North America Virtual Pipeline Equipment Market is expected to reach US$ 867.92 Million by 2031

Rising Shale Gas Exploration and Extraction Projects Bolsters North America Virtual Pipeline Equipment Market Growth

According to our latest study on "North America Virtual Pipeline Equipment Market Analysis to 2031 – Country Analysis – by Roof Type, Gas, and Application," the market was valued at US$ 463.34 million in 2023 and is projected to reach US$ 867.92 million by 2031; it is anticipated to record a CAGR of 8.2% from 2023 to 2031. Apart from growth drivers, the report covers the North America virtual pipeline equipment market trends and their foreseeable impact during the forecast period.

The US is among the leading shale gas producers worldwide, including North America. Continuous advancements in shale drilling technologies have made shales the next reliable energy resource. Shale gas can be utilized as a greener energy option in countries that are dependent on coal as an energy source, as it emits less carbon than coal. High shale gas production has resulted in the abundance of natural gas supply across North America. According to the EIA, in 2023, shale production accounted for ~77% of total US dry natural gas production, which is 29.35 trillion cubic feet. In addition, the shale gas output in the US surged 12 times more compared to the previous decade, and the growth is likely to continue until 2035. This high output supports the business of virtual pipeline vendors. In recent years, Canadian shale formation has been attracting the attention of huge spenders such as Chevron Corp. and ConocoPhillips.

North America Virtual Pipeline Equipment Market Share — by Country, 2023

Source: The Insight Partners Analysis

Crude oil output in the US has increased, supporting the rise in crude oil exports across the country. According to EIA, in 2023, crude oil output in the US hit a record high of 12.9 million b/d, up 9% (1.0 million b/d) from 2022. Governments of several countries in North America are collaborating with new smaller agencies for gas transportation. Countries such as Canada exhibit long-term possibilities for natural gas supply across the region with the development of well-finishing methods such as multistage hydraulic fracturing and drilling techniques, including long-reach horizontal wellbores. British Columbia, Saskatchewan, Alberta, Ontario, New Brunswick, Manitoba, Quebec, Nova Scotia, and a few other territories in Canada have claimed to have shale gas resources. Similarly, in the US, many companies participated in mergers to increase the shale business. In March 2022, Whiting Petroleum and Oasis Petroleum signed a deal of over US$ 6.0 billion. After 2 months, Centennial Resource Development and Colgate Energy signed a deal for US$ 3.9 billion. Such investment by the companies involved in the US shale business requires virtual pipeline equipment. Therefore, the increase in shale gas exploration and extraction projects boosts the demand for virtual pipeline equipment, which fuels the growth of the North America virtual pipeline equipment market size.

The North America virtual pipeline equipment market is segmented on the basis of equipment type, gas, and application. Based on equipment type, the market is categorized into decompression units, compression units, transportation units, and dispensing units. In terms of gas, the market is categorized into CNG, hydrogen, RNG, and others. By application, the market is segmented into utility pipeline/pipeline repair, industrial, transportation, commercial & residential, and fracking. Based on type, the North America virtual pipeline equipment market is segmented into decompression units, compression units, transportation units, and dispensing units. The transportation units segment held the largest North America virtual pipeline equipment market share in 2023. Natural gas requires special handling and increased safety regulations. Therefore, proper transportation equipment plays a crucial role in the virtual pipeline gas supply chain. Trailers can be part of the solution for various operations, such as hydrogen blending for power generation, utility hydrogen blending, fuel cell power generation, or hydrogen filling stations. The trailers are connected to regulation plants for industrial applications depending on the kind of industry. In the case of remote station CNG, these trailers are connected to the filling station through an unload booster consisting of a small compressor and dispenser designated to recompress a supply of gas. Many companies, including Galileo Technologies, Petronas, and Quantum Fuel Systems, offer standard trailers constructed as mobile platforms to support long-haul journeys with kilometers of gas distribution. The rising demand for these gases from various end-use industries such as automotive, residential, and commercial fosters the requirement for virtual pipeline transportation units, which fuels the North America virtual pipeline equipment market growth.

The scope of the North America virtual pipeline equipment market report focuses on the country analysis. The North America virtual pipeline equipment market growth is attributed to its flourishing oil & gas industry. Virtual pipelines provide a flexible and cost-effective way to transport the produced oil to consumers based at distant locations. These pipelines are used to transport oil and gas from the source to the end consumers. In addition, the Shale Revolution enabled the US to significantly increase its production of oil and natural gas. According to the International Energy Agency (IEA), the total crude oil production recorded in North America was 46,233,753 Terajoules (TJ) in 2021, which rose by 66% between 2000 and 2021.

In North America, natural gas held a share of 35% of the total energy supply in 2021, according to IEA. The natural gas supply increased by 39% between 2000 and 2021, and domestic natural gas production boosted by 60% during the same period. The natural gas export activity grew by 156% between 2000 and 2021. Thus, the increase in production and trade activities of natural gas generates the demand for virtual pipeline equipment to efficiently transport natural gas to consumers in different locations. The rising need for virtual pipeline equipment has encouraged market players to come up with strategies to foster their market growth. For example, in December 2022, Superior Plus Corp. (“Superior”) (TSX: SPB) and Certarus Ltd. (“Certarus”) announced that the companies had entered into a definitive arrangement agreement (the “Arrangement Agreement”) for Superior to acquire Certarus, a leading North American a virtual pipeline provider, for a total acquisition value of US$ 1.05 billion.

In addition, the rise in the construction of new power plants in the region is contributing to the growing North America virtual pipeline equipment market size. For instance, several gas-fired power plants are being planned in Mexico to increase the natural gas supply, as well as import natural gas from the US. In November 2022, US-based New Fortress Energy announced the deal signed with the Mexican government to develop the LNG project Lakach offshore gas field in Mexico, which is expected to be completed in 2024. Such developments foster the increasing utilization of virtual pipeline equipment for gas transportation.

Chesapeake Utilities Corp, Stabilis Solutions Inc, Algas-SDI International LLC, ANGI Energy Systems LLC, Broadwind Inc, Cobey Inc, Cryopeak LNG Solutions Corp, Galileo Technologies SA, Quantum Fuel Systems LLC, Hexagon Composites ASA, Kinder Morgan Inc, Xpress Natural Gas, LLC, Aggreko Ltd, Fiba Technologies Inc, CMD Alternative Energy Solutions, Plum Gas Solutions LLC, and Chart Industries Inc are among the key players profiled in the North America virtual pipeline equipment market report. Companies in the North America virtual pipeline equipment market mainly focus on product and service enhancements by integrating advanced features and technologies into their offerings.  

Contact Us
 
Phone: +1-646-491-9876
Email Id: sales@theinsightpartners.com