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The construction sector and automotive sector are considered to be the key end users of stainless steel welded pipes. Demand for stainless steel welded pipes is growing in the drinking water distribution industry due to their strength, corrosion resistance, ductility, and mechanical properties. Be it less corrosive groundwater or highly corrosive seawater, stainless steel welded pipes of various grades offer strong resistance to the same. Stainless steel welded pipes also offer smooth surfaces, which reduce particle adherence and enable easy removal of the applied coatings when they deteriorate. This factor drives the use of stainless steel welded pipes in water supply and distribution and also in other fluid-related applications.
According to FMI’s analysis, stainless steel welded pipe sales have grown at 1.2% CAGR between 2016 and 2021. COVID-19 has caused a major disruption in all manufacturing industries in terms of production output and supply across various regions. The annual growth rate of stainless steel and derived products including stainless steel welded pipes has also been dented by the pandemic. The slowdown in the sales of non-essential items and liquidity tightening caused due to the covid-19 pandemic has caused a severe impact on the stainless steel welded pipe market.
The COVID-19 pandemic has caused a severe impact on the global economy at various levels and the impact is seen on the construction industry and automotive industry as well. The stainless steel welded pipe market’s growth plunged in 2020 as a result of various restrictions imposed to contain the spread of the virus. With a number of end users affected in regions such as East Asia and South Asia Pacific, the supply and shortage in demand are expected to result in a significant drop in Y-O-Y growth, yet FMI expects the global stainless steel welded pipe market to grow at a 4.6% CAGR through 2031.
What is the Commercial Potential of Stainless Steel Welded Pipes?
Stainless steel welded pipes are mostly used for different applications including construction, automotive, water supply and distribution, oil and gas, petrochemical and fertilizers, power generation, and others.
Competitive price offerings, an increase in end-user satisfaction with respect to the properties of the material, and also enhanced strength within stainless steel welded pipes are the end results of R&D activities. Increasing research and development activities through collaboration or partnerships on projects are helping manufacturers in the market.
Moreover, establishing sales and service facilities in emerging countries, coupled with long-term partnerships with regional distributors, also paves the way for the expansion of channel reach.
Will Growing Automotive Industry Propel the U.S. Market Growth?
The U.S. stainless steel welded pipe market is expected to rise at 4.4% CAGR between 2021 and 2031. The growth forecast for the U.S. market remains positive on account of the increasing demand from the automotive industry and construction industry. The U.S. automotive industry not only produces vehicles for domestic sales, but also exports vehicles, and to fulfill the demand auto industry players have to manufacture efficiently. Stainless steel welded pipes are used for making mufflers and exhausts in the automotive industry, which propels the growth of the stainless steel welded pipe market in the United States
Category-wise Insights
Which is the Key Application of Stainless Steel Welded Pipes?
The market share of construction applications is higher as compared to other applications. The construction application accounts for over 27% of the total market share. This is followed by the automotive application, which has a share of over 23%.
Which Is The Preferred Grade Of Stainless Steel Welded Pipes?
300 series grade is the most preferred type of stainless steel welded pipes, holding a 70-75% share in the global market. The most preferred sub-segments in the 300 series which have the highest growth and are more used are 304, 304L & 304H, which comprise more than 60% of the global market, and 316, 316L, 316H & 316TI, which hold over 20% of the global market.
What Is The Preferred Outer Diameter In Stainless Steel Welded Pipes?
36-60 mm and 61-150 mm outer diameter segments are the most preferred in the stainless steel welded pipe market due to their increasing use in water supply and distribution and also in petrochemical and fertilizer applications, which require different types of outer diameters as per the work requirement.
Competitive Landscape
The stainless steel welded pipe market is highly competitive, with the presence of a large number of players in the market. Some of the players are focusing on carving out a niche for specific consumers. The market has robust partnerships throughout the value chain, with a high focus on innovations. Manufacturers are aiming at strategic collaborations with end users and regional distributors to address the requirements of an expanding customer base. Brand consciousness and aggressive marketing make it challenging for new entrants in this market. Through these developments, companies are aiming at gaining a competitive advantage.
These insights are based on a report on
Stainless Steel Welded Pipe Market
by Future Market Insights
Source: Email/GFMM
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