During 2012-2016, The European Economy was in the revival phase as different sectors faced the economic and financial slowdown due to the 2008 crisis. The plastic pipes and fittings industry saw a CAGR of ~% during 2011-2016. The revenue had grown from EUR ~ billion in 2011 to EUR ~ billion in 2016. This growth was driven by increasing awareness in the market about the benefits of plastic pipes over metallic pipes and innovation which widened the scope of application for plastic pipes.
The plastic pipes and fittings industry has seen growth in the last five years due to the recovery of construction industry, wastewater management facilities, growing chemical and gas distribution network and cable protection industry which are the major end users of plastic pipes and fittings. This growth was supported by Public and Private Investments which amounted to EUR ~billion over the period 2015-17.
Non-pressure plastic pipes have accounted for the highest share of ~% during 2016. Pressure pipes have seen demand from portable water supply sector and gas distribution sector which accounted for ~% of the revenue in 2016.
Germany has accounted for the largest share of ~% in 2016. UK has the second largest share of plastic pipes and fittings of ~% in 2016, the largest end user being the construction sector. France has the third largest share of revenue of ~% with growing demand from gas and sewage sector.
PVC pipes have accounted for the major share of revenue of ~% during 2016. Further, within PVC pipes market, UPVC has taken the largest revenue share of ~% in 2016. Polyethylene pipes (PE) has the second largest share in revenue with ~% in 2016. PE pipes are mainly used in distribution of portable water and gas, industrial application and pressure sewers.
The plastic pipe industry has seen the largest demand from the sewage sector which accounted to for ~% of the revenue share in 2016. The second largest demand was from the portable water sector which took a revenue share of ~%.
How have different countries performed in the Europe plastic pipes and fittings market?
Germany has the largest share of revenue in the European Plastic pipes and fitting market. The Germany plastic pipe industry has grown from EUR ~ billion in 2011 to EUR ~ billion in 2016 with a CAGR of ~%. Adding to this, the demand for plastic pipes in Germany was ~ million kg in 2016 as compared to ~ million kg in 2014.
Germany saw a major demand for non pressure pipes which accounted for ~% of the revenue during 2016. Non pressure pipes are used mainly in sewage treatment. PVC plastic pipes have accounted for the major share of revenue which is ~% in 2016 due to its cheaper price and wide range of applications. The strategic central location of Germany gives it the advantage of easier access to the neighboring countries and to parts of the plastic pipe industry value chain
The UK plastic pipes and fittings industry has grown from EUR ~Billion in 2011 to EUR ~Billion in 2016 with a CAGR of ~%. UK has the second largest share in the revenue of European market for Plastic Pipes and Fittings. Also, the demand for plastic pipes in UK was ~million kg in 2016 as compared to ~million in kg.
Pressure pipes have accounted for ~% of the demand for plastic pipes in 2016 and ~% of the demand has been for PVC pipes. The sewage sector which is the largest user of plastic pipes has seen an investment of more than EUR ~Billion by 2015. According to the National Infrastructure and Construction Pipeline, the government has set EUR ~billion worth of Public and Private Investment in 2016 which have created further markets for plastic pipes.
France is the third largest contributor of revenue in the European Plastic Pipes and Fittings market. The revenue has grown from EUR ~Billion in 2011 to EUR ~Billion in 2016 with a CAGR of ~% over the period. Furthermore, the total demand for plastic pipes in France went up from ~million kg in 2014 to ~million kg in 2016.
The major demand was for non pressure pipes which has accounted for ~% of the demand in 2016. Also, ~% of the demand has been for PVC pipes. The sewage and sanitation market has grown by ~% in 2016 to reach EUR ~billion due to a rise in demand from B2B and household purchases plastic pipes. Construction activity grew by ~% by volume in 2016 after 8 years of decline which was mainly driven by residential construction. Also, tax reforms have made it easier for people to invest in rental buildings.
Some major regional players in the France plastic pipes industry are COVECA, SCORPI and Provea SAS
Spain is the fourth largest consumer of Plastic Pipes and Fittings in Europe. The revenue for Spain plastic pipes and fittings market has grown from EUR ~billion in 2011 to EUR ~billion in 2016 with a CAGR of ~%. Furthermore, the demand for plastic pipes in Spain went up from ~million kgs in 2014 to ~million kg in 2016.
~% of the demand in 2016 was for non pressure pipes which are mainly used in the sewage and construction sector. ~% of the demand was for PVC pipes. Spain is a dry country, so there is constant need for investing in water and wastewater treatment projects. From 2012-2016, European Investment Bank granted EUR ~million loan for water and sanitation improvements. Apart from the top players, the major regional players in the Spain plastic pipes Extruplesa, Tubos Industriales Penedes SA and Profine Iberia SA
Ankur Gupta, Head Marketing & Communications