Steady flow: The increasing use of gas in electricity production has supported growth

The Pipeline Transport industry chiefly concerns high-pressure gas transmission and petroleum. Small amounts of water and other liquids travel through pipelines, but they are an uneconomical way to transport most substances. Demand for gas transport is mainly affected by levels of electricity production and the amount of gas that is imported. The United Kingdom imports natural gas via pipelines from Norway, the Netherlands and Belgium.Industry revenue is expected to rise at a compound annual rate of 3% over the five years through 2018-19. This reflects the fact that a falling share of electricity is being produced using coal, which is not transported through the industry's pipelines. A...read more.

Industry Statistics & Market Size
Revenue
£1.4bn
Annual Growth 14-19
3.0%
Forecast Growth 19-24
Profit
Employment
1,291
Businesses
14

Industry Threats & Opportunities

  • Growth in the use of natural gas in electricity generation is supporting industry expansion
  • The construction of new LNG terminals has fuelled the need for new pipelines
  • Continued growth in the UK population will fuel has use and support demand for the industry’s services
  • Industry Report - Industry Investment Chapter

    The level of capital intensity in the Pipeline Transport industry is high, due to the huge amount of investment required for the establishment and maintenance of pipelines. IBISWorld estimates that for every £1.00 spent on capital, 39p will be spent on wages in 2018-19.Depreciation is a substantial cost in the industry because of the high level of capital spending required to both maintain and expand transmission networks. The National Grid in particular invests heavily in the gas transmission system in Great Britain due to its dominant nature. The company's gas transmission property, plant and equipment is valued at more than £4 billion. This demonstrates the extent of the capital base needed to succeed in the industry...purchase to read more.

    Additional Insights for the Pipeline Transport Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pipeline Transport Industry are

  • Ability to negotiate successfully with regulator
  • Effective cost controls
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Demand from electricity production and Natural gas reserves in the Pipeline Transport industry impact industry performance..

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    What's in this report

    What is the Pipeline Transport Industry?

    Firms in this industry transport gases, liquids, water, slurry and other commodities by pipeline. The industry covers long-distance connections between countries or distribution grids, rather than local supply facilities. Players also operate pump stations.

    Industry Products
  • Natural gas
  • Petroleum
  • Water and other liquids
  • Industry Activities
  • Transporting natural gas
  • Transporting liquids, water, slurry and other commodities
  • Operating pump stations
  • Transporting petroleum products
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from electricity production
  • Natural gas reserves
  • Public concern over environmental issues
  • World price of natural gas
  • World price of crude oil

  • Current Performance
  • Electricity generation
  • International trade of gas
  • Profitability
  • Potential problems
  • Chart: Revenue Growth

  • Industry Outlook
  • Growth in the pipeline
  • Weather conditions and profit margins
  • Regulatory change
  • Table: Pipeline Transport Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Pipeline Transport Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Electricity Production
  • Gas Distribution
  • Airports

  • Key Selling Industries
  • Consultant Engineering Services
  • Crude Petroleum & Natural Gas Extraction
  • Water Main, Sewer System & Related Project Construction

  • Products & Services
  • Natural gas
  • Petroleum
  • Water and other liquids
  • Chart: Pipeline Transport Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Gas suppliers
  • Electricity generators
  • Industrial and agricultural users
  • Chart: Major Market Segmentation for the Pipeline Transport Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesDepreciationWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Pipeline Transport

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pipeline Transport Industry

  • Industry Globalization
    National Grid Gas plc, CLH Pipeline System (CLH-PS) Ltd,
  • Table: National Grid Gas plc - financial performance
  • Table: CLH Pipeline System (CLH-PS) Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Pipeline Transport Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Pipeline Transport Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Gas Transmission System
  • High-pressure gas pipelines that carry gas from producers or terminals to low-pressure gas distribution systems.
  • Liquefied Natural Gas (Lng)
  • Formed by cooling natural gas to a very low temperature, at which it becomes liquid.
  • Slurry
  • Any thin mud or cement made from a pulverised solid combined with liquid.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Pipeline Transport market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Pipeline Transport:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Pipeline Transport market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Pipeline Transport, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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