Organic Chemical Pipeline Transportation in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: June 2024
NAICS 48699Revenue
$413.9m
Past 5-Year Growth
Profit
$XXX.Xm
Employees
290
Businesses
17
Wages
$XX.Xm
Organic Chemical Pipeline Transportation in the US industry analysis
The Organic Chemical Pipeline Transportation has grappled with significant challenges from the COVID-19 pandemic. Lockdowns and restrictions decimated consumer demand for petrochemicals, disrupting supply chains and labor availability, which sent pipeline operators' revenues tumbling. The pandemic also triggered a sharp decline in oil prices, halting activity at oil drilling and gas extraction sites, leading to a reduced distribution of CO2 for enhanced oil recovery (EOR). Amid the turmoil, commodity prices soared, with steel prices jumping 77% and plastic prices increasing by 29.2% between early 2021 and mid-2022. Inflated construction costs for new pipelines stalled the entry of new players. Revenue has been declining by a CAGR of 1.9% over the past five years, and is expected to reach $413.9 million in 2024.
Trends and Insights
- The COVID-19 pandemic spurred volatility in commodity prices and pressured expansion efforts. The halting of economic activity and soaring steel and plastics prices pressured established players and prevented new entrants from entering the market. Economic uncertainty pressured wages and employment as companies looked to curb expenses.
- Transportation of Carbon Dioxide (CO2) comprises the majority of generated revenue. Currently, the majority of usage of CO2 is directed at oil drilling sites where the gas is used to mix with oil and improve the efficiency of extraction.
- The Jackson Dome in central Mississippi carries the Southeast region. The CO2 extracted from the Jackson Dome is used for enhanced oil recovery, carbon capture and storage.
- There are only a few major pipeline operators. Very few companies have the resources to maintain and operate a pipeline. Still, new entrants are expected to penetrate the industry while utilizing federal funding incentivizing carbon capture technology.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.9 % over the past five years, to reach an estimated $413.9m in 2024.
Trends and Insights
The aftermath of the COVID-19 pandemic continues to pressure expansion efforts of organic chemical pipelines
- Pandemic-induced lockdowns and restrictions led consumers to demand fewer petrochemical products like plastics, synthetic fibers and solvents. The pandemic disrupted supply chains, labor availability and production, causing chemical pipeline operators' revenue to plummet.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Investment into carbon capture technology will support organic chemical pipeline operators
- The drive for a sustainable future is expected to persist, driving more investment into initiatives tailored around reducing the carbon footprint. Leading energy companies are expected to invest in carbon capture technology to improve their Environmental, Social and Governance (ESG) scores, benefiting organic chemical pipeline operators.
Biggest companies in the Organic Chemical Pipeline Transportation in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Kinder Morgan Energy Partners L P | 108.0 | 26.5 | 24.5 | |
Denbury Inc. | 35.4 | 5.2 | 14.7 | |
Magellan Midstream Partners, L.P. | N/A | 307.1 | 3,070,700,000.0 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Carbon dioxide transportation, Ammonia transportation and Other transportation. Carbon dioxide transportation is the largest segment of the Organic Chemical Pipeline Transportation in the US.
Trends and Insights
Sustainability and carbon capture programs drive transportation of carbon dioxide
- Pipelines provide the most economical method for transporting large quantities of CO2 over land. Most demand for CO2 transportation is derived from oil and gas producers, who use the chemical to enhance well production.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Oil Pipeline Transportation in the US
- Gas Pipeline Transportation in the US
- Refined Petroleum Pipeline Transportation in the US
Complementors
- Petrochemical Manufacturing in the US
International industries
- Pipeline Transport in Australia
- Pipeline Transport in New Zealand
- Pipeline Transport in the UK
- Pipeline Transportation in China
Table of Contents
About this industry
Industry definition
Pipeline operators provide pipeline transportation services for chemical products like carbon dioxide and ammonia. Pipeline operators that transport crude oil, refined petroleum products, natural gas and natural gas liquids are excluded from this industry.
What's included in this industry?
Pipeline transportation of carbon dioxidePipeline transportation of anhydrous ammoniaPipeline transportation of hydrogenPipeline transportation of industrial gasesPipeline transportation of chemicalsPipeline transportation for other productsCompanies
Kinder Morgan Energy Partners L PDenbury Inc.Magellan Midstream Partners, L.P.Purchase this report to view all 3 major companies in this industry.
Related Terms
AMMONIACARBON DIOXIDE (CO2)MIDSTREAM OPERATIONSCARBON CAPTUREIndustry Code
NAICS 48699 - Organic Chemical Pipeline Transportation in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The COVID-19 pandemic spurred volatility in commodity prices and pressured expansion efforts. The halting of economic activity and soaring steel and plastics prices pressured...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Transportation of Carbon Dioxide (CO2) comprises the majority of generated revenue. Currently, the majority of usage of CO2 is directed at oil drilling sites where the gas is...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The Jackson Dome in central Mississippi carries the Southeast region. The CO2 extracted from the Jackson Dome is used for enhanced oil recovery, carbon capture and storage.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
There are only a few major pipeline operators. Very few companies have the resources to maintain and operate a pipeline. Still, new entrants are expected to penetrate the ind...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Kinder Morgan Energy Partners (KMEP) has the largest market share. The company is a subsidiary of Kinder Morgan and operates a network of pipelines that transport carbon diox...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Kinder Morgan Energy Partners L P's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Denbury Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Magellan Midstream Partners, L.P.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Kinder Morgan Energy Partners L P, and factors influencing its performance in the industry
- Description and key data for Denbury Inc., and factors influencing its performance in the industry
- Description and key data for Magellan Midstream Partners, L.P., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Transportation of chemicals in the US, particularly CO2 and ammonia, remains under strict regulatory scrutiny. The Federal Energy Regulatory Commission, the Department of Tra...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Fluctuating commodity prices cause volatility in profit. Most pipeline operators manage long-term contracts, and the Federal Energy Regulatory Commission (FERC) mandates tran...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
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Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Organic Chemical Pipeline Transportation in the US industry in United States in 2024?
The market size of the Organic Chemical Pipeline Transportation in the US industry in United States is $413.9m in 2024.
How many businesses are there in the Organic Chemical Pipeline Transportation in the US industry in 2024?
There are 17 businesses in the Organic Chemical Pipeline Transportation in the US industry in United States, which has declined at a CAGR of 0.0 % between 2019 and 2024.
Has the Organic Chemical Pipeline Transportation in the US industry in United States grown or declined over the past 5 years?
The market size of the Organic Chemical Pipeline Transportation in the US industry in United States has been declining at a CAGR of 1.9 % between 2019 and 2024.
What is the forecast growth of the Organic Chemical Pipeline Transportation in the US industry in United States over the next 5 years?
Over the next five years, the Organic Chemical Pipeline Transportation in the US industry in United States is expected to grow.
What are the biggest companies in the Organic Chemical Pipeline Transportation in the US market in United States?
The biggest companies operating in the Organic Chemical Pipeline Transportation market in United States are Kinder Morgan Energy Partners L P, Denbury Inc. and Magellan Midstream Partners, L.P.
What does the Organic Chemical Pipeline Transportation in the US in United States include?
Pipeline transportation of carbon dioxide and Pipeline transportation of anhydrous ammonia are part of the Organic Chemical Pipeline Transportation in the US industry.
Which companies have the highest market share in the Organic Chemical Pipeline Transportation in the US in United States?
The company holding the most market share in United States is Kinder Morgan Energy Partners L P.
How competitive is the Organic Chemical Pipeline Transportation in the US industry in United States?
The level of competition is moderate and steady in the Organic Chemical Pipeline Transportation in the US industry in United States.
