According to our new research study on "Virtual Pipeline Systems Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Type, Gas, Pressure Rating, Application, and Geography," the market is projected to reach US$ 1,886.83 million by 2028 from US$ 1,191.59 million in 2022; the market is estimated to grow at a CAGR of 9.2% from 2022 to 2028.
Oil and gas and energy companies are expected to invest more in natural gas research and development, which will create growth opportunities for companies in the virtual pipeline system market. The companies aim to promote the use of low-emission natural gas products through their R&D activities. Virtual pipeline vendors are focusing on technology innovations, launching new products, obtaining product approvals, and expanding geographically to capture a larger consumer and market base. For example, Quantum Fuel Systems plans to launch a new VPLite45/40 virtual pipeline trailer in early 2020, while Enric has delivered 40 CNG and LNG semi-trailers to African regions. Asia Pacific countries are transitioning to natural gas consumption, with Malaysia expected to become an LNG bunkering hub and increase gas supply via its virtual pipeline system (VPS). Governments worldwide are concerned about aging pipeline infrastructure and are seeking alternatives to traditional oil and gas transportation methods, which is expected to create opportunities for virtual pipeline systems market vendors due to strict government regulations to ensure environmental protection from carbon emissions and oil spills. Therefore, the shift towards natural gas is expected to generate lucrative opportunities for the virtual pipeline systems market.
Over the projection period, Asia pacific is expected to be one of the leading markets for virtual pipeline systems. The virtual pipeline systems industry is predicted to develop due to rising gas production levels in the region. Furthermore, the US is a major producer and user of natural gas in the global Virtual Pipeline Systems market. The virtual pipeline systems industry in the Europe region will be driven by rising LNG and CNG production through techniques like storage flexibility technology.
During the forecast period, Europe is predicted to have a significant share of the market. Norway experienced a 30% decrease in the operational cost of gas between 2014 and 2017, resulting in a 50% decrease in the cost of drilling an offshore exploratory well. In the last two to three years, the unit operating cost on the UK Continental Shelf has dropped by around 50%, with further reductions anticipated in the coming years, leading to increased gas production. As a result, the demand for transportation and supply solutions is expected to rise.
The Asia Pacific Virtual Pipeline Systems market is poised to gain from the escalating production and exploration activities that aim to meet the growing energy demand. China, Thailand, Indonesia, Malaysia, and Myanmar are witnessing a rapid surge in production and exploration efforts alongside the identification of gas reserves. Repsol, a global energy company, announced in February 2019 that Indonesia has the world's largest gas reserve, with recoverable resources estimated at over 2 trillion cubic feet (TCF). Consequently, there is a high demand for gas transportation due to the increased investment in new oilfields and discoveries.
In North America, coronavirus affected natural gas, oil & gas investment, however, there has been surged in importance over the past decade because of the shale boom. COVID-19 may provide international oil companies (IOCs) with a good reason to delay construction a year or two on costly liquefaction projects out of an abundance of caution for workers' safety. The US leads growth in feedstock use for CNG and methanol.
Key Findings of Study
The virtual pipeline systems market is categorized into five regions - North America, Europe, Asia Pacific, the Middle East & Africa, and South America. In 2021, Asia Pacific dominated the virtual pipeline systems market, while North America held the second-largest market share. The virtual pipeline systems market has been analyzed on the basis of four segments: type, gas, pressure rating, and application. The virtual pipeline systems market is divided into below standard trailer and towable trailer based on type, with the below standard trailer segment holding the largest share. The virtual pipeline systems market is segmented into below CNG, hydrogen, and others based on gas, with the CNG segment holding the largest share. The virtual pipeline systems market is segmented into Less than 3000 Psi, 3001 Psi to 5000 Psi, and More than 5001 Psi based on pressure rating, with the 3001 Psi to 5000 Psi segment accounting for the largest share. The virtual pipeline systems market is categorized into industrial, transportation, and commercial & residential based on application, with the transportation segment accounting for the largest share.
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