Steel Pipes & Tubes Market Size, Share & Trends Analysis Report By Technology (Seamless, ERW), By Application (Oil & Gas, Power Plant, Automotive & Transportation, Mechanical Engineering), By Region, And Segment Forecasts, 2023 - 2030

Steel Pipes & Tubes Market Size & Trends

The global steel pipes & tubes market size was estimated at USD 185.47 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 3.7% in terms of revenue from 2023 to 2030.Rising construction of new petrochemical plants worldwide is expected to boost the consumption of steel pipes & tubes over the forecast period. Steel pipes & tubes are utilized in piping systems, pressure tubes, and heat exchangers in the chemicals & petrochemicals industry. Thus, increasing investment in the construction of petrochemical plants is expected to benefit market growth. For instance, in December 2022, Essar Group announced its plan to invest ~USD 4,905.4 million for a petrochemical complex in Odisha, India. The oil-to-petrochemical complex is anticipated to have an annual production capacity of 7.5 million tons.

The U.S. is one of the largest producers of oil & gas in the world. According to the U.S. Energy Information Administration, the crude oil proved reserves increased by 14.8% on a y-o-y basis (as of December 2021), reaching 41.2 billion barrels. The wet natural gas reserves witnessed an increase of 32.1%, reaching 625.4 trillion cubic feet. The country’s share in global oil production was around 14.5% in 2021. These shares are expected to increase over the forecast period.

As of June 2023, when Russia and OPEC+ countries have announced production cuts, the U.S. crude oil production is anticipated to rise to 12.61 million barrels per day in 2023. One of the major oil producers in the U.S., Exxon Mobil, announced its aim to double its production from the U.S. shale holdings over five years with the help of advanced technologies.

Similarly, in June 2022, Chevron Corporation announced ramping of its production in the onshore Permian basin from 700k to 1 million barrels per day by 2025. As of March 2023, despite labor shortages, the company is on track for this expansion. In addition, the global crude oil proved reserves increased by 1.3% on a y-o-y basis (as of December 2022), reaching 1,757 billion barrels. Thus, increasing investment in oil production is likely to augment the need for steel pipes & tubes for transportation and other operational purposes over the forecast period.

Application Insights

Based on application, the oil & gas segment held the largest market share of over 57% of global revenue in 2022. The product is largely consumed in oil country tubular goods (OCTG), distribution, process piping, and other applications in the oil & gas sector. Increasing investment in the cross-country oil and gas transportation pipeline network is expected to propel the demand for steel pipes & tubes across the forecast period.

For instance, in September 2022, the Nigeria-Morocco Gas Pipeline Project (NMGP) signed a deal with Morocco, and the Economic Community of West African States (ECOWAS) to construct a 5,600 km pipeline, which will deliver gas from Nigeria to 13 countries of West Africa through Morocco. Thus, a project of this kind is expected to propel the market growth over the forecast period.

In terms of revenue, the chemicals & petrochemicals segment is anticipated to grow at a CAGR of 3.9% from 2023 to 2030. Steel pipes & tubes are increasingly being used in petrochemical plants for process refining owing to their characteristics, such as strong corrosion and oxidation resistance.

The construction industry segment is another vital end-use for the market where steel pipes & tubes are used for building structures, foundations, balconies, railings, and many more. Rapid urbanization and industrialization, especially in developing economies, are anticipated to augment the segment growth over the forecast period.

Technology Insights

Based on technology, the seamless segment held a revenue share of over 67% in 2022. Steel billets are heated after being perforated to form the tubular section, which is used to produce seamless. Seamless is used in a variety of sectors, including power generation, oil & gas, and chemicals & petrochemicals.

The electric resistance welded (ERW) segment is gaining prominence in the market due to its modest performance and low price. The segment is anticipated to be driven by plans for fertilizer, oil & gas, and power companies to construct transportation pipelines. For instance, in December 2021, Indian Oil Corporation (IOCL) announced an investment of INR 9,028 crore (USD 1,105.6 million) for setting up a new crude pipeline from Mundra (Gujrat) to Panipat (Haryana), India.

Submerged arc welded (SAW) is another crucial segment of the market. SAW primarily competes with ERW and seamless, mainly in the product range of 16 inches to 24 inches. However, SAW is the best pick for pipelines that are above 24 inches. Different types of SAW include longitudinal type (LSAW) and spiral type (SSAW).

Regional Insights

Asia-Pacific dominated the market with a revenue share of over 64% in 2022. The large share is attributed to countries like China, South Korea, India, and Japan, which are the major consumers of steel pipes & tubes due to the presence of the huge manufacturing and petrochemical sectors.

The Middle East & Africa region is anticipated to witness moderate growth over the forecast period, owing to rising investment by private players in setting up of new petrochemical plants. For instance, in November 2022, Alujain Corporation received a nod from Saudi Arabia’s Ministry of Energy for establishing a new petrochemicals project in Yanbu Industrial City.

Central & South America is anticipated to witness a CAGR of 2.0%, in terms of revenue, over the forecast period. The demand in the region is projected to increase as a result of growing investments in oil and gas projects. For instance, in September 2022, PETRONAS, a Malaysia-based oil & gas company, and YPF, Argentina’s state oil company, agreed to construct a Liquefied Natural Gas plant in Vaca Muerta, Argentina. The project is expected to be built with an initial investment of USD 10 million.

Key Companies & Market Share Insights

The global market is fragmented in nature, with the presence of various key players such as ArcelorMittal, Nippon Steel Corporation, ThyssenKrupp AG, Tata Steel, and Hyundai Steel, as well as a few medium and small regional players operating in various parts of the world. Companies are also focused on collaborations, mergers & acquisitions, and joint ventures to broaden their product portfolio and regional presence. For instance, in July 2022, Tenaris signed a USD 460 million deal to take over Benteler, a U.S.-based steel pipe producer. This acquisition is expected to help Tenaris expand its manufacturing capacity and serve its customers more efficiently.

Steel Pipes & Tubes Market Report Scope

Global Steel Pipes & Tubes Market Report Segmentation

This report forecasts revenue and volume growth at country & regional levels and provides an analysis of the industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global steel pipes & tubes market report based on technology, application, and region.

• Technology Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Seamless

  • Electric Resistance Welded

  • Submerged Arc Welded

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Oil & Gas

  • Chemicals & Petrochemicals

  • Automotive & Transportation

  • Mechanical Engineering

  • Power Plant

  • Construction

  • Others

• Regional Outlook (Volume, Kil0tons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • Russia

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • Indonesia

    • Philippines

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia