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Global thermoplastic pipes demand to register CAGR of over 6% until end of decade

Global thermoplastic pipes demand to register CAGR of over 6% until end of decade

29-Feb-16

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.
In 2013, Asia-Pacific was the largest market for thermoplastic pipe and accounted for a share of around 39.7%. The thermoplastic pipe market was estimated to be 25,821.9 kiloton in 2014, and is projected to reach 33,742.3 kiloton by 2019, at a CAGR of 5.5% from 2014 to 2019. In terms of value, it is expected to grow from an estimated US$55,430.2 mln in 2014 to $74,996.6 mln by 2019. The thermoplastic pipe market is projected to grow at a CAGR of 5.5% from 2014 to 2019 with increasing demand in the Asia-Pacific region. The rise in the demand for municipal and chemical applications in this region is the prime driver for the growth of the market. The market players continuously invest in R&D activities to introduce new products and solutions as per market demands. Considering the demand in the market, these companies are also expanding their facilities to increase their production capacities and strengthen their global network. 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. In 2013, Asia-Pacific was the largest market for thermoplastic pipe and accounted for a share of around 39.7%. The thermoplastic pipe market is projected to grow at a CAGR of 5.5% from 2014 to 2019 with increasing demand in the Asia-Pacific region. The rise in the demand for municipal and chemical applications in this region is the prime driver for the growth of the market. The leading players of the thermoplastic pipe market include Technip (U.S.), Advanced Drainage Systems Inc. (U.S.), Airborne Oil & Gas B.V.(The Netherlands), and Georg Fischer Piping Systems Ltd. (Switzerland). The market players continuously invest in R&D activities to introduce new products and solutions as per market demands. Considering the demand in the market, these companies are also expanding their facilities to increase their production capacities and strengthen their global network.

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.
Strong growth of construction activity, particularly in the large markets of China and the US, will boost the demand for plastic pipes in both building and non-building construction applications. Plastic's performance, cost, and installation advantages will also spur its increasing use over competing pipe materials such as concrete, copper, and steel. Polyvinyl chloride (PVC) is the leading resin used in plastic pipes. The energy, agriculture, and industrial sectors are less intensive users of plastic pipes in comparison to the construction sector. However, improvements in technology and plastic materials have helped plastic pipes increase its share in many of these markets. Although construction spending will decelerate in China, the world's largest plastic pipe market, demand for plastic pipes in the country will still rise over 9% annually through 2019. In the US, the world's second largest market, continuing recovery in construction spending and housing completions will support rapid advances for plastic pipe demand. Growth in plastic pipe demand will also be robust in the developing countries of Africa, Asia, and South America due to efforts to expand access to potable water and sewage systems. According to analyst Mariel Behnke: “The market opportunity for water and sewer systems is large, as a considerable share of the population in these regions does not have reliable access to drinking water supply or improved sanitation.” The comparatively low cost and ease of installation of plastic pipes gives it advantage over other pipe materials in these regions. Advances in plastic pipes demand in the more developed regions of Eastern and Western Europe are expected to accelerate through 2019, supported by recovering construction spending. Demand in both regions contracted following the global economic recession, but began to recover in 2013, it added

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.”

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