The Flexible Pipe Market size is forecast to reach $900 million by 2026, after growing at a CAGR of 5% during 2021-2026, due to growing demand for flexible pipe from various end-use industries such as water treatment plants, oil & gas, food & beverages, and mining which is driving the flexible pipes industry scenario. Flexible pipes are made of polyvinyl chloride, high density polyethylene, and fiberglass-reinforced polymer. These materials offer various properties such as corrosion-resistant, high strength, easy to install, and reducing friction losses which makes them ideal for flexible pipes. The application of flexible pipes in oil & gas production, gas lift, gas injection, water injection, and liquid chemical lines which in turn is estimated to grow the flexible pipe market during the forecast period. Additionally, rising water treatment activities and drilling activities are key factors driving the global flexible pipe market size.
Impact of COVID-19
Due to the COVID-19 pandemic, the requirement of flexible pipe has been negatively affected by various end-use industries. The demand for flexible pipe is decreased mainly from the oil & gas sector because of the COVID-19 pandemic. Due to lockdown, the production of gas was stopped in 2020. According to the US Energy Information Administration (EIA), Natural gas production in the U.S. regions fell by 316 million standard cubic feet per day (MMcf/d) from March to April 2021. Hence, the lack of production of gas is hampering the requirement of flexible pipe. However gradual increase in the production and opening of the manufacturing facilities are expected to increase the demand for flexible pipes in the coming years.
Flexible Pipe Market Segment Analysis – By Raw Material
High-density polyethylene (HDPE) held the largest share in the global flexible pipes market followed by a fiberglass-reinforced polymer. High-density polyethylene (HDPE) is cost-effective as compared to polyvinylidene fluoride (PVDF), and can withstand temperatures from -148 to 176°F, is UV-resistant, and is resistant to most chemical solvents. High-density polyethylene-based and fiberglass-reinforced polymer-based flexible pipes are easy to install and lightweight materials that further driving the demand to manufacture flexible pipes. Additionally, the fiberglass-reinforced polymer is used to repair damaged or repair pipelines that propel its demand in the global flexible pipes market size.
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Flexible Pipe Market Segment Analysis – By Application
Onshore & offshore held the largest share in the global flexible pipe market in 2020 due to growing deep-water and ultra-deepwater activities. Brazil is a world leader in the development of deepwater and ultra-deepwater projects. The Santos basin in Brazil and the Stabroek block in Guyana will add over 2.5 million b/d of oil production by 2025. By 2022, according to the Environmental Information Administration (EIA), global petroleum production is estimated to reach an average of 101.8 million b/d. Hence, the increasing ultra-deepwater activities are estimated to drive the flexible pipe industry growth.
Flexible Pipe Market Segment Analysis – By End-Use Industry
Oil and gas sector has dominated the market for flexible pipe market in 2020 and is growing at a CAGR of 4%. According to U.S. Energy Information Administration (EIA), by 2035, natural gas production will rise to 384.9 billion cubic meters (bcm), which represents nearly half of all USA natural gas production. According to the Oil & Natural Gas Corporation (ONGC), in India, crude oil production was 1788.92 TMT in 2020 which is 1.24% higher than in 2019. Therefore, according to India Brand Equity Foundation (IBEF), oil production is expected to rise 36 billion cubic meters (bcm) in 2021. According to the India Brand Equity Foundation (IBEF), power generation from renewable energy sources (natural gas) in India reached 127.01 billion units in FY20. The Indian government plans to generate a renewable energy capacity of 523 GW by 2030. These expansions of oil and gas sector is expected to create traction for the flexible pipes market in the coming years. Additionally, flexible pipes are used for drilling activities and fluid transfer activities as they reduced downtime and environmental risk which is increasing the demand for flexible pipes.
Flexible Pipe Market Segment Analysis – By Geography
North America held the largest share of over 36% in the flexible pipe market in the year 2020 due to the increasing oil & gas production and drilling projects in North American countries. According to the U.S. Energy Information Administration (EIA), 13 offshore drilling projects could account for about 200,000 barrels per day (bpd) of total Gulf of Mexico crude oil production by 2022. Thus, the Gulf of Mexico (GOM), accounts for 15%–16% of crude oil production of the United States. Hence, GOM crude oil production is forecast to reach 1.71 million bpd in 2021 and 1.75 million bpd in 2022. Furthermore, according to Energy Shale Gas Production, the total natural gas production is projected to contribute 30% and more than 75% in Canada & Mexico, respectively by 2040. Hence, with the growth in production and drilling activities of gases and oil, will increase the demand for flexible pipes industry in North America.
Flexible Pipe Market Drivers
Increasing Oil and Gas Industry with Attractive Investment in the North America and the Asia Pacific region
The increase in the demand for flexible pipes from the oil & gas industry is driving the market size. Flexible pipes are used in onshore and offshore exploration activities, as a result of large increases in crude oil and natural gas production which is increasing investment in the oil & gas industry from the region. According to the Canadian Association of Petroleum Producers (CAPP), in Canada, oil and gas companies will invest C$27.3 billion (US$4.22 billion) in 2021. Additionally, Capital investment in Alberta’s oil sands is expected to increase from US$6.7 billion in 2020 to US$7.3 billion in 2021. Furthermore, the investments in oil sands operations and conventional oil & gas production is expected to rise nearly from US$19 billion (C$24 billion) in 2020 to US$21 billion (C$27 billion) in 2021. Indian government plans to invest in 2021 about Rs. 7.5 trillion (US$ 102.49 billion) on oil and gas infrastructure in the next five years. according to the India Brand Equity Foundation (IBEF), India is estimated to invest worth US$500 billion in renewable energy sources by 2028. Thus, these factors are expected to increase investment in the oil & gas industry which will help to build demand for flexible pipes market size in the review period.
Increasing Public and Private Investment in Water Treatment Plants
Polyvinyl chloride flexible pipes are also widely used in water treatment because they are lightweight, easy to install and reduce infiltration potential. Thus, the increasing investment from the wastewater treatment industry is driving the demand for a flexible pipe market. For instance, according to the Environment Protection Agency of America, the Nation’s wastewater footprint includes over 800,000 miles of public sewers and 500,000 miles of private lateral sewers in the region. In 2019, the annual water infrastructure capital investment was US$ 81 billion which will further expand the water treatment industry and eventually drive the demand for flexible pipes.
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Flexible Pipe Market Challenges
Polyvinyl Chloride and Fiberglass Reinforced Polymer Posses Health and Environmental Risk
Polyvinyl Chloride contains dangerous chemical additives including phthalates, lead, cadmium, and/or organotin which are hazardous chemicals for health. High exposure to polyvinyl chloride has increased the risk of liver cancer as well as brain and lung cancers, lymphoma, and leukemia. Polyvinyl chloride is toxic plastic that is dangerous to the environment. In addition, the burning of fiberglass reinforced polymer produces large amounts of carbon dioxide that cause headaches, dizziness, breathing problem, coma, and other health issues. Hence, due to various health and environmental effects, the use of PVC is decreased in production for flexible pipes which may hamper the flexible pipes market growth.
Volatility in Prices
Polyvinyl chloride (PVC) and high-density polyethylene are made from petroleum. However, the fluctuations in prices of crude oil are fluctuating the production of raw materials for the flexible pipes. According to the U.S. Energy Information Administration (EIA), crude oil prices decreased by US$ 41.69 per barrel in 2020 compared to US$ 64.34 per barrel in 2019. However, according to BP static, oil prices declined to US$64.21/barrel in 2019 as compared with US$71.31/barrel in 2018. Thus, fluctuations in the production of raw materials with prices of crude oil are one of the major challenges faced by the flexible pipe industry.
Flexible Pipe Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the flexible pipe market. Major players in the Flexible Pipe Market include:
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A. Indonesia Flexible Pipe Market
B. FRP/GRP/GRE Pipe Market
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