The Global Polyethylene Pipe Market is expected to grow at a high CAGR of 4.5% during the forecasting period (2022-2029).
Polyethylene pipes play a significant role in the water distribution required for huge infrastructure buildings, residential and commercial spaces in developing and developed regions. Water distribution system through pipes is the landscape of irrigation systems, drain, waste, and vent (DWV) systems, and sewage transport. Polyethene pipes have several advantages such as high toughness, corrosion resistance, cost-effectiveness, durable and resistance to chemicals than other steel pipes.
Polyethylene Pipe is substantially used in end-user industries such as water service or distribution lines, natural gas distribution, lawn sprinklers, agriculture, sewers, waste disposal, drainage lines, building & construction and among others.
The global polyethylene pipes are driven by the rising demand for irrigation in the agricultural land with the surge in government subsidy schemes and support. Further growing demand for the rehabilitation and replacement of the old pipelines for water distribution in several countries with lightweight and cost-effective polyethylene pipes have propelled this market growth. Further increasing building and construction projects with the surge in government support and rising demand by the municipalities due to urbanization around the globe have propelled the growth of this market.
Rising demand for irrigation in the agricultural land with the surge in government subsidy schemes and support around the globe
The market is driven by the surge in the demand rising demand for irrigation in the agricultural land with the surge in government subsidy schemes and support for better crop yield. According to the UNESCO Organization report in 2019, irrigated agricultural land covered 275 million hectares that are around 20% of cultivated land and accounts for 40% of global food production.
As rapidly increasing population stipulate the irrigation development for food production which can be fulfilled by increasing the irrigated land. As polyethylene pipes in agriculture play a vital role in the distribution and transmission of chemical fertilizers through the water flow and also increase the efficiency of fertilizer consumption. It also prevents the creation of unwanted moisture in gardens and farms prevent breaking out some diseases such as parasitic and fungal at farms.
Growing demand for the rehabilitation and replacement of the old pipelines for water distribution in several countries with lightweight and cost-effective polyethylene pipe
Further growing demand for the rehabilitation and replacement of the old pipelines for water distribution in several countries with lightweight and cost-effective polyethylene pipes. It created a massive demand for Polyethylene Pipe in the industrial, commercial, and residential sectors have become old which needs to replace with cost-effective polyethylene pipe for better water distribution.
For instance, American Water Works Association (AWWA) studies concluded that in the United States around more than one million miles of water piping were installed more than 50 years ago which are in an era of pipe replacement. It created a massive demand for polyethylene pipes around the globe.
The rising launching of the advanced material pipes to enhance its capabilities and performance in high temperature by leading players may create a huge opportunity for the growth of this market
Increasing the launching of the advanced material pipes to enhance its capabilities and performance in high temperatures by leading players may create a huge opportunity for the growth of this market. For instance, on 18th August 2018, Astral Poly Technik Ltd has launched joined hands with Japan-based 'SEKISUI CHEMICAL CO. LTD.' ('SEKISUI') to source chlorinated polyvinyl chloride (CPVC) resin for the hot and cold water plumbing system. This strategic tie-up between ASTRAL and SEKISUI enables ASTRAL to go for backward integration into developing its own CPVC compound. For instance, on 16th October 2019, Borealis launched a new BorPure resin at the K 2019 designed for flip-top cap applications with growing caps and closures market segments.
COVID-19 Impact Analysis
The global polyethylene pipe market has shown slight declination due to the Covid-19 pandemic, as several leading manufacturing industries were closed. Several countries have restricted production activities during the covid-19 pandemic. Further, the growth of textile & apparel was also declined due to low demand in June 2020.
However, the demand for polyethylene pipe is slightly increased in August 2020, as several leading manufacturers started production. The leading manufacturers of polyethelene pipes have declined the sale due to the Covid-19 pandemic. For instance, Astral Poly Technik's net profit declined by 57.5% to 2.70 million with net sales decreased by 33% to US$ 54.5 million in the first quarter of June 2020 over Q1 June 2019. Further demand for polyethyline pipes will increase as soon as the pandemic will over.
The global polyethylene pipe is segmented based on type, application and region.
Rising demand in the automotive sector with the surge in the global sale of passenger vehicles have propelled the polyurethane resins market
In terms of type, the global Polyethylene Pipe is bifurcated into LLDPE (Linear Low-Density Polyethylene), LDPE (Low-Density Polyethylene), HDPE (High-Density Polyethylene) and cross-link polyethylene (PEX/XLPE) and others. Among these, HDPE (High-Density Polyethylene) has the highest market share in 2019, owing to its proven applications including chemicals, slurries, municipal water and wastewater.
As the demand is driven by polyethylene pipe used for the replacement of the steel pipes replacement to expensive and cost-prohibitive pipes. For instance, on 21st Nov 2020, the Thane Municipal Corporation (TMC) has planned to build a 120-meter long water supply pipeline under the Central Railway(CR) lines near the Diva station, Thane, India.
It would be the replacement of the first water pipeline using micro-tunnelling which will connect with 400 mm-diameter pipes from Diva (W) to the main MIDC supply lines in Thane, India. Similarly, LLDPE (linear low-density polyethylene), LDPE (low-density polyethylene) and cross-link polyethylene (PEX/XLPE) segments are also growing at a faster pace owing to a surge in government support for the new pipelines require in municipalities, industrial, commercial and residential sector.
For instance, in 2020, the Central Government of India planned to invest in infrastructure development with an investment of around 13.53 million mega infra push and the investment in pipelines reached around US$ 165 billion in India0
Increasing oil and gas extraction capacity with the surge in the distribution network for supplying from one place to another due to surge in demand have propelled the gas extraction segmental growth
Based on the product, the global polyethylene pipe market is divided into building & construction, underwater & municipal, gas extraction, agriculture, industrial and others. Among these gas, extraction has the highest market share owing to rising demand in the oil and gas extraction refineries with growing global investment by the government and private companies.
For instance, on 5th July 2020, Greece and Israel agreed to build the world’s longest underwater gas pipeline to bring natural gas to Europe with an investment of around US$ 7.14 billion. It created a massive demand for the polyethylene pipes require to fill the distribution of pipelines.
Similarly, building & construction, underwater & municipal, agriculture, industrial segments are also growing at a faster pace owing to the surge in demand for water in the rising urban and global population. For instance, as per our world data, the global population reached 7.2 billion in 2018 and is projected to reach 8.5 billion by 2030 and 9.7 billion by 2050. It may create huge demand for polyethylene pipelines for supplying water.
Asia-Pacific region holds the largest market share global polyethylene pipe market
Asia-Pacific region is dominating the global polyethylene pipe market accounted for the largest market share in 2019, due to the presence of several manufacturing companies, growing industrialization and rising investment by the leading players in this region followed by North America and Europe. Further increasing government and private companies investing in the Asia-Pacific region for drinking water supply projects have propelled the demand for the Polyethylene Pipe market in this region.
For instance, the Asian Development Bank’s Water Financing Partnership Facility (WFPF) provides investments to the Asia-Pacific region in between US$ 2.0 billion to the US $2.5 billion annually and a total investment reached over US$20-25 billion in 2020. It created a massive demand for the polyethylene pipe used in the water distribution systems as well as wastewater treatment activities which ultimately boost the polyethylene pipe market in this region.
Increasing replacement activities of the old pipelines for the water and wastewater distribution with new polyethylene pipes created a huge demand for this market
The largest pressure pipe ever used in North America will be connected to a new tertiary wastewater treatment plant in the town of Esquimalt on Vancouver Island, British Columbia. Similarly, North America is growing at a faster pace for the polyethylene market owing to a surge in government initiatives to replace old pipelines with new ones and rising building and construction with growing huge infrastructure development projects followed by Europe.
For instance recently on 17th July 2020, in North America largest diameter solid wall high-density polyethylene (HDPE) pressure pipe project has been completed which brings treated wastewater offshore for British Columbia communities. The project cost registered to around US$775 million which includes a new wastewater treatment facility, outfall system, distribution pipelines and residual treatment facility.
The Polyethylene Pipe Market is moderately competitive with the presence of local as well as global companies. Some of the key players which are contributing to the growth of the market include Falcon Pipes Pvt. Ltd., Akzo Nobel N.V., Borealis AG, P.E.S. Co., Dura-Line Corporation, COMAP group, SILON s.r.o., Advanced Drainage Systems, Exxon Mobil Corporation, ISCO Industries, ARKEMA S.A, SABIC, Dow, LyondellBasell Industries Holdings B.V., TPL Plastech Limited, PESTEC and among others.
The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, which are contributing to the growth of the polyethylene pipe market globally. For instance, on 16th Sept 2019, Tanzania launched a US$ 52 million pipe manufacturing industry plant in Dares Salaam, in the country.
Exxon Mobil Corporation:
Overview: ExxonMobil is the world's largest publicly traded international oil and gas, a chemical company that provides high growth commodity chemicals which improves living standards around the world. The Company was founded in 1999 and headquartered in Irving, Texas, United States. ExxonMobil has a Chemical manufacturing capacity in every major region of the world, serving large and growing markets. The Company’s more than 90% of the chemical capacity is integrated with ExxonMobil refineries or natural gas processing plants.
Product Portfolio: The Company has a product portfolio of polyethylene pipes that includes:
Key Development: In on 24th July 2019, ExxonMobil started production of high-performance polyethylene line with increasing plant production capacity by 65% that is 650,000 tons per year, with total capacity reached to 1.7 million tons per year at Beaumont, Texas, United States.
Get your free sample proposal with a single click!