to areas where building regular pipelines can be challenging due to geological, economic, or regulatory constraints.

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North America Virtual Pipeline Equipment Market: Strategic Insights

North America Virtual Pipeline Equipment Market

• Market Size 2023
  US$ 463.34 Million
• Market Size 2031
  US$ 867.92 Million

Market Dynamics

GROWTH DRIVERS

• Increasing energy demand
• Rising shale gas exploration/extraction projects

FUTURE TRENDS

• Growing advancements in virtual pipeline technologies

OPPORTUNITIES

• Growing inclination toward natural gas consumption

Regional Overview

• North America

Market Segmentation

Type

• Decompression Units
• Compression Units
• Transportation Units
• Dispensing Units

Gas

• CNG
• Hydrogen
• RNG

Application

• Utility Pipeline/Pipeline Repair
• Industrial
• Transportation
• Commercial & Residential
• Fracking

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North America Virtual Pipeline Equipment Market Drivers and Opportunities

Increasing Energy Demand

In North America, various organizations are focused on maintaining global energy security. The US, the world's second-largest energy producer and user, continues to develop its vast fossil fuel reserves while increasing oil and gas exports. According to the US Energy Information Administration (EIA), in 2023, the total primary energy consumption of the US was equal to ~94 quadrillion Btu. The energy consumption by source in the US in 2023 is depicted in the table below:

Source: The US Energy Information Administration (EIA)

Due to several risks and challenges involved in the traditional method of supplying natural gas, the adoption of virtual pipelines has gained significant momentum. Instead of building actual pipelines, virtual pipelines are becoming a default option due to their scalability and the ease of transportation to supply fuel to final users. The deployment of physical pipelines is not always feasible due to terrain or geopolitical issues. Moreover, without increasing operating expenses or requiring further investment, the virtual pipeline equipment capacity can be expanded to meet the demand at a faster rate.

Natural gas has gained prominence as it burns cleaner than conventional fossil fuels, such as coal, gasoline, and diesel. North America is facing serious repercussions of global warming, which is compelling a shift toward cleaner energy sources and natural gas. Virtual pipelines allow natural gas companies to extend their reach, thereby allowing them to expand their footprint beyond the local market. Virtual pipelines are designed for the land transport of gas shipments in containers by rail or road; they can also be transported on the water in coastal tankers and river ships. These systems can be employed to supply natural gas to power plants and private customers in particular areas where pipeline development is restricted due to geological constraints. Virtual pipelines provide flexibility in transporting natural gas along with eliminating the need for large physical pipeline installations. Thus, the increasing energy demand drives the North America virtual pipeline market.

Growing Inclination Toward Natural Gas Consumption

According to the most recent data from upstream regulator Comisión Nacional de Hidrocarburos (CNH), Mexico witnessed natural gas production of ~4.07 billion cubic feet per day (Bcf/d) in January 2024.  Also, Petróleos Mexicanos (Pemex), the state oil company, delivered 3.86 Bcf/d of total natural gas. The top five producing fields, all run by Pemex, are Quesqui (615 MMcf/d), Akal (452 MMcf/d), Ixachi (390 MMcf/d), Maloob (167 MMcf/d), and Onel (167 MMcf/d). Similarly, according to the Canada Energy Regulator (CER), in 2023, natural gas output in Canada reached an average of 17.9 Bcf/d; also, the production reached 18.8 Bcf/d in December 2023. Also, as per the EIA, the US natural gas output increased by 4% in 2023, or 5.0 Bcf/d, to an average of 125.0 Bcf/d compared to 2022. In 2023, three regions—Appalachia, the Permian, and Haynesville—accounted for 59% of total natural gas production in the US. Due to this rise in the production of natural gas, virtual pipeline vendors are continuously focusing on technological innovations, new product launches, investment in natural gas, and product approvals as well as geographic expansion to register larger consumer and market base volume. In November 2022, Pemex—a Mexican state oil company—and New Fortress Energy (NFE)—a US-based LNG company—signed a service contract to boost pipeline output while minimizing dependency on imports. These companies aim to develop a liquefaction project at the Lakach gas field in Mexico. Thus, the rising inclination toward natural gas consumption is anticipated to provide significant opportunities for the North America virtual pipeline equipment market growth during the forecast period.

North America Virtual Pipeline Equipment Market Report Segmentation Analysis

Key segments that contributed to the derivation of the North America virtual pipeline equipment market analysis are type, gas, and application.

• Based on type, the North America virtual pipeline equipment market is categorized into decompression units, compression units, transportation units, and dispensing units. The transportation units segment held the largest market share in 2023.
• In terms of gas, the North America virtual pipeline equipment market is segmented into CNG, Hydrogen, RNG, and others. The CNG segment dominated the market in 2023.
• In terms of application, the North America virtual pipeline equipment market is categorized into utility pipeline/pipeline repair, industrial, transportation, commercial & residential, and fracking. The transportation segment dominated the market in 2023.

North America Virtual Pipeline Equipment Market Share Analysis by Geography

The geographic scope of the North America virtual pipeline equipment market report offers a detailed country analysis. According to the US Energy Information Administration Annual Energy Outlook 2023, all forms of energy consumption in the US are projected to increase from 0% to 15% between 2022 and 2050 due to population outbursts and economic growth. The energy sector in the US is majorly divided into four major end-use sectors—industrial, transportation, residential, and commercial. Energy consumption in the industrial sector is expected to rise by 5% to 32% from 2022 to 2050. In the transportation sector, energy consumption is expected to fall by 10% between 2022 and 2050 or increase by 8%. Economic growth projections heavily influence both sectors; as the economy expands, more energy is consumed. Therefore, various market players are reaching out to virtual pipeline equipment providers to deliver oil and gas. For example, in May 2022, Quantum Fuel Systems (Quantum), a fully integrated alternative energy company, was selected by Certarus Ltd. (“Certarus”) to deliver industry-leading virtual pipeline trailers for natural gas with a total value of ~US$ 22 million. The trailers were delivered in Q3 and Q4 2022.

North America Virtual Pipeline Equipment Market Report Scope

North America Virtual Pipeline Equipment Market News and Recent Developments

The North America virtual pipeline equipment market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the North America virtual pipeline equipment market are listed below:

• Hexagon Agility, a business of Hexagon Composites, received an order for Mobile Pipeline TITAN modules from a leading global industrial gas company. The modules will support growth in a key industrial gas market. The order, which is estimated to be worth USD 12.8 million (approximately NOK 135 million), represents Mobile Pipeline's continued diversification into new market segments. (Source: Hexagon Agility, Press Release, July 2024)

North America Virtual Pipeline Equipment Market Report Coverage and Deliverables

The “North America Virtual Pipeline Equipment Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• North America virtual pipeline equipment market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• North America virtual pipeline equipment market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• North America virtual pipeline equipment market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the North America virtual pipeline equipment market
• Detailed company profiles