Virtual Pipeline Systems Market Research Report and Outlook by 2028

The market for virtual pipeline systems is projected to increase from US$ 1,191.59 million in 2022 to US$ 1,886.83 million by 2028, reflecting a compound annual growth rate (CAGR) of 9.2% during this period.

The anticipated growth in the global virtual pipeline systems market is largely attributed to the rising energy demands and an uptick in gas exploration activities. Additionally, the virtual pipeline systems market is set to expand as there is a noticeable shift from traditional pipeline infrastructures to virtual systems. These systems are becoming increasingly favored in the oil and gas sector due to their capacity to transport natural gas flexibly without necessitating extensive physical pipeline installations.

The demand for virtual pipeline systems is further fueled by the growing shale gas extraction initiatives in regions such as Europe, the United States, and the Middle East. The European Union is expected to witness considerable growth, driven by enhanced shale gas exploration and favorable contractual conditions for pipeline imports, alongside a rise in liquefied natural gas supplies from the US. Moreover, the development of cost-effective and environmentally friendly shale gas extraction techniques may render domestic shale gas reserves in the EU more appealing in the long term, potentially beyond 2030. China, holding the largest shale reserves, particularly benefits from significant production in the Sichuan basin. Consequently, the expansion of shale gas exploration and extraction projects, supported by technological advancements and abundant reserves, is propelling the demand for virtual pipeline systems, thereby contributing to market growth.

However, the virtual pipeline systems market may encounter challenges due to the prevailing dominance of conventional pipeline infrastructures. Traditional pipelines are generally more accepted and preferred, which poses a significant barrier to the growth of the global virtual pipeline systems market. As both governmental and private sectors increasingly favor conventional pipelines, substantial investments are being directed towards such infrastructures.

Moreover, the rising energy demands are anticipated to positively influence market growth. With the exception of Japan, electricity consumption in most Asia Pacific nations is expected to continue its upward trajectory through 2024.

Key players in the virtual pipeline systems market include Baker Hughes, Certarus Ltd., CNG Services Ltd, Exxon Mobil Corporation, and Galileo Technologies S.A. These companies are actively expanding their market presence through new product launches, strategic initiatives, investments in technological advancements, mergers and acquisitions, and various collaborative efforts.

A notable recent development in the industry is Certarus Ltd.'s acquisition of advanced virtual pipeline trailers for hydrogen from Quantum Fuel Systems in December 2021. Quantum's VPLite-H45/40' trailers, which can hold a gas mass of 803 kg at 3,600 pressures, were delivered to Certarus (248 bar) and are approved for use in both Canada and the US, highlighting the growth of the virtual pipeline systems market in North America.

Impact of COVID-19 on the Virtual Pipeline Systems Market

Many EU member states possess substantial pipeline capacity for cross-border energy supply that is independent of Russian sources. For example, Germany's pipeline network has a total capacity of 114 Bcm from countries like Norway, Belgium, Switzerland, Austria, Denmark, and the Netherlands, while the annual consumption is only 94 Bcm, according to the European Network of Transmission System Operators. Nevertheless, the COVID-19 pandemic has impacted the natural gas capacity network in Europe, leading to reduced demand and disruptions in pipeline connections between Spain and France, Italy and Central Europe, Central Europe and Southeastern Europe, as well as Germany and Italy. Additionally, initiatives aimed at reducing greenhouse gas emissions pose challenges to new pipeline projects.

The study of the virtual pipeline systems market includes companies such as Bayotech, Inc; CNG Services Ltd; Petroliam Nasional Berhad (PETRONAS); RAG Austria AG; Quantum Fuel Systems LLC; Galileo Technologies S.A.; Chart Industries, Inc.; SHIJIAZHUANG ENRIC GAS EQUIPMENT CO., LTD; Fiba Technologies Inc; Hexagon Agility; and Composite Advanced Technologies, LLC. These market participants are employing both organic and inorganic growth strategies to maintain their competitive advantage. Various initiatives, including investments in research and development and the establishment of virtual reality (VR) simulator training centers, are expected to positively influence the growth of the virtual pipeline systems market. For instance, in 2022, Chart Industries, Inc. acquired CSC Cryogenic Service Center AB (CSC), a Swedish company that enhances service support in the Nordic region, thereby expanding the company's geographical service and repair capabilities and providing more localized support for its extensive original equipment installed database.

The analysis of the virtual pipeline systems market has been conducted through a combination of primary and secondary research methods. The research process commenced with comprehensive secondary research from both internal and external sources to gather qualitative and quantitative data on the virtual pipeline systems market. This data was then utilized to create an overview and forecast of the market size across various segments. Industry experts and analysts were consulted through multiple primary interviews to validate the data and gain deeper analytical insights. Participants in the virtual pipeline systems market study included professionals such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants like valuation experts, research analysts, and key opinion leaders specializing in the virtual pipeline systems market. Furthermore, various growth strategies, including investments in research and development and the establishment of virtual reality (VR) simulator training centers, have been implemented by market players to sustain their competitive edge in the market.