Global large diameter pipe market to grow well (4-8-2016)
Future of the large diameter pipe market looks good with opportunities in the potable water pipe, wastewater pipe, oil and gas pipe, and industrial pipe application. The global large diameter pipe market is forecast to grow at a CAGR of 2.9% from 2016 to 2021. The major growth drivers for this market are increasing investment in water and wastewater management, rise in infrastructure spending, replacement of aging pipelines, as per Lucintel. In this market, metal, plastic, and concrete are the major raw materials used to manufacture large diameter pipes. The author predicts that the demand for plastic pipe is likely to experience the highest growth in the forecast period, supported by growing demand in the wastewater and industrial applications. On the basis of its comprehensive research, Lucintel forecasts that the wastewater and potable water pipes are expected to show above average growth during the forecast period.
Within the large diameter pipe market, wastewater pipe is expected to remain the largest application. The growth of residential and commercial construction and the boom in infrastructure development in developing economies are expected to spur growth for this segment over the forecast period. Asia Pacific is expected to remain the largest market as well as have the highest growth over the forecast period due to high growth in construction and infrastructure development, especially in China and India.
For market expansion, the report suggests capacity expansion and new product development to reduce time and cost of installation of pipes. Emerging trends, which have a direct impact on the dynamics of the industry, are the increasing demand of FRP pipe, multilayer materials and technically advanced pipes to reduce operational time and minimizes the risk of pressure resistance, scaling and other deposits caused by substance transmission. Tenaris SA, Chelpipe Group, OAO TMK, Vallourec SA, and Welspun Corp. Ltd. are among the major manufacturers of large diameter pipe. Some companies are opting for M&A as a strategic initiative for driving growth.