Flexible Pipe Market

Flexible Pipe Market: Overview

The flexible pipe market size was USD 1084.4 million in 2021, with a CAGR of 4.2 percent expected throughout the forecast period. Flexible pipe is a multi-layered product utilized in various applications, most notably in the oil and gas industry. Any flexible pipe comprises two major components: leakproof thermoplastic barriers and corrosion-resistant wires.

Flexible pipes have demonstrated the ability to tolerate extreme temperature and pressure conditions and provide excellent durability and better dynamic strength to any building. Increasing oil and gas exploration operations, rising demand for non-corrosive pipes, and acceptance of engineering-grade flexible materials are the primary drivers of market expansion. Furthermore, increased deep-water exploration and technical advancements in the drilling process are major drivers boosting the worldwide flexible pipe market. For example, consider the North American shale gas boom and new offshore oilfield discoveries in Europe and Africa.

According to Baker Hughes, the U.S. rig count remained steady weekly, adding two land rigs and reducing two offshore rigs, while Canada added nine rigs. The entire North American rig count is now reported to be 749, including 569 rigs from the United States and 180 rigs from Canada. Baker Hughes said the total North American rig count has increased by 324 rigs over the previous year. According to Baker Hughes, 554 of the 569 rigs in the United States are land rigs, 13 are offshore rigs, and two are inland water rigs. According to Baker Hughes data, there are 467 oil rigs and 102 gas rigs, as well as 513 horizontal, 31 directional, and 25 vertical rigs. The count of rigs in the U.S. has increased by 246 rigs over the previous year. An increase in the system of horizontal wells can be viewed as a positive opportunity for the global flexible pipe industry to flourish. Despite this, falling crude oil prices and large-scale production are expected to provide additional challenges to the growth of the flexible pipe market over the forecast period.

Flexible Pipe Market: COVID-19 Impact

The COVID-19 had a severe impact on the flexible pipe market. With governments enforcing lockdowns and severe social distancing restrictions, the oil and gas industry saw a reduction in activity due to a lack of resources such as workers. Gas production was halted in 2020 due to the lockout. Natural gas output in the United States declined by 316 million standard cubic feet per day (MMcf/d) from March to April 2021, according to the U.S. Energy Information Administration (EIA). As a result, the lack of gas production limits the demand for flexible pipes. However, a gradual increase in production and the establishment of manufacturing facilities will likely boost demand for flexible pipes in the future. This resulted in a fall in demand for flexible pipes, which harmed the whole market.

Flexible Pipe Market: Drivers

Technology Advancement in Drilling Activities to Drive Market Growth

Drilling process technological breakthroughs have changed the oil and gas sector, allowing access to the most isolated places, unconventional formations, deep-water regions, and even the Arctic. Such advancements have played a significant role in increasing the use of flexible pipes. In conjunction with hydraulic fracturing, horizontal drilling has unlocked numerous locations' unconventional potential. The growing use of lateral drilling techniques is expected to boost demand for flexible pipes by encouraging the boring of additional reservoirs. These new drilling techniques also include hydraulic fracturing, which involves pumping high-pressure water into subsurface reservoir rocks to create fissures in the formation. This releases the trapped petroleum reserves, which can later be exploited. Hydraulic fracturing allows drilling access to unconventional resources when employed in conjunction with horizontal drilling.

Increasing Horizontal Well Exploration Driving Market Growth

Shallow and lengthy horizontal wells both use flexible composite pipes. These composite pipes are useful since they can be removed effectively from these wells. The oil and gas business is experiencing a transition in drilling type. In comparison to vertical drilling, directional drilling is quickly expanding. Compared to vertical wells, horizontal wells produce more than twice as much. Because of their widespread use in horizontal wells, an increase in horizontal wells represents a promising growth opportunity for the flexible pipe market.

Flexible Pipe Market: Restraints

Strict Regulation in Oil And Gas Industry to Hamper Market Growth

With the hazardous potential of well-drilling activities, environmental laws in the oil and gas industry are getting stricter. Drilling in subterranean reservoirs can create hydraulic pathways between tainted surface water and relatively pure underground water, eventually contaminating the water supply. To prevent such concerns, various judicial actions have been developed, such as the Clean Water Act (1972), the New York State Environmental Quality Review Act (1975), and the Oil Pollution Act (1990). These laws pertain to drilling activities in the United States, while international conventions such as the Barcelona Convention (1975),  the Baltic Sea Convention (1972), and the Kuwait Convention (1978) govern the disposal of drilling wastes in other parts of the world. These rules limit the amount of oil in water by establishing limitations such as 15 mg per liter (Baltic Sea Convention), 40 mg per liter (Kuwait Convention), and 29 mg per liter (Baltic Sea Convention) (U.S. Gulf of Mexico regulations). This leads to higher expenses for treating produced water during drilling activities, affecting the revenue of offshore and onshore drilling service firms, which in turn affects the revenue of flexible pipe companies.

Flexible Pipe Market: Segment Overview

High-Density Polyethylene to Dominate Market due to its Physical Properties

HDPE is expected to be the world's largest and fastest expanding flexible pipe segment. HDPE-based flexible pipe is simple to install and has great physical qualities, which drives its global demand. Furthermore, it is less expensive than P.A., PVDF, and other materials, pushing the demand for HDPE in flexible pipe manufacturing. HDPE is a petroleum thermoplastic that is widely utilized in a variety of applications. It is inexpensive, can endure temperatures ranging from -148 to 176° Fahrenheit, is non-leaching, UV-resistant, and is resistant to most chemical solvents because fluoropolymers are stable in difficult thermal, chemical, and U.V. conditions while preserving the qualities of a traditional thermoplastic substance.

With Increased Demand for Offshore Activities, Offshore Category Dominated Market

In the forecast period, the food and beverage segment held the largest market share. The demand for flexible pipes is increasing in offshore applications due to increased ultra-deepwater, deep water, and subsea exploration activities. Furthermore, the price of offshore flexible pipe is substantially greater than that of flexible pipe utilized in onshore applications, enhancing the value market for offshore applications.

Flexible Pipe Market: Regional Landscape

North America to Dominate Market due to Growing Shale Resources

The North American market is leading region with highest revenue share throughout the forecast period. The United States is North America's largest market for flexible pipes. The country's newly discovered shale resources and government plans to make it the top oil and gas producer in the next few years are projected to stimulate demand for flexible pipes in the country. The presence of major key players and a high number of oil and gas drilling in the United States and Canada are key factors driving this region's market growth. For example, the U.S. Department of Interior (DoI) is planning Under the National Outer Continental Shelf Oil and Gas Leasing Program or 2019-2024, offshore exploratory drilling will be permitted on about 90% of the outer continental shelf (OCS) acreage the region's oil and gas sector is expected to open up new market opportunities.

Furthermore, the United States will become a net energy exporter in 2020 and remain so throughout the projected period, owing to huge increases in crude oil, natural gas, and natural gas plant liquids (NGPL) production, along with modest growth in U.S. energy demand. The increase in demand for oil and gas will, in turn, boost the  market in North America. Furthermore, the United States will become a net energy exporter in 2020 and remain so throughout the projected period, owing to huge increases in crude oil, natural gas, and natural gas plant liquids (NGPL) production, along with modest growth in U.S. energy demand.

Global Flexible Pipe Market: Competitive Landscape

In January 2019, Baker Hughes introduced new technologies and an underwater development methodology that are expected to decrease costs and increase the productivity of offshore oil and gas projects. To control production, the system contains pumps, flexible pipes, equipment that diverts oil and gas to pipelines known as manifolds, and so forth. These technologies are modular, structured, and compact, designed to be more sensitive to changing conditions throughout the field, lowering the total cost of ownership by up to 50%. Moreover, in August 2018, NOV executed a collaborative industry initiative to test and validate the installation and performance of a full-scale Seabox subsea water treatment module in a realistic subsea environment. The Seabox device allows for water treatment directly at the seabed and water to be injected directly into the injection hole. This will help the operator improve oil recovery and optimize water flooding.

Few of the players in the Flexible Pipe Market include Contitech AG (Germany),  National Oilwell Varco (U.S.), Technipfmc PLC (France), G.E. Oil & Gas Corporation (U.K.), Prysmian Group (Italy), Shawcor Ltd. (Canada), Airborne Oil & Gas B.V. (The Netherland), Pipelife Nederland B.V. (The Netherlands), Magma Global Ltd. (U.K.), Flexsteel Pipeline Technologies Inc. (U.S.).

Regional Classification of the Global Flexible Pipe Market is Described Below:

North America

• U.S.
• Canada

Europe

• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East and Africa

*Regions and countries are subject to change based on data availability

Key Elements Included In The Study: Global Flexible Pipe Market

• Flexible Pipe Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value, 2018 - 2022
• Market Value at Regional and Country Level, 2023 - 2030
• Market Dynamics and Economic Overview
• Market Size in Value, Growth Rates, and Forecast Figures, 2023 - 2030
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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