The global vacuum insulated tubing market was valued at US$ 35.71 million in 2022; it is expected to grow at a CAGR of 7.3% during the forecast period, to reach US$ 61.38 million by 2030.
Vacuum insulated tubing manufacturers are key stakeholders in the global vacuum insulated tubing market. A few of the key vacuum insulated tubing market players in the market are Andmir Group, Exceed Oilfield Equipment Inc, Imex Canada Inc, ITP Interpipe, Lake Petro, Dongying Lake Petroleum Technology CO Ltd, Nakasawa, Shengji Group, Tenergy Equipment & Service Ltd, TMK Group, and Vallourec. The end users of vacuum insulated tubing include oil producer companies such as ExxonMobil Corporation, Shell plc, Saudi Aramco, China Petroleum & Chemical Corporation, Chevron Corporation, BP plc, and more.
Based on country, the North America vacuum insulated tubing market is segmented into the US, Canada, and Mexico. North America is one of the leading oil-producing regions globally. The US and Canada are major oil producers, with significant reserves and advanced extraction techniques such as hydraulic fracturing (fracking) and horizontal drilling. According to Energy Information Administration (EIA) report, ~100 countries across the globe produce crude oil; of these 100 countries, the top five countries contribute to the 51% share of overall crude oil production in 2021. The US and Canada contribute 14.5% and 5.8% of total global crude oil production, respectively.
Low-cost assets, reduced production costs, and a rise in oil-well efficiencies are contributing to the growth of the oil & gas industry in this region. As a result, the vacuum insulated tubing market players in the oil & gas industry are investing considerable amounts to increase their market share. Thus, rising investment in the oil & gas industry is expected to offer the vacuum insulated tubing market growth opportunities in the coming years.
Impact of COVID-19 Pandemic on Vacuum Insulated Tubing Market
The COVID-19 pandemic adversely affected the global oil & gas industry due to disruptions in supply chain activities and the imposition of strict regulations on international trade by several countries to combat the spread of novel coronavirus. Furthermore, oil and gas prices increased significantly during the pandemic due to limited demand across the world.
Material sourcing and operations of raw material suppliers were hindered due to the COVID-19 pandemic. The raw material suppliers faced several challenges related to remote operations, transportation services, and internal production operations that were largely interrupted due to a lack of manpower and other resources during the pandemic. All these factors increased the demand and supply gap between raw material suppliers and vacuum insulated tubing manufacturers across the world in 2020. Further, the market reported a gradual revival from supply chain disruptions in Q2 of 2020 as manufacturers started adopting to the new normal scenarios of manufacturing in vacuum insulated tubing market.
In the Middle East & Africa (MEA), the UAE, Saudi Arabia, Iran, Oman, and Kuwait are among the key countries affected by the COVID-19 pandemic. Most economic operations in the region were suspended due to an increase in the number of COVID-19 cases in the first two quarters of 2020. Many countries in Africa are still in the developing phase. Countries in the Middle East, especially the Gulf Cooperation Council (GCC) countries, witnessed a notable decline in the oil & gas sector due to a sharp drop in oil demand from major end-user countries across Asia, Europe, and North America. As a result, countries in the MEA registered a low volume of oil and gas production during 2020, which subsequently hampered the vacuum insulated tubing market growth. Further, as the regulations of COVID-19 pandemic has been removed the vacuum insulated tubing market growth started to recover from the losses incurred during the pandemic.
Andmir Group, Exceed Oilfield Equipment Inc, Imex Canada Inc, ITP Interpipe, Lake Petro, Dongying Lake Petroleum Technology CO Ltd, Nakasawa, Shengji Group, Tenergy Equipment & Service Ltd, TMK Group, and Vallourec. are a few vacuum insulated tubing market players.