Global Gas Pipeline Infrastructure Market 2025 – 2034

Reports Description

As per the Gas Pipeline Infrastructure Market analysis conducted by the CMI team, the gas pipeline infrastructure market is expected to record a CAGR of 9.26% from 2025 to 2034. In 2025, the market size was USD 3231.55 Billion. By 2034, the valuation is anticipated to reach USD 7178.98 Billion.

Overview

As economies work toward reduction of carbon emissions while safeguarding energy security, natural gas does serve as one of the crucial bridge fuel with regard to energy transition. The exponential demand for energy across the globe is one of the key catalysts to the gas pipeline infrastructure market. The growing population coupled with rapid urbanization, especially in the developing economies like Brazil, China, and India, is turning out to be the major end-user of natural gas owing to depleting coal reserves.

China’s National Energy Administration is handsomely investing in the expansion of its gas pipeline network for reducing dependency on coal. Plus, the U.S. Energy Information Administration (EIA) does project a noteworthy increase in the consumption of natural gas at the global level, thereby accelerating the need for modernized and expanded pipeline networks.

Key Trends & Drivers

• Rising Demand for Natural Gas

Demand for natural gas is fuelled by urbanization, population explosion, and expansion of the manufacturing vertical, particularly in the emerging economies. This does create a need for new infrastructure and pipelines for connecting the production sites with consumption centers, thereby ensuring energy security and delivering the gas efficiently to end-users. Natural gas is one of the essential “bridge fuels” pertaining to energy transition, thereby offering lower carbon emissions in comparison with oil and coal. Power generation, chemical, and manufacturing verticals are increasingly dependent on natural gas, thereby driving its demand for delivery. Above all, industries and governments are investing in pipeline infrastructure for ensuring a reliable, stable, and cost-effective supply of natural gas for meeting domestic energy requirements and reducing dependency on imports.

• Aging Infrastructure

The fact that the major part of gas pipeline infrastructure across the globe has become obsolete can’t be ignored. This is especially true in the developed economies, where several gas pipelines were constructed in the mid-20^th century. As the pipelines age, the materials deteriorate, which, in turn, increases the risk of leaks, corrosion, and failures that could result in costly repairs and environmental disasters. Also, regulatory bodies ask for higher standards of safety with better environmental protection, thereby striving for proactive management. Need for replacement of these pipelines is driving the demand for gas pipeline infrastructure.

What’s trending in the Gas Pipeline Infrastructure Market?

Geopolitical unrest within the Middle East, coupled with the quest for obtaining freedom from energy dependency has resulted in notable investment in gas pipeline infrastructure. Stern safety and environmental regulations with regard to the implementation of emission reduction technologies, along with sophisticated pipeline monitoring solutions are also likely to boost the market. Plus, an upsurge in funding in offshore and deepwater projects that need cutting edge infrastructure inclusive of subsea pipelines, FPSO units, and drilling platforms is likely to propel the growth of the market. Rising demand for LNG from the emerging markets due to speedy industrialization is expected to foster the market further.

Key Threats

Significant investments are needed for constructing new compressor stations, pipelines, and the other infrastructure associated with it, which could be a barrier to entry, especially for new players. Also, with a greater number of economies inclined to long-term decarbonization policies, the risk of new pipeline investments becoming obsolete prior to desired lifespan persists. Besides, cross-border pipeline projects get further complicated by complex situations at the geopolitical level, which include varied national policies and international agreements. Moreover, constructing pipelines in various challenging terrains like deserts does present technical difficulties.

Opportunities

Integrating technologies such as AI, IoT, and predictive analysis does offer opportunities to improve pipeline management, monitoring, operational efficiency, and safety. Also, the need for accurate gas measurement for regulatory and monetary purposes is accelerating demand for advanced metering stations and technologies.

Opportunities do exist in the connecting pipelines to LNG export terminals in the form of development of pipeline infrastructure for transporting gas on onshore facilities from offshore production sites. Also, expanding the supply of petrochemical feedstock and introducing hydrogen blending in the existing pipelines do create novel avenues for pipeline repurposing and development. Cross-border pipeline projects do offer opportunities for strengthening regional energy integration and cooperation.

Category Wise Insights

By Operation

• Gathering Pipeline

Gathering pipelines, as the name suggests, do collect raw natural gas from the manufacturing site, such as offshore rigs and wells, and transport it to the processing facilities. They do form the gas pipeline work’s initial stage, wherein it consolidates gas from numerous sources for further refinement and processing. The major factor driving the growth of the gathering pipelines segment is increased exploration as well as manufacturing activities in unconventional and shale gas reserves.

• Transmission Pipeline

Transmission pipelines are high-pressure, large-diameter pipelines that are capable of transporting processed natural gas to storage from processing facilities or big distribution hubs across longer distances. Such pipelines do serve as the gas supply chain’s backbone, thereby facilitating international and interstate gas transportation. Moreover, increasing cross-border trade of natural gas that is further supported by LNG terminals fuels the need for strong transmission networks further.

• Distribution Pipeline

The distribution pipeline segment holds more than 60% of the overall market revenue. This segment is basically driven by growing adoption of natural gas for heating at the domestic level, small-scale industrial applications, and cooking. As such, a higher push for cleaner fuels and energy efficiency in commercial and residential sectors is bolstering the market.

By Application

• Compressor Station

A compressor station is one of the critical components of gas pipeline infrastructure, which is designed for maintaining the flow and pressure of natural gas as it makes its way through long-distance pipelines. Such stations are located at strategic intervals along the pipeline for ascertaining an uninterrupted and efficient delivery of natural gas to end-users, which include power plants, industrial facilities, and residential complexes. Expansion of inter-regional and cross-border gas pipeline projects drives demand for compressor stations for supporting long-distance and high-pressure gas transport.

• Metering Station

The metering station segment accounts for over 70% of the market share. This could be owing to the growing emphasis on precise gas measurement for regulatory and monetary purposes. Also, a rise in consumption of industrial and domestic gas, along with the integration of advanced metering technologies like smart meters, makes metering stations imperative.

How is AI shaping Gas Pipeline Infrastructure Market?

A study conducted by the American Society of Civil Engineers states that AI is effective in the prediction of oil pipeline failures with a precision rate of more than 90% for corrosion failures and more than 80% for equipment failures. Also, using AI in the oil & gas vertical translates into using advanced programs and data for handling exploration, production, drilling, and refining activities in the same manner as a human would. ML does use data from the past as well as current sources for helping systems in choosing the finest practices for drilling. Natural Language Processing (NLP) organizes large quantities of unorganized information from reports, logs, and field notes. Robotics help with remote checks in unsafe environments.

How are the U.S. Tariffs affecting Gas Pipeline Infrastructure Market?

The U.S. tariffs are resulting in increased construction costs for the projects owing to the rise in prices of imported materials such as specialized components and steel. These increased costs are likely to hamper development of the pipeline, delay the projects, and finally increase natural gas transport’s tariff rates, thereby adversely affecting the feasibility of the market. Pipelines such as Nexus and Rover are thus expected to witness sizable cost overruns as disparities between demand and supply are in the offing.

Report Scope

Regional Perspective

The gas pipeline infrastructure market is classified into North America, Europe, Asia Pacific, and LAMEA.

• North America

North America accounts for over 50% of market share, and the status quo is expected to remain unchanged during the forecast period. Shale gas revolution is one of the major drivers, especially in the U.S., wherein Marcellus Shale, Eagle Ford, and the Permian Basin have witnessed the transformation of the natural gas landscape. Projects like the mountain valley pipeline (MVP) and Permian highway pipeline are significant as far as connecting the gas-rich regions to markets is concerned. MVP alone has been designed to transport close to 2.0 billion cubic feet of natural gas every single day to southern Virginia from West Virginia.

• Asia Pacific

Asia Pacific’s speedy industrialization, especially in Southeast Asian economies, India, and China, has created an irrevocable demand for natural gas as one of the cleanest alternatives to coal for industrial processes and power generation. This has actually helped in unleashing massive investments in the pipeline infrastructure for ensuring reliable transportation of gas from manufacturing sites to consumption centers.

Instances of the major infrastructure projects include China’s West-to-East Gas Pipeline network spanning more than 8,800 kilometers. It does connect the gas-rich Xinjiang region to the eastern provinces. On the similar grounds, India’s national gas grid expansion plan aims to add more than 15,000 kilometers of pipeline infrastructure for increasing gas accessibility across India.

• Europe

Environmental policies of Europe, coupled with the role of natural gas as a transition fuel are significantly influencing the development of gas infrastructure. Many economies, as a part of the European Green Deal, are into upgradingtheir existing pipeline infrastructure for making it hydrogen-ready, thereby anticipating future transition in this regard. On this ground, the European Hydrogen Backbone initiative does aim at the repurposing of existing gas infrastructure for hydrogen transport, with companies such as Enagás S.A. and Gasuine leading the retrofit projects. The Netherlands is at the forefront herein.

• LAMEA

LAMEA does hold substantial reserves of natural gas, thereby rendering it an epicenter of infrastructure development for exploiting such resources domestically and also for export markets. The industries and governments are also shifting in the direction of lower-carbo fuels such as natural gas for reducing emissions, which is a catalyst to the expansion of pipelines.

• Central America

Central America is a recipient for the expansion of gas pipelines from Mexico for improving energy security with economic development. The potential project for bringing Mexican natural gas to Central America is under discussion. Advancement on its part depends on completion of the major pipelines within Mexico.

Key Developments

The gas pipeline infrastructure market is witnessing a notable organic and inorganic expansion. Some of the key developments include –

• In September 2024, Apollo Global Management inked an agreement with BP for acquiring a non-controlling stake in BP Pipelines TAP Limited (holding a 20% share in Trans Adriatic Pipeline (TAP)). The Trans Adriatic Pipeline is important in order to transport natural gas to Europe from Azerbaijan, especially Italy and Greece, as a part of the Southern Gas Corridor.

• In September 2024, Exxon Mobil Corporation entered into a project framework agreement with Mitsubishi Corporation for the latter’s participation in the former’s advanced facility in Baytown (Texas). The project would produce hydrogen with 98% carbon capture efficiency, the same as ow carbon ammonia. Plus, it is projected to generate close to 1 billion bcf of low carbon hydrogen/day with 1 million tons of low carbon ammonia every year.

• In July 2024, Engie (France) announced that it would partner with Macquarie Asset Management (Australia) for expanding the Mayakan natural gas pipeline in Mexico. The new pipeline would be spanning 700 kilometers across the Yucatán Peninsula, thereby effectively doubling the transportation capacity of natural gas for this region. It would be traversing the states of Tabasco, Chiapas, Yucatán, and Campeche.

• In May 2024, Nesma & Partners entered into a joint venture with Italy-based SICIM for working on two Master Gas projects for Saudi Aramco, thereby emphasizing almost 500 Km of pipeline construction across Saudi Arabia.

Leading Players

The gas pipeline infrastructure market is highly niche. Some of the key players in the market include:

• Enbridge Inc.
• Gazprom
• TransCanada Pipelines Limited
• Kinder Morgan
• Pembina Gas Infrastructure
• Saipem
• Enagás S.A.
• Bechtel Corporation
• Assam Gas Company Ltd.
• McDermott
• Others

These firms apply numerous strategies to enter the market, including innovations and mergers and acquisitions, as well as collaboration. The gas pipeline infrastructure market is shaped by the presence of diversified players that compete based on product innovation, vertical integration, and cost efficiency.

The Gas Pipeline Infrastructure Market is segmented as follows:

By Operation

• Gathering Pipeline
• Transmission Pipeline
• Distribution Pipeline

By Application

• Compressor Station
• Metering Station

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

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

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America