Steel tubes: Key market research findings
- APAC dominates the market geographically
- The oil and gas sector accounts for a majority of the market’s revenue
- Key vendors – ArcelorMittal, NSSMC, POSCO, Baosteel, and Tata Steel
Technavio’s market research analysts predict the global market for steel tubes to grow at a CAGR of more than 2% in terms of volume by 2020. The growing demand for galvanized pipes and tubes is the primary driving force behind the growth of this market. Galvanized steel is used for construction purposes, including door, sash, wall, shutter, fence, beam, column, partition, under-ceiling, car port, veranda, and store-room. The infrastructure and construction sector accounts for 38%-42% of the global galvanized steel demand. During 2015, the global steel tubes market was dominated by APAC with a 76% share of the overall market value. The new exploration and production activities in the region are expected to propel the growth of the steel tubes market in APAC during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the steel tubes segments based on the end-user.
“Currently, PEBs are creating a new wave in the market. In developed countries such as the US, PEBs have high penetration, especially in the residential sector. However, in developing countries, PEBs are being rapidly adopted across the industrial sector. Besides, rapid growth in the online retail industry has increased the construction of warehouses in developing countries like India and China, resulting in an increased demand for steel tubes,” says Chandrakumar Badala Jaganathan, Lead Analyst, Chemicals & Materials, Technavio Research.
By 2020, the oil and gas segment will account for around 45% of the overall market revenue to become the key revenue generating vertical in the steel tubes market globally. Steel pipes are widely used in the oil and gas sector in all the three verticals, including upstream, midstream, and downstream. Seamless and ERW pipes are used in refineries and petrochemicals. ASTM ERW line pipes are used for refineries and petrochemical application. Oil refineries prefer seamless pipes up to 12-inch diameter, for the conveyance of products.
The key vendors in the market include ArcelorMittal, NSSMC, POSCO, Baosteel, and Tata Steel. Intense competition and frequent changes in market preferences constitute significant risk factors for the vendors in the market. Mergers and acquisitions pose a threat to small vendors while providing greater market share for large vendors.
A more detailed analysis is available in the Technavio report, Global Steel Tubes Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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