TPi March 2017

business & market news

Decline in orders of infrastructure pipes The overall market for infrastructure pipes in Europe recorded another drop of 4.4 per cent in 2015. Overall, the market value of 2015 reached a volume of €4.6bn, which is only 0.4 per cent above the previous year’s figure. taking 64.7 per cent and 35.3 per cent respectively. The former can boast a sales volume of €2.6bn. The pressure sector has less potential, as many water networks have already been restored. Water supply accounts for a majority (82.7 per cent) in the pressure segment. Gas pipes are experiencing negative dynamics and hold only a 6 per cent Interconnection Consulting – Austria insight@interconnectionconsulting.com www.interconnectionconsulting.com share of the total market volume. The top ten among all companies, and therefore the largest players on the market, collectively accounted for a share of 27.8 per cent of the total value.

A market report by Interconnection Consulting forecasts a consistent sales volume in 2016 compared to the previous year. The replacement of old metal and concrete pipes paved the way for alternative materials such as glass fibre and plastics. In recent years, the EU infrastructure pipeline manufacturing sector has experienced the loss of some jobs and domestic market shares. These are heavily dependent on government spending and funding, which have been cut in some countries. Germany, the largest market for infrastructure pipelines, showed a 5.4 per cent decrease in installed pipes. The British market also fell by 1.7 per cent in 2014. Due to the positive exchange rate, however, the British achieved a value increase of 7.9 per cent. A total of 1.5mn tons of plastic pipes (27.4 per cent market share) were sold in the top seven European countries (France, Germany, Great Britain, Italy, Spain, Poland and Benelux). The turnover of sold plastic pipes is expected to increase by 8.1 per cent. The reasons for this increase can be found in the properties of plastic pipes, such as resistance to corrosion, flexibility, weldability, chemical resistance and fast and simple joint and installation techniques. The growth of the plastic segment is at the expense of the metal and concrete pipe shares, which lost 6.6 per cent. This trend will continue as light materials and plastic alternatives are in demand. The glass fibre tube segment is comparatively small (€209.8mn) and is governed by three large players. Sewage pipes dominate the European market, accounting for 2.8mn tons and about half of the total sales in 2015. They experience the highest growth opportunities. Drainage pipes, with a share of 41.9 per cent, are the most used pipe type in England. The non-pressure market prevails over the pressure market,

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