Pre-Insulated Pipes Market Overview
The global pre-insulated pipes market is projected to reach $9,597.9 million by 2024 from a value of $5,568.5 million in 2018, demonstrating a CAGR of 9.7% during the forecast period. Growing adoption of district heating and cooling (DHC) systems and construction of energy-efficient buildings, both aimed at lowering energy consumption during fluid transportation, are expected to drive the demand for pre-insulated pipes during the forecast period.
Pre-insulated pipes are employed to maintain temperature, reduce energy losses, and transport fluids from heating and cooling facilities to residential, industrial, and commercial installations. The pipes are constituted of three layers: carrier pipe, insulation layer, and outer jacket. The pre-insulated pipes market is segmented on the basis of installation, type, application, layer, medium, end user, and region.
On basis of installation, the pre-insulated pipes market is classified into below-the-ground and above-the-ground installation. The below-ground installation category accounted for larger share in the global pre-insulated pipes market in 2018. This is attributable to the relatively easy installation, low susceptibility of damage, and lack of aerial space or on-ground occupancy.
Based on application, the pre-insulated pipes market is categorized into DHC, oil and gas, and utilities. Among these, the demand for pre-insulated pipes for DHC systems held the largest share, accounting for nearly 70% in 2018. The adoption of DHC systems is increasing, owing to financial incentives and fiscal measures, such as tax breaks, low-interest loans, subsidies, and grants by several governments. Additionally, integration of internet of things (IoT) and artificial intelligence (AI) technologies are further expected to assist in the development of DHC system-based supply chains, thereby offering traction to the demand for these pipes across the globe.
Traditionally, the highest adoption of pre-insulated pipes was done by industrial end users. This was owing to the quintessential requirement of these pipes to transport fluids in industrial facilities and installations. Furthermore, during the forecast period, the highest growth in adoption of these pipes is expected to be performed by residential end users. Government initiatives and fiscal incentives aimed at offering monetary assistance to residential customers to improve penetration of DHC systems and increase attention toward decarbonizing buildings. These are expected to drive the pre-insulated pipes market during the forecast period.
Based on region, the pre-insulated pipes market is classified into North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), and Middle East and Africa (MEA). Among these, North America generated the largest revenue in the market. The share of the market can be attributed to the increasing adoption of DHC systems across the downtown districts of the U.S. and Canada, and growth in domestic chemical processing and construction industries.
Whereas, the European pre-insulated pipes market is expected to witness the fastest growth. The increasing adoption of building codes and standards, and compliant construction projects, coupled with large-scale construction of nearly zero-energy buildings (NZEBs), and retrofitting and renovation of old buildings are expected to boost the demand for pre-insulated pipes in the region in the near future.
Pre-Insulated Pipes Market Dynamics
The pre-insulated pipes market is expected to be driven by government support for the construction of NZEBs and the accelerated adoption of DHC systems across several countries.
The construction industry is expected to witness notable growth during the forecast period. This has impelled governments, construction groups, and building owners across the world to lower energy footprint during the tenancy of projects. Pre-insulated pipes offer a solution to this conundrum, as these are integral to energy systems and help in reducing energy footprint. Additionally, these offer benefits such as centralization of heating and cooling operations, improvement in resiliency, and low area coverage for ventilation systems.
Furthermore, the growing adoption of DHC systems is expected to generate the demand for pre-insulated pipes during the forthcoming period. Several countries, including the U.S., Canada, Japan, China, Germany, Russia, Iceland, France, and Denmark, have a high adoption rate of DHC systems and are further expected to boost their demand due to increasing preference from residential and commercial sectors. This is expected to generate benefits for all stakeholders, such as governments to lower energy consumption, community owners to reduce energy costs, and local energy providers to monetize energy generated from multiple sources.
High costs of installation and subsequent maintenance of pre-insulated pipes are identified as a factor that is moderately expected to affect the adoption of the pipes. These costs are supposedly incurred during above and below ground installation, and high products and labor costs in certain cases, affect the overall project cost to a major extent.
In recent years, several developing nations have witnessed increasing rate of urbanization, coupled with an increased influx of foreign investments and infrastructure players aiming to tap the high-yield pre-insulated pipes market share. In foresight, this is expected to draw investments in residential and commercial construction projects and drive the demand for pre-insulated pipes for DHC systems for houses, schools, hospitals, and public buildings, across several countries in LATAM, APAC, and Eastern Europe.
Pre-Insulated Pipes Market Competitive Landscape
Some of the major players operating in the global pre-insulated pipes market are CPV Ltd., LOGSTOR A/S, PEM Korea Co. Ltd., Perma-Pipe International Holdings Inc., Polymerteplo Group, Rigitech Rigid Foam Products, SA Insulation Pty. Ltd., Thermal Pipe Systems Inc., Uponor Infra Fintherm a.s., and ZECO Aircon Ltd.