Pipes and Fittings Market Size is forecast to reach $367.9 billion by 2026, at a CAGR of 3.7% during 2021-2026 majorly driven by rapid urbanization, government investments towards infrastructural growth owing to which there is a requirement of pipes for water distribution systems. The demand for high performance corrosion resistant steel and plastic pipes has been driven by large scale inter regional oil and gas projects. Adoption of steel pipes and fittings by various industries such as Chemicals & Petrochemicals, Mining and others as they are corrosion resistant will help the market to rise significantly in the forecast period. For improving the traditional mechanical properties of plastic pipes, new technologies to manufacture Oriented Poly Vinyl Chloride (OPVC) pipes have emerged in the recent years. The pressure handling capacity of OPVC pipes are similar to that of metal pipes upto PN 25 bars and are designed for application in high pressure water conveying.
- According to the World Bank (IBRD. IDA), in U.S region 60% of population are connected to sewage system and 30-40% (approx.) wastewater is collected and treated for further use in 2020. Owing to this there is growing demand for pipes and fittings in Water and Wastewater industry to collect the sewage and further treatment of water supply.
- According to the EPA news release funding of $4 billion was raised in water infrastructure projects in 2019. Due to this funding significant opportunity was raised for the pipes and fittings market for water supply purposes.
- Rapid urbanization, increasing disposable income of the middle-class population, rising private & public investment have boosted residential construction. In addition, increase Governmental initiatives to rebuild older buildings for high-rise buildings due to which the sewerage treatment projects are rising to meet the water demands in these areas for which there is need of better piping to ensure water delivery.
Pipes and Fittings Market Segment Analysis – By Application
The Water Supply segment held the largest share at $101.8 billion in 2020. Increasing water consumption across multiple Sectors drives the market growth for pipes and fittings. The increased sales of many real-time instruments such as pressure measurement meters and pumps is also contributing to the development of the global water and wastewater pipes industry. The commitment of administrative agencies and governments to maintain a consistent delivery of potable water to households and industrial units is critical to their success. Moreover, water use in the manufacturing sector necessitates the construction of adequate pipelines. As a result, all of the major sectors’ primary needs point to the need for better water and wastewater pipes. The global market’s development has been aided by the availability of better materials for pipe production. In 2019, Delhi Jal Board has approved setting up of 106-MGD water treatment plant (WTP) in India, thereby helping to meet the demand for drinking water in the city. These projects are set to escalate the market growth rate during the forecast period 2021-2026.
Pipes and Fittings Market Segment Analysis – By Vertical
Irrigation sector is expected to witness a high CAGR of 4.7% the forecast period. Depending on the design of irrigation system and the type of construction, different pipes, fittings, pumps, and other devices are used. Since most systems have the same configuration, a small set of equipment can accommodate the needs of an entire region. All irrigation networks have pipelines as a foundation. Different kinds and shapes are available in a variety of pressure ratings and sizes (diameters). The rigid PVC and polyethylene (PE) pipes used for farm-level irrigation systems are the most common. On a smaller scale, layflat hoses and fast coupling light steel pipes are used. The use of threaded galvanized steel pipes is limited. Fittings are available in a variety of shapes and sizes for use with galvanized steel threaded tubing, including elbows, twists, reducers, tees, plugs, nipples, and more. They are tough and ductile, and they have a strong joint that can tolerate pipeline expansion and contraction, as well as other stresses.
Pipes and Fittings Market Segment Analysis – By Geography
Pipes and Fittings market in Asia-Pacific region held significant market share of 40.5% in 2020. China is the largest segment for APAC pipe production market. Heavy investment in the upstream, midstream and downstream oil & gas industry is the driving force for an increase in demand for pipes and fittings market. Increasing investment in power generation industry which relies on renewable energy sources is the most growing industry for the pipes and fittings market. China’s gas demand is forecast to reach 320 billion cubic meters (BCM) in 2020, according to China National Petroleum Corp. (CNPC). Furthermore, by 2040, it is projected to reach about 600 BCM. To satisfy rising gas demand, the nation plans to double its gas output capacity to 325 BCM by 2040. With such long-term preparations in place, the country is expected to see a slew of pipeline expansion programs. Additionally, several chemical plants are scheduled to be built in the country over the next five years. For instance, in November 2019, BASF started work on its USD 10 billion integrated petrochemicals plant in Guangdong, China’s southern province. As a result, both of these planned oil and gas facilities and chemical plants are expected to greatly increase demand for PVDF pipes. This in turn benefits the market growth.
Pipes and Fittings Market Drivers
- Government Investment and Modernization
The urban infrastructure development is growing rapidly due to the rising government infrastructural projects and surge in urbanization owing to which pipes and fittings are finding their application for proper water distribution systems and other applications. According to IBEF, The government of India plans to spend $ 1.4 trillion on infrastructure during 2019 to 2023 for sustainable development of the country as the infrastructure sector has become the biggest focus area. In addition, for railways infrastructure the government has suggested investment of $ 750 billion from 2018 to 2030. All these investments are set to drive the growth of the market. To improve procurement practices and project implementation, U.S Government in February 2019 released its infrastructure initiative to modernize the infrastructure in United States. For this an investment of $200 billion was raised that seeks to spur $1.5 trillion billion in state for the local and private infrastructure investments. According to the Conference Board, The Fiscal Year 2021 budget proposal included a roughly funding of $200 billion infrastructure initiative which was raised in 2021 along with $810 billion reauthorization of existing surface transportation programs equivalent to a roughly 4 percent annual increase in nominal funding levels in U.S., which will boost the growth of the market.
- Focus on Sewerage treatment to meet the water demands globally
According to World Bank, 36% of world’s population lives in water scarce region. In U.S region, 60% of population are connected to sewage system and 30-40% (approx.) wastewater is collected and treated for further use. Increasing prevalence of water borne diseases, rising focus on water quality and public health, increase in industrial demand, and stringent governmental regulations on treating wastewater are fuelling in the market growth. In China, the rapid increase in consumer demand and growing scarcity of water have triggered the need of urban sewage treatment. Latest technologies are used for the municipal water and wastewater treatment such as biological treatment, suspended solid removal and disinfection/oxidation. Measurement of liquid in all phases including sludge by-products, large volumes of fluid carrying suspended solids is done post the sewerage collection for the treatment process which is done by the piping system. High investment on R&D of water treatment technology, innovation of new technologies, with the objective of saving the natural resources from extinction have resulted into the sewage treatment which is driving the growth of the market. Germany has a hugely effective wastewater management process and is designed to efficiently recycle all types of used water for instance water that comes from industries to water that comes from home. This country is a global environment leader in wastewater management process owing to its advanced equipment and piping systems in water treatment process.
Pipes and Fittings Market Challenges
- High Maintenance Requirements
One of the major constraints due to which the Pipes and Fittings market is getting hampered is the high maintenance requirement owing to the leakages occurring in the pipes. Leakages in pipes cause high investments by the end users leading to high maintenance as the pipes have their major applications in water distribution & sewage, plumbing, and other applications. The galvanized steel pipes have very short lifespan as compared to the other material pipes such as copper, plastic and others. In addition, rust can build up inside over time especially in pipes with a small diameter along with break loose from the inside walls of the pipe and end up mixing with the water as it flows through and discolors the water as a result. In the metallic pipes lead can leach into the water inside, making it unsafe to drink and the pipes becomes corroded. In addition, in case of galvanized pipes when the galvanization on the outside is compromised, the pipes becomes vulnerable to corrosion in a short amount of time.
Pipes and Fittings Market Landscape
Product launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Pipes and Fittings market. Pipes and Fittings top 10 companies include Arcelor Mittal, Baosteel Group Corporation, Nippon Steel, Tenaris SA, Aliaxis, JFE Holdings Incorporated, TMK PAO, Tianjin Pipe Group Corporation, Salzgitter AG and Chelpipe Group
- In April 2021, Saint-Gobain made an agreement to sell its 67% of its pipe business in China to a consortium led by the local government. This divestment allows its link with pipe business in Europe to be maintained by way of long-term industrial partnership.
- In February 2021, Aliaxis signed an agreement to divest its plastic piping system business in South-East Asia to LESSO Group, a large industrial group of pipes and fittings, building materials in China. The divestment is made to focus on core growth markets and opportunities.