Fiberglass Pipes Market size is forecast to reach $6.3 billion by 2025, after growing at a CAGR of 6% during 2020-2025. Fiberglass pipes are corrosion resistance and long service life, superior flow characteristics, low installation cost, minimum maintenance cost and exceptional performance against pressures and high capacity load of product would promulgate industry growth over the forecast timeframe.
- Asia-Pacific dominates the Fiberglass pipes market owing to increasing demand in the developing countries where government spending large amount on water & waste management.
- Rising demand for lightweight, corrosion resistance, and durable pipe lines in the several countries owing to the associated high project cost for pipeline installation for heavy pipes and material in major construction projects.
- The use of these pipelines in oil & gas industry is rising due to the rising demand of fuel & natural gas. Transportation of natural gas through pipeline is more cost efficient and economical as compared to transportation of gas through LNG vessels. This is a major factor which is expected to drive the demand for fiberglass pipe market in near future.
- The high raw material cost is a major restraint for the growth of the global fiberglass pipes market.
By Types – Segment Analysis
The GRE pipes segment held the largest share in the Fiberglass Pipes Market in 2019. These pipes offer different features including dimensional stability, light weight, ease of installation, and resistance to corrosion, in comparison to the conventional metallic and concrete pipes. Owning to this, the use of GRE segment of fiberglass pipes in oil & gas, sewage, and chemicals industry is growing. Water treatment sector is the primary market of the GRE pipes. In the last couple of decade there is a transition in the water treatment market is observed because of the growing population and the rising demand of fresh water. The change in trend is due to advancements in water treatment technology and growing demand for potable water especially in the developing regions worldwide. These factors influence the use of GRE pipes in the water treatment industry.
By Fiber Types – Segment Analysis
The E-Glass segment held the largest share in the Fiberglass pipes market in 2019. It is alumino-borosilicate glass. It is also used in applications that require particularly high protection against acidic corrosion. It is used for manufacturing high end pipes. These high end pipes are resistant to oils, solvents and most chemical agents. With their property of high strength, light weight, smooth inner and outer surface, the pipes are perfectly suited for trenchless applications like micro tunneling and relining. They are also use in sewer systems, potable water lines, storage tanks, drainage pipes, hydropower penstocks and industrial pipe line systems. Chemical sector is the primary market of the E-Glass segment. With the significant rise production of chemicals from petroleum (and increasingly from coal and biomass) has seen many technological changes and the development of very large production sites throughout the world. These creates the rise in the demand of E-Glass in these production plants. This factor will drive the growth of market in the forecast period.
By Application – Segment Analysis
Oil & gas industry has been the primary market for Fiberglass pipes in 2019 growing at CAGR of 9%. The market is highly influenced by emerging countries in Asia Pacific, South & Central America and Middle East & Africa. This is attributed to the energy & infrastructure reforms initiated to upgrade their ageing infrastructure and meet their energy needs owing to rapid growth development in these regions. In addition, chemical Industries is one of the established and rapidly growing markets in Europe and North America. Fiberglass pipe growth in North America and Europe is augmented by the falling prices of natural gas, which is used as feedstock in many chemical processing industries. The coronavirus pandemic has had far-reaching consequences beyond the spread of the disease and efforts to quarantine it. As the pandemic has spread around the globe, concerns have shifted from supply-side manufacturing issues to decreased business therefore, it hinder the growth of fiberglass pipes market. One of the linchpins of global economy is the oil and gas industry, more specifically oil. The appearance of Corona virus in December 2019 in China and gradual expansion of the epidemic drastically brought down demand and price of the crude oil. Global level travel bans along with grounding of international flights leads to heavy reduction in consumption of aviation turbine fuel (ATF) across the globe. COVID-19’s spread across 175 countries means the virus is bound to affect international travel for a longer period of time. It is expected that global oil demand may shrink by 15-20 million barrels for day due to Corona effect including extensive lockdown. This factor will hamper the growth of market for the year 2020.
Geography – Segment Analysis
Asia-Pacific (APAC) dominated the Fiberglass Pipes market with a share of 44% followed by North America and Europe. The economy of APAC is mainly influenced by the economic dynamics of countries such as China and India, but with growing foreign direct investment for economic development of South East Asia, the current scenario is changing. In emerging economies such as China, India and Japan where energy demand is rapidly growing, preference for natural gas as a replacement for coal is a growing trend. Importing natural gas has a high price attached to it, but transportation through pipeline is preferred as an economical option when compared to transportation of gas through large LNG vessels. Fiberglass pipes are majorly used in water and sewage management.
Drivers – Fiberglas Pipes Market
- Rise in the use of fiberglass pipes in the sewage application will drive the market
Fiberglass pipes are corrosion resistant, cost-effective, light in weight, and durable. Fiberglass pipes offer less frictional losses as the C-value for the design does not deteriorate over time. Thus, fiberglass pipes provide good hydraulic efficiency and are suitable for ground and underground sewage applications. In sewage pipes application, fiberglass pipes are utilized in water treatment plants, metallurgy sewage facilities, wastewater treatment plants, industrial effluents treatment plants, and other such establishments. Improving the sanitary conditions and industrial sewage management has been the major thrust of governments and private bodies in many Asia-Pacific countries. This factor will drive the growth of the market in the forecast period.
- Revival in oil exploration at global level
The oil & gas industry has the primary market for Fiberglass pipes market. Revival in oil exploration at global level followed by increase in demand for crude oil, LPG and Natural Gas is expected to drive the demand for fiberglass pipe in the coming years. Due to the property of chemical resistant they are best in the use for pipelines in the oil field. Secondly, due to its low cost they are widely used by oil refinery.
Challenges – Fiberglass Pipes Market
- High price of raw materials
The cost of manufacturing fiberglass pipe is high due to the high price of its raw materials.
Key raw materials used for manufacturing GRP pipe include resins, fiberglass, catalysts, and accelerator. The industries which manufacturing these fiberglass pipes are increasing its price every year. This factor will challenge industry and affect Fiberglass pipe market price trend.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Fiberglass pipes market. In 2019, the market of fiberglass pipes has been consolidated by the top five players accounting for xx% of the share. Major players in the fiberglass pipes market are Fibrex Corporation, Future Pipe Industries, National Oilwell Varco, Amiantit Company.
Acquisitions/Technology Launches/ Product Launches
- In December 2018, PPG announced its agreement for the acquisition of Whitford Worldwide Company. The company manufactures low-friction and non-stick coatings that are used in industrial applications and consumer products.
- In January 2018, Applied Industrial Technologies announced the agreement to acquire engineered valves, instruments, pumps, and lifecycle services distributor, FCX Performance, Inc. The acquisition will help the companies to enhance their positions as leading industrial distributors.