Dublin, Jan. 07, 2025 (GLOBE NEWSWIRE) — The “North America Virtual Pipeline Market, By Country, Competition, Forecast & Opportunities, 2019-2029F” report has been added to ResearchAndMarkets.com’s offering.
The North America Virtual Pipeline Market was valued at USD 0.99 Billion in 2023, and is expected to reach USD 1.37 Billion by 2029, rising at a CAGR of 5.29%
The North America Virtual Pipeline market is witnessing significant growth due to the rising demand for natural gas in areas without direct access to traditional pipeline infrastructure. Virtual pipelines refer to systems that transport compressed natural gas (CNG) or liquefied natural gas (LNG) via non-pipeline methods, such as trucks, ships, or rail, enabling the delivery of natural gas to remote or underserved areas.
The expanding natural gas industry in North America, driven by increased production from shale gas reserves, is a major factor contributing to the market’s expansion. The flexibility and cost-efficiency of virtual pipelines make them a viable alternative to traditional pipelines, particularly in regions where building new pipeline infrastructure is financially or logistically impractical.
One of the primary drivers of growth in the North America virtual pipeline market is the increasing demand for cleaner energy sources. Natural gas is seen as a cleaner alternative to coal and oil, and its use is being promoted to reduce carbon emissions and improve air quality. As governments and industries in North America push for cleaner energy solutions, virtual pipelines provide an efficient way to meet this demand in regions lacking pipeline infrastructure. This is particularly relevant for industries such as power generation, transportation, and manufacturing, where natural gas is increasingly replacing traditional fuels.
The market is benefiting from advancements in transportation and storage technologies, making it easier and more cost-effective to transport CNG and LNG over long distances. Innovations such as advanced cryogenic storage for LNG and more efficient compression systems for CNG have enhanced the capabilities of virtual pipeline systems. This has led to the adoption of virtual pipelines in various applications, including industrial, residential, and commercial sectors, as well as in the transportation industry, where CNG and LNG are used as fuels for vehicles.
The growth of the virtual pipeline market in North America is supported by regulatory initiatives that promote the use of natural gas. The U.S. and Canadian governments have implemented policies that encourage the use of cleaner energy sources, particularly in rural and off-grid areas, where virtual pipelines are crucial for supplying natural gas. These initiatives, along with favorable market conditions, have made virtual pipelines an attractive solution for energy companies looking to expand their reach into new markets without the significant capital investment required for traditional pipeline construction.
Increased Adoption of Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) for Transportation
The adoption of CNG and LNG as alternative fuels in the transportation sector is rapidly gaining traction in North America, driven by the growing emphasis on reducing carbon emissions and fuel costs. Virtual pipelines offer a solution to deliver these fuels to remote regions or areas without access to traditional gas pipeline infrastructure. Fleet operators, public transportation systems, and the shipping industry are transitioning to natural gas due to its cost-effectiveness and lower environmental impact compared to diesel or gasoline.
In the trucking and freight sector, the use of LNG as a fuel is on the rise, especially for long-haul transportation. LNG provides higher energy density compared to CNG, making it more suitable for vehicles traveling long distances. Virtual pipelines ensure that fueling stations in areas with limited pipeline access can still receive natural gas, supporting the growth of LNG-powered fleets. Similarly, CNG is increasingly being adopted in local transit systems and short-haul vehicles. The virtual pipeline network enables the delivery of natural gas to urban and rural fueling stations, ensuring continuous fuel supply and supporting the shift toward cleaner transportation options.
This trend is further supported by government regulations that encourage the use of alternative fuels in transportation. In the U.S., tax incentives and grants are available for companies that invest in CNG or LNG vehicles and infrastructure, including fueling stations. Virtual pipelines help overcome the logistical challenges of delivering natural gas to remote regions, enabling wider adoption of these fuels in transportation, contributing to the sector’s overall sustainability goals.
Growth of Natural Gas-Fueled Power Generation in Remote Areas
In remote or off-grid areas of North America, virtual pipelines are playing an increasingly important role in providing natural gas for power generation. Many regions lack the extensive pipeline infrastructure needed to transport natural gas efficiently, making virtual pipelines a cost-effective solution. The use of virtual pipelines allows energy companies to deliver CNG or LNG to power plants located in remote areas, ensuring a reliable energy supply where traditional pipelines are not feasible.
This trend is especially significant in rural areas of Canada and the United States, where building permanent infrastructure can be costly and logistically challenging. Virtual pipelines provide a flexible, scalable solution that can be adjusted according to the demand for natural gas in these areas. As power generation shifts away from coal and oil toward cleaner energy sources, natural gas has emerged as an important transitional fuel due to its lower carbon emissions and reliability. Virtual pipelines help bridge the gap between supply and demand in regions without direct access to the conventional natural gas grid.
The increased focus on energy security and grid reliability is boosting demand for virtual pipeline solutions. In regions susceptible to natural disasters, where energy supply can be disrupted, virtual pipelines offer a resilient alternative for ensuring continuous fuel availability. With governments and utilities focusing on reducing carbon emissions and enhancing grid resilience, the growth of natural gas-fueled power generation through virtual pipelines is expected to continue as a major trend.
Expansion of Virtual Pipelines to Serve Industrial Applications
The industrial sector in North America is increasingly relying on virtual pipelines to meet its natural gas needs, especially in areas where pipeline infrastructure is inadequate or absent. Industries such as manufacturing, mining, and chemical processing require a steady supply of natural gas for heating, production processes, and power generation. Virtual pipelines provide a flexible and cost-effective solution, allowing industrial facilities in remote locations to access natural gas without the need for expensive pipeline construction.
This trend is particularly prominent in Canada and the U.S., where large industrial hubs are located far from natural gas pipelines. For instance, in the mining industry, many operations are situated in remote areas, making it difficult to establish traditional pipeline connections. Virtual pipelines enable these facilities to receive consistent deliveries of CNG or LNG, ensuring uninterrupted operations. This approach is not only cost-efficient but also helps industries reduce their carbon footprint by transitioning from diesel or coal to cleaner natural gas.
The growing adoption of virtual pipelines in industrial applications is also being driven by advancements in storage and transportation technologies. Innovations such as modular storage units and improved compression techniques make it easier to transport and store large quantities of natural gas in liquid or compressed form. As industrial demand for natural gas continues to rise, virtual pipelines are becoming an essential part of the energy supply chain, supporting the sector’s efforts to enhance sustainability and energy efficiency.
Technological Advancements in Storage and Transportation Solutions
The North America virtual pipeline market is experiencing rapid growth due to significant advancements in storage and transportation technologies for CNG and LNG. As demand for natural gas in remote or underserved areas increases, innovations in these areas are becoming key drivers of market expansion. New technologies are enhancing the efficiency, safety, and cost-effectiveness of virtual pipeline systems, making them more attractive to industries and regions lacking traditional pipeline access.
One of the major technological advancements is the development of more efficient cryogenic storage tanks for LNG. These tanks are designed to keep LNG at extremely low temperatures, allowing for safer and longer storage durations during transportation. This innovation is particularly important for delivering LNG to remote areas, where transportation distances may be significant. Advancements in trailer design for CNG transport have improved capacity and reduced transportation costs, enabling more natural gas to be delivered per trip.
Another key area of technological innovation is the improvement in gas compression systems. Modern compression technologies allow for higher levels of compression, reducing the volume of CNG and enabling more efficient storage and transport. These advancements are crucial for optimizing virtual pipeline operations, especially when dealing with fluctuating demand or challenging geographic conditions.
Automation and digital monitoring systems are enhancing the safety and efficiency of virtual pipeline operations. Real-time monitoring of pressure levels, temperature, and leak detection helps ensure safe transport and storage of natural gas. These technological advancements are making virtual pipelines more viable and scalable, contributing to their growing adoption across various sectors in North America.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 133 |
| Forecast Period | 2023 – 2029 |
| Estimated Market Value (USD) in 2023 | $0.99 Billion |
| Forecasted Market Value (USD) by 2029 | $1.37 Billion |
| Compound Annual Growth Rate | 5.2% |
| Regions Covered | North America |
Report Scope:
Key Market Players
- Global Partners LP
- Clean Energy Fuels Corp.
- Hexagon Composites ASA
- Compass, Inc.
- Xpress Natural Gas LLC
- NG Advantage LLC
- Hanwha Solutions Corporation
- BROADWIND, INC.
- Certarus Ltd.
- REV LNG, LLC
North America Virtual Pipeline Market, By Product Type:
- Compression System
- Regasification Systems
- Transportation Systems
- Storage Systems
North America Virtual Pipeline Market, By Fuel Type:
- Natural Gas
- Renewable Natural Gas
- Hydrogen
North America Virtual Pipeline Market, By Application:
- Industrial
- Residential & Commercial
- Transportation
- Power Generation
- Others
North America Virtual Pipeline Market, By Country:
- United States
- Canada
- Mexico
For more information about this report visit https://www.researchandmarkets.com/r/m3kpr6
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world’s leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
- North American Virtual Pipeline Market
