The latest study from The Freedonia Group pinpoints U.S. pipe demand at a high point of $63.5 billion in 2018, indicating a 7.3% annual growth rate.
The study, titled Plastic & Competitive Pipe, attributes the increase to growth in crude oil and natural gas activity, in which market pipe is frequently implicated.
Additionally, Freedonia predicts a rebound in building construction expenditures, with an emphasis on kitchen and bathroom renovations and conduit for nonresidential building construction.
Within the pipe category, plastic pipe demand is expected to rise the fastest at an 8.7% annual growth rate, potentially even offsetting the use of steel and concrete. However, analyst Matt Zielinski pointed to steel's enduring dominance in the market.
“Steel accounted for the largest share of pipe demand by value in 2013 with 62 percent of the total, supported by its use in the large oil and gas market," said Zielenski. "Steel pipe is dominant in oil and gas applications due to its low cost, durability, and compression strength.”