Welded Pipes Market

COVID-19 Impact Analysis

• The COVID-19 pandemic ceased the production of various products in the welded pipes industry, which is attributed to the global lockdown. This has hampered the growth of welded pipes market in the years and a similar trend is expected to be seen in first half of 2022.
• The major demand for welded pipes was previously noticed from giant manufacturing countries, including the U.S., Germany, Italy, UK, and China, which are negatively affected by the spread of the coronavirus, thereby declining the demand for welded pipes.
• Further, potential long-term impact of the lockdown is currently vague and financial recovery of companies is totally based on their cash reserves. Welded pipe manufacturers can afford a lockdown only for a few months, after which the players have to modify their investment plans. For instance, various players in the market halted their production activities for several weeks to reduce their expenses. On the contrary, few players adopted employee lay-offs to sustain themselves during the COVID-19 health crisis.
• Welded pipe manufacturers are expected to focus on protecting their workforce, operations, and supply chains to respond to immediate crises and find new ways of working after COVID-19. For instance, provision of sanitizers, maintaining social distancing, as well as ensuring the vaccination of every employee in the company can assist in promoting the health & safety of the workforce. 

Top Impacting Factors

Increase in population, improvement in financial status of public in general and rapid industrialization & urbanization in the developing countries such as India, China, and Brazil are expected to boost the welded pipes market. The increase in private-public partnerships (PPPs) to promote infrastructural development is one of the important driving factors for the welded pipes market. In countries such as Pakistan and India a greater investment can be seen on oil & gas pipelines as the countries’ hunger for energy is increase in; thereby, driving the demand and growth of welded pipes market. Moreover, the lower cost of the welded pipes then its counterpart seamless pipes is a major driving factor for increase in demand in welded pipes market.

However, the lower pressure handling capacity of welded pipes when compared to seamless pipes is one of the restraining factors hindering the growth of welded pipes market. On the contrary, technological developments in welded pipes technology such as latest innovations in welding technology and metallurgy boost the efficiency of the equipment, result in lower number of failures during pressure testing. This is expected to create lucrative opportunities for the welded pipes market growth during the forecast period.

Market Trends

• Competitors in the welded pipes market adopted acquisition as their key developmental strategy to expand their geographical foothold and upgrade their product technologies. For instance, in December 2019, ‘AM/NS India’, a joint venture between ArcelorMittal and Nippon Steel Corporation, acquired Essar Steel India Limited. This move will help the companies establish a strong presence in India.
• Moreover, business expansion strategies assist in enhancing the geographic footprint of the company and help in gaining significant market share for welded pipe products. For instance, in June 2021, Jindal Steel, India based steel company, set up an integrated steel plant in Nellore district of Andhra Pradesh's Nellore, with an annual production capacity of 2.25 million tones.

Key Benefits of the Report

• This study presents the analytical depiction of the welded pipes industry along with the current trends and future estimations to determine the future investment pockets.
• The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the welded pipes market share.
• The current market is quantitatively analyzed to highlight the welded pipes market growth scenario.
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market. 
• The report provides a detailed welded pipes market analysis based on competitive intensity and how the competition will take shape in coming years.