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
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- Status : Published
- Published on: Feb 2021
- Report ID: KDMI-3462
- Available Format: PDF/Excel/DOC
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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.
Global HDPE pipes market is projected to reach USD 22,976.8 million in 2024, thriving at a compound annual growth rate (CAGR) of 7.5% during the forecasted period. The rise in agricultural and industrial activities and demand for pipeline infrastructure is increasing in oil & gas exploration and production activities are anticipated to drive the growth of the global HDPE pipes market over the upcoming years.
The market is segmented by product type into PE63, PE80, PE100, PE100RC, and others, out of which, PE 100 segment shared approximately 67.7% of the global HDPE pipes market in 2018. It was followed by PE 80 segment in terms of market share in 2018. Rapid urbanization is anticipated to increase the demand for water supply, leading to an increase in the requirement of HDPE pipes. The report is also categorized by application segment, which includes oil & gas pipe, agricultural irrigation pipe, water supply pipe, mining pipe, sewage system pipe, and others. Furthermore, growth in sewage disposal infrastructure and increasing application of HDPE pipes in various end-use industries is expected to drive the demand for HDPE pipes in the future.
In terms of geography, the high-density polyethylene (HDPE) pipes market can be segmented into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Asia Pacific accounts for the major share of the global high-density polyethylene (HDPE) pipes market. Asia Pacific HDPE pipes market was held at USD 8,104.4 Million in 2018 and is anticipated to reach USD 12,988.8 Million by the end of 2024. Asia Pacific HDPE pipes market accounted for a market share of 54.2% in 2018and further, is expected to stand at a market share of 56.5% by the end of 2024.
The key players profiled in the report include JM Eagle Inc., WL Plastics, Lane Enterprises, Inc., Prinsco, Inc., Uponor, Polyplastic group, Mexichem S.A.B. de C.V, United Poly systems, Radius system, and Blue Diamond Industries, LLC. These market players have adopted different business strategies, such as acquisition, product launch, merger, and partnership to stay competitive in the global HDPE pipes market. The other key players operating in the market include Canada Culvert, Inc. (WGI Westman Group, Inc.), Dura-Line Corp., IPEX Inc., Reliance Industries Limited, and Kanaflex Corporation Co., Ltd. The demand for HDPE pipes in the global market is growing rapidly. To cater to the increasing demand, the manufacturers of HDPE pipes are implementing different strategies such as expansion, product launch, and others. The overall pipe manufacturing industry is witnessing remarkable demand from different industries including construction, oil & gas, agriculture, and others. There are many infrastructure development projects going on and there are strong investments are done in infrastructure development, which in turn augmenting the demand for pipes and related products. In order to capture maximum demand, manufacturers of HDPE pipes are increasing their manufacturing production capacity through opening new facilities, installing machinery and by strengthening workforce power. For instance, UNITED POLY SYSTEMS purchased a 59,103 sqft building and 11 acres of land at Mesa Del Sol from Gold Mesa Investments, LLC to use this property as second base and to increase productivity.
Market Segmentation Analysis:
- PE 63
- PE 80
- PE 100
- PE 100RC
- Oil & Gas Pipe
- Agricultural Irrigation Pipe
- Water Supply Pipe
- Sewage System Pipe
- Mining Pipe
The HDPE pipes are used for transferring minerals and wasters in the mines and offer unique mechanical characteristics such as high reliability and security. These unique mechanical characteristics of the polyethylene have increased the use of high-density polyethylene (HDPE) pipes and high-density polyethylene (HDPE)piping systems in the mining industry. Apart from this, in Southern Africa, 30% of all HDPE pipes are used in the mining application due to its superb chemical and abrasion resistance. These pipes offer a variety of environmental benefits to mine, such as reducing the carbon footprint from transportation because of light weights and the ability to maximize consignments. Further, these factors are likely to impact the growth of HDPE pipes in the mining industry.
The HDPE market report provides market analytics for major economies worldwide. Global HDPE market has been categorized into various regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa. The report also comprises of detailed market analysis of major countries.
North America (U.S. & Canada)
Europe (Germany, United Kingdom, France, Italy, Spain, Russia and Rest of Europe)
Asia Pacific (China, India, Japan, South Korea, Indonesia, Taiwan, Australia, New Zealand and Rest of Asia Pacific)
Latin America (Brazil, Mexico, Argentina and Rest of Latin America)
Middle East & Africa (GCC, North Africa, South Africa and Rest of Middle East & Africa)
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