Pipeline Monitoring System Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Pipeline Monitoring System Market is Segmented By Solution (Remote Sensors, Ultrasonic Monitoring System, Fiber Optics, Smart Ball, Magnetic Flux Leakage, PIG Systems, Smart Membranes, Others), By Operation (Onshore, Offshore), By Application (Leak Detection, Pig Tracking, Pipeline Intrusion Monitoring, Detection of geohazard, Slug Tracking, Others), By End-User (Oil and Gas, Water & Wastewater, Others), and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

Pipeline Monitoring System Market Size

The Global Pipeline Monitoring System Market reached USD 12.9 billion in 2022 and is expected to reach USD 22.2 billion by 2030, growing with a CAGR of 7.1% during the forecast period 2023-2030. The Global Pipeline Monitoring System Market has witnessed significant growth in recent years, driven by the increasing demand for efficient and safe pipeline operations across various industries.

Pipeline monitoring systems play a crucial role in ensuring the integrity and reliability of pipeline infrastructure, thereby minimizing the risk of leaks, theft, and environmental damage.

In 2020, Russia launched the USMC, a state-of-the-art pipeline monitoring system developed by Gazprom, the country's largest gas company. The USMC integrates various technologies, such as fiber optic sensing, satellite monitoring, and automated control systems to ensure the safety and reliability of gas pipelines. This implementation showcases Russia's commitment to advanced pipeline monitoring and sets an example for other countries. 

The Yamal-Europe pipeline is a crucial gas pipeline connecting Russia with European countries. In recent years, Russia has undertaken expansion projects to increase the pipeline's capacity. These expansions involve installing advanced monitoring systems to detect leaks, corrosion, and other anomalies. 

Integrating modern pipeline monitoring technologies ensures the safe and efficient operation of the expanded pipeline. Therefore, Russia accounts for majority of the regional shares and is expected to grow at a significant CAGR in Europe.

Pipeline Monitoring System Market Scope

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Pipeline Monitoring System Market Dynamics

Increasing Incidents of Pipeline Leaks

The increasing incidents of pipeline leaks highlight the need for robust monitoring systems that can detect leaks promptly, prevent environmental damage, and ensure pipelines’ safe and efficient operation. 

The environmental impact of pipeline leaks, such as oil spills and contamination of water sources, has become a global concern. Governments and regulatory bodies have implemented stringent regulations to mitigate these risks and hold pipeline operators accountable for environmental damage. 

Compliance with these regulations requires implementing advanced monitoring systems that can quickly detect leaks and trigger immediate response actions. The need for regulatory compliance drives the demand for pipeline monitoring systems worldwide.

For instance, Indian companies have pledged USD 60 billion to construct an import terminal and a national gas grid by 2024. By 2030, the Indian government wants to quadruple gas's contribution to the country's energy mix to 15%. 

Companies that operate thousands of cross-country pipeline networks for transporting fuel like gasoline and diesel from oil refineries to consumption areas need an efficient monitoring system to keep track of pipeline theft or any other attempts to damage their pipeline network. 

Recent deployments by Indian Oil Corp. include a SCADA-based system for monitoring pipeline network traffic and a leak detection system for pinpointing potential weak spots.

Collaboration with International Companies

Collaborations between international companies facilitate technology transfer and knowledge exchange in the pipeline monitoring sector. International companies often possess advanced monitoring technologies, best practices, and industry expertise that can be shared with local partners. This transfer of knowledge helps improve pipeline monitoring systems' capabilities, leading to more efficient and reliable operations.

Russian pipeline operators and technology providers have partnered and collaborated with international companies to leverage their expertise in pipeline monitoring systems. For instance, in 2021, Gazprom Neft, one of Russia's leading oil producers, signed an agreement with Siemens to develop and implement digital pipeline monitoring and maintenance solutions. Such collaborations facilitate knowledge exchange and the adoption of cutting-edge monitoring technologies. 

Lack of Skilled Labors

Pipeline monitoring systems require skilled technicians for their installation, configuration, and ongoing maintenance. Lack of skilled labor can lead to challenges in the proper installation and setup of monitoring systems. Without the necessary expertise, there is a risk of improper installation, which can compromise the accuracy and reliability of the monitoring system. Similarly, maintaining and troubleshooting complex monitoring systems also requires skilled technicians and the lack of such labor can hinder efficient system operation.

Skilled labor is essential for optimizing pipeline monitoring systems to ensure their optimal performance. Monitoring systems often require customization and fine-tuning to suit specific pipeline environments and operating conditions. 

Skilled technicians can analyze data, identify system limitations or inefficiencies, and make necessary adjustments to optimize the system's performance. The lack of skilled labor limits the ability to maximize the capabilities and benefits of pipeline monitoring systems, potentially resulting in suboptimal performance.

Pipeline Monitoring System Market Segment Analysis

The Global Pipeline Monitoring System Market is segmented based on solution, operation, application, end-user and region.

Recent Laws on Utilizing Advanced Leakage Detection Systems Aids to the Surge the Demand for Pipeline Monitoring System

Governments and regulatory bodies have enacted stricter laws and regulations to ensure the safe operation of pipelines. These regulations often require pipeline operators to implement advanced leakage detection systems as part of their compliance obligations. The introduction of stringent compliance requirements has driven the demand for real-time pipeline monitoring systems that can detect and locate leaks, helping operators meet regulatory standards.

According to the U.S. Energy Information Administration (EIA), millions of miles of pipeline infrastructure are used to transport most of the gas in the country. In December, the Protecting Our Infrastructure of Pipelines and Enhancing Safety Act was signed into law in U.S. 

To protect the environment and ensure pipeline safety, the Act requires gas pipeline operators to implement innovative leak-detecting technologies. Therefore, the constraints above will significantly influence the adoption of leakage detection systems. Thus, the leak detection application segment holds for the majority of the global segmental share.

Source: DataM Intelligence Analysis (2023)

Pipeline Monitoring System Market Geographical Share

North America's Extensive Pipeline Infrastructure and Advanced Monitoring Technologies

North America boasts an extensive network of pipelines, including long-distance transmission lines, distribution networks, and gathering systems. The region's pipeline infrastructure is among the most developed globally, serving the needs of the oil, gas, and water industries. The vast network of pipelines creates a significant demand for monitoring systems to ensure these assets' safe and efficient operation.

North America has been at the forefront of developing and adopting advanced monitoring technologies for pipeline systems. The region is home to several innovative companies specializing in pipeline monitoring systems, sensors, and data analytics. These companies continually invest in research and development to enhance monitoring capabilities, improve leak detection algorithms, and optimize system performance. 

The availability of cutting-edge technologies in North America has positioned the region as a global pipeline monitoring systems market leader. Therefore, North America dominates the global market with significant shares.

Source: DataM Intelligence Analysis (2023)

Pipeline Monitoring System Market Companies

The major global players include Hifi Engineering Inc., Honeywell International, Siemens AG, AP Sensing, Schneider Electric, OptaSense Ltd, Huawei, TransCanada Pipelines Ltd, ABB Ltd and Omnisens SA.

COVID-19 Impact on Pipeline Monitoring System Market

COVID Impact

The pandemic led to temporary disruptions in the global economy, including the oil and gas industry, which is a major user of pipeline monitoring systems. Lockdowns, travel restrictions, and reduced industrial activities resulted in decreased demand for oil and gas, leading to project delays and cancellations. 

This slowdown in the energy sector indirectly impacted the pipeline monitoring systems market, causing a temporary decline in installations and investments. 

COVID-19 highlighted the importance of remote monitoring and operational efficiency in the pipeline industry. With travel restrictions and social distancing measures in place, pipeline operators sought ways to minimize physical presence on-site. 

This created a greater demand for remote monitoring solutions and technologies that enable real-time data collection, analysis, and control from a centralized location. The pandemic accelerated the adoption of digital solutions in the pipeline monitoring systems market, including cloud-based platforms and remote monitoring capabilities.

Russia- Ukraine War Impact 

The conflict between Russia and Ukraine can potentially disrupt energy supplies, particularly natural gas, as the region serves as a major transit route for Russian gas to European countries. Any disruptions in energy supplies can impact the demand for pipeline monitoring systems, as operators may postpone or delay investments in new projects or maintenance activities amid uncertainties.

The conflict may accelerate efforts towards energy diversification in Europe, with countries seeking to reduce their dependence on Russian gas. This can increase investments in alternative energy sources and infrastructure, such as renewable energy projects, liquefied natural gas (LNG) terminals, and interconnectors. While this diversification may reduce the demand for traditional gas pipelines, it can also create opportunities for monitoring systems in emerging energy sectors.

By Solution

• Remote Sensors
• Ultrasonic Monitoring System
• Fiber Optics
• Smart Ball
• Magnetic Flux Leakage
• PIG Systems
• Smart Membranes
• Others

By Operation

• Onshore
• Offshore

By Application

• Leak Detection
• Pig Tracking
• Pipeline Intrusion Monitoring
• Detection of Geohazard
• Slug Tracking
• Others

By End-User

• Oil and Gas
• Water & Wastewater
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • The UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On March 30, 2023, Eni, a major player in the energy industry in Italy, has launched a new company named Enivibes to boost the market value of its unique technology for vibroacoustic pipeline monitoring systems.
• On May 31, 2023, Saipem, based in Italy, received DNV approval for its system for monitoring subsea pipelines as they are being deployed. Acoustic technology is a key component of the new pipeline monitoring system.
• On October 26, 2022, InfinyOn and Klarian have launched a strategic technology partnership. Real-time data and useful insights will be used in the energy sector owing to the deal with real-time event streaming company InfinyOn. To stream, transform, and load events in real time, Klarian developed Digipipe, an end-to-end pipeline monitoring solution with a performance dashboard that connects with InfinyOn.

Why Purchase the Report?

• To visualize the Global Pipeline Monitoring System Market segmentation based on solution, operation, application, end-user and region and understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous pipeline monitoring system market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The Global Pipeline Monitoring System Market Report Would Provide Approximately 69 Tables, 74 Figures And 202 Pages.