The Global Thermoplastic Pipes Market accounted for US$58.8 bln in 2015 and is expected to reach US$89.9 bln by 2022 growing at a CAGR of 6.23%, according to Stratistics MRC. Increasing applications for large diameter pipe and shift in trend towards offshore oil & gas activities are the drivers for growth in global thermoplastic pipes market. The usage of thermoplastics is increasing in oil & gas industry, mainly in deepwater and ultra deepwater applications. The oil & gas application of thermoplastic pipes is expected to grow at a significant growth rate due to increasing demand for flexible pipes, risers and umbilical. Asia-Pacific leads the global market with the largest market share and is expected to grow with a high CAGR among the other regions due to emerging economies, increasing oil and gas activities over the forecast period. Emerging countries such as China, India and Brazil are projected to be the fastest growing markets. However, factors such as safety issues and high costs are limiting the market growth. The future opportunity for the market lies in increasing number of horizontal wells.
The global thermoplastic pipe market is estimated to grow to US$74996.6 mln by 2019, to register CAGR of 5.5% due to an increasing demand for flexible pipes, umbilical and risers as per a report by Markets & Markets. The market applications for thermoplastic pipe include oil & gas, municipal, mining & dredging, and chemicals. The demand for the oil & gas application is estimated to grow with an increasing demand for flexible pipes, umbilical, and risers.
Global demand for plastic pipe will rise by 6.7% pa to reach 19.3 bln metres in 2019, according to a report by Freedonia Group Inc. Growth will be the result of increased construction spending, a rebound in the U.S. market, and gains in market share from copper, concrete, and steel, thanks to lower cost, installation ease and performance advantages.
According to a report by Lucintel, the future of the plastic pipe market looks good with opportunities in the potable water, wastewater supply, electrical and telecommunication, agriculture, chemical, and oil and gas sectors. The global plastic pipe market is forecast to grow at a CAGR of 6.8% from 2015 to 2020. The major growth drivers for this market are infrastructure development, rise in construction activities, replacement of aging pipelines made of traditional materials, growing population, and growing urbanization rate. In this market, polyvinyl chloride, polyethylene, polypropylene, and other resins are used to manufacture plastic pipes. Lucintel predicts that the demand for PE (polyethylene) plastic pipes will experience the highest growth in the forecast period, supported by growing demand in the chemical sector and sewage applications. On the basis of its comprehensive research, the wastewater supply, agriculture, and chemical sectors are expected to show above average growth during the forecast period. Within the plastic pipe market, potable water supply is expected to remain the largest market after wastewater supply applications. The growth of residential and commercial construction and the boom in infrastructure development are expected to spur growth for this segment over the forecast period. Asia Pacific is expected to remain the largest market due to the growth in the construction and industrial sectors. Asia Pacific and North America are expected to grow significantly by virtue of growing drainage, sewage, storm, and other wastewater supply applications, especially in China and India, due to increasing urban population and high growth in construction and infrastructure development. The growth rate of the North American plastic pipe market is driven by the growth in residential construction and replacement of traditional and aging pipelines with plastic pipes. For market expansion, the report suggests new product development, where the unique characteristics of plastic pipes can be capitalized. Emerging trends, which have a direct impact on the dynamics of the industry, are the usage of anti-microbial plastic pipes to improve hygiene and replacement of traditional material pipes with eco-friendly ABS and PE plastic pipes. Mexichem SAB de CV, China LESSO Group Holdings Limited, Sekisui Chemical Co., Ltd, Formosa Plastics Group, and Advanced Drainage Systems Inc. are among the major manufacturers of plastic pipes.
Double digit growth expected in global plastic pipe market - Four major factors will lead to double digit growth in the global demand for plastic pipe systems over the next ten years. Speaking at the Plastic Pipes XVII conference and exhibition organised by PPCA in Chicago, Stephen Boros the chairman of the event’s organizing committee identified these developments that are changing the world outlook for his industry. The development of the shale oil and gas industry, regional market expansion, innovation and awareness in the field of Life Cycle Assessment are now favorably influencing the scale and scope of the industry's future,” he stated. Boros explained that plastic pipe systems continue to gain market share through supplanting competing pipe materials such as copper, concrete and steel due to easy and low cost installation as well as long term performance. “In North America, these inherent advantages are now further supported by the development of the shale oil and gas industry. This development not only benefits the energy market but also represents a more secure long-term supply and cost advantage from a power costs to raw materials stand point. Technology transfer will undoubtedly propel the growth of demand for plastic pipe systems in other world markets. Last year, China became the world’s largest producer and consumer of plastic pipes. While we can expect the US market to maintain double digit growth as recovery in the construction market picks up, we can also predict similar gains in Asia and eventually Eastern Europe.”