Abstract
Strength of plastic pipe demand to benefit overall US pipe growth
Total pipe demand in the US is projected to increase 1.5 percent yearly to
16.4 billion feet in 2011 based on continued highway and street construction,
stricter water management regulations, and needs to replace or expand aging or
obsolete sewer, drainage and municipal drinking water systems. Further growth
will be constrained by fiscal austerity measures and declining single family
housing starts. Construction will account for onehalf of all pipe used due to
diverse drain, sewer, water distribution, conduit, energy and other
applications.
Plastic pipe will exhibit the fastest growth due to performance and cost
advantages over other materials, as well as improved resins and inroads into
larger diameters. Polyvinyl chloride will remain the dominant pipe resin with
best opportunities expected in drain and sewer uses. High density polyethylene
will rise at the fastest pace due to its flexibility, sturdiness, joint
integrity and trench-laying capabilities. Growth areas include corrugated
drain, gas and potable water pipe.
Copper pipe advances will reflect opportunities in refrigeration tubing, with
further growth threatened by lackluster activity in the residential building
segment. Steel pipe advances will slow after rapid growth in the mid-2000s
based on high energy prices and subsequent drilling and exploration activity.
Nonetheless, growth will be driven by corrugated and drain pipe applications,
yet hindered by mature process industry and structural applications. Concrete
pipe demand will expand at an above-average pace due to increased use in water
distribution, drain and sanitary sewer pipe. Cast iron pipe will advance
slowly due to mature applications and competition from plastic in larger pipe
diameters.
Construction to continue as dominant pipe market
Construction will remain the leading pipe market with advances buoyed by a
rebounding nonresidential building construction segment, yet constrained by
declining single-family housing starts. Pipe (tubing) markets for
refrigeration equipment will expand at an above-average pace due to good
growth in commercial refrigeration equipment and demand for more energy
efficient air conditioners, refrigerators, heat pumps and other equipment.
Energy pipe advances will slacken following the intense drilling and
exploration activity fueled by high oil and gas prices in the mid 2000s.
Study coverage
Plastic & Competitive Pipe, a new Freedonia industry study analyzes the US
pipe industry, including particular emphasis on plastic pipe and resins
consumed. Historical data plus forecasts for 2011 and 2016 are provided for
seven competitive pipe materials and eight types of plastic pipe in 14
markets. The study also considers market environment factors, evaluates market
share data and profiles key US industry competitors.
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