Clad pipes are special corrosion-resistant pipes made by bonding carbon steel pipes with corrosion resistant alloys (CRAs) to withstand highly corrosive environments. They are mostly used in the offshore oil & gas industry in high temperature and high pressure conditions as they exhibit high corrosion resistivity.
Safeguarding pipelines from highly-corrosive marine environments and the relatively economic pricing of clad pipes as compared to other CRA pipes is the primary driver for the global clad pipe global market. The clad pipe market is expected to create an incremental $ opportunity worth nearly US$ 3454.4 Mn during the forecast period, expanding with a CAGR of 5.6%.
Factors Influencing Clad Pipe Market Growth
One of the main factors associated with the prosperity of the clad pipe market is corrosion. Corrosion is a major problem in pipelines in the oil & gas industry as oil & gas products carry along various chemicals and gases that causes corrosion. This has compelled major oil & gas companies to opt for the installation of clad pipes as they are economical and corrosion resistant. This, coupled with the increasing number of offshore oil & gas projects, is expected to drive the clad pipe market over the forecast period.
As per the World Corrosion Organization, an estimated US$ 2.5 Trillion is the annual cost of corrosion worldwide, which is almost 4% of the GDP of industrialized countries. Out of which, 45% is spent in oil & gas and petrochemical sectors, which accounts for almost US$ 1 Trillion. The increased corrosion costs, coupled with the leaks, maintenance, shutdowns and turnarounds associated with corrosion, are driving the industry towards the installation of more effective solutions.
Corrosion can be tackled through the use of clad pipes as they not only offer strength and ductility but also exhibit high corrosion-resistant properties. Even though CRA pipes are also used to counter corrosion, they are much heavier and expensive to fabricate as compared to clad pipes. Hence, almost all major oil & gas companies now prefer installing clad pipes for their offshore and onshore projects.
The fabrication of clad pipes is difficult and requires specialized welding techniques. Clad pipes are also more expensive as compared to lined pipes, which may prove to be a challenge as it deters the adoption of clad pipes. However, given its advantages such as high corrosion resistivity, light weight and economic price point, the clad pipe market is expected to register robust growth over the forecast period.
Clad Pipe Market Segmentations and Forecast
The global clad pipe market has been segmented on the basis of pipe type, grade, outer diameter, wall thickness and region. On the basis of pipe type, the global clad pipe market has been segmented into metallurgical bonded clad pipes, mechanically lined clad pipes and weld overlay clad pipes.
On the basis of grade, the clad pipe market has been segmented into 316, 625, 825 and other types of clad pipes. On the basis of outer diameter, the global clad pipe market has been segmented into 4-12 inch, 12-24 inch, 24-48 inch, 48-60 inch and 60-120 inch.
On the basis of wall thickness, the clad pipe market has been further segmented into 3-6 mm, 6-18 mm, 18-36 mm, 36-60 mm and 60-120 mm. On the basis of region, the global clad pipe market has been segmented as North America, Latin America, Western Europe, Eastern Europe, SEAP (South East Asia & Pacific), China, Japan, and Middle East& Africa (MEA).
On the basis of pipe type, the metallurgical bonded segment is expected to remain dominant in terms of value share while the mechanically lined clad pipe segment is expected to witness maximum growth during the forecast period.
Among the segments by grade, the 316 grade segment is expected to remain dominant in terms of market share. On the basis of the outer diameter, the 4-12 inch segment is expected to hold the highest market share and exhibit a high growth rate.
On the basis of wall thickness, the 3-6 mm segment is pegged to witness robust growth in the clad pipe market. From a regional perspective, Western Europe and Middle East and Africa are expected to occupy the majority share of the market, owing to the large number of upcoming offshore oil and gas projects.
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Market Participants in the Global Clad Pipe Market
Some of the market participants reported in this study of the global clad pipe market include The Japan Steel Works, Ltd, NobelClad, Proclad, Inox Tech, Tenaris SA, Eisenbau Krämer GmbH, EEW Group, IODS Pipe Clad Ltd, BUTTING Group, Cladtek Holdings Pte Ltd, Gieminox Tectubi Raccordi S.R.L., Canadoil Group Ltd, Jiuli Group, Precision Castparts Corp and Guangzhou Pearl River Petroleum Steel Pipe Co., Ltd.
Key Segments Covered
On the basis of pipe type, the global clad pipe market has been segmented into
- Metallurgical Bonded
- Mechanically Lined
- Weld Overlay
On the basis of grade, the global clad pipe market has been segmented into
On the basis of outer diameter, the global clad pipe market has been segmented into
- 4-12 Inch
- 12-24 Inch
- 24-48 Inch
- 48-60 Inch
- 60-120 Inch
On the basis of wall thickness, the global clad pipe market has been segmented into
- 3-6 mm
- 6-18 mm
- 18-36 mm
- 36-60 mm
- 60-120 mm