Virtual Pipeline Market Size, Share, Trends, Growth, Demand 2032

Virtual Pipeline Industry Prospective:

The global virtual pipeline market size was worth around USD 2,378 million in 2023 and is predicted to grow to around USD 3,983 million by 2032 with a compound annual growth rate (CAGR) of roughly 5.9% between 2024 and 2032.  

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Virtual Pipeline Market: Overview

A virtual pipeline is a system that uses techniques other than conventional, fixed pipelines to move natural gas from a source to customers or companies. Because it simulates the operation of a physical pipeline while using alternate modes of conveyance, the phrase "virtual pipeline" is employed. This is especially helpful in places where building permanent pipelines is not practical or economical. Virtual pipelines for natural gas are particularly helpful in isolated or transient areas where it would be prohibitive to build conventional pipelines. Additionally, they can act as a stopgap measure until more permanent pipeline infrastructure is being built. Furthermore, virtual pipelines can offer a substitute for actual pipelines in areas where geology, economics, or regulations make natural gas transportation difficult.

Key Insights

• As per the analysis shared by our research analyst, the global virtual pipeline market is estimated to grow annually at a CAGR of around 5.9% over the forecast period (2024-2032).
• In terms of revenue, the global virtual pipeline market size was valued at around USD 2,378 million in 2023 and is projected to reach USD 3,983 million, by 2032.
• The growing demand for clean energy is expected to drive market growth over the forecast period.
• Based on the fuel, the CNG segment is expected to dominate the market during the forecast period.
• Based on the end use, the transportation segment is expected to capture a significant market share during the forecast period.
• Based on region, North America is expected to dominate the market during the forecast period.

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Virtual Pipeline Market: Growth Drivers

Surge in remote energy needs drive market growth

The rise in remote activities is driving the growth of the virtual pipeline industry globally, highlighting its function as a stopgap measure to increase access to natural gas. By using virtual pipelines, the industry can use cleaner energy sources in areas without traditional pipelines, which promotes innovation and competition. This change propels global penetration by energizing the local market and fostering the creation of better products and services. Because of its adaptability, virtual pipeline networks can be moved to underdeveloped areas, stimulating market growth and pressuring manufacturers of tanker trucks and towing trailers to adjust to changing energy transportation requirements. For instance, Ferus Natural Gas Fuels, a Canadian company, specializes in providing LNG solutions to the transportation, mining, and energy sectors. The business controls virtual pipelines that provide LNG to isolated mining locations, reducing energy costs and emissions for these activities.

Virtual Pipeline Market: Restraints

Regulatory challenges and safety concerns hinder market growth

Virtual pipeline development and operation may be hampered by the regulatory environment, which includes environmental restrictions, safety standards, and permitting requirements. Overcoming these legal obstacles may result in higher expenses and a longer timeframe for project execution. Furthermore, safety is a crucial factor for virtual pipelines, particularly when handling, storing, and transporting compressed or liquefied natural gas. Investor confidence and regulatory approval might be undermined by worries about mishaps, leaks, and security threats. Thus, this is expected to hamper the market growth.

Virtual Pipeline Market: Opportunities

Growing collaboration offers a lucrative opportunity for market growth

The growing collaboration is expected to offer a lucrative opportunity for market growth during the forecast period. For instance, in June 2023, Mitsui O.S.K. Lines (MOL) and INEOS Energy Trading signed agreements for the construction of two new LNG carriers that will be utilized to import LNG from the United States into Germany. Following the long-term Sales and Purchase Agreement with Sempra for 1.4 MTPA of supply out of Port Arthur and the acquisition of long-term regasification capacity in Brunsbuttel, the German LNG terminal, these agreements represent a major turning point for INEOS Energy Trading. By leveraging its position as the biggest ethane gas transporter from the US to Europe and Asia, INEOS plans to establish an LNG "pipeline" into Europe to meet both its own and a few other companies' demands. The combined capacity of both vessels is 174,000 m3. The Okpo Shipyard in South Korea is building them, and they will be outfitted with the newest MAN Energy Solutions engines (ME-GA). The vessels should be very efficient because of the use of shaft generators and air lubrication technology.

Virtual Pipeline Market: Challenges

Inadequate gas compression and storage infrastructure poses a major challenge to market expansion

The amount of gas that can be transported and stored is restricted by inadequate facilities, which limits the market's potential and reach. This constraint may result in higher expenses, longer lead times, and trouble adjusting to changes in demand. Furthermore, it might discourage stakeholders and investors from funding virtual pipeline initiatives, which would impede industry expansion.

Virtual Pipeline Market: Segmentation

The global virtual pipeline industry is segmented based on fuel, mode of transportation, end use and region.

Based on the fuel, the global virtual pipeline market is bifurcated into LNG, CNG and Others. The CNG segment is expected to dominate the market during the forecast period. The virtual pipeline business has expanded as a result of the rising demand for natural gas around the world, which is being pushed by its cleaner burning qualities when compared to coal and oil. Natural gas delivery to locations without access to conventional pipeline infrastructure is made flexible with CNG. Moreover, the demand for CNG as a fuel substitute has increased due to the expanding use of NGVs in the transportation industry, including fleets, buses, and trucks. For NGV operators to receive CNG, virtual pipelines are essential, particularly in areas where access to refueling stations is restricted.

Based on the mode of transportation, the global virtual pipeline industry is segmented into rail, truck, ship and barge.

Based on the end use, the global virtual pipeline market is segmented into industrial, commercial and transportation. The transportation segment is expected to capture a significant market share during the forecast period owing to the rising demand for clean energy.

Virtual Pipeline Market Report Scope

Regional Analysis

North America is expected to dominate the market during the forecast period

North America is expected to dominate the market over the forecast period. The region's virtual pipeline system industry is expanding significantly due to several causes. Among these is the growing need for reliable and clean energy sources as well as the development of natural gas distribution systems. This increase is further aided by the development of stranded and distant gas reservoirs. The need for energy is growing in North America in several areas, including transportation, industry, commerce, and housing. To address this rising energy demand, virtual pipeline networks offer a flexible and affordable option, particularly in places where traditional pipeline infrastructure is few or nonexistent. In addition, the North American shale gas revolution has made access to enormous natural gas reserves previously thought to be unfeasible to develop possible. Besides, the Asia Pacific is expected to grow at the highest CAGR during the forecast period. Emerging economies like China and India are rapidly industrializing and urbanizing, which is driving up demand for natural gas as an alternative to traditional fuels. In these regions, natural gas may now be delivered by trucks or ships to locations without pipeline infrastructure thanks to the growing popularity of virtual pipeline networks. Large-scale shale gas reserves in China and India are anticipated to increase the demand for virtual pipeline networks in these areas.

Virtual Pipeline Market: Competitive Analysis

The global virtual pipeline market is dominated by players like:

• CNG Services Ltd
• General Electric Company
• NG Advantage LLC
• Xpress Natural Gas LLC
• Pipeline Gas Journal
• Gas Innovations Inc.
• Clean Energy Fuels
• SGL Group
• Energy Transportation Group
• Mitsubishi Corporation
• Wärtsilä Corporation

The global virtual pipeline market is segmented as follows:

By Fuel

• LNG
• CNG
• Others

By Mode of Transportation

• Rail
• Truck
• Ship
• Barge

By End Use

• Industrial
• Commercial
• Transportation

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa