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
Twin pre-insulated 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