Steel Pipes & Tubes Market Size, Share & Trends Analysis Report By Technology (ERW, Seamless, SAW), By Application (Oil & Gas, Power Plant), By Region (APAC, MEA, North America), And Segment Forecasts, 2020 - 2027

Report Overview

The global steel pipes & tubes market size was valued at USD 142.4 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 6.2% from 2020 to 2027. Increasing oil & gas production owing to the demand from the transportation industry is one of the prominent growth drivers for the market. The oil & gas industry is the major consumer segment for steel pipes & tubes. Steel pipes are used for the transportation of gas & liquid in this industry. They are generally manufactured using low alloy or carbon steel. The inside diameter, ductility, yield strength, and pressure rating are some of the key factors considered while selecting pipes for specific applications. The U.S. oil & gas industry is among the primary end-users for steel pipes and tubes. The product is used in upstream, midstream as well as downstream processing of crude oil. The market is anticipated to register steady growth over the forecast period owing to the developments in the U.S. oil & gas industry.

The U.S. has always been a leading producer of oil & gas and with the discovery of unconventional oil & gas resources in the recent past, the oil reserves in the country have surged to over 65 billion barrels and natural gas reserves to 430 trillion cubic feet in 2019. The country’s share in global oil production was 17% in 2019 while its share in the global gas production stood at 23% in 2019. These shares are expected to increase over the coming years.

The U.S. crude oil production reached 17,3045 thousand barrels per day in 2019 from 11,801 thousand barrels per day in 2014. The upcoming projects in the country, including the Alaska LNG liquefaction plant worth USD 43 billion and Cameron LNG Liquefaction Plant worth USD 33 billion, are anticipated to surge the need for oil & gas equipment including steel pipes & tubes.

Technology Insights

In terms of volume, seamless accounted for a market share of over 54% in 2019. Seamless steel products are manufactured from billets that are perforated and heated to create the tubular section. There are no seam welds in such products. Seamless pipes & tubes are used in a variety of sectors including oil & gas, power generation, chemicals & petrochemicals, and engineering.

The oil & gas sector dominates the seamless technology segment. The oil & gas industry requires tubular products that can withstand high pressure, corrosive atmosphere, pressure, and mechanical stress. Thus, these products are used for different applications within the oil & gas sector including upstream operations (Oil Country Tubular Goods (OCTG)), midstream (transmission and distribution of oil, gas, fluids, acids, steam, and slurries), and downstream (petroleum: process piping in order to refine oil & gas).

Since the past few years, ERW pipes & tubes are gaining prominence in the market owing to their low prices and modest performance. Modern welding technologies, such as high-frequency welding, that are being increasingly integrated into the process of manufacturing ERW pipes & tubes act as a crucial factor supporting the segment growth.

Application Insights

The oil & gas segment led the market in 2019 and accounted for the highest revenue share of over 51%. The segment will retain the leading position over the forecast years due to diverse applications of the products in the oil & gas sector, ranging from OCTG, transportation to process piping for refining crude oil into petroleum products.

In terms of volume, the chemicals & petrochemicals segment is anticipated to denote a CAGR of 5.0% from 2020 to 2027. Steel pipes & tubes are increasingly used in petrochemical plants for process refining on account of their characteristics, such as strong corrosion and oxidation resistance. Moreover, they can withstand varying degrees of pressurization.

Rapid industrialization & urbanization, increasing population, and growth in the manufacturing sectors, especially in developing economies, are expected to augment the construction industry segment growth. This, in turn, is likely to increase product demand. China, India, and the U.S. are the leading construction markets globally.

Regional Insights

Asia Pacific emerged as the leading regional market in 2019 and accounted for a revenue share of over 44%. The region is estimated to grow further at the fastest CAGR from 2020 to 2027 due to rising product consumption in the region. China, Japan, South Korea, Southeast Asia, and India are the major product consumers in the region owing to the presence of huge manufacturing, petroleum, and petrochemical sector.

The outbreak of COVID-19 across the globe has directly impacted the manufacturing, oil & gas, and construction sectors. The key end-use sectors of the steel pipes & tubes industry, including the construction sector, are likely to observe a negative trend in FY 2020.

North America witnessed a steady growth in the past. In 2019, the demand for steel pipes in the U.S. benefitted from strong economic growth, which was driven by the government-led fiscal stimulus, leading to high business confidence. This resulted in a surge in oil & gas production and high manufacturing activity in the region. According to the statistics of the BP Energy Outlook 2020, the crude oil production in North America increased by nearly 7.3% in 2019.

Key Companies & Market Share Insights

Due to the COVID-19 pandemic, vendors of the market are facing challenges as the demand for steel pipes and tubes continues to take a dip in FY 2020. The shutting down of production facilities is likely to further inflict the economic burden on industry participants. From a supply perspective, the overall crude steel production declined by nearly 6% (Y-o-Y) from March 2019 to March 2020, as per the data published by the World Steel Association in April 2020. Some of the prominent players in the steel pipes & tubes market include:

• ArcelorMittal

• United States Steel

• Nippon Steel Corporation

• Tata Steel

• Jindal Steel & Power Ltd. (JSPL)

• Rama Steel Tubes Limited

• Steel Authority of India Limited (SAIL)

Steel Pipes & Tubes Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global steel pipes & tubes market report based on technology, application, and region:

• Technology Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Seamless

  • ERW

  • SAW

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Oil & gas

  • Chemicals and petrochemicals

  • Automotive & transportation

  • Mechanical engineering

  • Power plant

  • Construction

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

  • Europe

    • Germany

    • Russia

    • Turkey

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • The Middle East & Africa

    • Iran