Global Piping Industry Set for an Upswing
The global steel pipes & tubes market is expected to grow at a compound annual rate of 6.2% between 2020–2027.
The major consumer segment is the oil & gas industry for the pipes, flanges, valves & tubes. Over the years, industrial processes have changed and evolved, with end customer industries expanding even further to suit many unique needs of today’s world. The global piping industry is therefore showing a buoyancy, especially in these pandemic times.
Increase in drilling and exploration activities for oil & gas, increased adoption of stainless steel pipes and stainless steel pipe fittings, and an upswing in use of pipes and fittings for industries to drive growth global bulk piping materials suppliers and market. In 2020, however it was the Asia-Pacific market which dominated, contributing approximately one-third of the business. Although Covid-19 pandemic deferred manufacturing and affected production facilities of pipes (Carbon Steel Pipes, Stainless Steel Pipes, Low Temp Carbon Steel Pipes, super duplex pipes, duplex fittings), flanges, fittings, valves and pipe racks, yet the industry is set to experience a further upward trajectory.
Moreover, the regulations imposed during pandemic induced lockdowns and a ban on international trade together hampered the supply chain management. This was further reduced significantly due to loss in Oil & Gas demand; thereby hindering the demand for pipes and fittings. Furthermore, this prolonged lockdown caused an increase in prices of raw material.
Yet the buoyancy displayed by the piping products suppliers industry should be noted. While Asia pacific was top region, North America too was not behind given the key manufacturers of bulk pipe fittings have cutting-edge product innovation to offer to end-user industries. European market too is forecasted to do better given the scope of natural gas projects in the region, which in turn require pipelines to transport natural gas across borders. While Middle East & Africa are projected to grow at a considerable CAGR, there are few government initiatives in the oil & gas, water and hydrocarbons sector which can and will further upswing.