Pipeline Construction Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Pipe Type (Metallic and Non-Metallic), By Application (Liquid Pipeline and Gas Pipeline), By End-User (Oil & Gas, Chemical & Petrochemical, Water & Wastewater, Energy, Others), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 47.81 Billion
CAGR (2026-2031)	5.96%
Fastest Growing Segment	Non-Metallic
Largest Market	North America
Market Size (2031)	USD 67.67 Billion

Market Overview

The Global Pipeline Construction Market will grow from USD 47.81 Billion in 2025 to USD 67.67 Billion by 2031 at a 5.96% CAGR. The global pipeline construction market encompasses the engineering, procurement, and installation of infrastructure designed to transport hydrocarbons, water, and other industrial fluids across extensive distances. The primary drivers propelling market expansion include the escalating global demand for energy and the necessity to connect remote extraction sites with refineries and consumption centers. Furthermore, rapid industrialization in emerging economies necessitates robust transmission networks to ensure a reliable supply of essential resources. Illustrating this trajectory, according to the International Gas Union, in 2024, global natural gas demand rose by 78 billion cubic meters, emphasizing the critical need for expanded transmission infrastructure.

However, the sector faces a significant challenge regarding stringent environmental regulations and complex permitting processes. These regulatory hurdles frequently lead to extended project timelines and escalated capital expenditures, particularly for cross-border initiatives subject to multiple jurisdictional mandates. Consequently, such bureaucratic obstacles can severely impede the timely execution of planned infrastructure developments and constrain the overall expansion of the global pipeline network.

Key Market Drivers

The escalating global demand for oil and natural gas serves as a primary catalyst for new pipeline construction projects. As energy consumption rises in both industrialized nations and developing regions, producers are compelled to develop extensive transport networks to move hydrocarbons from extraction sites to refineries and end-users. This pressure to bridge the gap between supply sources and demand centers requires continuous expansion of midstream capabilities to ensure consistent delivery. According to OPEC, August 2024, in the 'Monthly Oil Market Report', world oil demand is projected to increase by 2.11 million barrels per day in 2024, reflecting the sustained reliance on fossil fuels that underpins the necessity for new conveyance systems.

Simultaneously, the strategic development of cross-border energy security interconnections is translating into substantial infrastructure activity. Governments and private entities are investing in long-distance transmission lines to secure energy sovereignty and support industrial growth, resulting in significant mileage currently under development. According to Global Energy Monitor, October 2024, in the 'Global Gas Infrastructure Tracker', there are approximately 68,600 kilometers of gas transmission pipelines currently under construction globally. Additionally, established markets continue to enhance their existing networks to handle increased volumes and regional needs. According to the U.S. Energy Information Administration, in 2024, pipeline projects added over 3.0 billion cubic feet per day of natural gas capacity to the United States market.

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Key Market Challenges

Stringent environmental regulations and complex permitting processes impose substantial constraints on the global pipeline construction market. These regulatory frameworks often require extensive environmental impact assessments and multi-agency approvals, which significantly extend the project development lifecycle. As legal and procedural requirements intensify, pipeline operators encounter frequent litigation and administrative delays, impeding the timely commencement and completion of infrastructure. This operational uncertainty increases compliance costs and discourages capital investment, as stakeholders reevaluate the financial viability of projects subject to indefinite timelines.

Consequently, these regulatory hurdles directly reduce the industry's ability to expand transmission networks in alignment with growing energy demand. The impact of such impediments is evident in recent industry data which highlights the severity of these bottlenecks. According to the Interstate Natural Gas Association of America, in 2025, 42 major pipeline projects were identified as experiencing cumulative delays of three to four years attributed specifically to regulatory processes. Such prolonged delays stagnate the deployment of essential infrastructure and severely restrict the overall expansion of the market.

Key Market Trends

The expansion of hydrogen and ammonia transportation infrastructure is emerging as a critical growth trajectory, distinct from traditional hydrocarbon conveyance. This trend is driven by the necessity to transport low-carbon energy vectors from new renewable production hubs to industrial end-users, requiring specialized engineering to address the embrittlement and permeation challenges associated with hydrogen. The scale of this infrastructure shift is substantial, as nations prioritize the creation of extensive backbone networks to support decarbonization goals. According to Global Energy Monitor, January 2025, in the 'Europe Gas Tracker 2025: Hydrogen edition', European nations have proposed a sprawling network encompassing 50,165 kilometers of hydrogen gas pipelines, highlighting the massive capital reallocation towards renewable fuel transport systems.

Simultaneously, the development of Carbon Capture, Utilization, and Storage (CCUS) pipeline networks represents a fundamental evolution in midstream logistics. This trend involves constructing dedicated transport systems to move captured carbon dioxide from industrial emitters to geological storage sinks or utilization facilities, creating a reverse-logistics supply chain essential for net-zero targets. The sector is moving rapidly from feasibility studies to active execution, reflecting an urgent industry-wide response to emissions mandates. According to the Global CCS Institute, October 2025, in the 'Global Status of CCS 2025' report, 30 new dedicated CO2 pipeline projects have commenced construction since the previous year's edition, underscoring the accelerated deployment of this specialized infrastructure.

Segmental Insights

The Non-Metallic segment is emerging as the fastest growing category within the global pipeline construction market, primarily driven by the critical need for corrosion resistance in energy and water infrastructure. Industry operators increasingly prioritize materials such as high-density polyethylene and reinforced composites to minimize the high maintenance costs and chemical degradation associated with traditional metallic pipes. This adoption is further validated by technical standards from organizations like the American Petroleum Institute, which ensure the reliability of composite materials for hydrocarbon transport. Consequently, the operational durability and installation efficiency of these materials accelerate their integration into modern pipeline networks.

Regional Insights

North America holds a leading position in the Global Pipeline Construction Market, driven by increased investments in energy infrastructure development. The region benefits from extensive shale gas exploration, necessitating efficient transportation networks to link production zones like the Permian Basin with refineries and export terminals. This growth is supported by a stable regulatory environment under the Federal Energy Regulatory Commission, which facilitates interstate project approvals. Additionally, the continuous expansion of oil and gas transmission systems to meet domestic and international energy demand secures the region's dominance in the sector.

Recent Developments

• In June 2025, Granite Construction, leading a joint venture with Contri Construction known as Southern Nevada Construction Partners, was awarded a Construction Manager at Risk contract valued at approximately $240 million by the Southern Nevada Water Authority. The project scope encompassed the installation of approximately 22,000 linear feet of large-diameter steel water pipeline, including complex trenchless crossings beneath existing infrastructure. This collaboration leveraged the combined expertise of both companies to deliver critical water delivery systems and enhance reliability for the Las Vegas Valley, demonstrating the joint venture’s strength in heavy civil pipeline construction.
• In May 2025, TechnipFMC signed a significant technological order with Petrobras to accelerate the development and commercialization of its Hybrid Flexible Pipe solution. This breakthrough innovation was designed to address stress corrosion cracking caused by carbon dioxide in pre-salt fields. The technology combined the mechanical advantages of conventional flexible pipes with advanced composite materials to enhance durability and reduce weight. This collaboration with the Brazilian state-controlled oil company aimed to validate the product's performance in harsh ultra-deepwater environments, establishing a new standard for corrosion-resistant pipeline infrastructure.
• In May 2024, DORIS, ROSEN, and SPIECAPAG jointly established the Pipeline Transition Alliance to support the repurposing of existing natural gas pipelines for hydrogen transmission. This strategic collaboration combined DORIS’s engineering expertise, ROSEN’s integrity management capabilities, and SPIECAPAG’s construction proficiency to offer a comprehensive solution for infrastructure owners. The initiative aimed to address the technical challenges associated with hydrogen transport, such as material compatibility and safety, thereby facilitating a cost-effective transition to clean energy. The alliance positioned itself to manage the entire lifecycle of pipeline conversion projects globally.
• In February 2024, McDermott International secured a major contract from the North Oil Company to execute engineering, procurement, construction, installation, and commissioning works for the Ruya Development Project offshore Qatar. This award was granted to a consortium comprising McDermott and Qingdao McDermott Wuchuan. The project scope involved the installation of nine satellite wellhead platforms and jackets as part of the expansion of the Al-Shaheen field. This strategic collaboration highlighted the company's capability to deliver complex energy infrastructure through integrated partnerships, reinforcing its position in the Middle East's offshore pipeline construction sector.

Key Market Players

• Baker Hughes Company
• Techfem Spa
• Halliburton Energy Services, Inc.,
• Larsen & Toubro Limited
• Prosaic Steel & Alloys
• Bechtel Corporation
• CCI Leidingsystemen BV
• YENA Engineering BV

By Pipe Type	By Application	By End-User	By Region
Metallic and Non-Metallic	Liquid Pipeline and Gas Pipeline	Oil & Gas Chemical & Petrochemical Water & Wastewater Energy Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Pipeline Construction Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Pipeline Construction Market, By Pipe Type:

• Metallic and Non-Metallic

• Pipeline Construction Market, By Application:

• Liquid Pipeline and Gas Pipeline

• Pipeline Construction Market, By End-User:

• Oil & Gas
• Chemical & Petrochemical
• Water & Wastewater
• Energy
• Others

• Pipeline Construction Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE