Globally, there has been an increasing demand for oil and gas pipelines because of the growing need for transporting oil and gas materials. Persistence Market Research (PMR) has recently published a report predicting a growth in this market area of CAGR of 5.1% over the period of 2017-2022.
The growth in the oil and gas pipes market is down to various macro-economic and micro-economic factors. Manufacturers are increasingly adopting advanced technology such as the Internet of Things (IoT) in order to integrate features such as sensing communication and analytical capabilities. Emerging technology integrated in the oil and gas piping system enables the manufacturers to retrieve the data about the transportation activities. Weaving advanced technology through the oil and gas pipeline has further enabled the manufacturers to optimize operations and improve reliability. Manufacturers of the oil and gas pipes will continue to benefit from the emerging technology that retrieves information regarding the piping activities.
Growing demand for oil and gas in the transportation industry is further projected to rev up demand. Moreover, increase in the number of drilling and extraction projects will continue to rev up demand for the oil and gas pipes. Demand for oil and gas pipes will also increase with the growing need to transport oil and gas resources from the production place to the main storage area. Emergence of smart technology like the Internet of Things in the oil and gas pipes is further transforming the transportation and management of the oil and gas materials during the extraction and drilling projects. Integration of the piping system with enhanced technology allows the end-users to monitor and retrieve data regarding the status of the pipelines, storage and transportation of materials during the offshore and onshore activities.
Increasing demand for comparatively strong and protective materials for construction of pipes has led to an upsurge in demand for the stainless steel significantly. By material type, the stainless steel segment is projected represent a relatively high revenue growth, accounting for more than US$ 900 Mn by the end of 2022. The stainless steel material type segment is projected to reflect a robust CAGR during the forecast period. On the basis of end-users, the offshore activities segment is projected to witness the fastest CAGR, representing more than US$ 600 Mn by 2017-end. Based on application, the external transportation and distribution segment is projected to witness the fastest growth, recording more than US$ 900 Mn by 2022-end.