Valued at US$2.5 billion last year, the thermoplastic pipe market is projected to reach $8.5 billion by 2032 and is anticipated to grow at a CAGR of around 4.5% over the project period of 2022-2032, according to a thermoplastic pipe market report by Future Market Insights.
The report pointed out the immediate consequences of the COVID-19 pandemic resulted in a decrease in demand for thermoplastic pipes that are being used to transport oil and gas to end users’ locations. Furthermore, the pandemic has disrupted the water treatment industry, of which thermoplastic composite pipes are an essential element.
Industrial operations were halted due to the implementation of strict lockdown procedures. In addition, the thermoplastic piping systems’ operation was constrained by a lack of manpower and a decline in logistical operations.
The growing use of reinforced thermoplastic pipe (RTP) in the water and wastewater treatment industries is expected to drive up demand for thermoplastic pipes worldwide.
Given the rising importance of deep and ultra-deep-water oil and gas production and exploration operations as demand for fossil fuels has increased, offshore drilling and production activities are likely to grow at a faster rate than onshore activities during the next five years, according to the report. As a result, the application of thermoplastic composite pipe in offshore products, including flowlines, umbilical, and risers, is expected to drive the thermoplastic pipe market in the oil and gas industry.
RTPs are being utilised to replace medium-pressure steel pipes in the oil and gas industry.
Due to their cost-effectiveness and good chemical resistance capabilities, many types of thermoplastic pipes made from engineering thermoplastic grades such as polyethene (PE) and polyvinyl chloride (PVC) have been widely employed.
Higher thermoplastic composite pipes are said to provide better abrasion resistance, are less flammable, and emit less smoke and harmful fumes. Still, they come at a higher cost of raw materials and fabrication. The report further pointed out that thermoplastic composite pipes are 20-100 times more expensive than steel pipes, making them unsuitable for items like pipes. This has become the most prevalent roadblock for the thermoplastic pipe business.
As shallow-water oi and gas resources run out, thermoplastic pipe manufacturers have been turning to deep- and ultra-deep-water off the shores of Brazil, Norway, Angola, and the US.
Since thermoplastic composite pipes are lighter than flexible steel pipes, they may be installed using less complex and costly equipment. The flexibility of the pipes, which may be transported to the job site in long coils, and the possibility of using no-dig technology to install them assist in minimising jointing and traffic interruption. As a result of the advantages of implementing flexible thermoplastic composite pipes in deep- and ultra-deep-water applications, the thermoplastic pipe market is anticipated to grow.
Large-scale production of thermoplastic composite pipes is challenging because of the standardisation, contributing to the overall high cost of thermoplastic pipes.
Other key takeaways of the report include:
- With a thermoplastic pipe market share of over 30%, North America is estimated to maintain its position in the thermoplastic pipe market.
- RTP accounts for 30% of the market in the US.
- North America reigned leader in the RTP market in 2019, with a valuation of $81 million, owing to the shale gas effect and ongoing expansions in the US.
- According to the research, the offshore RTP market in Asia is predicted to increase from $2.18 billion in 2020 to $2.7 billion by 2031.