HDPE Pipes Market by Type (PE 63, PE 80, PE 100 and PE 100RC) and Application (Oil & Gas Pipe, Agricultural Irrigation Pipe, Water Supply Pipe, Sewage System Pipe, and Others): Global Opportunity Analysis and Industry Forecast, 2020 -2025

Infrastructure Development Projects Around the World are Likely to Drive the Global High-Density Polyethylene Market at 7.5% CAGR during 2020 & 2025.

The rise in agricultural and industrial activities and rising demand for pipeline infrastructure in oil & gas exploration and production activities are anticipated to drive the growth of the global HDPE pipes market over the upcoming years.

Aging Water Infrastructure

The HDPE (High-Density Polyethylene) pipes are used as a medium for supplying drinking water. Various countries in America are facing the problem with the water which is affecting the individual household and communities. In the past few months, the United States Environmental Protection Agency (EPA) also announced the availability of more than USD 95 Million in new funds to help the State of Michigan, such government initiatives to improve the drinking water and wastewater infrastructure is expected to drive the growth of HDPE pipes market in the North America region. The United States totally depends upon the underground pipes for their water supply, but the network of these underground pipes has reached the end of their useful life, which is resulting in various health problems. Further, increasing spending on the water infrastructure and wastewater treatment is believed to impetus the growth of the HDPE pipes market over the upcoming years.

HDPE Pipes in Oil & Gas Industry

In the oil & gas industry, the companies are trying to adopt high-density polyethylene (HDPE) pipes as an alternative of steel pipes due to the cost-effectiveness of the HDPE pipes. Also, the HDPE pipes offer advantages such as chemical and corrosion resistance, lightweight and these pipes also can be used in moderate temperatures. Apart from this, in the oil & gas industry, the high-density polyethylene (HDPE) pipes are also used in the fracking (a process of injecting liquid at high pressure) for the collection and transportation of hydrocarbons, as well as the transportation and collection of water which is used in this process. The major reason behind using the HDPE pipes in this process is its excellent impact resistance, high tensile strength, low moisture absorption, and ease-of-handling. Further, these advantages are increasing the use of HDPE pipes in the oil & gas industry which is expected to drive the growth of the HDPE pipes market over the forecast period.

HDPE Pipes in Agricultural Applications

The demand for high-density polyethylene (HDPE) pipes in agricultural applications is increasing on the back of its excellent performance and a long-life expectancy. The growing demand for the water irrigation system (in numerous applications such as flood irrigation, drip irrigation, and others) in the agricultural industry is anticipated to drive the growth of the HDPE pipes market. Further, the high-density polyethylene (HDPE) pipe can provide up to a 10% increase in water reaching the crops over traditional materials, such as PVC, as a result of less water leakage.

Sewage Disposal Infrastructure

Due to the continuous infrastructure development of sewage systems in the developing countries, the demand for plastic pipes has increased exponentially, on the back of which the demand for high-density polyethylene (HDPE) pipes is also increasing. The HDPE pipes offer various functional advantages such as sustainability, durability, and flexibility along with superior resistance to corrosion and abrasion which are needed in the sewage water treatment. Apart from this, the HDPE piping systems also provide long service life, excellent joint performance, and offer leak-free protection. Further, the growth of the sewage disposal infrastructure is anticipated to positively impact the growth of HDPE pipes market.

Further, the global HDPE pipes market is anticipated to expand on the back of several factors including a vast range of applications, infrastructure development projects, and government initiatives. The government initiative, for instance, the government has been promoting the use of drip & sprinkler irrigation technologies, which require the use of HDPE pipes for transporting water for irrigation, are playing an important role in augmenting the growth of global high-density polyethylene pipes market. Also, domestic demand for HDPE pipes is intensifying, which in turn encouraging the market growth across all regions.

Barriers in HDPE Pipes Market

The major constraint in the growth of the HDPE pipes market is the higher cost of these pipes. The high-density polyethylene (HDPE) pipes are 25% more expensive when they are compared with the PVC pipes. Also, the installation cost of the high-density polyethylene (HDPE) pipes is comparatively high in comparison with the other plastic pipes. The installation cost of HDPE pipes varies around 2% to 3% to the cost of the other plastic pipes. Further, this variation in the pricing of the plastic pipes is expected to hamper the growth of the HDPE pipes market.

High-density polyethylene (HDPE) pipes are made from the polymerization of ethylene which is obtained from oil. The cost of raw materials used in the manufacturing of high-density polyethylene (HDPE) pipes remains highly volatile and fluctuating with time. This fluctuation in raw material prices may obstruct the growth of High-density polyethylene (HDPE) pipes market in future.

The high-density polyethylene (HDPE) pipes are much costly in comparison to its alternatives such as PVC pipes, LDPE pipes, MDPE pipes, and others. The PVC pipes features include low maintenance and installation costs which makes it a very cost-efficient choice. Further, this low maintenance and installation cost is acting as a restraining factor for the growth of the high-density polyethylene (HDPE) pipes market.