Pipe And Valve Industry Research Reports (1)

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Pipe Industry and its seepage into the World
Market
The global pipe industry is expected to reach a
staggering value of 21.7 billion dollars by 2023
with a compounded annual growth rate (CAGR) of
2.5 from 2018-2023.1 The global economy
growth was 3.7 percent in 20182 which in turn
is credited to the growth of many industries and
services one of them being the Pipe Industry.
With the global economic wind in favour, the
Pipe Industry is all set to meet the rising
demand and expand into new avenues.
The future of the global pipe market looks
extremely promising with heavy demand being
generated from sources like wastewater
management, agriculture, automobiles, power
generation and households among others. There are
various types of pipes made from different
materials which depend on the ultimate use
Copper Pipes (used for hot and cold tap supply in
homes), High Density Poly-Ethylene Pipes HDPE
(used for water mains, gas mains, sewer mains,
slurry transfer lines among others), PVC Pipes
(used mainly for main water supply at
households), PEX Pipes among others.3
The major growth drivers for this market are
increasing construction of new pipelines,
replacement of aging pipelines, urbanization rate
and infrastructure development at a global
scale. PVC pipelines are used at the highest
scale among plastic pipes and are set to reach a
value of USD 70 million dollars by 2023.While
Goldstein Research analyst forecast that the
global steel pipes market size is set to reach
USD 1,670 million by 2025, growing at a CAGR of
5.2 over the forecast period of 2017-25.
Research conducted by Research and Markets
forecasts that steel pipe will and remain to have
the largest market share among the various types
of pipes due to large requirements in power
generation and ever growing petrochemical
industries. The same firm predicts that plastic
pipe material segment will witness the highest
growth rate for the same period 2018-23. While,
Asia-Pacific region will tend to remain the
biggest demander purely because of the volume of
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infrastructure development and government
policies which are favoring the Pipe Industry
Indian Government announced the scheme of
minimum import prices (MIP) across all steel
products, which benefitted the domestic producers
revived the growth rate of India steel pipes
market and the biggest end consumer for pipes
will be the petrochemical industry, the same
region had a share of 53.1 in 2017 for steel
pipe segment.4
The overall trend of the Pipe Industry has been
growing and is expected to grow continuously
considering a favorable environment exists.
Some takeaways from major players of Pipe
Industry According to TMKs annual report for
2017, the medium term outlook for the industry
seems positive due to a stable investment
climate in the energy sector which will cause a
trigger in drilling activities which
consequently leads to demand for tubular
products. In 2017, nearly 77 of the products
sold by TMK were demanded by Oil Gas
industry.5
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Vallourec, which is another key player In this
industry attributed its 68.5 sales ( 2,567
Million) of tubular products to Oil and Gas
industry and the rest to Power Generation 10.9
- 408 Million) and other miscellaneous
industries 20.6 - 775 Million.6
Sales to industry by TMK 0 23 77
Saudi Arabian Amiantit Co. was able to cut its
losses by about 60 percent year-on-year (YoY) to
SAR 91.5 million in fiscal year 2017, mainly due
to a one-off net gain of SAR 63.6 million from
the sale of the companys European pipe
businesses in a merger deal with Hobas Group.7
The one common thing between these 3 players of
Pipe Industry was that they improved their
sales, revenues and profits in 2017 as compared
to 2016.
The pipe industry also heavily depends upon the
construction industry and find its way in it
through water pipelines, wastewater drainage
systems, gas pipelines,
Oil and Gas Industry Others (Engineering, energy
etc)
HVAC systems etc.It is estimated that China, U.S.
and India are the largest contributors to the
growth of the construction industry and will
collectively be responsible for more than 50
share of the growth in the construction industry
by the end of 2020.8 VALLOUREC SALES IN TERMS
OF CUSTOMER'S SHARE Oil and Gas
Industry Miscellaneous Power Generation
100
408
775
50
2567
0 Share of industries purchasing from
Vallourec While, the overall outlook for the
Pipe industry seems positive with the global
economy supporting overall development of
industries the Pipe Industry has a tendency to
fluctuate if the economic situations effect its
demanders. Since, the major demand of this
industry is generated from Oil and Gas Industry,
Petrochemical Energy and Power Generation we
should always keep in mind that these industries
are volatile in nature and a issue in their
working will ultimately effect the Pipe Industry.
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