Pre-Insulated Pipe Market

What is the Future Outlook of Pre-Insulated Pipe Market in Comparison to Historic Sales?

Facing challenges such as leakages and other efficiencies has always been one of the prime concerns of pre-insulated pipe end users. Choosing a correct pipe configuration for a specific application has generated challenges for end use industries. Consequently, manufacturers have increased the number of features and efficiency parameters in these areas with respect to industry specific applications.

The market is likely to gain significantly from the launch of new and customized re-insulated pipe offerings with advanced functionality. This will not only help end-use industries to address safety concerns, but will enable end users to bolster productivity with low maintenance and extended life cycles.  Some of the leading manufacturers have launched insulated pipes with high resistance characteristics, and others are likely to follow suit to keep pace with a dynamic industry environment.

According to FMI’s analysis, pre-insulated pipe sales have grown at 5.8 % CAGR between 2021 and 2031. The ongoing crisis caused by the COVID-19 pandemic, has caused the production and supply chain activities to go through a minor slump. However, consumption is likely to improve with the economic recovery, post the containment period after the pandemic.

The COVID-19 pandemic has severely impacted the global economy at various levels and the effects have been seen on end-use industries as well.  Growth is also projected to be affected by the COVID-19 pandemic, witnessing a significant plunge in demand in 2020. With a number of end-use industries affected in regions like North America, East Asia and South Asia-Pacific, the disrupted supplies and shortage in demand are expected to result in a significant drop in Y-O-Y growth. However, FMI expects the global pre-insulated pipes market to grow at 5.8% CAGR through 2031.

What is the Commercial Potential of Pre-Insulated Pipes?

Pre-insulated pipes are primarily used in district heating and cooling applications. Pre-insulated pipes are used in industries like oil & gas, chemicals and others.

Manufacturers are offering pre-insulated piping systems to meet the needs of end use industry specific applications. A wide range of leakage and corrosion resistant product variants offers improved potential in targeted applications.

Competitive prices, better end user satisfaction, and the use of advanced materials for the containment of the pre-insulated pipes have emerged from investments into R&D activities. Manufacturers are also focused on improving facilities to minimize the risk of leakages and damage to the environment.

Moreover, establishing sales and service facilities in emerging economies, coupled with establishing contracts with online sales channels has paved the way for the expansion of distribution channels.

Country-wise Insights

Demand from Construction Industry to Drive Growth in U.S.

FMI has projected North America to remain one of the most lucrative markets throughout the the forecast period. One of the leading factors supporting developments in the industry is the growth of the oil & gas and construction sectors in the United States.

The U.S is one of the leading countries in terms of gross value added index, in the global construction industry, and is a leading producer and exporter of oil. Frequent developments in the sector are expected to increase the total sales of pre-insulated pipes in the forecast period, which invariably makes it a lucrative regional market for pre-insulated pipes manufacturers to invest in.

District Heating and Cooling Applications to Provide Growth Impetus in Germany

The German pre-insulated pipes market is pegged lead Europe and grow with at 5.8% CAGR during 2021-2031. In recent years, manufacturers in the country are gradually developing a stronger customer base in the country.

The German district heating and cooling sector is witnessing healthy growth, which is likely to continue for the foreseeable future. A key market driver in the country is the rising demand for district energy systems which have generated a conducive environment for product development and is expected to aid stable growth through forecast period.

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Growth in India is Latently Driven by Investments in Smart Cities Program

India is a leading share holder in the South Asia & Pacific pre-insulated pipes market. Chemical and pharmaceutical industry players are eminent end users driven by larger foreign direct investments. India is set to grow with a CAGR of 7.5% during 2021-2031, which is higher than the average of the South Asia & Pacific region.

Government of India schemes such as the Smart Cities Program has laid emphasis on providing district cooling projects across the country, generating demand and leading to significant growth of Indian pre-insulated pipes during the 2021-2031 forecast period.

Established Oil and Gas Sector in GCC Countries Remain Key to Demand

GCC countries like Saudi Arabia, the United Arab Emirates, Bahrain, Kuwait, Oman, and Qatar are home to large scale residential and commercial projects, which are aimed towards attracting global tourists with unique designs and features. The Middle East countries vision program for increasing non-oil economic growth has created significant opportunities in global markets.

GCC countries are the leading producers and exporters of oil & gas resources across the globe. Also, district cooling systems aimed toward providing chilled & hot water, steam, gas, and other energy related applications have created significant demand for pre-insulated pipes in Middle East & Africa. Growth in GCC countries is at its peak, and is pegged to grow with a CAGR of 5.9% during 2021-2031.

Industrial Output to Provide Growth Platform for Pre-Insulated Pipes in China

China is expected to be amongst the most lucrative regional markets with highest sales figures for pre-insulated pipes, owing to increased oil & gas and district heating & cooling projects in the country.

The notable surge in the sales of pre-insulated pipes from 2016 to the present day is expected to continue through the forecast period. Along with the rising number of pre-insulated pipe manufacturers in China, the recent rise in oil & gas projects across the country have bolstered long-term market prospects here.

Category-wise Insights

Which Material Accounts for the Highest Demand in Pre-insulated Pipe Production?

The demand of different material type used in the production of pre-insulated pipes varies as per the end use industry. For instance, the oil & gas sector generates major demand for metals & alloy based pipes. Metal pre-insulated pipes are expected to hold major share in the global pre-insulated pipes market. Demand for metal pre-insulated pipes is expected to rise strongly in the forecast period. Metal pre-insulated pipes are used to protect the piping from external environmental threats, offering increased safety precautions and advanced corrosion mitigation techniques. These unique properties are gaining considerable momentum with leading players constantly designing, developing, and launching new products.

What are the Prospects of Single Pipe Configurations?

Pre insulated pipes are available in both single pipe and twin pipe configurations. Of these, single pipe configurations are expected to reflect relatively higher popularity owing to lower costs and easier installations, despite better durability of twin pipe alternatives. In addition, single pipe configurations are preferred as they enable improved heat transmission, which allows for higher versatility in application.

What End-Use Sector Drives Demand for Pre-insulated Pipes?

The share of pre-insulated pipe applications in district heating and cooling end use applications is relatively higher. The district heating and cooling sector accounts for close to 27% of the global share. This is followed closely by the oil & gas end use sector which holds nearly a quarter of the global market.

Which is the Most Lucrative Region for Pre-insulated Pipe?

Europe accounts for a leading share of 24.6% in the global pre-insulated pipe market. Germany, U.K, France, and Italy are leading sales hubs in the region, driven by demand for the district energy systems for residents.

Further, North America holds 19.6% of the overall market share. Pre-insulated pipes for district heating and cooling has higher sales in Europe and North America due to increased investments towards modern energy systems in the residential, commercial and industrial settings in the region.

Which Installation Type has Predominant Market Share?

Below ground installations are major contributors to revenue, accounting for nearly 70% of the global pre-insulated pipe sector. Pre-insulated pipes in major underground projects are primarily used for the construction of heating and cooling systems in residential, commercial and industrial applications. Revenue generation will remain specifically dependent upon the sales of pre-insulated pipes for district heating and cooling systems in the long term.

Competitive Landscape

The pre-insulated pipe market is highly competitive, with a presence of numerous players operating in the sector. Some of the players are focusing on carving out a niche for specific demographics. Recent years have witnessed the emergence of robust partnerships throughout the value chain, with 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 makes on the other hand has mad it challenging for new entrants. Through these developments, companies are aiming at competitive advantage.

In March 2021, Kingspan, a leader in insulation solutions announced the acquisition of Logstor, a manufacturer and supplier of pre-insulated pipe systems for a valuation of approximately €253 million.

Further, Perma-Pipe International Holdings Inc. announced the receipt of a contract from LLOG Exploration Offshore, for supplying more than 5 miles of subsea insulation in the Dome Patrol Field in the Gulf of Mexico. This includes pipeline coating and insulation, and engineering support.

Some of the leading companies operating in the market are:

• Georg Fischer AG
• Uponor Corporation
• Watts Water Technologies
• LOGSTOR A/S
• Brugg Group Ag
• Polypipe Group PLC
• Vital Energi Utilities Limited
• Perma-Pipe International Holdings Inc.
• Elips - Empower Logstor
• KE KELIT
• Thermaflex International Holding b.v.
• Ecoline S.R.L.
• Aquatherm GmbH
• CPV LTD
• Insul-Pipe Systems
• Thermal Pipe Systems, Inc.
• IPL Pre Insulated Pipes
• Unifix Plast Pvt. Ltd.
• ZECO Aircon Ltd.

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Scope of the Report

Key Questions Answered in the Report

• Which is the most lucrative market for Pre-insulated pipes?

  Europe currently leads the global market for pre-insulated pipes. Sales in Europe will account for approximately 24.6% of global share throughout the forecast period.

• Which are the top-selling pre-insulated pipes?

  Single pipe configuration pre-insulated pipe are highly sought-after for many applications. The demand for Single pre-insulated pipe is expected to remain high in the near future, especially due to continuously increasing demand for district energy systems around the world.

• Which is the most lucrative end use sector for pre-insulated pipe?

  Pre-insulated pipes are widely used in district energy systems. Pre-insulated pipes applications within this sector include district heating and cooling systems. It is the centralized generation and distribution of heating and cooling. The modern district energy systems has gained significant response from both public and private sectors to deploy modern energy systems across the globe.

• Which are some of the leading Pre-insulated pipe manufacturers?

  Some of the leading companies manufacturing pre-insulated pipe are Uponor Corporation, KE KELIT Austria, Georg Fischer AG, Watts Water Technologies, Polypipe Group PLC, LOGSTOR A/S, Perma-Pipe International Holdings, Brugg Group Ag, Vital Energi Utilities Limited, ELIPS - Empower Logstor, Thermaflex International Holding bv, Ecoline S.R.L., Aquatherm GmbH, CPV Ltd., Insul-Pipe Systems, Thermal Pipe Systems, Inc., IPL Pre Insulated Pipes and Others.

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• Is this research conducted by FMI?

  Yes, the research has been conducted by expert analysts of FMI through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst

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  FMI follows a methodology that encompasses demand side assessment of the market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions. Request detailed methodology

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• What are the sources of secondary research?

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Pre-Insulated Pipe Market

By Material Type

• Metal & Alloys
• Polymers

By Pipe Configuration

• Single Pipe
• Twin Pipe

By Installation

• Below Ground
• Above Ground

By End User

• District Heating and Cooling
• Oil & Gas
• Chemical
• Pharmaceutical
• Others

By Region

• North  America
• Latin America
• Europe
• South Asia & Pacific
• East Asia
• Middle East & Africa