Down the tube: Revenue declines significantly as upstream industries scale back investment

The Pipeline Construction industry builds transport infrastructure to support activities in other industries, such as the Oil and Gas Extraction industry, Pipeline Transport industry and Gas Supply industry. Investment in major construction projects to support export opportunities tends to be volatile, whereas expanding existing infrastructure to meet domestic demand offers a more consistent source of revenue for industry operators. Much of the industry's focus over the past five years has been on constructing pipelines for the CSG fields in Queensland and new LNG processing facilities across northern Australia.Unprecedented investment in LNG gas export projects contributed to a record peak in the value of pipeline construction at $6.5 billion in more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • Demand for industry services has declined sharply due to the completion of major pipeline projects
  • Industry revenue has fluctuated in line with the start-up and completion of major pipeline projects
  • Small-scale upgrade and maintenance work on existing pipelines will drive industry revenue growth
  • Industry Report - Industry Investment Chapter

    The Pipeline Construction industry displays high capital intensity, which has increased over the past five years. Much of the general heavy earthmoving and lifting equipment, such as graders and excavators, can be hired on a daily or weekly basis, or secured through subcontractors supplying equipment with operators (i.e. wet hire). These arrangements tend to reduce the industry's capital intensity. However, the industry requires substantial specialist equipment, such as trench digging machinery, modified bulldozers for lifting and laying pipe, pipe bending and fusion machines, specialist x-ray equipment to scan welding joints and pressure testing machinery.The industry's direct wage costs are expected to account for 13.2% o...purchase to read more.

    Additional Insights for the Pipeline Construction Industry

    IBISWorld has determined the most important Key Success Factors for the Pipeline Construction are:

  • Ability to compete on tender
  • Ability to expand and curtail operations rapidly in line with market demand
  • Ability to accommodate environmental requirements
  • IBISWorld analysts also discuss how external factors such as Demand from oil and gas extraction and Demand from pipeline transport in the Pipeline Construction industry impact industry performance..

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    What's in this report

    What is the Pipeline Construction Industry?

    Industry operators primarily construct pipelines to transport oil and gas and supply urban gas mains. Industry firms also construct pipelines for refined petroleum products and non-hydrocarbon products such as chemicals and foodstuffs. The construction of pipeline networks is excluded from the industry.

    Industry Products
  • CSG pipeline construction
  • Natural gas pipeline construction
  • Other pipeline construction
  • Industry Activities
  • Coal seam gas pipeline construction
  • Offshore gas pipeline construction
  • Onshore gas pipeline construction
  • 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 oil and gas extraction
  • Demand from pipeline transport
  • World price of natural gas
  • US dollars per Australian dollar
  • Domestic price of iron and steel

  • Current Performance
  • Factors driving demand
  • Profit slump
  • Technology change
  • Chart: Revenue Growth

  • Industry Outlook
  • Profit recovery
  • Opportunities
  • Risks
  • Table: Pipeline Construction Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Oil and Gas Extraction
  • Manufacturing
  • Gas Supply
  • Engineering Consulting

  • Key Selling Industries
  • Gravel and Sand Quarrying
  • Machinery and Scaffolding Rental
  • Ready-Mixed Concrete Manufacturing

  • Products & Services
  • Natural gas pipeline construction
  • CSG pipeline construction
  • Other pipeline construction
  • Chart: Pipeline Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Pipeline transporters
  • Oil and gas extractors
  • Other markets
  • Chart: Major Market Segmentation for the Pipeline Construction Industry

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

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

  • Industry Globalization
    SGSP (Australia) Assets Pty Ltd,
  • Table: SGSP (Australia) Assets Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Pipeline Construction 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 Construction Industry
  • 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
    Coal Seam Gas (Csg)
  • Gas deposits found in coal seams, commonly extracted using hydraulic fracking processes.
  • Liquefied Natural Gas (Lng)
  • Natural gas that has been converted into a liquid for the purposes of transportation or storage.
  • Wet Hire
  • The hire or lease of plant and machinery with a suitably qualified operator working under the direction of the prime contractor. Wet hire can be paid for on an hourly, daily or weekly basis.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Pipeline Construction market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 Construction:
    • 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 of 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 Construction 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 Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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