Large-diameter plastic pipe in big demand

By Clare Goldsberry 
Published: January 2nd, 2013

Increased infrastructure spending will boost demand in theU.S.for large-diameter pipe for water and wastewater through 2016, according to the latest reports from The Freedonia Group.U.S.demand for water and wastewater pipe is expected to rise 9.2% per year to $17.8 billion in 2016, with plastic being the fastest-growing pipe material as it continues to take market share from competing materials.

In a second report, The Freedonia Group projects large-diameter pipe demand in theU.S.to rise 6.2% annually through 2016 to 197 million ft, from the repair and replacement of wastewater infrastructure as these projects move forward after being put on hold during the recession over municipal budget concerns. Sewers, which include both storm and sanitary sewers, will continue to be the leading market for large-diameter pipe through 2016, accounting for one-half of total demand.

Environmental Protection Agency (EPA) mandates will provide opportunities for growth, as regulations regarding combined sewer overflows have become more stringent, the report notes. As a result, many locales will be required to replace combined storm/sanitary sewer systems. The drainage market will experience the most robust growth in large-diameter pipe demand through the forecast period, benefiting significantly from a rebound in building construction, particularly in the South and West as theU.S.population migrates to those regions.

The need to expand oil and gas transmission lines, especially near shale plays and other unconventional wells, will also spur growth, said the Freedonia Group report.

Steel and HDPE remain tied for the most widely used materials in large-diameter pipe, each accounting for 31% of total demand. HDPE will post above-average gains as it continues to replace other materials in many applications. For example, corrugated HDPE will continue to replace concrete pipe in many drainage applications, benefiting from its ease of installation and light weight. The Freedonia Group report projects an annual growth rate of HDPE of 6.9% through 2016. PVC pipe will see an annual growth rate of 5.7% through 2016.