Market Trends of Asia Pacific Pipeline Maintenance Industry
This section covers the major market trends shaping the APAC Pipeline Maintenance Market according to our research experts:
Pipeline Repair & Maintenance Segment to have a Significant Share in the Market
- The pipeline repair & maintenance service segment is expected to have a significant market share during the forecast period. In 2021, the pipeline repair & maintenance services segment held a major share of the market, and the claim is expected to grow as most of the demand is coming for corrosion repair services. Also, increasing the share of installed pipeline capacity in major countries such as China, India, Australia and Indonesia is expected to drive the growth of repair & maintenance during the forecast period.
- In comparison to stainless steel, low carbon steel is widely used for oil and gas pipelines due to its properties, including its toughness, ductility, weldability, ability to withstand temperature changes, and cost-effectiveness. However, it has the disadvantage of being susceptible to air, soil, and water corrosion.
- Corrosion repair systems strengthen the pipe affected by corrosion and contain the fluid transported in the event of failure. They include full circumferential welded sleeves, welded patches, composite reinforcements, and pipe section replacements.
- Corrosion repair services are in high demand due to the growing share of heavy crude oil. Oil reserves for conventional oil are diminishing, while oil and gas demand is forecast to grow modestly. Therefore, to meet the growing demand, unconventional and heavy oil production is increasing, but heavy oil is harmful to pipelines carrying it, so corrosion problems are more frequent on heavy oil pipelines. Therefore, the growing share of heavy crude is expected to drive the demand for corrosion repair services during the forecast period, which is expected to drive the demand for pipeline maintenance and repair services throughout the Asia Pacific.
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China Expected to Dominate the Market
- In the forecast period, China is expected to have the largest market for pipeline maintenance services, primarily due to its huge installed pipeline capacity and government investments.
- As of June 2022, according to the global energy monitor, China has the largest number of operational natural gas pipelines worldwide, with 226 and 159 natural gas pipeline projects under development.
- China is preparing to spend heavily over the next four years on expanding its natural gas pipeline system in order to transport greater volumes of natural gas to more clients and utilities. By 2025, China is expected to spend USD 1.6 trillion to USD 1.9 trillion on doubling the national gas network to 163,000 kilometres, according to Ding Zhimin, the former deputy director of the Policy & Law Department of the National Energy Administration.
- Hence, this is expected to create new opportunities for additional pipeline capacity during the forecast period, thereby boosting the pipeline maintenance services market in the country.
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