24
N
ovember
2014
Industry News
US demand
for pipe set to
exceed $63bn
by 2018
US demand for pipe is expected to rise 7.3 per cent per year
to $63.5bn in 2018. Gains will be driven by strong growth in
crude oil and natural gas activity, as pipe is used extensively
in drilling and oil and gas pipeline applications. Demand
will also be supported by a projected rebound in building
construction expenditures.
Increasing housing completions and strong interest
in kitchen and bathroom renovation projects will boost
demand for drain, waste and vent pipe, while growth in
non-residential building construction will spur demand for
conduit. These and other trends are presented in
Plastic &
Competitive Pipe
, a new study from The Freedonia Group,
Inc.
According to analyst Matt Zielenski, “Steel accounted for
the largest share of pipe demand by value in 2013 with
62 per cent of the total, supported by its use in the large
oil and gas market. Steel pipe is dominant in oil and gas
applications due to its low cost, durability and compression
strength.” The high level of drilling activity and the efforts of
oilfield service professionals to increase the size and scope
of the USA’s network of transmission and distribution lines
will drive gains.
Plastic pipe demand is anticipated to rise at the most
rapid pace of all materials, advancing 8.7 per cent annually
until 2018.
Growth will be spurred by the increasing use of plastic
pipe at the expense of such materials as steel and
concrete. In such applications as potable water and sewer
and drainage, plastic pipe will increasingly be specified by
consumers trying to reduce maintenance and replacement
costs. Rebounding building construction expenditures
will spur demand for plastic pipe used as conduit, gas
distribution, and drain, waste and vent pipe.
Polyvinyl chloride (PVC) was the leading plastic resin
used to make pipe in 2013 and will remain so in 2018.
PVC pipe is used in such applications as potable water
distribution, sanitary sewer, conduit and agriculture.
Demand will benefit from the material’s durability and
resistance to degradation. High-density polyethylene
(HDPE), which accounted for the second largest share
of plastic pipe demand in 2013, is expected to see the
strongest gains through to 2018, boosted by the use of
HDPE pipe in sewer and drainage, potable water and
natural gas distribution applications. HDPE pipe offers
such advantages as durability and corrosion resistance.
The full 366-page study is available for purchase from The
Freedonia Group.
The Freedonia Group, Inc
– USA
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