US demand for plastic pipes to hit $13.6 billion by 2018

NEW YORK- The demand for pipes in the United States is expected to grow 7.8% annually through 2018, reaching $57.3 billion and a total length of 11.8 billion feet, according to a report by Reportlinker.com on US Plastic & Competitive Pipe Market.

Gains will be driven by the continuing shift in the US energy industry and rising exploration and drilling activity -- particularly in the natural gas segment. Line pipe will be needed for the gathering, transmission, and distribution pipe networks that transport gas from wellheads to power plants and other end users. In addition, the anticipated rebound in building construction expenditures through 2018 will also contribute to demand for pipe.

Even as steel accounted for the largest share of pipe demand by value in 2013 with 57% of the market, plastic pipe demand is anticipated to rise at the most rapid pace of all materials, advancing 8.8% annually to $13.6 billion by 2018. Growth will be spurred by the increasing use of plastic pipe -- especially small- and medium- diameter pipe -- at the expense of such materials as corrugated steel, concrete, and ductile iron. Plastic pipe offers a broad range of performance advantages, such as moderate cost, ease of handling and installation, long service life, and corrosion resistance. In such applications as potable water and sewer and drainage, plastic pipe will be specified by engineers and contractors looking to reduce long-term maintenance and replacement costs.

Recovery in building construction expenditures will spur demand for plastic pipe used as conduit, gas distribution, and drain, waste, and vent pipe. PVC was the leading plastic resin used to make pipe in 2013, and will remain the market leader in 2018. PVC is utilized to make pipe for such applications as potable water distribution, sanitary sewer, conduit, and agriculture. Demand for PVC pipe will benefit from the material's durability and resistance to degradation caused by moisture, ultraviolet radiation, and chemicals. HDPE, which accounted for the second-largest share of plastic pipe demand in 2013, is expected to see the strongest gains in demand through 2018. HDPE pipe will see increasing use in sewer and drainage, potable water, and natural gas distribution applications, taking market share from such materials as steel and concrete. HDPE pipe offers such performance advantages as durability and corrosion resistance. Moreover, pipe made from HDPE is flexible, facilitating installation in areas with loose soils or rough terrain.