Increasing Investment In Power Generation Industry Which Relies on Renewable Energy Sources is The Most Growing Industry For The Pipes And Fittings Market

Increase in Trade is Attributable to the Application of Pipes And Fittings in Various Industries Such as Industrial, Irrigation, Residential, Oil And Gas, And Others is Anticipated to Boost Pipes And Fittings Market During the Forecast Period 2021-2026. Pipes and Fittings Market Size is forecast to reach $368.7 billion by 2026, growing at a CAGR of 3.7% during 2021-2026.

The demand for high performance corrosion resistant steel and plastic pipes has been driven by large scale inter regional oil and gas projects. Adoption of steel pipes and fittings by various industries such as Chemicals & Petrochemicals, Mining and others as they are corrosion resistant will help the market to rise significantly in the forecast period. In March 2020, Rotterdam Integrated Food Projects helped to create carbon-neutral manufacturing factory. Integrated Food Projects working with London-based drinks manufacturers with an investment of $250million approx. These manufacturing of factory in Rotterdam is highly using food and beverage pipes, sanitary tube fittings for the transfer of aerated drinks, fruit juices, beer, wine and others.

In February, 2020, U.S. chemical producer Dow Inc. has approved an expansion of its Alberta petrochemical facilities at a cost of around $225 million. In September 2019, INEOS has announced $68.92M investment to expand production at their Grange mouth site, to additional furnace on their KG ethylene plant. As stated by the world investment report, 2019, France has raised investment of $37bn in manufacturing industries. Adding up to these, the highest number of investments were recorded in manufacturing of chemicals with 47.5% of the total investments. 

Adding to this, Government of Belgium is supporting the industrial sector by an initiative called ‘Make it in Belgium’. With these initiatives and support several companies are planning to invest and expand their facilities in industrial sector and infrastructure as well creating high opportunities for pipes and fittings. Indian government announced in 2019 that it has planned to invest $35 billion for reforming the utility sector. The investment will focus on infrastructure and technology upgrades of the ailing utilities to make them more efficient and reduce financial losses. Moreover, $250 million will be invested for the installation of smart meters, thereby creating more opportunities for pipes and fittings in this vertical.

The urban infrastructure development is growing rapidly due to the rising government infrastructural projects and surge in urbanization owing to which pipes and fittings are finding their application for proper water distribution systems and other applications. According to IBEF, The government of India plans to spend $ 1.4 trillion on infrastructure during 2019 to 2023 for sustainable development of the country as the infrastructure sector has become the biggest focus area. In addition, for railways infrastructure the government has suggested investment of $ 750 billion from 2018 to 2030. All these investments are set to drive the growth of the market. To improve procurement practices and project implementation, U.S Government in February 2019 released its infrastructure initiative to modernize the infrastructure in United States. For this an investment of $200 billion was raised that seeks to spur $1.5 trillion billion in state for the local and private infrastructure investments. According to the Conference Board, The Fiscal Year 2021 budget proposal included a roughly funding of $200 billion infrastructure initiative which was raised in 2021 along with $810 billion reauthorization of existing surface transportation programs equivalent to a roughly 4 percent annual increase in nominal funding levels in U.S., which will boost the growth of the market. According to IDB, investments in the infrastructure projects witness an increase from US$150 billion to  US$250  billion  per  year in United States which is estimated to be 2% every year as Inter-American Development Bank supported  the growing demand for financing infrastructure in the United States, allocating  more  than  $5  billion  annually. According to Televisory, Government of India has launched National Infrastructure Pipeline (NIP) in 2019, wherein it has planned to invest about $1.4 billion on infrastructure projects by 2024 to 2025. currently, 42% are under implementation, 19% are under development stage and about 31% are in the conceptual stage

Major players in Pipes and Fittings include Arcelor Mittal, Baosteel Group Corporation, Nippon Steel, Tenaris SA, Aliaxis, JFE Holdings Incorporated, TMK PAO, Tianjin Pipe Group Corporation, Salzgitter AG and Chelpipe Group. 

In February 2021, Aliaxis signed an agreement to divest its plastic piping system business in South-East Asia to LESSO Group, a large industrial group of pipes and fittings, building materials in China. The divestment is made to focus on core growth markets and opportunities.