Seamless Steel Pipes Market Analysis, By Process (Hot Rolled, Cold Rolled), Coating (3 PE Coating, FBE Coating, 3 PP Coating), By Material (Stainless Steel, Alloy Steel, Carbon Steel), By Dimension, By End-use Industry (Oil & Gas, Energy & Power, Construction) - Global Insights to 2032

Oil & Gas Sector to Uplift Seamless Steel Pipes Market Growth Trajectory

The global seamless steel pipes market is valued at US$ 61.6 billion in 2022 and is estimated to expand at a CAGR of 7% and reach US$ 122.2 billion by the end of 2032.

Seamless steel pipe sales accounted for 55.5% share of the global steel pipes market at the end of 2021. Seamless carbon steel, alloy steel, and stainless steel pipes are widely utilized as line pipes for the transport of fluids such as oils and chemicals. They also find usage as structural components in the automotive, construction, and mechanical sectors.

Evolution of Seamless Steel Pipe Demand Over the Study Period

Major chemical, oil & gas, and power plants across the world are preferring seamless steel pipes over traditional electric resistance welding (ERW) pipes. They enhance the life of transmission lines that are used to transfer fluids in chemicals and related industries and lower the overall spending on transmission lines over the amortized years.

Population growth and urbanization have been rapidly expanding over the past few years, which has led to an increase in oil and gas consumption, quicker than anticipated. In addition, the need for energy in developing nations has been driven by two key factors: rapid economic growth and technological advancement, which is further supplementing market growth.

• Short Term (2022 to 2025): Boosting oil & gas and energy & power industries to positively impact market growth.
• Medium Term (2025-2028): South Asia and Oceania is anticipated to witness high demand on the back of rising oil & gas industries in these regions, coupled with future mega-projects.
• Long Term (2028-2032): Mushrooming applications of seamless steel pipes in various end-use industries such as construction, chemicals, and automotive will drive long-term demand.

Over the 2017-2021 historical period, the global seamless steel pipes market registered a CAGR of 3.3%, and according to this report by Fact.MR, a market research and competitive intelligence provider, the market is projected to surge ahead at 7% CAGR between 2022 and 2032.

Market share analysis of seamless steel pipes based on application and region. Under the end-use segment, oil & gas accounts for 39.5% market share in 2022.

Which Market Dynamics are Being Witnessed for Seamless Steel Pipes?

“Growing Steel Industry Surging Seamless Steel Pipe Consumption”

Steel is an essential part of almost all industries, from automotive to construction. Crude steel is extracted from iron ore processed using coal/coke, followed by reduction using limestone in a basic oxygen furnace (BOF). Rapidly increasing population and urbanization have contributed to a surge in resource utilization in construction activities, power plants, and others.

Further, the growing steel industry has created an abundance of raw materials for seamless steel manufacturers. Contrastingly, a reduction in steel prices in countries such as China with a higher abundance of steel can be observed. In 2021, global steel production reached 1.9 billion tonnes at a growth rate of 3.6% as compared to 2020.

This allowed manufacturers to stabilize their prices, which can be reflected in all the other segments of the market.

“Construction & Automobile Sectors Strengthening Market Stance”

Growing urbanization and rising economic growth will drive the growth of the construction sector, especially in countries such as India and China. Governments in these nations are expanding cities and improving infrastructure for better living standards, which is a prime reason for the increase in construction activities. Changing lifestyles and developments taking place in developing nations are leading to increased consumption of automobiles. Demand in both these industries creates a significant upsurge in pipe consumption.

• According to the National Development and Reform Commission (NDRC), an investment of around US$ 38 billion in Shanghai is planned over the next three years, whereas, in Guangzhou, 16 new infrastructure projects have been signed with an investment of US$ 8.09 billion in the construction sector. China has planned to reach 450 airports by 2035.
• Similarly, through the National Infrastructure Pipeline, the Indian government will invest US$ 1.4 trillion in infrastructure development in the next five years.

Continuous construction activities in developing countries will increase the sales of the market as these pipes are used in construction to strengthen the infrastructure and increase their durability.

“Growing Investments in Low-emission Furnaces”

Carbon emission has been a major concern for all steel-based product manufacturing units across the world. Around 72% of global greenhouse gases are being produced by manufacturing & power industries. Modern blast furnaces emit more carbon into the atmosphere, which can be a major issue if emissions are beyond the given limits under laws such as Paris Law in the EU union and the Clean Air law in the U.S. Companies have been switching to traditional low-emission electric arc furnaces as a solution.

An electric arc furnace is used for high-melting-point alloys such as iron and steel, which uses graphite electrodes to heat metals with less emission and produce metal billets used as raw material.

• Nippon Steel and ArcelorMittal have formed a joint venture to build a new electric arc furnace in the U.S.

With top market players taking such cautions to play safe and survive in the industry, other key players have also started investing in low-cost, low-emission electric arc furnaces to be in the race.

“Higher Raw Material Cost - Obstacle to Be Bridged”

Products made from this demand a substantial investment in raw materials and energy used in the production of steel. The cost and availability of the necessary energy and raw materials are determined by supply and demand factors. These are subject to change due to tariffs and other governmental laws and can have an immediate impact on the product's availability and pricing.

Additionally, market interruptions, restrictions, and limited resource availability could result in greater production costs, and ultimately a suspension of production in such markets.

• As an illustration, Mexico's greater reliance on natural gas imports as a result of decreased domestic production and transportation capacity constraints has increased the cost of moving natural gas, and, as a result, the price of producing steel pipes.

High initial investments and fluctuations in the availability and prices of raw materials may pose a threat to market growth.

Country-wise Analysis

Why is China’s Market Expected to Be Extremely Profitable?

China has a sizable portion of the global SSP market due to the high availability of raw materials required to produce these pipes. China has increased its focus on know-how in knowledge-intensive manufacturing and developing the capacity of sectors such as motor vehicles, chemicals, and machinery. Owing to this, East Asia is expected to exhibit high growth in the market as it has the most oil & gas resources and chemical industries.

Demand is primarily driven by established traditional industries and huge petrochemical and chemical industries and fully automated and furnished manufacturing facilities with reliable material handling systems in the country.

The China seamless steel pipes market is expected to reach a valuation of US$ 49.8 billion in 2032.

How Will the Oil & Gas Sector in European Countries Affect Market Expansion?

For oil & gas applications, seamless steel pipes are preferred due to their sturdiness, strength, and resistance to corrosion. Most offshore rigs and oil field drilling operations employ seamless pipelines. Due to their superior corrosion and temperature resistance, stainless steel alloys are used in aircraft components that need considerable strength and can support greater weight. This makes them ideal for a variety of aerospace parts. The high-strength and lightweight hydraulic tubing used throughout the fuselage is often made from steel alloys.

Due to rising consumer demand, Europe maintains a competitive market share in the world, with Russia holding a large portion of this share. The country leads the market in the European region owing to ongoing and upcoming operations connected to highly marketable oil & gas projects.

• A total of 39 crude and natural gas projects in four nations of the Former Soviet Union (FSU) are scheduled to begin production.

Owing to the above factors, the Russian market is expected to expand over the forecasted period at a CAGR of 7%.

Category-wise Analysis

Why are Hot Rolled Seamless Steel Pipes Most Extensively Utilized?

Hot rolled steel is produced by rolling steel at a high temperature, typically above the temperature of its recrystallization. Hot rolling seamless steel tubes can make the steel structure compact, eliminate structural flaws, refine the steel grain, and enhance the mechanical properties of the steel. They can also solder together bubbles, fractures, and osteoporosis that result from pouring under intense pressure and heat.

Heat rolled pipes can be made in greater quantities than cold rolled steel as they can be easily formed at high temperatures without experiencing any additional delays. It modifies the material's microstructure in a way that makes it more robust and ductile.

Due to the higher carbon content, cold rolled pipes are often more difficult to deal with than hot rolled ones. Hot rolled SSPs are now preferred and are being offered by several suppliers and manufacturers across the world.

Furthermore, with the growing economy, the hot rolled pipes sub-segment is predicted to expand at a CAGR of 7.7% over the forecasted period.

Will Market Growth Be Led by Carbon-based Seamless Steel Pipes?

Industries such as oil & gas, chemicals, electricity, and energy typically use seamless steel pipes composed of carbon-based materials. Carbon steel pipes are durable, reasonably priced, and easily recyclable when compared to other materials. Seamless pipes and carbon steel, which is a stronger material, making them the best choice for pipes. High strength, bearing stress, good toughness, good plasticity, impact resistance, ease of welding and thermal processing, thin wall thickness, and the capacity to preserve metal are some of the key benefits.

The carbon steel seamless pipes segment is expected to grow at a CAGR of 7.4% over the decade.

Prominent Market Players & their Strategies

Eminent seamless steel pipe manufacturers are ArcelorMittaland, American Piping Products Inc., Benteler, Hunan Valin Co. Ltd, JFE Steel Corp., Jindal SAW Ltd, Nippon Steel & Sumitomo Metal Corporation, Tenaris SA, TATA Steel, United States Steel, and Vallourec SA.

Market players are adopting new strategies to comply with stringent environmental regulations, especially in regions such as Europe and North America. Key players in the market are focusing on developing strong alloys for their enhanced utilization in the highly corrosive environments of subsea and offshore applications.

• In 2022, Tenaris SA, a Luxembourg-based firm, will pay US$ 460 million to purchase Benteler Steel & Tube Manufacturing Corp, a manufacturer in the United States with a production capacity of up to 400,000 MT annually.
• India and Japan inked a deal in December 2020 to strengthen their steel industries' collaboration to increase domestic production and better coordinate in the global market.

Fact.MR has provided detailed information about the price points of key manufacturers of seamless steel pipes positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Seamless Steel Pipe Industry Research

• By Process :

  • Hot Rolled
  • Cold Rolled

• By Coating :

  • 3 PE Coating
  • FBE Coating
  • 3 PP Coating

• By Material :

  • Stainless Steel
  • Alloy Steel
  • Carbon Steel
  • Others (Duplex SS etc.)

• By Dimension :

  • < 10 Inches
  • 10-15 Inches
  • > 15 Inches

• By End-use Industry :

  • Oil and Gas
  • Energy and Power
  • Construction
  • Automotive
  • Chemicals
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA