US Large Diameter Pipe Demand To Reach 203 Million Feet in 2012

Large diameter pipe demand in the US is forecast to increase 2.7 percent yearly to 203 million feet in 2012, valued at $10 billion. Growth stimulants include a rebounding construction sector and needs to expand and upgrade an aging pipe infrastructure. These and other trends, including market share and product segmentation, are presented in Large Diameter Pipe, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Concrete will account for 54 percent of all linear pipe footage as a result of its structural integrity, durability, and high compression and pressure resistance.  Demand for large diameter concrete pipe is projected to advance two percent annually to more than 109 million feet, paced by drainage and irrigation applications.

Best growth is anticipated for plastic pipe in light of resin and machinery improvements, as well as good joint integrity, excellent corrosion resistance and flow rates, and lower installation costs. Plastic pipe advances will be stimulated by resin advances (e.g., bimodal polyethylene and molecularly oriented PVC), which will extend the pressure resistance and other properties of large diameter plastic pipe.  Best opportunities are expected for large diameter polyvinyl chloride (PVC) pipe.

Demand for large diameter steel pipe is projected to increase 1.8 percent per annum due to steel’s high strength, rigidity and pressure tolerance, especially in exploratory, distribution and transmission applications for the natural gas and petroleum industries. Cast iron pipe will remain the preferred choice in applications where high water pressure capabilities are required. Clay pipe demand will slowly diminish based on competition from higher performing and lower cost plastic pipe.

Storm sewers will remain the leading large diameter pipe market, although better growth is anticipated in natural gas and drainage/irrigation applications. Natural gas markets will be stimulated by high energy costs, increased exploration and drilling activity and the excellent performance of HDPE pipe in gas distribution uses. Good growth for drainage and irrigation pipe will result from rebounding construction activity and widespread drainage applications.  Sanitary sewer growth will be based on needs to address problems with combined sewer overflows and the maintenance of clean water standards.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.