Global market for pipes to reach $135 billion by 2018

GIA announces the release of a comprehensive global report on Pipes and Pipe/Hose Fittings markets. The report indicates that the global market for pipes and pipe/hose fittings is projected to reach US$135 billion by 2018, driven by a combination of factors including recovery in construction spending, growing demand from the energy sector, greater government emphasis on irrigation and water supply management, and rapid industrialization of developing economies.

Pipes play a vital role in several industries and are used in a variety of applications involving fluid transportation over distances. Given the sensitivity of major end-use markets such as oil & gas and construction to global macroeconomic conditions, market for pipes and pipe/hose fittings is highly variable and closely mirrors the trends in GDP, energy prices, manufacturing activity, and consumer spending levels. Growth fundamentals such as escalating energy requirements, recovery of residential and non-residential construction spending, rising stress on water supplies, and mounting interest in development of environment friendly pipes are expected to drive demand in the coming years. In the construction and automobiles sector, high-grade pipes will be in demand for efficient and safe operation of machines and vehicles.

Plastics are expected to emerge as the fastest growing material for pipes, with the segment rapidly penetrating the piping market and gaining share from metal in majority of the application areas. PVC pipes dominate the plastic pipes market with significant application in the construction and building industry. The material is expected to remain the major resin employed in plastic pipes, owing to its dominance in small diameter applications that include portable water distribution, agricultural and sanitary sewer markets. Given the increasing competition in plastic pipes market, manufacturers are focusing on the development of innovative products and resin improvements that improve efficiency of pipes in challenging environments.

Development of new plastic pipes systems with higher stress resistance is expected to augment replacement of steel pipes in areas such as domestic drinking water supply, due to technical and economic benefits. Demand for PE pipes is projected to grow significantly driven by expansion in sewerage, oil & gas exploration and production activity, electrical, drainage and telecommunication industries.

Though the prevailing economic uncertainty and sluggish pace of recovery has led oil companies to economize operations and cut back on drilling budgets, future opportunities are huge for steel pipes given the rising prices of crude oil. The pipes market is also expected to benefit from the escalating demand for structural steel products in developing markets. Rising investments in sectors such as power generation and automotive and increasing government investments in infrastructure projects such as water and sewage systems augur well for the welded pipes market. With the demand for energy continuing to escalate, drilling activity is increasingly shifting towards offshore regions and deeper waters. This is expected to drive the demand for specialty line pipes. In addition to conventional oil and gasNews