The market for virtual pipelines, encompassing tanker trucks, towed trailers, tank containers, and rail tank cars, is characterized by a significant degree of consolidation, with prominent companies such as CIMC Vehicle, Daimler, and PACCAR (under the brands Kenworth and Peterbilt) commanding large portions of the market. This situation underscores the control exerted by a handful of leading manufacturers within the sector.
These key players have been actively pursuing technological innovations, aiming to fortify their market dominance amidst this consolidation. In a notable development from October 2022, Trinity Industries secured a $1.8 billion, multi-year order to supply railcars to GATX. Under this agreement, Trinity is set to deliver 6,000 tank cars, distributing them at a consistent pace of 1,200 cars each year from 2024 to 2028.
With the growing interest in virtual pipeline solutions, businesses that adopt a proactive and innovative stance are poised to significantly influence the trajectory of the global virtual pipeline market, responding effectively to the changing requirements of the energy transportation industry.
As per the report released by BIS Research, the global virtual pipeline market was valued at $6,130.7 million in 2023 and is expected to reach $14,171.7 million by 2033, with a CAGR of 8.74% from 2023 to 2033.
The rise of remote operations is driving growth in the global virtual pipeline market, positioning it as a vital alternative for expanding natural gas access in areas without traditional pipelines. This approach enables industries in these regions to switch to cleaner energy, promoting innovation and competitive advantages. It not only revitalizes local markets by encouraging high-quality production but also facilitates global reach. Virtual pipelines' adaptability supports market growth by allowing for expansion into new areas, urging manufacturers to meet the evolving demands of energy transport.
The global shift towards renewable energy, notably in Europe, is steering investments away from the crude oil sector, impacting virtual pipeline market expansion. The IMF reports a reduction in oil infrastructure investments by major companies due to dwindling reserves. Concurrently, fluctuating natural gas prices challenge its adoption.
Moreover, the flammability of natural gas requires extra safety measures in its transport, possibly affecting market growth. Additionally, temperature changes can alter gas properties, leading to higher maintenance costs and challenges for manufacturers of tanker trucks and towed trailers adapting to changing energy needs.
Government policies, subsidies, and regulations greatly affect virtual pipeline system growth. Incentives for using natural gas and related safety/environmental rules shape the sector. The European Union's Clean Energy Package, for instance, promotes renewable gas integration into the grid and supports cross-border trade of LNG and CNG through virtual pipelines. This reflects strong government support for flexible, efficient energy transportation via tanker trucks and trailers across borders.
Some of the prominent names in this market are:
• Galileo Technologies S.A.
• BayoTech
• Wabash National Corporation
• CIMC Vehicles (Group) Co., Ltd.
• Daimler Truck AG
• PACCAR Inc
• Quantum Fuel Systems LLC
• Wabash National Corporation
• Polar Tank Trailer
• HEIL Trailer
• Tremcar
• CIMC Safeway Technologies Co., Ltd
• Jingjiang Asian-Pacific Logistics Equipment Co., Ltd
• Square Technology Group Co., Ltd (NTtank)
• Chart Industries
• Trinity Industries, Inc
• In August 2022, Kinder Morgan acquired North American Natural Resources, Inc. and its related entities North American Biofuels LLC and North American-Central LLC for $135 million. This deal included seven landfill gas-to-power facilities in Michigan and Kentucky, with plans to convert four into renewable natural gas plants at a cost of about $175 million.
• In June 2022, AVR initiated a collaboration with HaloSep AB, a Swedish firm, to manage its hazardous gas and residue locally. HaloSep's innovative technology turns hazardous waste into safe, useful materials, aiding in resource recovery and reducing environmental impact.
• In October 2021, Gas Malaysia and Malakoff Corporation Berhad launched their joint venture, Malakoff – Gas Malaysia Cogen O&M Sdn Bhd, to provide Operations & Maintenance services for a cogeneration plant in Malaysia, leveraging their combined expertise and resources.
According to Debraj Chakraborty, Principal Analyst, BIS Research, “The global energy landscape is undergoing a transformative shift with the rise of virtual pipelines, redefining the dynamics of gas transportation. By embracing digital innovation and flexibility, virtual pipelines are becoming instrumental in ensuring a resilient and efficient energy supply chain, heralding a new era in the global gas industry.”
