Asia Pacific Will Be The Largest Region In The Plastic Pipe Fittings Market Through 2022
16 Oct, 2019
The plastic pipes and shapes market consists of sales of plastic pipes and plastic pipe fittings, and plastics profile shapes such as rods, tubes and non-rigid plastic sausage casings by manufacturers. Businesses in the plastic pipes and shapes industry use polymers and resins as raw materials which are primarily sourced from polymer suppliers.
A plastic pipe is a tubular section, or hollow cylinder, made of plastic. It is usually of a circular cross-section, used mainly to convey substances which can flow i.e. liquids and gases (fluids), slurries, powders and masses of small solids. Plastic pipes are normally used for local movement of liquids and gases.
Asia Pacific was the largest region in the global plastic pipe fittings and shapes market in 2018, accounting for $48.6 billion or 45.6% of the market. APAC is also expected to grow at the highest annual rate of 8% to 2022 in the plastic pipes market. The largest market size can be attributed to the large construction industry in the region, which is a major end-user industry for the plastic pipes and shapes market. Plastic pipes are gaining traction in Asia Pacific, especially in the water and wastewater drainage sector despite steel being the most preferred material for manufacturing pipes. Other end-users of the global plastic pipe fittings market include industries such as oil and gas, irrigation and water use, sewage/drainage, etc.
China was the largest country in the plastic pipe fittings and shapes market in 2018, accounting for $27.8 billion or 26.1% of the market. The largest market size can be attributed to high demand for plastic pipes from China’s water and drainage industries. Expansion of rural drinking water systems and high infrastructure spending by the government also support China’s plastic pipes and shapes market.
Major competitors in the Asia-Pacific plastic pipes market are headquartered in China, however, there are a lot of local players in other Asia-Pacific countries such as India and Japan. Two of the largest competitors in the global market, China Lesso Group Holdings Limited and Sekisui Chemical Co., Ltd. are located in the Asia Pacific region. Both these companies are focusing on the development of their operations and market expansion through sustainable investments. In 2018, China Lesso invested CNY 1,626 million ($240.5 million) for the improvement of automated facilities in production bases, expansion of the existing production bases, and acquisition of properties in foreign countries. In 2017, Sekisui Chemical Co., Ltd. signed an agreement, for capital participation in Tien Phong Plastic Joint Stock Company, a plastic pipe manufacturer in Vietnam to expand its business in pipes and infrastructure fields in Vietnam, and make it a bridgehead for future expansion in other ASEAN regions.