Virtual Pipeline Global Market Report 2024

The virtual pipeline market size has grown strongly in recent years. It will grow from $1.6 billion in 2023 to $1.7 billion in 2024 at a compound annual growth rate (CAGR) of 6.3%. The growth observed in the historical period can be attributed to several factors, including an increased demand for natural gas, expanded access to remote energy sources, heightened concerns regarding energy security, a growing emphasis on cost-effective energy distribution solutions, and an increased awareness of the advantages associated with natural gas utilization.

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 anticipated growth in the forecast period can be attributed to several factors, including the ongoing trend of urbanization, the expansion of industrial sectors, the integration of renewable energy sources, heightened investments in energy infrastructure, and a growing emphasis on carbon emission reduction efforts. Significant trends expected in this period include the expansion into new markets, technological advancements, increased integration with renewable energy systems, regulatory support and compliance with standards, fostering partnerships and collaborations, prioritizing safety and environmental compliance, addressing the demand from remote and off-grid markets, ensuring economic viability and cost competitiveness, and maintaining a strong focus on sustainability initiatives.

The growing demand for natural gas is poised to drive the expansion of the virtual pipeline market in the coming years. Natural gas, primarily composed of methane and sourced from underground reserves, serves as a versatile fuel for heating, electricity generation, cooking, and transportation. Its increasing demand stems from its reputation as a cleaner-burning fossil fuel, its adaptability across various industries including power generation and heating, and its potential as a transitional energy source in the global shift towards lower-carbon alternatives. Virtual pipelines play a crucial role in transporting natural gas, particularly in regions where conventional pipeline infrastructure is inadequate, economically unfeasible, or non-existent to meet escalating demand. For example, as per a report from the Energy Information Administration in March 2023, the United States experienced a record-breaking daily natural gas consumption of 88.5 billion cubic feet per day in 2022, marking a 5% increase from the previous year, with daily consumption reaching 4.5 billion cubic feet (Bcf/d). Additionally, US end-user sectors consumed 38% of the total natural gas supply in 2022. Consequently, the rising demand for natural gas is propelling the growth of the virtual pipeline market.

Key players in the virtual pipeline market are making substantial investments in technology and collaborating with energy firms to develop natural gas and hydrogen transport systems, such as virtual pipeline trailers, to cater to the escalating energy requirements in remote and industrial areas. Virtual pipeline trailers are specialized transport units designed for the conveyance of compressed natural gas (CNG) or liquefied natural gas (LNG) from one location to another, particularly where conventional pipeline infrastructure is impractical or unavailable. For instance, Quantum Fuel Systems LLC secured a significant contract from Certarus Ltd. in February 2021 to supply virtual pipeline trailers for natural gas transportation. Quantum's VPLite45/40’ trailers, noted for their high capacity and lightweight design, are certified for use in the U.S. and Canada, supporting Certarus' expansion initiatives. Moreover, Quantum is venturing into hydrogen virtual pipeline trailers to meet the rising demand for hydrogen transport in various pilot projects.

In May 2023, Superior Plus Corp. acquired Certarus Ltd. for an undisclosed sum, aiming to position itself as a distributor of low-carbon renewable natural gas (RNG) and hydrogen. Certarus Ltd., known for its virtual pipeline solutions for natural gas, renewable natural gas (RNG), and hydrogen, enhances Superior Plus Corp.'s capabilities in the energy sector, aligning with the growing demand for cleaner energy alternatives.

Major companies operating in the virtual pipeline market 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.

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.

Virtual pipelines are dynamic transportation networks designed to facilitate the distribution of natural gas to regions lacking conventional pipeline infrastructure. These systems employ diverse modes of transportation to convey compressed or liquefied natural gas to remote or underserved areas.

The primary fuel types utilized within virtual pipelines include compressed natural gas (CNG), liquefied natural gas (LNG), and others. Compressed natural gas (CNG) refers to natural gas stored at high pressure, enabling compact transportation and storage. Widely recognized as a cleaner alternative fuel, CNG finds applications in vehicle propulsion, heating, and cooking. Various transportation modes such as trucks, barges, railways, and ships are employed within virtual pipelines to cater to diverse end uses including commercial, industrial, and transportation sectors.

The virtual pipeline market research report is one of a series of new reports 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.

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.


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