The demand for seamless pipes is expected to grow at a significant pace on account of rising adoption in the manufacturing and energy sectors. The superior performance benefits associated with the product including ability withstand high pressure, high temperature, and high mechanical stress environment are likely to be the key factors driving industry growth.
Seamless pipes exhibit superior pressure ratings compared to welded pipes of the same material owing to the absence of welded seam. As a result, the seamless pipes demonstrate uniform strength around the entire circumference of the pipe. Thus, the seamless pipes are progressively replacing the seam welded pipes products across various industries such as sectors such as oil & gas, chemical, fertilizer, power generation and, automotive industry.
The growth of the seamless pipes industry is primarily being driven by oil and gas industry. The demand for seamless pipes is expected to grow on account of enhanced corrosion resistance and ability to endure in extremely cold or hot environments associated with the product. The product is being increasingly utilized on offshore oil platforms and offshore oil pipelines.
The high cost associated with seamless pipes are expected to drive restrain the seamless pipes market growth over the forecast period. Seamless pipes are priced relatively higher than the seam weld pipes owing to their complex manufacturing process. However, the growing product adoption the application to carry a material such water, industrial gases, wastewater and chemicals are expected to boost the product demand over the upcoming decade.
In terms of materials, the industry can be segmented into steel alloys, copper alloys, and nickel alloys. The industry can be further divided based on production process including continuous mandrel rolling, multi-stand plug mill, and cross-roll piercing & pilger rolling. Based on the end-use industry, the market can be divided into oil & gas, infrastructure & construction, power generation, automotive, engineering, chemicals, and others.
The steel and alloys emerged as the largest material segment of the seamless pipe market in 2018. This fact be attributed to higher strength and durability and ease of manufacturing property that steel offers.
The cross-roll piercing & pilger rolling production process segment led the global seamless pipe market owing to its energy and cost-efficiency. The mandrel rolling production process is expected to grow at a significant pace owing to its suitability for manufacturing the seamless pipes that are specifically used in the oil and gas application.
The oil & gas segment is anticipated to be the largest end-use industry for the seamless pipes over the projected period. The seamless pipes made from steel are witnessing growing preference in oil and gas sector, on account to their durability, strength, and corrosion resistance. Seamless pipes are increasingly being used in offshore rigs and oil field drilling applications.
Growing investment in the development of oil and natural gas pipelines is expected to drive the demand for seamless pipes over the forecast period. Seamless pipes are witnessing growing adoption in the infrastructure & construction sector chiefly for the purpose of carrying sewage and water.
The Asia Pacific is expected to be the largest consumer for the product, with a majority of demand derived by China, and India. India is likely to be the key market for the seamless pipes on account of growing investment in the development of the natural gas pipeline network. Additionally, the county is making a significant investment in augmenting its petroleum refining capacities.
The North America region held a significant share in the global seamless pipe market. Technological advancements in hydraulic fracking technology have led the U.S. and Canada to emerge as one of the largest oil exporters across the world. These countries are making significant investments in the development of oil pipeline infrastructure, thereby boosting the demand for seamless pipes.
High initial investments and low consumer awareness of the product in the small markets are the key obstacles faced by the industry players. Fluctuating oil prices, which results in price variations of polymers, is expected to hamper profit margins of the industry players. The rapid growth of the construction industry, and changing construction practices is expected to attract the attention of new players in the industry, thus increasing the threat of new entrants in the market.
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