CLEVELAND (Oct. 31, 11:40 a.m. ET) — U.S. demand for pipe is expected to grow 6.2 percent per year to $50.1 billion in 2016, with plastic growing faster than other materials, according to a new market study.
Growth will be driven by rebound in building construction expansion of oil and gas exploration and the need to replace aging water pipe networks.
Plastic growth will be driven by resin improvements that enhance pipe performance, according to the report, “Plastic & Competitive Pipe,” by Cleveland-based Freedonia Group Inc.
PVC, which accounted for more than one-half of all plastic pipe demand in 2011, will remain the leading plastic resin, and in fact will grow at a nearly double-digit rate.
High density polyethylene will take market share from concrete, PVC, and steel pipe in drainage, storm sewer, and potable water applications.
Steel pipe will remain the leading material in value terms, accounting for $28.5 billion in 2016.
The 314-page report costs $5,300.