European plastic pipe market revenues to rise to €9.7 billion by 2018

07-Apr-11

Ceresana Research has scrutinized the European plastic pipe market from top to bottom: we expect revenues will rise to €9.7 billion by 2018. In Western Europe, about 45-50% of all plastic pipes are needed for sewage disposal. In Eastern Europe, the share of plastic sewage pipes is significantly lower, at around 32%. In this region, plastic pipes hold a larger share in water and gas supply. The strong growth of this market can primarily be attributed to the fact that new supply networks are built and older ones are restored, e.g., in the areas sewage, drinking water, gas, or telecommunications. Pipes made of other materials, like metal or concrete, are still increasingly replaced by plastic pipes because they provide better properties and processing options. In addition, the rising price of raw materials, like steel or copper, plays an essential role in the substitution by plastic pipes. In European home sanitary installations, plastic pipes were more frequently used than metal pipes in the year 2005. Pipes made of concrete or vitrified clay still account for 60% in the sewage disposal area. Germany accounted for 14% of the European plastic pipe market in 2010, followed by Spain, France, Italy, and Turkey. The most popular pipe material was polyvinyl chloride (PVC) with a 45% share, followed by polyethylene (36% share). Especially polyethylene and polypropylene will exhibit strong growth in future, namely by 2 to 3% per year until 2018. The demand for high-quality pipes made of polyethylene and polypropylene is particularly increasing on the relatively saturated markets in Western Europe, while the demand for PVC pipes is declining. In contrast, PVC is increasingly used in Eastern Europe. Since the East European infrastructure networks have to be expanded, the demand for plastic pipes in this region is growing stronger than in the West.