The global intelligent pigging market is set to expand 6.3 percent annually to reach $826.5 million (USD) by 2025, according to a research report by Future Market Insights.
The report titled, “Intelligent Pigging Services Market: Global Industry Analysis and Opportunity Assessment 2015-2025,” offers market forecast and key trends in the intelligent pigging services market.
Pipeline inspection gauges, also known as “pigs,” are devices used for inspection and maintenance operations of oil and gas pipelines. Intelligent pigs — sometimes called “smart pigs” — have an on-board electronic chip, which is used for recording the data about the condition of the pipeline. These smart pigs are widely used for corrosion and cracks detection.
“Stringent government and industry regulations, expected economic revival and technological advancements in pigging services are surging demand for global intelligent pigging services market,” according to one Future Market Insights analyst. The analyst added that increasing awareness among pipeline operators about the benefits of regular inspection and maintenance of pipelines is expected to further fuel market growth. This is also expected to prompt original equipment manufacturers (OEMs) and vendors of intelligent pigs to introduce innovation in inspection technologies such as magnetic flux leakage (MFL) and ultrasonic test (UT) to improve efficiency of services.
The key factors that can restrain the growth of the intelligent pigging services market during the forecast period include shrinking profit margins owing to fierce competition and high cost of intelligent pigging.
The research firm has also analyzed the key trends in the intelligent pigging services market in its research report. Two key trends in the market include growing demand for small pigs and long-term contracts with OEMs and vendors.
On the basis of technology, Future Market Insights has segmented the intelligent pigging services market into MFL and UT. MFL is widely used in intelligent pigging, accounting for a share of over 60 percent in 2015. The firm forecasts MFL to remain the dominant technology during the forecast period. UT cannot be used for inspecting natural gas pipelines, and owing to this limitation, this technology segment is expected to witness moderate growth during the forecast period.
Future Market Insights has segmented the intelligent pigging services market on the basis of end-use industry into oil and gas. Demand for intelligent pigging is robust in the gas sector, and the firm reports that the segment accounted for 80.4 percent market share in 2014. The firm estimates the gas industry grow at a compound annual growth rate (CAGR) of 6.2 percent between 2015 and 2025, to account for $657 million 2025. The oil industry segment is estimated to account for 19.8 percent share by the end of 2015 and is forecast to increase at a CAGR of 6.7 percent through 2025. The gas pipeline industry is expected to continue to dominate the global intelligent pigging services market over the forecast period.
On the basis of key regions, the report segments the intelligent pigging services market into North America, Eastern Europe, Middle East and Africa, Western Europe, Asia Pacific Excluding Japan (APEJ), Latin America and Japan. North America accounted for 48.9 percent revenue share in the global intelligent pigging services market in 2014 and is expected to continue to dominate the global market over the forecast period. One of the smallest intelligent pigging services market, Latin America is expected to register the highest CAGR during the forecast period. The APEJ market is projected to register a CAGR of 7.1 percent over the forecast period
Increasing consumption of petroleum products and natural gas is expected to fuel demand for intelligent pigging services globally. In addition, economic revival in regions such as Eastern Europe, Western Europe and North America and economic growth in regions such as APEJ and Latin America are expected to propel growth of the global intelligent pigging services market over the forecast period.
Key players across the supply chain in the global intelligent pigging services market include OEMsand vendor of intelligent pigging services and oil and gas explorers and producers. The OEMs/vendors that Future Market Insights has analyzed are LIN SCAN, T.D. Williamson Inc., Baker Hughes Inc., GE Oil and Gas (PII Pipeline Solutions), NDT Global and Enduro Pipeline Services Inc. The oil and gas explorers and producers analyzed in the report are Petrobras, OMV Group, ConocoPhillips and Royal Dutch Shell Plc. Pipeline operators are trending toward entering into long-term supply contracts with OEMs/vendors to minimize the effect of increasing costs of intelligent pigging services.
In the future, Future Market Insights recommends that OEMs/vendors should continue investing in the North America and Eastern Europe market. At the same time, APEJ and Latin America are expected to generate significant demand for intelligent pigging services. OEMs/vendors should focus on improving combinational technologies, as these are more effective and advanced that individual technologies currently used for pigging services.