U.S. Pipeline and Process Services Market Size, Share & COVID-19 Impact Analysis, By Asset Type (Pipeline (Transmission and Distribution) and Process (FPS, Refinery & Petrochemical, and Storage & Processing)), By Operation (Pre-Commissioning, Maintenance, and Decommissioning), and Country Forecast, 2023-2030

The U.S. pipeline and process services market size was worth USD 1.46 billion in 2022 and is projected to grow at a CAGR of 5.16% during the forecast period. 

U.S. pipeline and process services involve various activities across the lifespan of an oil and gas pipeline. These encompass pre-commissioning, where the laid pipeline undergoes multiple processes to verify its full functionality. Additionally, safety checks are conducted to ensure the pipeline does not pose any harm to the environment or living beings along its path. Service providers maintain the pipeline in optimal condition during its operational life, which spans between 20 and 25 years.

The COVID-19 pandemic likely affected the U.S. pipeline and process services market in several ways. Lockdown measures and restrictions impacted project timelines, causing delays in construction and maintenance activities. Fluctuations in energy resource demand due to changes in industrial production and consumer behavior during the pandemic influenced the overall market dynamics.

Rising safety concerns related to oil and gas pipelines are contributing to the growth of the pipeline and process services market in the U.S.

• One notable incident in the U.S. occurred in March 2022, where a four-floor apartment building in Silver Spring, Maryland, suffered devastation from an explosion caused by a leak in a disconnected gas line.

LATEST TRENDS

Digitalization and Automation of Pipeline and Process Services is a Major Trend

The U.S. market is undergoing a transition toward automation and digitalization of processes. Advanced technologies such as data analytics, artificial intelligence, and the Internet of Things are being employed to improve operations, forecast maintenance needs, and scrutinize pipeline functionalities.

For instance, Baker Hughes is among the companies providing cutting-edge technologies for pipeline services. Its products and technologies facilitate inspections across various industrial equipment types – from pipelines transporting gas to heat homes, to piping in pharmaceutical and beverage facilities.

DRIVING FACTORS

Aging Oil and Gas Pipelines drive the Demand for Pipeline and Process Services

According to the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration, energy pipelines (cast and wrought iron pipelines) installed around 60 years ago represent some of the oldest in the U.S., supplying natural gas to businesses and homes. The deteriorating properties of iron alloys, aging pipelines, and pipe joint design significantly increased the risk associated with continued usage of such pipelines. The Job Creation Act of 2011, which focuses on pipeline safety and regulatory certainty, requires the Department of Transportation to conduct a state-by-state study on developing alternatives to cast iron pipelines.

State and federal safety initiatives, along with substitution efforts by pipeline operators, have significantly reduced the use of wrought and cast iron pipelines in recent years. Twenty-two states and one territory have eliminated cast or wrought iron natural gas distribution lines within their borders. As of 2022, approximately 98% of natural gas distribution pipelines in the U.S. were manufactured using steel or plastic, with the remaining pipelines composed of iron pipes.

RESTRAINING FACTORS

Rising Penetration of Renewables in Overall Energy Mix Hinders Market Growth

The increasing use of renewable energy in the U.S. is expected to impact the oil and gas industry. According to the Energy Information Administration, renewable energy consumption in the U.S. experienced growth, rising from 12.1 quads in 2021 to a peak level of 13.2 quads in 2022. The increased utilization of renewables, particularly solar and wind energy, notably contributed to the rise in renewable energy consumption. Wind emerged as the dominant renewable energy source in 2022, surpassing hydroelectricity, which had been the second-largest renewable source since 2019.

This transition toward renewable energy is anticipated to affect the demand for services in the country, potentially hindering the U.S. pipeline and process services market growth.

SEGMENTATION

By Asset Type Analysis

Based on asset type, the market is segmented into pipeline (transmission and distribution) and process (FPS, refinery & petrochemical, and storage & processing). The pipeline segment dominates this market in the U.S. This segment’s dominance is attributed to extensive infrastructure, maintenance, inspection needs, energy transportation, and safety concerns.

• According to the U.S. Energy Information Administration (EIA), the U.S. natural gas pipeline network is a seamlessly integrated network that transports natural gas throughout the U.S. The pipeline network includes approximately 3 million miles of mains and other pipelines connecting storage facilities and natural gas production areas to consumers. In 2021, this natural gas transmission network delivered approximately 27.6 trillion cubic feet of natural gas to approximately 77.7 million consumers.

By Operation Analysis

Based on operation, the market is segmented into pre-commissioning, maintenance, and decommissioning. The maintenance segment dominates this market in the U.S. due to the need for asset optimization, risk mitigation, long asset lifecycle, and aging infrastructure. Consistent maintenance enables operators to improve asset operational and performance efficiency. Proactive maintenance helps rectify areas of improvement, resulting in reduced operational costs and enhanced productivity.

• In April 2023, the U.S. Transportation Department announced an investment of USD 196 million in grants for 37 pipeline modernization projects across 19 states. The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) aims to considerably enhance the repair and detection of leaks from gas pipelines. These actions, if finalized, would improve efficiency, reduce waste and harmful pollution, and create a probable up to USD 2.3 billion yearly in benefits.

KEY INDUSTRY PLAYERS

In the competitive landscape, the market features both established and emerging pipeline and process service companies. Baker Hughes stands out as a major player in this market in the U.S. Baker Hughes offers a comprehensive range of processing service solutions that enhance pipeline efficiency and refinery productivity in various aspects. Its process services aim to maximize opportunity crude profitability, ensure safe and reliable operations, optimize long-term performance, and improve pipeline safety and sustainability.

• In June 2022, Tellurian Inc. and Baker Hughes announced that Baker Hughes secured a contract from Driftwood Pipeline LLC, a subsidiary of Tellurian Inc. The agreement involves delivering electric-powered integrated compressor line technology and turbomachinery equipment for Lines 200 and 300, part of a natural gas transmission project. Baker Hughes will initially install its Integrated Compressor Line decarbonization technology for pipeline compression in North America.

Halliburton is also among the well-established brands in the U.S. that has contributed to numerous pipeline projects.

• For instance, Halliburton’s pipeline and process services encompass diagnostics, chemicals, and engineered solutions in their portfolio. These solutions support the full lifespan of pipelines and processing sites.

Other companies with a substantial presence in the U.S. market include Bluefin Group, Cypress Pipeline & Process Services, BGS Energy Services, Schlumberger (SLB), SGS North America, Emerson, T.D. Williamson, Inc., and ROSEN Group.

LIST OF KEY COMPANIES PROFILED:

• Bluefin Group (U.S.)


• Baker Hughes (U.S.)


• Cypress Pipeline & Process Services (U.S.)


• Halliburton (U.S.)


• BGS Energy Services (U.S.)


• Schlumberger (SLB) (U.S.)


• SGS North America (U.S.)


• Emerson (U.S.)


• T.D. Williamson, Inc. (U.S.)


• ROSEN Group (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• July 2023 – The U.S. Supreme Court has allowed the resumption of construction on the controversial Mountain Valley Pipeline, a fracked gas transportation initiative through Virginia and West Virginia. The new ruling clears the path for construction to restart, lifting stays imposed by lower courts that had halted work.


• March 2022 – Baker Hughes acquired Qi2 Elements to expand its inspection solutions for critical energy infrastructure. Qi2 Elements is a manufacturer and designer of advanced robotic sensor systems that monitor, assess, and inspect the integrity of vital energy infrastructure. The acquisition enhances Baker Hughes' existing proficiency in gas pipeline inspection and introduces new technology for assisting in storage tank inspection.


• September 2022 – The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) announced approximately USD 75.6 million in grants to fund projects and activities aimed at enhancing pipeline safety. The grants will support the advancement of pipeline safety technologies and vital pipeline safety training, among other initiatives.

REPORT COVERAGE

The U.S. pipeline and process services market research report provides a detailed analysis focusing on key aspects. It includes an overview of technological advancements, trends in this market in the U.S., key findings regarding these services, and industry developments such as mergers, partnerships, and acquisitions. The report also assesses the impact of COVID-19 on the market, offers insights into market trends, and highlights key industry dynamics. Furthermore, it covers various factors contributing to the market's growth in recent years.

Report Scope & Segmentation