US
demand for large diameter pipe -- defined as pipe with a diameter of 15 inches
or more -- will rise 6.2 percent per year to $8.2 billion in 2015. Gains will rebound strongly from the declining
demand experienced during the 2005-2010 period, in which large diameter pipe
markets were negatively impacted by the 2007-2009 recession. Going forward, rising demand will be fueled
by a more favorable environment for public infrastructure spending, as state
and municipal governments faced severe budgetary constraints in 2010 that
caused many major projects to be delayed.
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 market research firm.
Sewers
-- including both storm and sanitary sewers -- will remain the leading outlet
for large diameter pipe through 2015, accounting for about half
of total demand. Sanitary sewers will be
the faster growing of the two sectors, with advances bolstered by rebounds in
building construction spending and public infrastructure investment. These factors will also drive rapid gains in
demand for large diameter drainage and water transmission pipe. Demand advances for oil and gas pipe -- one
of the few markets to see healthy growth during the 2005-2010 period -- will
decelerate through 2015, as pipeline construction activity slows, although the
development of unconventional gas resources will continue to provide
opportunities.
Steel
and concrete were the leading large diameter pipe materials in 2010,
combining to account for about two-thirds of total demand.
However, steel will be the slowest-growing
pipe material in value terms through 2015, restrained by moderating price
increases, a deceleration in oil and gas applications, and market maturity in
steel sewer pipe.
Concrete pipe will fare
better, rising at an above-average pace and rebounding from significant
declines in demand during the 2005-2010 period.
The most rapid gains in demand through 2015 will be for ductile iron
pipe, driven by robust growth in the water and sanitary sewer markets.
However, as with concrete, the bulk of these
advances will be regaining demand levels lost during the 2007-2009
recession.
Over the long term, the most favorable growth prospects are expected
for large diameter plastic pipe, most notably high density polyethylene
(HDPE), but also polyvinyl chloride (PVC) and fiberglass pipe.
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.
