The global HDPE pipes market is projected to have a compound annual growth rate of 6.24%, growing from US$10.866 billion in 2019 to US$15.578 billion in 2026. The market of HDPE pipes is expected to drive by increasing applications in end-use industries of HDPE pipes mainly in the oil & gas industry, by increasing demand in the agricultural sector for irrigation facilities, by growing sewage disposal infrastructure, and by the increasing innovations in the PE pipes. Earlier, the use of HDPE pipes was limited to certain things, but now they use it is increasing, the HDPE pipes have been recognized in a different way, which in turn, is increasing their demand and hence growth in the global HDPE pipes market. Apart from it, the growth of the agricultural sector increases the demand for irrigation facilities and their development, which further boosts the demand for HDPE pipes as they are used for portable water. Therefore, this shows that the market is having potential growth in the forecast period. Though, the HDPE pipes market is expected to be restrained by the volatile raw material prices due to the fluctuations in the crude oil prices.
At the global level, the demand for the HDPE pipes is increasing mainly in oil & gas industry due to the characteristics of HDPE pipes which are better than steel pipes, as it is relatively less costly, high tensile strength, and easy handling. The expansion of the HDPE pipes’ applications is expected to boost the growth rate of the HDPE pipes market. By region, the market of HDPE pipes is segmented into North America, South America, Europe, Asia Pacific, Middle East, and Africa. Apart from the Asia Pacific region holding a substantial market share in the HDPE pipes, North America and Europe are also holding a significant share and have the potential to grow significantly in the forecast period. Europe holds various opportunities due to the development of water supply and irrigation infrastructure facilities. North America has the potential to grow in the industrial sectors, such as food packaging, construction sector, technical parts, cosmetics, and so on. By Type, the market is segmented into PE 63, PE 80, PE 100, and others. Among them, the segment PE 63 is expected to have a significant growth in the forecast period because of the increasing demand for HDPE pipes in drinking water applications. By application, the market is segmented into oil & gas, irrigation, water and waste management, and others. Due to increasing demand for the water and development of the agricultural sector, the segments irrigation, and water and waste management are expected to have the significant potential to grow in the forecast period. It does not mean that the oil and gas industry will not increase, as this segment will also have positive growth in the upcoming period owing to the industrialization and urbanization developments.
There is a potential growth opportunity for the companies in the recycling market for the HDPE pipes market, as nowadays, the economies, government, and people are favoring environment-friendly products, to have a sustainable environment. From the facts, HDPE is recyclable in nature, which also boosts its demand for the HDPE pipes in the forecast period.
The pandemic covid-19 has adversely impacted the HDPE pipes market, as it hampered both the production and the consumer markets, wherein production market, the manufacturing has been hampered due to the lockdowns. Several projects, majorly in China, the US, Germany, and South Korea have been delayed as the companies are facing supply chain constraints majorly in short-term operational issues, and there is a lack of site access for the companies. The Asia Pacific is expected to be the region that is highly impacted by this pandemic covid-19 due to the effects of the covid-19 in China, Japan, and India. The market of HDPE pipes is expected to grow and will come back on track in a short time span.
North America has built the largest pressure pipe commissioned in 2020 with the facility of water management, such as washing dishes, doing laundry, and flushing the toilet. The pipe has been manufactured by Agru America Inc. at its XXL facility in Charleston, S.C. using PE 100 material (source: Plastics News).
APAC to witness lucrative growth
Asia Pacific is expected to have the highest growth in the HDPE pipes market. The HDPE pipes market is expected to grow in this region due to the industrialization and urbanization, continuous industrial, residential construction, and infrastructure developments in this region. Apart from it, the market is also driven by the increasing demand for oil and gas and production activities and a rise in agricultural and industrial activities. In India, the growth s in mainly for the FTTx industry because of various factors such as increasing investments in the telecommunication sector and the power sector. These 2 sectors have a demand for HDPE pipes because of their high-density characteristic, hence, increasing investments will further boost the growth of the HDPE pipes. The power sector's aim is to fulfill the increasing demand for electricity, and HDPE pipes demand increases for transmission systems. Though the increasing prices of PE raw material used in the HDPE pipes production hinder the growth of the HDPE pipes market in India. The demand for the HDPE pipes in micro-duct is expected to have the potential growth in India in the forecast period because of the characteristics of HDPE pipes such as cost-effective, space-saving, and so on.