Steel Pipes & Tubes Market Size, Share & Trends Report

Steel Pipes & Tubes Market Size, Share & Trends Analysis Report By Technology (ERW, SAW, Seamless), By Application (Power Plant, Chemicals & Petrochemicals, Oil & Gas), By Region, And Segment Forecasts, 2019 - 2025

  • Published Date: Aug, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-3-68038-640-0
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 118

Industry Insights

The global steel pipes & tubes market size was valued at USD 141.3 billion in 2018 and is estimated to progress at a CAGR of 9.0% from 2019 to 2025. The market is majorly driven by the demand from oil & gas industry wherein the product is used in exploration, processing, and transmission applications.

According to the International Energy Agency, the global demand for oil increased by 1.3% and the global natural gas consumption increased by 4.6% in 2018 from 2017. This is a positive sign for steel pipes & tubes market. In addition, upcoming oil & gas projects, such as East Natuna Block and Pengerang Refinery and Petrochemical Integrated Development (RAPID), are anticipated to boost the market growth over the coming years.

U.S. Steel Pipes & Tubes market

Steel pipes and tubes are also used in petrochemical plants and rising demand for petrochemicals in various products, such as batteries, wind turbines, packaging, detergents, plastics, medical equipment, and tires, is another driver for the market. For instance, in April 2019, Bharat Petroleum Corporation invested INR 6,877 crore (USD 997.6 million) for setting up a petrochemical plant in Mumbai refinery, this, in turn, is expected to further propel the market growth over the coming years.

The market growth is expected to be boosted by increasing industrial production. Seamless steel tubes are extensively used in the construction of various machinery & equipment. According to the Organisation for Economic Co-operation and Development (OECD), the global industrial production increased by 2.5% from 2017 to 2018. A rise in the growth trajectory of industrial production, especially in developing economies, is expected to boost the market for steel tubes & pipes over the coming years.

Despite the growing product demand in various industries, the availability of substitutes may cause a hindrance to market growth. For instance, plastic pipes are gaining popularity in oil & gas industry owing to their characteristics, such as corrosion resistance, light weight, and high strength, which make them preferable for use in low and medium pressure applications. Polyethylene, polypropylene, UPVC, and HDPE are among the preferred materials used for producing plastic pipes.

Technology Insights

Technological advancements in seamless steel pipes & tubes ensure high strength and flexibility. These are manufactured from solid round billets and are extensively used in industrial boilers and oil & gas industries owing to their high strength, durability, and corrosion resistance. Factors such as increasing number of projects in oil & gas industry and growth in the pipeline network are anticipated to drive the market for seamless steel pipes & tubes.

ERW steel pipes & tubes are manufactured from strip or coil by rolling the metal followed by welding it across the length longitudinally. These are majorly used in the oil & gas sector to transport oil in low and medium pressure applications. There is a rise in demand for the production of these pipes & tubes with their rising use in oil & gas companies owing to various benefits mainly including ease of installation in constricted areas. This is anticipated to boost the demand for ERW pipes with increasing upcoming oil & gas projects across the globe.

SAW segment in the market is anticipated to grow at a CAGR of 8.2%, in terms of revenue, from 2019 to 2025. SAW steel pipes & tubes are mainly used in shipbuilding and oil & gas industry. They are used in high-pressure applications such as in the transportation of hydrocarbons, oil, & gas, and in the transmission & distribution of water.

Application Insights

Oil & gas segment was the major application segment of the market in 2018, accounting for a volume share of 49.9%. The large share is attributable to applications of steel pipes & tubes in the industry, which includes transportation and process piping for refining. Increasing demand for crude oil is anticipated to boost the growth of oil & gas industry, which, in turn, is likely to drive the market in the coming years. For instance, crude oil production increased by 2% from 2017 to 2018.

In terms of volume, chemicals & petrochemicals segment in the market is expected to grow at a CAGR of 7.0% from 2019 to 2025. Steel pipes & tubes are widely used in the construction of petrochemical plants on account of their characteristics such as oxidation & corrosion resistance and ability to withstand varying degrees of pressurization.

Increasing construction of petrochemical plants is anticipated to boost the consumption of steel pipes & tubes over the forecast period. Sasol’s Lake Charles Chemical Project in Louisiana, U.S., which comprises seven chemical products manufacturing facilities is one such example. As of February 2019, the company began the manufacturing at its second plant out of the seven facilities and the remaining are expected to be completed by 2020. This is likely to propel the need for pipes & tubes in the petrochemicals industry.

Global steel pipes & tubes market

In automotive & transportation sector, seamless steel pipes & tubes are majorly used to manufacture steering and suspension components for motor vehicles owing to their properties such as high tensile strength and high corrosion & pressure resistance. The overall production of motor vehicles increased by 6.7% from 2014 to 2018 as per the data by OICA. Increasing automotive production is likely to boost the market growth over the coming years.

Power plant segment in the market is anticipated to be the fastest-growing segment at a CAGR of 10.0%, in terms of revenue, over the forecast period. The growth is attributable to the rising demand for electricity, especially in largely populated and developing economies. For instance, as of 2019, out of the 10 biggest under-construction power plants in the world, 6 are being constructed in China and India.

Regional Insights

North America market is anticipated to grow at a CAGR of 5.3%, in terms of volume, from 2019 to 2025 with a high demand for the product from oil & gas industry in the U.S. The country owns 51.5% of the global oil & gas pipeline projects in pre-construction and construction stages, as per a report published by The Institution of Engineering and Technology in 2019. This is likely to boost the utilization of steel pipes & tubes over the coming years.

In the U.S., petrochemical capacity is likely to increase by over 50 million tons including all types of feedstock-based projects. The country is expected to add 8.7 million tons of petrochemical production capacity by 2020, as per Petrochemical Update, a part of the FCBI Energy Ltd. This is expected to augment the market growth over the coming years.

Asia Pacific was the largest regional market in 2018, accounting for a volume share of 60.0% of the global market. Factors such as an increase in pipeline network, increasing installation capacity of power plants, rising number of infrastructural and power projects, and growing oil & gas sector are propelling the demand for steel pipes & tubes in the regional market.

India is among one of the key producers and consumers of steel pipes & tubes in the region. Growth in various end-use industries, especially oil & gas, is propelling product demand. For instance, as per Pipeline & Gas Journal, around 134,866 kilometers of oil & gas pipeline is expected to be laid over the next 2-3 years, presenting an opportunity of close to USD 30.0 billion to the steel pipe manufacturers. Out of the total pipeline, length of 61,783 kilometers is in the engineering and design construction phase, whereas 73,084 kilometers is in the construction stage.

Steel Pipes & Tubes Market Share Insights

The global market for steel pipes & tubes is highly competitive in nature owing to the presence of major players such as ArcelorMittal; Rama Steel Tubes Limited; United States Steel; Nippon Steel Corporation; Tata Steel Ltd.; and Jindal Steel & Power Ltd. Major companies in the industry are involved in mergers & acquisitions and new capacity expansions with an aim of catering to the growing demand for steel pipes & tubes. For instance, in March 2018, Nippon Steel & Sumitomo Metal Corporation (NSSMC) acquired 51% of the common shares of Sanyo Special Steel Co., Ltd., a steel bars & tubes manufacturing company, making it a subsidiary company of (NSSMC).

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation                                                  

Volume in Kilotons Revenue in USD Million CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Country scope

U.S., Germany, Russia, Turkey, China, India, Brazil,  and Iran

Report coverage              

Revenue forecast, company share, competitive landscape, growth factors and trends

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Segments Covered in the Report

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global steel pipes & tubes market report on the basis of technology, application, and region:

  • Technology Outlook (Revenue, USD Million; Volume, Kilotons, 2014 - 2025)

    • Seamless

    • Electric Resistance Welded

    • Submerged Arc Welded

  • Application Outlook (Revenue, USD Million; Volume, Kilotons, 2014 - 2025)

    • Oil & gas

    • Chemicals & Petrochemicals

    • Automotive & transportation

    • Mechanical engineering

    • Power plant

    • Construction

    • Other

  • Regional Outlook (Revenue, USD Million; Volume, Kilotons, 2014 - 2025)

    • North America

      • U.S.

    • Europe

      • Germany

      • Russia

      • Turkey

    • Asia Pacific

      • China

      • India

    • Central & South America

      • Brazil

    • Middle East & Africa

      • Iran

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