PVC PIPES MARKET ANALYSIS

PVC stands for polyvinyl chloride. It is a chlorinated hydrocarbon polymer. In its normal state, it is brittle and rigid. But, when combined with added substances, for example, plasticizers, it turns out to be stronger and moldable. Some of its applications are in clinical tubing, flooring, furniture, electrical insulation, and as a substitute for rubber. PVC pipes are most widespread used in the production of pipes, which are utilized in plumbing, water system and irrigation. Depending upon the application of PVC pipes, a few variations of PVC pipes are utilized as hot or cold water conduits in industrial as well as commercial contexts. PVC pipes have been utilized for over 80 years for different commercial purposes.

The global PVC pipes market is estimated to surpass US$ 76.5 billion by the end of 2028 in terms of revenue, exhibiting a CAGR of 5.9% during the forecast period (2021 to 2028).

Drivers

PVC pipes have gained popularity across the globe owing to their excellent properties such as light-weight, cost-effectiveness, easy installation, and durability. They are also used in electrical fittings due to their excellent heat and electrical insulation properties. The PVC pipes do not rot, wear or rust over the long run and can withstand rigorous shaking and extreme movement in earthquake-prone zones. Owing to these factors, PVC pipes are constantly replacing other piping materials. The introduction of new technology of applying molecular orientation in the PVC pipes manufacturing has resulted into the development of PVC-O (oriented) pipes. These PVC-O pipes are cost-effective, environment friendly and have enhance mechanical properties than conventionally produced PVC pipes. Availability of the substitutes of PVC pipes such as high-density polyethylene, cross-linked polyethylene, and steel represent a significant threat to the productivity of the PVC pipes manufacturers, thus, preventing the market development.

Among region, Asia Pacific held major market share in the global PVC pipes market in 2020, accounting for 47.11% market share in terms of revenue, this is due to the dominance of China being the biggest manufacturer as well as consumer of PVC pipes. Moreover, development of industries such as pharmaceutical, construction, and agriculture is contributing to the market development. In addition, India is significantly pushing the demand for PVC pipes to the North due to significant investments in its chemical and agricultural industry. However, North America is expected to develop quickly with expanding market size due to the demand for PVC pipes in the agriculture and construction sectors across Canada and the U.S.

Figure 1. Global PVC Pipes Market Revenue Share (%), By Region, 2020

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Market Restraints

 The price of PVC resin, is closely linked to the crude oil prices. Prices of crude oil are extremely volatile due to the Organization of Petroleum Exporting Countries' (OPEC) dominance, which controls 40% of the world's oil supply. Oil prices also change owing to political upheaval, natural disasters, production expenses (refining), and supply and demand swings. As a result, crude oil price variations are expected to have a negative impact on global market growth.

Market Trends

One of the primary driving factors in the market is the growing use of PVC pipes in the construction industry for applications such as water supply, housing and commercial, sewage and drainage, and irrigation. Furthermore, an increase in demand for PVC pipes in variety of applications such as chemical handling, building infrastructure, PVC moulded material, as well as the good physical qualities such as durability, mechanical stability, chemical resistance, mouldability of such pipes, drives rising demand for PVC pipes.

Figure 2. Global PVC Pipes Market Revenue Share (%), By Application, 2020

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On the basis of application, in 2020, water supply segment held the largest revenue share of 27.89% in the global PVC pipes market. Because of the effective replacement of metal and concrete pipes by PVC pipes in the water supply segment. As the world’s population grows so does the demand for water. Furthermore, as compared to metal or concrete pipes, PVC has further advantages such as durability and easy installation.

Global PVC Pipes Market - Impact of Coronavirus (COVID-19) Pandemic

The COVID-19 pandemic has rapidly moved from one country to the next throughout the world. To stop the virus from spreading several regions have implemented lockdowns, border restrictions and transportation network disruptions, all of which have a significant impact on the chemical and metal distribution network pricing international trade, complete supply chains and manufacturing operations around the globe. Due to the lockdowns and the reduced demand from the end-use industries such as agriculture, irrigation construction and water supply, declined pricing, supply chain disruptions of raw material. The manufacturers of PVC pipes faced various issues and led to a halt in production during pandemic. As a result, PVC pipes production is also delayed, resulting in a decrease in market growth.

Competitive Section

Major players operating in the global PVC pipes market include China Lesso Group Holdings Limited, Hebei Bosoar Pipe Co. Ltd, Plásticos Ferro S.L., Fujian Aton Advanced Materials Science & Technology Co. Ltd., Pipelife Austria Gmbh & Co KG., Georg Fischer Ltd., Astral Pipes, Aliaxis Group S.A., JM Eagle, Inc., Supreme Industries Ltd., and Vinidex Pty Ltd.