PE Pipe Resin Market - Forecast(2023 - 2028)

PE Pipe Resin Market Overview

The PE pipe resin market size is estimated to reach US$6.9 billion by 2027, after growing at a CAGR of around 3.1% from 2022 to 2027. The polyethylene is a thermoplastic produced by the polymerization of the ethylene. The PE resin is widely used in the production of polyethylene pipes. The PE pipe resin has a growing application in gas supply, water supply, water desalination, sewage & drainage pipes and others. The high density polyethylene pipe offers sustainability and high demand in the water supply and sewer systems, thereby creating a drive in the global PE pipe resin market. Furthermore, the increasing usage of PE pipe resin in end-use industries such as oil and gas, agriculture, water & wastewater and others will provide major growth in the market during the forecast period.

COVID-19 Impact

The economic slowdown during the covid-19 outbreak phase created a major impact on the PE Pipe Resin industry, globally. The PE pipe resins have rising demand in the oil & gas, agriculture and others. The major decline in the growth of oil and gas sector affected the demand trends in the market. The oil prices declined due to demand contractions and oversupply. The low consumption of crude oil affected the production and oil & gas transportation activities. The factors such as labor shortages, logistic disruptions and other lockdown restrictions led to a fall in the oil and gas industry. According to the International Energy Agency (IEA), the gas consumption saw a fall by 4% in the year 2020. The decline in oil and gas sector which henceforth led to a fall in the applications and demand of PE pipe resin for oil supply and transportation activities, thereby affecting the growth prospects during pandemic. Thus, the restricted demand and growth opportunities led to major slowdown in the global PE pipe resin market during the covid-19 phase.

Report Coverage

The “Global PE Pipe Resin Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the global PE Pipe Resin industry.

Key Takeaways

• The global PE Pipe Resin market size will increase owing to its major demand and growth opportunities from oil and gas supply and transportation, water supply, sewage & drainage systems and others during the forecast period.
• The Asia-Pacific region holds a major share in the global PE pipe resin industry due to flourishing base for end-use industries, water supply and transportation projects; and rising preference of polyethylene pipe resin in this region.
• The increasing demand of PE pipe resins; in producing pipelines for the water supply and distribution applications across various industries such as water & wastewater treatment, agriculture, construction and others; is offering major growth in the market.

Figure: Asia Pacific PE Pipe Resin Market Revenue, 2021-2027 (US$ Billion)

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PE Pipe Resin Market Segment Analysis – by application

By application, the Water Supply segment accounted for the largest share in the global PE Pipe Resin market and is expected to grow with a CAGR of around 2.5% during the forecast period. The PE pipe resin has major application in processing the pipes used in water supply systems for drinking water, irrigation and others. The rise in demand for PE pipe resin for water supply applications is influenced by growing development in the agricultural and domestic water pipeline networks and government initiatives for drinking water supply across rural and urban areas. According to the India Brand Equity Foundation (IBEF), the water demand in India is estimated to grow by around 77% from 710 billion cubic meters in 2010 to 1180 billion cubic meters by the year 2050. The growth of water management and agriculture sectors is propelling the demand for the water supply applications of the PE pipe resin, owing to its excellent properties such as toughness, corrosion resistance, strength and light weight. Thus, with high demand for water supply applications in the major end-use industries, the global PE pipe resin market will grow during the forecast period.

PE Pipe Resin Market Segment Analysis – by End-Use Industry

By end-use industry, the Water & Wastewater treatment industry is the fastest-growing segment and is expected to grow with a CAGR of over 3.4% during the forecast period. The PE pipe resin has major application in the water and wastewater treatment industry such as irrigation pipe, water supply pipe systems, sewage & drainage and others. This is due to superior properties of polyethylene resin such as durability, rigidness, light weight, toughness and non-corrosiveness. The high density polyethylene pipe resin has major demand in the water and wastewater sector for drinking water supply systems, sewage and others. According to the United States Environmental Protection Agency (EPA), in September 2020, the US government was announced the investment of funds valued USD 95 million to develop water infrastructure and drinking water quality in Michigan. The development and advancement in the water and wastewater infrastructure across the globe is boosting the growth opportunities for the global PE pipe resin market. Thus, the global PE pipe resin market will grow rapidly during the forecast period.

PE Pipe Resin Market Segment Analysis – by Geography

By geography, the Asia-Pacific is the fastest-growing region in the global PE Pipe Resin market and is expected to grow with a CAGR of around 3.7% during the forecast period. The robust growth of the PE pipe resin in this region is influenced by growing demand from end users such as agriculture, water management, oil & gas and others. Furthermore, the development in the APAC's agricultural sector is boosting the growth prospects for the PE pipe resins such as high density polyethylene, low density polyethylene, linear low density polyethylene and other thermoplastics. According to the World Bank data, the value added by the agriculture, fishing and forestry industry accounted for 7.65% of the GDP in China for the year 2020. The flourishing irrigation and agriculture sector in countries such as China, Japan, India and others is boosting the growth in the market. Moreover, the rise in water management and drinking water supply pipeline project in the APAC is increasing the demand for PE pipe resins. Thus, with the flourishing demand across various industries and expansion in the polyethylene pipelines, the global PE pipe resin industry will grow rapidly during the forecast period.

PE Pipe Resin Market Drivers

High demand in the oil and gas industry

The demand of PE Pipe Resin in the oil and gas sector is growing. The high modulus polyethylene is used in the supply and transfer of oil and gas. The rising application of PE pipe resin in the oil & gas sector as an alternative to the steel pipes is offering drive in the global PE pipe resin market. According to the National Investment Promotion & Facilitation Agency, around USD 58 billion will be invested in the exploration and production by 2023 and USD 60 billion on the natural gas infrastructure by 2024. Furthermore, the rise in oil and gas exploration and production activities is boosting the demand in the market; and offering major growth opportunities for the global PE pipe resin industry.

Increasing application in the agriculture sector

The global PE Pipe Resin has major demand in the agriculture sector. It has applications in the water supply system, irrigation pipe, water management & treatment and others. Furthermore, the growing agricultural sector is boosting the demand for PE pipe resins. The development projects for farming and irrigation water systems are propelling the growth of the market. According to the United States Department of Agriculture (USDA), the food, agriculture and related industries contributed a value of USD 1.05 trillion in the U.S. GDP for the year 2020. Thus, the growth in agriculture industry is propelling the demand of PE pipe resin; and offering major growth opportunities in the global PE pipe resin market.

PE Pipe Resin Market Challenges

Volatility in the PE prices and technical issues

The global PE Pipe Resin faces major challenge with the volatility in the polyethylene prices. The contractions in polyethylene prices rose to US$ 0.41 to US$ 0.43 per lb since the start of 2021 and a total of US$ 0.65 to US$ 0.67 per lb since May 2020. Furthermore, the low density polyethylene has disadvantages such as risks to stress cracking, low stiffness, low strength, flammability and poor UV resistance. Thus, owing to major volatility in the PE prices, technical degradation and defects in polyethylene, the global PE pipe resin industry faces major slowdown and restricted growth.

PE Pipe Resin Industry Outlook

The global PE pipe resin top 10 companies include:

1. The Dow Chemical Company
2. PetroChina Company Limited
3. Saudi Basic Industries Corporation
4. Ineos Group
5. Exxon Mobil Corporation
6. LyondellBasell Industries N.V.
7. Nova Chemicals Corporation
8. Chevron Phillips Chemical Company LLC.
9. China Petroleum & Chemical Corporation (SINOPEC)
10. Braskem S.A.

Recent Developments

• In February 2022, the SIMONA AG has acquired a major stake of the PEAK Pipe Systems Limited, a leading manufacturer of the PE pipe systems, thereby offering growth in water supply & infrastructure, agriculture and other sectors.
• In January 2022, the WL Plastics, a subsidiary of the Ineos acquired the high-density polyethylene pipe business of the Charter Plastics. This acquisition will boost the growth for global PE pipe resins across mining, agriculture, water treatment and oil & gas end-users.
• In November 2020, the Ineos announced the acquisition of the membership in Gemini HDPE LLC, a manufacturer of the PE resins and products. This proposal will expand the portfolio of Ineos in polyethylene (PE) pipe resin market. 

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