Future Market Insights, Dubai: Global demand for pre-insulated pipes accounted for revenues worth US$ 7.5 Bn in 2019, witnessing an increase of 7.7% from that recorded in 2018. According to the latest forecast by Future Market Insights, potential advantages of pre-insulated pipes in terms of corrosion protection, surface strength, UV resistant, and low maintenance costs will continue to offer tailwinds to the market growth. However, the market will face significant ramifications in 2020 due to the COVID-19 pandemic.
2020 is expected to
be a challenging year for companies operating in the pre-insulated pipes
market. The pandemic is crippling various industries, and infrastructure
activities are expected to halt in the near term, given various factors
including termination of projects to control expenses, shortages of workforce
and materials, and supply chain disruptions. These factors are projected to
have a negative impact on the pre-insulated pipes market.
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Twin Pre-insulated Pipes to Stay in Demand
pipes continue to witness relatively high demand and investments as compared to
single variants. As 9 in 10 units of pre-insulated pipes sold in 2019 have twin
pipe configuration, manufacturers are specifically focused on this category.
“With the rise of smart buildings and strong
focus on energy-efficient heating solutions, pre-insulated pipes have garnered
significant traction in recent past. However, lower production levels and
logistical delays due to coronavirus-influenced lockdowns and movement
restrictions will adversely hit the profit margins of manufacturers,” says
the FMI analyst.
North America and Europe Remain at the Forefront
Growth prospects of
the pre-insulated pipes market will continue to remain high in North America
and Europe, given the concentration of leading players in these regions.
Greater adoption of advanced district heating and cooling (DHC) systems is
further expected to remain instrumental to the market growth in long-term
dimensions. However, the regional markets appear to be headed for a slight
decline in 2020, due to COVID-19 impact on supply and demand.
Prior to the
pandemic, product innovations and new launches remained key focus areas of the
market players. For instance, in February 2020, GF Piping Systems introduced
its next generation pre-insulted piping system – COOL-FIT® PE Plus – that
offers a technological leap in process cooling. Such strategic move is expected
to play a significant role in the future market growth.
According to the FMI study, the global
pre-insulated pipes market is projected to register a CAGR of 8.3% during the
forecast period (2019-2027). The study
covers an in-depth COVID-19 impact analysis of the market.
Source: Future Market Insights