The Europe offshore pipeline market is expected to grow from US$ 4,959.17 million in 2019 to US$ 6,612.02 million by 2027; it is estimated to grow at a CAGR of 3.9 % from 2020 to 2027.
Increasing demand for natural gas and crude oil drives the growth of the Europe offshore pipeline market. The markets in the UK and Germany are presenting the most considerable growth. The robust surge in petrochemical demand in Europe resulted in increased consumption. Rise in industrial production and high demand for trucking services boost the need for petrochemicals, thereby fueling the growth of the market across the region. Moreover, growing air traffic volumes across Europe is another factor increasing oil consumption. Europe is witnessing high demand for natural gas owing to rise in use of natural gas in diverse industrial sectors. Surge in demand for oil & gas is attributed to increasing industrialization and urbanization. Several oil & gas companies across the region are increasing their offshore exploration & production (E&P) activities to meet the constantly rising energy demand. One of the significant oil & gas pipeline projects across Europe is Nord Stream 2 Gas Pipeline (Russia), which may get launched by the end of 2020. Rising demand for oil & gas increases E&P activities, which, in turn, supports the growth of the Europe offshore pipeline market.
Countries in Europe, especially the UK and Russia, are adversely affected by the COVID-19 pandemic. In Europe, several countries are suffering an economic downturn and decline in business activities across the oil & gas sector due to the drop in oil prices in the first quarter of 2020. Many of these countries are implementing drastic measures on activities of imports and exports, and shipment of goods by partially closing their borders. The restrictions are hindering the demand for energy in various industry verticals, which restrains the growth of Europe offshore pipeline market. The impact of the COVID-19 outbreak varies from country to country across Europe as countries are reporting a surge in the number of confirmed cases, and are imposing stringent and more extended lockdown or social isolation. The measures are disrupting businesses industry verticals and the demand for oil commodities. The lockdown is hindering the offshore pipeline market in Europe owing to the disruption in oil & gas sector across countries. However, several industries across a few countries are reopening and subsequently are driving the demand for energy is expected to resume the construction of oil & gas activities to support the growth. Thus, the market is projected to recover steadily over the coming period and gain traction for offshore pipelines across Europe during the forecast period.
Based on product, the refined products segment led the Europe offshore pipeline market in 2019. The refined products segment comprises pipelines used to distribute all oil & gas related refined final products to the customers. For instance, the distribution of natural gas is mostly done through pipelines. Also, liquid fertilizers are primarily transmitted through long distances pipelines. Additionally, LNG transported through ships requires short pipelines for connecting the vessel and onshore storage tanks. The surge in industrialization and urbanization across Europe is expected to accelerate the demand for refined products in coming years, which would drive the Europe offshore pipeline market during the forecast period.
The overall Europe offshore pipeline market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the Europe offshore pipeline market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, offshore pipeline market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the Europe offshore pipeline market. Bechtel Corporation; Fugro; John Wood Group PLC; Larsen & Toubro Limited; McDermott International, Inc.; Petrofac Limited; Saipem S.p.A; Sapura Energy Berhad; Subsea 7 S.A.; and TechnipFMC plc are a few players operating in the market.