Global demand for Pipes and Pipe/Hose Fittings is expected to attain levels of US$136.8 billion by 2015. Revival will be assisted by increasing global energy needs, and government support for water, farming and infrastructure developments.
Pipes, primarily used to transport liquid and gaseous substances, are an indispensable part of water and oil related industries. Market for pipes and pipe/hose fittings is highly variable and dependent on factors, such as economic conditions, growth in GDP, consumer purchasing power, and the overall health of the end-user industries. The protracted economic downturn and credit crisis combined with volatility in raw material prices has caused weak demand, and a substantial fall of volume and dollar sales in the pipe industry. Weakened consumer demand from housing and construction, oil and gas, automotive sector, sewage, drinking water, agriculture, industrial equipment and machinery, and energy markets, negatively impacted the market during the years 2008 & 2009. The construction industry, which represents a major high volume end-user of pipes, was one of the first sectors to be hit by the downturn due to lower demand for distribution and general construction pipes for non-residential/ residential buildings, and civil engineering sector. The mélange of factors such as reduced household wealth, lower consumer purchasing power, declining new housing starts, steep deceleration in housing demand and rising inventory of unsold new, and existing homes caused a sharp decline in demand for building materials, such as pipes and pipe hoses. Also, governments across the world delayed capital expenditure, and several new public works projects and infrastructure spending have been put on hold, causing a knock-on effect on the pipe and pipe hose industry.
According to Global Industry Analysts, the recession also made a disproportionate impact on industrial production as a result of reduced manufacturing, commercial, and economic activity, thereby hurting demand from oil & gas segment, city gas pipe projects, irrigation, water & sewage, and replacement demand. In the field of energy industry, a severe pull back in exploration activity was witnessed due to persistently weak global economic environment drying up of the debt market and the resulting shortages in capital investments, and recession-induced lower demand for mineral commodities. New oil & gas exploration and production projects worldwide were postponed due to fall in global commodity prices, resulting into reduced orders.
The weak global economy, sluggish residential/commercial construction, and falling GDP levels, meant that most pipe companies posted sluggish results for the year 2010. Europe and Asia-Pacific account for a major share of the global Pipes and Pipe/Hose Fittings market. Even as the ongoing recessionary trends in the world economy works as a dampener on the pipes market in the short-term, growth is forecast to pick up in the medium term as the economy recovers from its present crisis. Growth fundamentals such as, the escalating energy requirements demand due to population increases, rising stress on water supplies, and mounting interest in producing lead-free pipes are all forecast to swing back into action, driving growth in the post recession period.
With signs of stronger economic conditions, shriveling inventories, and price hikes, the pipe industry is expected to look up with the resumption of normalcy beginning from 2011. The emerging economies will be the critical factor in driving world pipe and pipe/hose fittings demand in the post recession period. Asia-Pacific is the largest and fastest market for pipes increasing at a CAGR of 4.6% during the analysis period. Worldwide pipe companies are eyeing the lucrative market of the Middle East where, the energy and construction sector, the main pipe consumers, holds out the promise of good business despite a slight weakening caused by the global financial meltdown. Advancements in drinking water transfer systems, and sewage and drainage systems are expected to drive the market for plastic pipes. Global market revenues for PVC Pipes are expected to surge at a CAGR of 3.0 % during the analysis period.
Major players in the marketplace include Aristovolos G. Petzetakis S.A, Advanced Drainage Systems, Aliaxis SA, Arkema SA, Amanco, American Ductile Iron Pipe, Ameron International, Arcelor Mittal, Aronkasei, CertainTeed Corporation, ChevronPhilips Chemical, Couplamatic Systems, Eaton Hydraulics Group, Europipe, Evraz Inc NA, Hanson Pipe and Precast Inc, Hobas Pipe, Ipex, KWH Pipe, Lamson & Sessions, National Pipe and Plastics, Nibco, Nippon Steel Corp, Pipelife International, Polypipe Group, REHAU AG + Co, Royal Group Technologies, Stupp Corp, Sumitomo Metal Industries, Tenaris Group, Tessenderlo Group, Uponor, US Steel Corp., Wavin N.V., among others.
The research report titled Pipes and Pipe/Hose Fittings: A Global Strategic Business Report by Global Industry Analysts, provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections (in US$ Millions) for major geographic markets including the United States, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, South Korea, Rest of Asia-Pacific), Middle East and Latin America. Product segments analyzed include Pipes (Aluminum Pipes, Cast Iron Pipes, Clay Pipes, Concrete Pipes, Polyethylene Pipes, PVC Pipes, Steel Pipes) and Pipe and Hose Fittings (Metal Flanges and Unions, Hydraulic Couplings). Global Industry Analysts ©
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