Market Overview

The pipeline security market was valued at USD 7.35 billion in 2019 and is expected to reach USD 12.04 billion by 2025, at a CAGR of 8.59% over the forecast period 2020 - 2025.? Pipeline systems have evolved to become the primary solution for commercial activities. The market for pipeline security has been boosted by the demand for sustainable use of resources and the rising frequency of breaches and theft of small quantities of the product being transported.

  • The pipeline established for the transport of commodities is estimated to span across 3.5 million kilometres across 120 countries across the world. Oil & gas, natural gas has been expected to be the most vulnerable to attacks, and hence, the increased spending by the oil and gas corporation to install robust security infrastructure to ensure security to the pipelines have been the primary reason for the growth of the market globally.
  • Demand for natural gas is expected to grow at a much quicker rate than the current demand for coal or oil in the future. This has been predicted with the consideration to meet the carbon reduction targets set across the globe to move towards an eco-friendly industrial sector. The increasing natural gas usage is increasing demand for its pipeline security.
  • Additionally, the oil and gas sector has been found to be the most impacted by the robust state-sponsored cyber-espionage campaigns, which can affect the physical infrastructure as well. These vulnerabilities have forced the industry players to divert significant amounts of funds for security.
  • However, the high implementation and maintenance cost is incorporated with the pipeline security systems as the pipeline facility is diverse and scattered. This factor is restricting companies for pipeline security system adoption.

Scope of the Report

The scope of the study for pipeline security market is limited to the type of security systems offered by the vendors for different commodity pipelines globally. The after sales service are not considered for market estimation.

Key Market Trends

SCADA System Segment to Grow Significantly

  • Supervisory Control and Data Acquisition (SCADA) software have experienced rapid growth over the past decade. SCADA system helps the end-user industry employees to analyse the data and make crucial decisions from a remote location. It further assists in mitigating the issues with a quick response as it processes, distributes, and displays the data, on Human Machine Interface (HMI).
  • Pipeline SCADA systems detect different hazards as well as leaks immediately and effectively alarms the security forces or maintenance crews. It offers a unique solution for the detection of on and underground activities. The applications are specifically used for the detection of digging and leakage.
  • The US alone has about 150,000 miles of pipelines for transporting petroleum products. To efficiently monitor and control this massive oil pipeline network SCADA systems are employed. The oil pipeline SCADA has several hundred RTU’s (remote terminal units) that are connected to field instruments that measure pressure, temperature, and rate of flow of the oil flowing through the pipes, as well as change the statuses of valves and pumps along the pipeline.
  • According to EIA, the global demand for energy is expected to reach 681 quadrillions BTU by the year 2040. The increasing demand for natural gas production and supply globally to gain a reduction in carbon emission is demanding the need for their pipeline security systems.

North America to Hold the Largest Market Share

  • The increasing number of industries and demand for natural gas is leading to growth in the pipeline network, and hence, the market for security is expected to rise drastically to secure the pipeline network. The demand for natural gas in North America is estimated to grow by 36% by the year 2040 from 2016 demand.
  • The United States is one of the largest markets for pipeline security in the world. The hazardous liquids and natural gas pipelines are critical to the nation’s commerce and economy, and hence, act as a potential target for various terrorist organisations. The security threat to such essential pipelines was limited to minor theft and vandalism for a few years. Gradually, the whole security infrastructure and the network have undergone vast changes to respond to evolving security threats.
  • 2018 U.S. Natural Gas Pipeline Report stated that natural gas infrastructure makes up over half of the needed energy infrastructure, with total investments forecast at USD 417 billion, or an average of USD 23 billion annually, from 2018 through 2035.
  • The importance of pipeline security is a heightened priority for both the government and private industry. Comprehensive solutions include identifying threats to assets, infrastructure, employees and finances while determining the likelihood of the danger holds the high priority.

Competitive Landscape

The market trend moderately towards consolidation as a significant share of the market lies with the major market players. Innovation in the market requires the developers to have a better understanding of the industrial process to deliver a suitable solution and also drives close collaboration among the stakeholders during development, customisation to suit the end users need.

  • May 2019 - ABB launched a cloud-based SCADA system for offshore oil well drilling machines. This cloud-based visualisation system enables the small scale operators to gather insights about their onshore oil well drillings remotely similar to the big organisations without investing for the full on-premise SCADA system.
  • Feb 2019 - ABB and Dassault Syst?mes entered global partnership for digital solutions. By collaborating ABB Ability and Dassault’s 3DEXPERIENCE platform, the two companies plan to provide end-to-end offerings of advanced digital solutions while increasing flexibility, speed, and productivity of the consumers.

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