Pipe down: Demand for industry services falls due to the completion of major projects

The Pipeline Construction industry builds transport infrastructure that mainly supports the activities of the Oil and Gas Extraction industry, Pipeline Transport industry and Gas Supply industry. Demand for pipeline construction services is mainly derived from investment in these industries. Investment in major construction tends to be lumpy and is provided to support new export-oriented projects, whereas the expansion of existing infrastructure to meet domestic demand tends to be a more consistent source of revenue for industry operators...read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Demand for pipeline construction has been eroded by the slump in natural gas and oil prices
  • In the absence of investment in major export-oriented gas pipelines, the industry's performance is expected to revert to its long-term trend
  • Industry Report - Industry Key Buyers Chapter

    Market share concentration is estimated to be low, with the top four companies within the industry accounting for less than 20% of industry revenue in 2016-17. The industry is characterised by specialised pipeline construction firms, or construction firms with pipeline construction experience. While these firms can be large, they are generally limited by the lumpy and infrequent nature of large pipeline projects. Many industry participants lack sufficient scale to win entire construction contracts for major pipelines. Therefore, firms bid for subcontracted projects awarded by large front-end engineering and design (FEED) or engineering, procurement and construction (EPC) firms...purchase to read more.

    Additional Insights for the Pipeline Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pipeline Construction Industry 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 mainly build pipelines for the transport of oil and gas, urban supply mains for gas, and 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
  • Coal seam gas pipeline construction
  • Gas 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
  • Industry structure
  • 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
  • Gas pipeline construction
  • Coal seam gas pipeline construction
  • Other
  • Chart: Pipeline Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Oil and Gas extractors
  • Other
  • Pipeline transporters
  • 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
  • Internal competition
  • External competition

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

  • Industry Globalization
    SGSP (Australia) Assets Pty Ltd, Saipem Australia Pty Limited, Monadelphous Group Limited, Murphy Pipe and Civil Group Pty Ltd,
  • Table: SGSP (Australia) Assets Pty Ltd - financial performance
  • Table: Saipem Australia Pty Limited - financial performance
  • Table: Monadelphous Group Limited - financial performance
  • Table: Murphy Pipe and Civil Group 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 (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • 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.
  • Pipeline Inspection Gauges (Pigs)
  • Gauges used to monitor and clean pipelines.
  • 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 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 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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