The Europe offshore pipeline market is expected to grow from US$ 4,959.17 million in 2019 to US$ 6,612.02 million by 2027; it is estimated to grow at a CAGR of 3.9% from 2020 to 2027, according to the “Europe Offshore Pipeline Market Forecast to 2027 – COVID-19 Impact and Regional Analysis by Diameter, Line Type, and Product” report.
Increasing demand for natural gas and crude oil drives the growth of the Europe offshore pipeline market. The markets in the UK and Germany are presenting the most considerable growth. The robust surge in petrochemical demand in Europe resulted in increased consumption.
Europe is witnessing high demand for natural gas owing to rise in use of natural gas in diverse industrial sectors. Surge in demand for oil & gas is attributed to increasing industrialization and urbanization. Several oil & gas companies across the region are increasing their offshore exploration & production (E&P) activities to meet the constantly rising energy demand. One of the significant oil & gas pipeline projects across Europe is Nord Stream 2 Gas Pipeline (Russia), which may get launched by the end of 2020. Rising demand for oil & gas increases E&P activities, which, in turn, supports the growth of the Europe offshore pipeline market.
Based on product, the refined products segment led the Europe offshore pipeline market in 2019. The refined products segment comprises pipelines used to distribute all oil & gas related refined final products to the customers. For instance, the distribution of natural gas is mostly done through pipelines. Also, liquid fertilizers are primarily transmitted through long distances pipelines. Additionally, LNG transported through ships requires short pipelines for connecting the vessel and onshore storage tanks. The surge in industrialization and urbanization across Europe is expected to accelerate the demand for refined products in coming years, which would drive the Europe offshore pipeline market during the forecast period.