Flexible pipes for the oil and gas industry: Key market research findings
- North America dominates the market geographically
- The offshore segment accounts for a majority of the market revenue
- Key vendors – GE Oil & Gas, SoluForce, Technip, NOV, and Airborne Oil & Gas
Technavio’s market research analysts predict the global flexible pipes market for the oil and gas industry to grow at a CAGR of around 4% between 2016 and 2020. The market’s growth is fueled primarily by the advances in drilling technology. Advances in drilling technologies have revolutionized the oil and gas industry and have enabled access to the most remote locations, unconventional formations, deepwater regions, and even the Arctic. Such developments are playing a key role in driving the consumption of flexible pipes. During 2015, North America accounted for more than 41% of the overall market share to become the dominant shareholder in the global market. The increasing number of oil and gas E&P activities being undertaken in the region will contribute to the growth of the flexible pipes market for the oil and gas industry in North America during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the flexible pipe segments based on the application.
“The new discoveries of potential reserves will accelerate the demand for flexible pipes in the coming years. New oilfields have been discovered across the world, with new offshore reserves discovered in the Gulf of Mexico, Ghana, and French Guinea. Following the depletion of onshore reserves, operators are striving to tap the frontier regions for E&P activities. As a result, the Arctic region has seen vast development in petroleum resources over the past few decades. The growing exploration of reserves in these regions will create attractive opportunities for the flexible pipes market,” says Chandrakumar Badala Jaganathan, Lead Analyst, Chemicals & Materials, Technavio Research.
By 2020, the offshore segment will continue its dominance over the global flexible pipe market for the oil and gas industry by accounting for more than 67% of the overall market revenue. Offshore applications refer to the use of flexible pipes to explore and develop petroleum reserves that are located under a water body, such as river, sea, lake, or ocean. Using flexible pipes on offshore-based structures, including an oil platform, is complex and consequently more expensive. Flexibles pipes are largely used in offshore applications, such as chemical injection pipes and risers. They possess properties like wear- and corrosion-resistance, rigidness, and mechanical strength to withstand changes in temperature and deformation caused by stress, which make them highly effective in underwater applications.
The key vendors in the market include GE Oil & Gas, SoluForce, Technip, NOV, and Airborne Oil & Gas. Currently, international vendors are leading the market and are expected to have a substantial market share during the forecast period. These vendors are expected to expand both their product portfolios and geographical presence in the coming years. In addition, the introduction of new improved products such as risers, static flowlines, floating production storage offloading (FPSO), and jumpers with greater depth facilities are developed to cater the deepwater and subsea demand from various E&P companies in offshore regions of Africa, APAC, and South America, which will drive the growth of the market for flexible pipes.
A more detailed analysis is available in the Technavio report, Global Flexible Pipes Market for the Oil and Gas Industry 2016-2020.
We can customize reports by other regions and specific segments upon request.
Other related reports:
