Large composite pipes have excellent growth potential of 10-12% from 2007-12

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Large composite pipes have excellent growth potential till 2012

The global large diameter pipe industry has been getting stronger in response to market changes that started in the 1990s. And in spite of rising material costs that can be traced to record high crude oil and natural gas pricing, composite pipes remain competitive as per an article by Ben E. Bogner. The sector is gaining market share at the expense of pipe made with commodity materials such as iron and concrete. The term 'large diameter' is generally used to define pipe that is at least 300mm (12 inch) in diameter. At the higher end, the sector includes composite pipe in diameters as large as 4000mm (13 ft, 4 inch). FRP composite pipe is also referred to as GRP, for glass reinforced plastic, because the majority of the manufactured products are reinforced with glass fibres. The resins used are typically unsaturated polyesters, including vinyl esters where higher mechanical, heat and/or corrosion-resistant properties are required.
The majority of large diameter composite pipe is used in six market segments:
  •  drinking water projects such as raw water supply lines for potable water systems;
  •  irrigation systems for agriculture;
  •  feed lines and penstock for hydroelectric power plants;
  •  circulation for cooling water systems, primarily for power plants;
  •  sanitary sewer projects for pressure as well as gravity sewer systems, and pipeline rehabilitation as 'slip liners.'
Within these market segments, composite pipe has a market share of about 15-20%. Pressure pipes that operate in the range of 6-32 bar account for about 60% of the total composite pipe supply. The marketing nature of the composite large diameter pipe industry has changed dramatically over the last 15 years. In the past, large diameter composite pipe was considered a specialty product best suited for extreme, corrosive environments. As a result, the largest individual market segment globally has traditionally been sewer pipes.
A key factor in the decision to specify composite for sewer applications is the material's ability to withstand corrosive attack from aggressive sulphuric acid. However, specification of composite is expanding beyond the material's specialty roots. Today's engineering community is starting to look at composite pipe as more of a standard material of construction that can be used for general-purpose as well as specialty applications. Composite pipe has become popular in both gravity and pressure pipe applications. Composite pipe is emerging as a more standard material during a period of rising raw material costs for manufacturers around the world. The cost of pig iron and steel used to make competitive large diameter pipe has increased even more than has been the case for composite raw materials. Composite pipe has increased market penetration, taking share mostly from ductile iron and steel pipes. Another reason for the increased market share is the fact that FRP pipes for the last 30 years have proven to be a reliable alternative. More than 60,000 km (37,280 miles) of composite large diameter pipe are in operation worldwide to prove that the material will perform long-term as predicted. The composite pipe segment was especially challenged in the 1970s. Lower cost was affecting the specification process at the expense, so to speak, of performance. As a result, some composite pipe being sold into the marketplace developed issues related to deflection and strain corrosion. In some installations, the effectiveness of pipe joints was also coming into question. The negative stories that engineers, specifiers and owners were reading were seen to have a greater influence on decisions than success stories.

According to a study by Freedonia, large diameter pipe demand in USA is projected to rise 2.3% pa to 215 mln feet in 2010, valued at US$8.7 bln. An ageing infrastructure will reflect the need to expand and modernize. Concrete will continue to account for over half of all linear pipe footage. Plastic pipe will present the best growth as a result of resin and machinery improvements, enabling greater penetration of water distribution, sewer and other applications. Storm sewers will remain the leading large diameter pipe market based on highway and street construction. Plastics are expected to play a major part in China's growing market for large-diameter pipe. As per Freedonia, demand for large-diameter pipe made from all types of material is expected to increase 9% pa in China, reaching 87.7 mln meters in 2012, valued at 87.8 bln yuan. Sales of plastic large-diameter pipe are projected to increase at a rate of 11% pa through 2012, faster than growth for any other material. It's expected that demand for large-diameter pipe used in sanitary sewer, drainage, storm sewer, and natural gas transportation applications to increase faster than the industry average. 'The most rapid gains will be in the sanitary sewer segment, boosted by strong residential construction and initiatives to improve living conditions in the countryside. Global demand for plastic pipe is forecast to increase 4.5% pa to 8.1 bln meters in 2012 In weight terms, consumption is projected to expand 4.6% pa to 18.1 million metric tons, reflecting a slightly higher use of plastic pipe in large diameter applications, which exhibit a higher weight per meter ratio. The gains in length represent a deceleration from the growth recorded from 2002 to 2007, based on slowing growth in construction activity in many key markets. Developed countries will continue to account for the majority of total plastic pipe demand. These regions (Western Europe and North America, as well as Japan) are comparatively mature markets where growth in building activity tends to be well below the global average. Greater growth opportunities will continue to be concentrated in developing markets, such as China, India and other emerging nations in the Asia/Pacific region; Eastern Europe; Latin America; and the Africa/Mideast region. Plastic pipe products will continue to expand their share of the overall world pipe market. There are many reasons for this, including light weight and low cost advantages, good corrosion resistance, long life and increasing acceptance in markets previously dominated by concrete and metal pipe. PVC pipe, which accounted for about 67% of plastic pipe demand in 2007, will remain the primary plastic pipe in use, due to its widespread use in numerous construction applications. However, HDPE, reinforced fiberglass and other types of plastic pipe will offer greater opportunities for growth.