What Fueled The Previous Growth In The Virtual Pipeline Market?
The virtual pipeline market has seen considerable growth due to a variety of factors.
• There has been a significant expansion in the size of the virtual pipeline market recently. This market, which was valued at $1.7 billion in 2024, is projected to increase to $1.81 billion in 2025, with a compound annual growth rate (CAGR) of 6.6%.
The historical growth of this market can be credited to factors such as greater demand for natural gas, improved access to remote energy sources, rising concerns over energy security, greater emphasis on cost-efficient energy distribution solutions, and enhanced understanding of the benefits of using natural gas.
How Does the Forecast Look for the Virtual Pipeline Market?
The virtual pipeline market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the virtual pipeline market is set to experience robust growth. By 2029, it is anticipated to reach a valuation of $2.31 billion, going at a compound annual growth rate (CAGR) of 6.3%.
This prospective growth is linked to factors such as higher urbanization rates, expansion of the industrial sectors, and more integration of renewable energy. Other contributing factors include a surge in energy infrastructure investments and a greater focus on cutting down carbon emissions. The key trends expected during the forecast period include new market expansions, developments of technology, incorporation of renewable energy, regulatory backing and standards, partnerships and collaborations. Safety and environmental compliance, demand from isolated or off-grid markets, economic practicability and price competitiveness, as well as a more pronounced focus on sustainability, are also expected to mark the period.
What Are The Leading Drivers Of Growth In The Virtual Pipeline Market?
The rising necessity for natural gas is anticipated to augment the expansion of the virtual pipeline market in the future. Found underground, natural gas, which contains a high percentage of methane, serves as a fuel source for various purposes including heating, cooking, electricity generation, and transportation. Its demand is skyrocketing due to its contribution as a cleaner-burning fossil fuel, its wide-ranging usage in power production, industrial operations, and heating, and its prospective role as a transition fuel in the worldwide move towards less carbon-intensive energy sources. Virtual pipelines are employed to transport natural gas, particularly in regions where traditional pipeline structures are absent, not economically feasible, or do not meet the requirement. For instance, in March 2023, as per an Energy Information Administration report, a governmental agency of the United States, the daily natural gas consumption in the country reached a record high of 88.5 billion cubic feet per day in 2022, marking a 5% rise compared to 2021. The consumption of natural gas was measured at 4.5 billion cubic feet daily (Bcf/d). Additionally, in 2022, 38% of the total natural gas was used by US end-user sectors. Therefore, as the necessity for natural gas escalates, so too does the expansion of the virtual pipeline market.
How Are The Segments Defined Within The Global Virtual Pipeline Market?
The virtual pipeline market covered in this report is segmented –
1) By Fuel Type: Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG), Other Fuel Types
2) By Mode Of Transport: Truck, Barge, Rail, Ship
3) By End-Use: Commercial, Industrial, Transportation
Subsegments:
1) By Compressed Natural Gas (CNG): Onsite CNG Compression, CNG Transportation And Distribution, CNG For Industrial And Commercial Use
2) By Liquefied Natural Gas (LNG): Small-Scale LNG, LNG Transportation And Distribution,LNG For Heavy-Duty Transport And Shipping
3) By Other Fuel Types: Hydrogen, Biogas, Propane, Synthetic Natural Gas (SNG)
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What Trends Are Shaping The Virtual Pipeline Market?
Leading corporations in the virtual pipeline market are investing heavily in technological advancements and fostering partnerships with energy firms to provide virtual pipeline trailer-based natural gas and hydrogen transport solutions. These solutions aim to satisfy the escalating energy demands in isolated and industrial regions. Virtual pipeline trailers, specialized transport units, are designed to convey compressed or liquefied natural gas from one place to another, particularly in areas where traditional pipeline infrastructure is lacking or impractical. Quantum Fuel Systems LLC, an integrated alternative energy company based in the US, bagged an important contract from Certarus Ltd., a leading green energy supplier headquartered in Canada, to provide virtual pipeline trailers for natural gas in May 2022. Certarus then placed and additional order for Quantum’s VPLite45/40’ trailers, set to be delivered in Q3 and Q4 of 2022. These trailers have a gaseous capacity of around 472,000 standard cubic feet and maintain a fully loaded weight below 59,000 pounds. These trailers, approved for usage in both US and Canada, are a popular selection for customers needing a compact, lightweight trailer that affords excellent maneuverability in constrained spaces whilst delivering the highest gas capacity in a 40-foot container.
Who Are the Key Players In The Virtual Pipeline Market?
Major companies operating in the virtual pipeline market report 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.
What Is The Most Dominant Region In The Virtual Pipeline Market?
North America was the largest region in the virtual pipeline market in 2024. 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.
