CLEVELAND, March 18, 2016 /PRNewswire/ -- Global demand for steel pipe is projected to advance 3.5 percent per annum through 2019 to 79.7 million metric tons, with growth paced by continued strong increases in developing markets. The pace of gains will decelerate from that of the 2009-2014 period as construction activity slows in China and other developing countries, and as oil and gas exploration moderates in North America after a period of rapid growth. These and other trends are presented in World Steel Pipe, a new study from Freedonia Group, a Cleveland-based industry research firm.
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The oil and gas market is the leading application for steel pipe, accounting for over half of demand in 2014. Steel makes up the vast majority of pipe used in oil and gas transportation and especially production due to its high strength and its pressure and thermal resistance. Steel pipe used in equipment manufacturing is expected to see above average growth through 2019. Steel pipe also sees significant use in the construction market in a variety of applications, such as conduit, sewer, and drainage.
China, by far the world's largest national market with 28 percent of the global total in 2014, was a primary driver of growth in steel pipe demand between 2004 and 2014. "Through the forecast period, advances in steel pipe demand in China are projected to decelerate significantly; nevertheless, growth will remain above the global average," notes analyst Mariel Behnke. In contrast to slowing growth in the Chinese market, demand for steel pipe in several other countries in Asia is projected to accelerate through 2019. India will see strong improvement in growth, driven by an acceleration in construction spending and expansion in its manufacturing sector, while growth in demand in Indonesia will be supported by increased output in its manufacturing sector.
The North American market contracted between 2004 and 2009 due to economic recession, but saw robust 2009-2014 growth, driven by a boom in demand for pipe for oil and gas production. Through 2019, demand in North America is projected to decelerate significantly, due to a slowdown in investment in the energy sector as plans for oil and gas production and exploration were scaled back following the collapse of oil prices that began in the second half of 2014.
About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, market share information and profiles of the leading industry players. Reports can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.
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SOURCE The Freedonia Group