virtual pipeline systems Market

The virtual pipeline systems market is expected to grow from US$ 1,191.59 million in 2022 to US$ 1,886.83 million by 2028. It is estimated to grow at a CAGR of 9.2% from 2022 to 2028.

The global market for virtual pipeline systems is predicted to experience growth due to the increasing demand for energy and the surge in gas exploration activities. Furthermore, the virtual pipeline systems market is expected to expand during the forecast period due to the increasing trend of transitioning from conventional pipeline infrastructure to virtual pipeline systems. As a result of their ability to transport natural gas with flexibility and without requiring large physical pipeline installations, virtual pipeline systems are gaining popularity in the oil and gas industry.

The increasing shale gas extraction activities in Europe, the US, and the Middle East drive the demand for virtual pipeline systems. The EU is expected to experience significant growth due to rising shale gas exploration activities and improved contractual terms for pipeline imports, with an increased supply of liquefied natural gas from the US. Furthermore, developing new shale gas exploitation techniques with lower costs and a reduced environmental impact may make domestic shale gas reserves in the EU more attractive in the long run, possibly after 2030. China has the largest shale reserves, with significant output originating from the Sichuan basin. Consequently, expanding shale gas exploration and extraction projects facilitated by advances in related technologies and the abundance of reserves boost demand for virtual pipeline systems, leading to market growth.

Nonetheless, the growth of the virtual pipeline system market may face obstacles due to the significant dominance of conventional pipeline infrastructure. Conventional pipelines are generally more widely accepted than virtual pipeline systems, and this is a significant factor that may hinder the global virtual pipeline system market's growth. As governments and private entities increasingly prefer conventional pipelines over virtual pipelines, they are investing significant amounts in such conventional infrastructure.

In addition, the growing energy demands are expected to impact market growth positively. Except for Japan, electricity demand in most countries in the Asia Pacific region is expected to continue to grow through 2024.

The virtual pipeline systems market is mainly dominated by players such as Baker Hughes, Certarus Ltd., CNG Services Ltd, Exxon Mobil Corporation, and Galileo Technologies S.A. Further, these players expand their business through new product launches, market initiatives, investment in technological upgrades, mergers & acquisitions, and other joint activities.

An example of recent industry development is the acquisition of advanced virtual pipeline trailers for hydrogen by Certarus Ltd. from Quantum Fuel Systems, a fully integrated alternative energy company in December 2021. Quantum's VPLite-H45/40' trailers have a gas mass of 803 kg at 3,600 pressures, and they were delivered to Certarus (248 bar). These trailers are authorized for use in both Canada and the US, indicating the growth of the virtual pipeline system market in North America.

COVID-19 Impact on Virtual pipeline systems Market

The majority of EU member states have significant pipeline capacity available for cross-border energy supply that does not depend on Russia. For instance, Germany's pipeline network has a total capacity of 114 Bcm from countries such as Norway, Belgium, Switzerland, Austria, Denmark, and the Netherlands, while the annual consumption is only 94 Bcm, as reported by the European Network of Transmission System Operators. Despite this, the natural gas capacity network in Europe has been affected by the COVID-19 pandemic, resulting in decreased demand and pipeline disruptions between Spain and France, Italy and Central Europe, Central Europe and South-Eastern Europe, as well as Germany and Italy. Additionally, efforts to address greenhouse gas emissions pose risks to new pipeline projects.

The companies featured in the study of the virtual pipeline systems market include 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 players are adopting both organic and inorganic growth strategies to maintain their competitive edge. Several initiatives, such as investments in research and development and the establishment of virtual reality (VR) simulator training centers, are expected to have a positive impact on the growth of the virtual pipeline systems market. For instance, Chart Industries, Inc. acquired CSC Cryogenic Service Center AB (CSC) in 2022, a Swedish company that provides strong service support in the Nordic Region, serving many of the same customers as Chart, which helps expand the company's service and repair presence geographically and offer more localized support for its extensive original equipment installed database.

The virtual pipeline systems market analysis has been conducted using a combination of primary and secondary sources. The research process began with extensive secondary research from both internal and external sources to gather qualitative and quantitative information on the virtual pipeline systems market. The collected data was then used to provide an overview and forecast of the market size across all market segments. Industry experts and analysts were also consulted through multiple primary interviews to validate the data and gain further analytical insights. The participants in the virtual pipeline systems market study included various 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 who specialize in the virtual pipeline systems market. Additionally, various growth strategies, such as investment in research and development and the formation of virtual reality (VR) simulator training centers, have been implemented by market players to sustain their competitive edge in the market.