Virtual Pipeline Market Size 2024 And Growth Rate

The virtual pipeline market size has grown strongly in recent years. It will grow from $1.60 billion in 2023 to $1.70 billion in 2024 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to growth in demand for natural gas, increased remote energy access, increased energy security concerns, increased focus on cost-effective energy distribution solutions, and rise in awareness about the benefits of natural gas.

Virtual Pipeline Market Growth Forecast

The virtual pipeline market size is expected to see strong growth in the next few years. It will grow to $2.17 billion in 2028 at a compound annual growth rate (CAGR) of 6.4%. The growth in the forecast period can be attributed to increasing urbanization, expansion of industrial sectors, increasing renewable energy integration, increasing investments in energy infrastructure, growing emphasis on reducing carbon emissions. Major trends in the forecast period include expansion into new markets, technological advancements, integration with renewable energy, regulatory support and standards, partnerships and collaborations, focus on safety and environmental compliance, demand from remote and off-grid markets, economic viability and cost competitiveness, and focus on sustainability.

Virtual Pipeline Market Driver: Role Of Virtual Pipelines In Meeting Growing Natural Gas Demand

The increasing demand for natural gas is expected to propel the growth of the virtual pipeline market going forward. Natural gas is a combustible gas comprised largely of methane that is discovered underground and used as a fuel source for heating, cooking, electricity generation, and transportation. The demand for natural gas is increasing due to its role as a cleaner-burning fossil fuel, its versatility in power generation, industrial processes, and heating, and its potential as a transition fuel in the global shift towards lower-carbon energy sources. Virtual pipelines are utilized in the transportation of natural gas, primarily in areas where traditional pipeline infrastructure is unavailable, economically impractical, or insufficient to meet demand. For instance, in March 2023, according to a report shared by the Energy Information Administration, a US-based government agency, the average daily consumption of natural gas in the United States hit an all-time high of 88.5 billion cubic feet per day in 2022, representing a 5% increase over 2021, with natural gas consumption reaching 4.5 billion cubic feet daily (Bcf/d). Furthermore, in 2022, US end-user sectors consumed 38% of total natural gas. Therefore, the increasing demand for natural gas is driving the growth of the virtual pipeline market.

Global Virtual Pipeline Market Major Players

Major companies operating in the virtual pipeline market report are Eni S.p.A.; National Petroleum Limited (Petronas); General Electric Company; Compass Natural Gas Partners LP (CNGP); Baker Hughes Company; Kinder Morgan Inc.; Wärtsilä Corporation; Snam S.p.A.; LightSail Energy Inc.; Hexagon Composites ASA; Broadwind Inc.; Pentagon Energy LLC; Certarus Ltd.; SENER Grupo de Ingeniería S.A.; Stabilis Solutions Inc.; FIBA Technologies Inc.; Galileo Technologies S.A.; Gas Malaysia Berhad; NG Advantage LLC; Cobey Inc.; REV LNG LLC; OsComp Systems Inc.; CNG Services Limited; Xpress Natural Gas LLC; Marlin Gas Services Ltd.

Global Virtual Pipeline Market Trend: Major Virtual Pipeline Companies Innovate With Natural Gas And Hydrogen Transport Solutions

Major companies operating in the virtual pipeline market are investing in technology and partnering with energy companies for natural gas and hydrogen transport systems, such as virtual pipeline trailers, to address the rising energy needs in remote and industrial areas. Virtual pipeline trailers are specialized transportation units designed to transport compressed natural gas (CNG) or liquefied natural gas (LNG) from one location to another, typically where traditional pipeline infrastructure is unavailable or impractical. For instance, in February 2021, Quantum Fuel Systems LLC, a US-based integrated alternative energy company, secured a significant contract from Certarus Ltd., a Canada-based green energy supplier, to supply virtual pipeline trailers for natural gas. Under the agreement, Quantum will deliver its VPLite45/40’ trailers, known for their high capacity and lightweight design, certified for use in the U.S. and Canada. This contract, valued at approximately $22 million, underscores Quantum's commitment to supporting Certarus' expansion efforts. Furthermore, the agreement encompasses the development of hydrogen virtual pipeline trailers, catering to the increasing demand for hydrogen transportation in various pilot projects.

Virtual Pipeline Market Merger And Acquisition: Superior Plus Corp. Acquires Certarus Ltd. To Bolster Its Position In Low-Carbon Energy

In May 2023, Superior Plus Corp., a Canada-based energy company, acquired Certarus Ltd. for an undisclosed amount. The acquisition aims to position Superior Plus as a distributor of low-carbon renewable natural gas (RNG) and hydrogen. Certarus Ltd. is a Canada-based energy company that provides virtual pipelines, specifically for natural gas, renewable natural gas (RNG), and hydrogen.

Regional Insights For The Global Virtual Pipeline Market

North America was the largest region in the virtual pipeline market in 2023. It is expected to be the fastest-growing region in the forecast period. The regions covered in the virtual pipeline market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Virtual Pipeline Market Definition And Segments

Virtual pipelines refer to flexible transportation networks that enable natural gas distribution to places without traditional pipeline infrastructure. These systems use a variety of transportation modes to deliver compressed or liquefied natural gas to remote or underserved areas.

The main fuel types of virtual pipelines are compressed natural gas (CNG), liquefied natural gas (LNG), and others. Compressed natural gas (CNG) is natural gas stored at high pressure, making it compact for transportation and storage. It is commonly used as a cleaner alternative fuel for vehicles, heating, and cooking. The various modes of transport include truck, barge, rail, and ship, which are used for several end uses, such as commercial, industrial, and transportation.

The virtual pipeline market covered in this report is segmented –

1) By Fuel Type: Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG), Other Fuel Types

2) By Mode Of Transport: Truck, Barge, Rail, Ship

3) By End-Use: Commercial, Industrial, Transportation

The virtual pipeline market size has grown strongly in recent years. It will grow from $1.60 billion in 2023 to $1.70 billion in 2024 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to growth in demand for natural gas, increased remote energy access, increased energy security concerns, increased focus on cost-effective energy distribution solutions, and rise in awareness about the benefits of natural gas.

The virtual pipeline market size is expected to see strong growth in the next few years. It will grow to $2.17 billion in 2028 at a compound annual growth rate (CAGR) of 6.4%. The growth in the forecast period can be attributed to increasing urbanization, expansion of industrial sectors, increasing renewable energy integration, increasing investments in energy infrastructure, growing emphasis on reducing carbon emissions. Major trends in the forecast period include expansion into new markets, technological advancements, integration with renewable energy, regulatory support and standards, partnerships and collaborations, focus on safety and environmental compliance, demand from remote and off-grid markets, economic viability and cost competitiveness, and focus on sustainability.

Role Of Virtual Pipelines In Meeting Growing Natural Gas Demand

The increasing demand for natural gas is expected to propel the growth of the virtual pipeline market going forward. Natural gas is a combustible gas comprised largely of methane that is discovered underground and used as a fuel source for heating, cooking, electricity generation, and transportation. The demand for natural gas is increasing due to its role as a cleaner-burning fossil fuel, its versatility in power generation, industrial processes, and heating, and its potential as a transition fuel in the global shift towards lower-carbon energy sources. Virtual pipelines are utilized in the transportation of natural gas, primarily in areas where traditional pipeline infrastructure is unavailable, economically impractical, or insufficient to meet demand. For instance, in March 2023, according to a report shared by the Energy Information Administration, a US-based government agency, the average daily consumption of natural gas in the United States hit an all-time high of 88.5 billion cubic feet per day in 2022, representing a 5% increase over 2021, with natural gas consumption reaching 4.5 billion cubic feet daily (Bcf/d). Furthermore, in 2022, US end-user sectors consumed 38% of total natural gas. Therefore, the increasing demand for natural gas is driving the growth of the virtual pipeline market.

Major companies operating in the virtual pipeline market report are Eni S.p.A.; National Petroleum Limited (Petronas); General Electric Company; Compass Natural Gas Partners LP (CNGP); Baker Hughes Company; Kinder Morgan Inc.; Wärtsilä Corporation; Snam S.p.A.; LightSail Energy Inc.; Hexagon Composites ASA; Broadwind Inc.; Pentagon Energy LLC; Certarus Ltd.; SENER Grupo de Ingeniería S.A.; Stabilis Solutions Inc.; FIBA Technologies Inc.; Galileo Technologies S.A.; Gas Malaysia Berhad; NG Advantage LLC; Cobey Inc.; REV LNG LLC; OsComp Systems Inc.; CNG Services Limited; Xpress Natural Gas LLC; Marlin Gas Services Ltd.

Major Virtual Pipeline Companies Innovate With Natural Gas And Hydrogen Transport Solutions

Major companies operating in the virtual pipeline market are investing in technology and partnering with energy companies for natural gas and hydrogen transport systems, such as virtual pipeline trailers, to address the rising energy needs in remote and industrial areas. Virtual pipeline trailers are specialized transportation units designed to transport compressed natural gas (CNG) or liquefied natural gas (LNG) from one location to another, typically where traditional pipeline infrastructure is unavailable or impractical. For instance, in February 2021, Quantum Fuel Systems LLC, a US-based integrated alternative energy company, secured a significant contract from Certarus Ltd., a Canada-based green energy supplier, to supply virtual pipeline trailers for natural gas. Under the agreement, Quantum will deliver its VPLite45/40’ trailers, known for their high capacity and lightweight design, certified for use in the U.S. and Canada. This contract, valued at approximately $22 million, underscores Quantum's commitment to supporting Certarus' expansion efforts. Furthermore, the agreement encompasses the development of hydrogen virtual pipeline trailers, catering to the increasing demand for hydrogen transportation in various pilot projects.

Superior Plus Corp. Acquires Certarus Ltd. To Bolster Its Position In Low-Carbon Energy

In May 2023, Superior Plus Corp., a Canada-based energy company, acquired Certarus Ltd. for an undisclosed amount. The acquisition aims to position Superior Plus as a distributor of low-carbon renewable natural gas (RNG) and hydrogen. Certarus Ltd. is a Canada-based energy company that provides virtual pipelines, specifically for natural gas, renewable natural gas (RNG), and hydrogen.

North America was the largest region in the virtual pipeline market in 2023. It is expected to be the fastest-growing region in the forecast period. The regions covered in the virtual pipeline market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the virtual pipeline market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The virtual pipeline market consists of revenues earned by entities by natural gas transportation, distribution, logistics, and field gas processing and treating. The market value includes the value of related goods sold by the service provider or included within the service offering. The virtual pipeline market also includes sales of compression facilities, storage tanks, transportation containers, safety equipment, and monitoring devices. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

The virtual pipeline market research report is one of a series of new reports from The Business Research Company that provides virtual pipeline market statistics, including virtual pipeline industry global market size, regional shares, competitors with a virtual pipeline market share, detailed virtual pipeline market segments, market trends and opportunities, and any further data you may need to thrive in the virtual pipeline industry. This virtual pipeline market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.