CAGR: 5.9%Current Market Size: USD 16.52 BillionFastest Growing Region: North America
Largest Market: APACProjection Time: 2022-2029Base Year: 2021
The global HDPE Pipes and Fittings market is expected to grow from USD 16.52 billion in 2021 to USD 25.64 billion by 2029, at a CAGR of 5.9% during the Projection period 2022-2029. The growth of this market is mainly driven by an upsurge in demand for HDPE pipes across different industry verticals such as oil & gas, agriculture, and chemicals.
High-Density Polyethylene or HDPE Pipes are flexible plastic pipes that are mainly used for gas and fluid transfer. In addition, this type of pipe is rapidly being used to replace aging steel mains or concrete pipelines. These pipes are also known as thermoplastics pipes as it is made of thermoplastic polymer HDPE, which is highly water resistant. Due to this, such pipes are rapidly being used for different applications, including irrigation, water mains, gas mains, drainage system pipelines, slurry transfer lines, and electrical and communication system conduits.
Moreover, HDPE pipes are seeing increased usage in gas pipeline applications due to their lower weight and high corrosion resistivity. On the other hand, HDPE pipes and fittings offer high tensile strength, durability, flexibility, and lightweight benefits. Due to such benefits, HDPE pipes and fittings have been preferred in industrial and municipal water applications for several years.
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Market Dynamics:
Drivers:
Pipe selection is one of the prominent factors in water infrastructure development. HDPE pipes and fittings are mainly prepared in water infrastructure due to their long-term durability. The features of HDPE pipes, including high strength-to-density ratio, chemical stability, and flexibility, make them a perfect option for water infrastructure applications. In addition, these pipes provide cost savings by preventing or decreasing two types of leaks, including burst failures and background leakage. Moreover, HDPE pipes offer enhanced reliability when buried and left in operation for decades with considerably lower maintenance. Hence, rising global demand to improve wastewater treatment economics has boosted the growth of the HDPE pipes and fitting market.
Developing countries such as China, Brazil, and India are seeing huge demand for HDPE Pipes and Fittings. This is mainly attributed to aggressive infrastructure advancement initiatives to develop their sewage systems. For instance, the government of Indonesia has recently introduced the “Sewerage System Development Project” aimed at supporting the implementation of sewerage systems in Banda Aceh, Bekasi, and Mataram.
Furthermore, in May 2021, the government of Brazil announced the privatization of Rio de Janeiro's water and sewage treatment to enhance sewage treatment and effectively clean up the state's polluted Guanabara Bay. Such initiatives in developing countries have created a demand for HDPE pipes and fittings.
Restraints:
Initial costs of HDPE pipes and fitting is comparatively higher than alternate piping materials such as PVC, ductile iron, and steel. Moreover, the price of PE100 pipe is also higher, which is mainly used for the production of high-pressure pipes. Such high costs associated with the HDPE Pipes and Fittings are projected to hamper the market's growth to some extent during the Projection period.
Opportunities:
HDPE piping and fitting systems offer longer service life, enhanced leak-free protection, and exceptional joint performance. Hence, ongoing infrastructure development initiatives across the globe are creating demand for HDPE piping and fitting to ensure efficient piping applications. For instance, in October 2020, the government of Mexico introduced its $14.2 billion infrastructure investment plan and private sector companies. On the other hand, the third package of the 2020-24 national infrastructure program (PNI) of Mexico includes 15 waterworks. Such investments for infrastructure development are opportunistic for the growth of the market.
Challenges
Availability and price of raw materials are crucial factors impacting the price of the end products. The global HDPE pipe and the fitting market have experienced an extreme resin shortage. For instance, in July 2021, according to United Poly Systems, HDPE pipe manufacturers witnessed an increase in resins' prices totaling 60 cents per pound since January 2020. Such fluctuations in raw materials prices further affect HDPE pipe and fitting prices, thus, posing a significant challenge to the market players.
Segmentation Analysis:
The global HDPE Pipes and Fittings market has been segmented based on product, application, and regions.
By Product
The product segment includes PE 80, PE 100, and Others. The PE 100 segment led the HDPE Pipes and Fittings market with a market share of around 45.72% in 2021. Increasing usage of PE 100 grade HDPE pipes in applications such as biological treatment plants, drinking water pipelines, desalination plants, sea discharge lines, gravity flow water lines, swimming pool piping, irrigation lines, compressed air lines, gas stations, and cooling-heating lines drives the growth of this segment. In addition, these products are comparatively more economical than PE80. This has further boosted demand for PE 100-grade HDPE pipes and fittings.
By Application
The application segment includes agriculture, water network, oil & gas pipeline, sewage/drainage, chemical processing, ducting, and others. The water network segment led the HDPE Pipes and Fittings market with a market share of around 34.90% in 2021. HDPE Pipes and Fittings have been significantly used in applications associated with potable water and gained municipal approval and development over the past several years. This is because HDPE Pipes are proven to be superior to other piping materials for distributing and transporting potable water over long distances. Such factors are mainly contributing to the growth of this segment.
By Regional Analysis:
The regions analyzed for the HDPE Pipes and Fittings market include North America, Europe, South America, Asia Pacific, and the Middle East, and Africa. Asia-Pacific region dominated the HDPE Pipes and Fittings market and held the 40.03% share of the market revenue in 2021.
Global HDPE Pipes and Fittings Market- Country Analysis:
Germany's HDPE Pipes and Fittings market size was valued at USD 1.82 billion in 2021 and is expected to reach USD 2.76 billion by 2029, at a CAGR of 5.6% from 2022 to 2029.
Germany is one of the leading nations in the mechanical engineering, manufacturing, automotive, and electrical industries. In addition, flourishing potable water, oil & gas, wastewater, and irrigation sectors around the globe is boosting the growth of the HDPE pipes and fittings market. Also, the replacement of aging pipelines in the country has further driven the growth of the HDPE pipes and fittings market.
Moreover, the country is the biggest construction market in Europe. This significance of the construction sector in the country has also driven demand for HDPE Pipes and Fittings.
China's HDPE Pipes and Fittings market size was valued at USD 3.30 billion in 2021 and is expected to reach USD 4.90 billion by 2029, at a CAGR of 5.3% from 2022 to 2029. Rising disposable income in China has favored demand for HDPE Pipes and Fittings. In addition, this country is both the largest producer and consumer of agricultural products around the globe. This has significantly boosted the growth of the country's HDPE Pipes and Fittings sector.
Moreover, according to the National Bureau of Statistics of China, construction sector output accounted for about 25.7% of the country’s GDP in 2021. Hence, increasing construction activities in the country are boosting the demand for HDPE Pipes and Fittings.
India's HDPE Pipes and Fittings market size was valued at USD 0.66 billion in 2021 and is expected to reach USD 1.05 billion by 2029, at a CAGR of 6.2% from 2022 to 2029. India is one of the strongest growing economies in Asia. The factors, including expansion of energy generation infrastructure, an increasing number of gas pipelines, and the growing output capacity of local manufacturers in the country, have driven the growth of the HDPE Pipes and Fittings market.
In addition, the construction industry in this country contributes more than 5% of the nation's GDP. Moreover, the country is observing growth in urbanization at an unprecedented pace. This has led to increased construction activities in residential and commercial buildings and infrastructure development, creating lucrative growth opportunities for the market.
Key Industry Players Analysis:
To increase their market position in the global HDPE Pipes and Fittings business, top companies are focusing on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, and partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2021-2029 |
Base year |
2021 |
CAGR (%) |
5.9% |
Market Size |
16.52 billion in 2021 |
Projection period |
2022-2029 |
Projection unit |
Value (USD) |
Segments covered |
Product, application, and Regions |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Dow Chemical Company, Advanced Drainage Systems, Inc., BLUE DIAMOND INDUSTRIES, LLC, Apollo Pipes, Supreme Pipes, Watts Water Technologies, Inc., Uponor, Quick Fitting Inc., Orbia SAB, and China Lesso Group among others |
By Product |
|
By Application |
|
Regional scope |
|
Scope of the Report
Global HDPE Pipes and Fittings Market by Product:
Global HDPE Pipes and Fittings Market by Application:
Global HDPE Pipes and Fittings Market by Region:
Global HDPE Pipes and Fittings market is expected to reach USD 25.64 billion by 2029, at a CAGR of 5.9% from 2022 to 2029.
Water network segment led the HDPE pipes and fittings market with a market share of around 34.90% in 2021
Upsurge in demand for HDPE pipes across different industry verticals such as oil & gas, agricultural, and chemicals is primarily driving the growth of the HDPE Pipes and Fittings market.
HDPE piping and fitting systems offer longer service life, enhanced leak-free protection, and exceptional joint performance. Hence, ongoing infrastructure development initiatives across the globe are creating demand for HDPE piping and fitting to ensure efficient piping applications. For instance, in October 2020, the government of Mexico introduced its $14.2 billion infrastructure investment plan and private sector companies.
Leading market players active in the global HDPE Pipes and Fittings market are Dow Chemical Company, Advanced Drainage Systems, Inc., BLUE DIAMOND INDUSTRIES, LLC, Apollo Pipes, Supreme Pipes, Watts Water Technologies, Inc., Uponor, Quick Fitting Inc., Orbia SAB, China Lesso Group among others.
New product innovations, a rise in demand from the oil & gas sector, and continuous refurbishment of old irrigation & water infrastructure around the globe is projected to influence the market in the upcoming years.
Political Factors- Developing countries such as China, Brazil, and India are seeing huge demand for HDPE Pipes and Fittings. This is mainly attributed to aggressive infrastructure advancement initiatives to develop their sewage systems. For instance, the government of Indonesia has recently introduced the “Sewerage System Development Project” aimed at supporting the implementation of sewerage systems in Banda Aceh, Bekasi, and Mataram. Furthermore, in May 2021, the government of Brazil announced the privatization of Rio de Janeiro's water and sewage treatment to enhance sewage treatment and effectively clean up the state's polluted Guanabara Bay. Such initiatives in developing countries have created a demand for HDPE pipes and fittings.
Economical Factors- HDPE piping and fitting systems offer longer service life, enhanced leak-free protection, and exceptional joint performance. Hence, ongoing infrastructure development initiatives across the globe are creating demand for HDPE piping and fitting to ensure efficient piping applications. For instance, in October 2020, the government of Mexico introduced its $14.2 billion infrastructure investment plan and private sector companies. On the other hand, the third package of the 2020-24 national infrastructure program (PNI) of Mexico includes 15 waterworks. Such investments for infrastructure development are opportunistic for the growth of the market. Initial costs of HDPE pipes and fitting is comparatively higher than alternate piping materials such as PVC, ductile iron, and steel. Moreover, the price of PE100 pipe is also higher, which is mainly used for the production of high-pressure pipes.
Social Factor- Upsurge in demand for HDPE pipes and fittings from the region's irrigation and water & wastewater sectors. In addition, countries such as China, India, and Southeast Asian Countries are actively developing their agricultural and industries along with oil & gas exploration activities. Moreover, rapid urbanization in the country has further pushed renovation activities in water, oil & gas, and other industrial sectors. This has further created lucrative growth opportunities for the Asia-Pacific HDPE Pipes and Fittings market. Thus, the companies should identify these factors well, and all other socially responsible factors should be considered before setting up or expanding the business in any regional market.
Technological Factors- The technological factors for the HDPE Pipes and Fittings market carry significant weightage. The organization should build a strategy that can integrate societal values, infrastructure, and the company’s business model. The organization must analyze the region's technological advancement to understand the industry's requirements. A more technical advanced region will have a higher demand for lightweight and efficient products. Understanding the region's infrastructure would help the organization expand its market share. The organization should analyze areas where technology can empower supply chain partners.
Environmental Factors- According to the National Bureau of Statistics of China, construction sector output accounted for about 25.7% of the country’s GDP in 2021. Various regions have a higher proportion of environmentally aware industries that are taking responsibility for their production process and it's side-effects on the environment. Moreover, the market has moved towards sustainable development, i.e., the focus on the development of innovative technologies, which helps to increase the productivity and efficiency of the organization by not impacting the environment even for the production process and also providing guidelines to the customers for doing the same.
Legal Factors- Advanced Drainage Systems, Inc., a provider of innovative water management solutions, acquired Cultec, Inc., one of the technology leaders in stormwater and on-site septic wastewater industries. This acquisition has strengthened the water management portfolio of Advanced Drainage Systems Inc. Dow Chemical Company introduced INTREPID 2499 Bimodal HDPE Resin for geomembranes. This resin offers enhanced performance and extended life expectancy in extremely oxidative environments compared to traditional materials.
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