Market Definition
PVC Pipes are plastic pipes fabricated using chlorine & ethylene. They are usually hollow & cylindrical-shaped and are widely used to carry substances that could flow from them, such as fluid, powder, etc. They are rust-proof & durable, have low weight, and are tough to deteriorate. These pipes are primarily used within the water piping system of buildings, water treatment plants, for irrigation purposes, and several other things.
Market Insights
The GCC PVC Pipes market is projected to grow at a CAGR of around 4.57% during the forecast period, i.e., 2023-28. The major factor attributing to its growth is the development within the construction sector in the GCC countries such as the UAE, Saudi Arabia, Qatar, Oman, etc. The region has been witnessing massive construction & infrastructural development of hotels, malls, airports, residential buildings, and others. The construction of these buildings requires the fitting of these pipes for the purpose of maintaining proper water supply & plumbing within the building.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 4.57% |
| Country Covered | The UAE, Saudi Arabia, Oman, Kuwait, Bahrain, Qatar |
| Key Companies Profiled | Polyfab Plastic Industry LLC, Neproplast, Power Group of Companies, Al Gawas Plastic Industries, Super Pipe, Dubai Polymer, Unitech Qatar, Qatar National Plastic Factory W.L.L, Pipes Technology Co. W.L.L, SAPPCO, Others |
| Unit Denominations | USD Million/Billion |
Along with it, the region is witnessing the expansion of some water treatment plants, and in these plants, the requirement of these pipes is enormous as they are required to maintain the flow of water. As these pipes are durable, lightweight, and low on budget, therefore they are the preferred choice among developers & are also gaining popularity among the regional population as they can easily withstand the harsh & hot climatic conditions within the GCC region.
Further, the oil & gas industry is another major end-user of PVC pipes, as these pipes are used to create the injecting lines in order to pass the pressured water into the oil reservoir to make the oil recover better. Apart from it, these pipes are highly durable in terms of chemical resistance, due to which, they are preferred to transport chemicals such as acids, brines, etc. Owing to the listed factors, there has been growing adoption of these pipes, mainly in the construction sector of the GCC region. This, in turn, is creating a positive market outlook for the growth of the market during the forthcoming period.
Market Dynamics
Significant Driver: Growing Construction within the Hospitality Sector to Generate the Demand
The countries like the UAE, Saudi Arabia, and Oman have emerged as global tourist spots for business tours, leisure tourism, and family functions, as a result of which the country is actively promoting the construction & refurbishing of hotels, lounges, malls, etc. The development of these buildings requires the fittings of PVC pipes to maintain the water supply, the functioning of the HVAC system, and district cooling, thereby generating the demand for these pipes in the country.
In recent years GCC has witnessed global events such as Dubai Expo 2020 & FIFA World Cup, owing to which, the region has experienced a massive influx of visitors for tourism purposes, leading to the construction of new luxury hotels to occupy a large number of visitors. Further, the relaxation of the COVID-19 restriction also played a significant role in expanding tourism within the country. For instance:
The growth in the number of visitors resulted in the construction of new hotels & the refurbishment of the existing ones, which, in turn, generated the demand for PVC Pipes to maintain the water supply & plumbing requirements. Further, the construction of new hotels & buildings also required the installation of HVAC & district cooling. The setting up of this centralized cooling system also demands the fitting of these pipes which are thermally more stable & chemical resistant & therefore are ideal for centralized cooling systems. Thus, the building of new hotels & the installation of centralized cooling systems in them generates augmented demand for these pipes, upscaling the sales bar of the market in the coming years.
Possible Restraint: Environmental Concerns Relating to the Use & Disposal of PVC Pipes
The use of plastics is leading to several environmental concerns, such as soil degradation, water pollution, impact on human health, etc. As a result, the government is restricting the use of plastics & plastic-based products. PVC pipes are also a type of synthetic plastic made up of Polyvinyl Chloride, a type of chlorine that is capable of releasing Chlorofluorocarbons (CFCs), which destroy the ozone layer and also take several years to decompose. As a result, the usage of these pipes becomes a cause of concern for environmental sustainability.
Further, the government in the country is proactively working on curtailing the use of plastic-derived products. Hence, these developments would restrain the growth of the market, as they can lower the adoption of these pipes among the different end-user groups in the following years.
Growth Opportunity: Rising Production Capacity of Clean Fuels
The growing environmental concerns & the movement toward a sustainable economy have enhanced the adoption of cleaner fuels such as natural gas, clean ammonia, clean hydrogen, etc. As a result of this, GCC countries, like the UAE, Saudi Arabia, Qatar, and several others, are constantly working on expanding their clean fuel production capacity & diverging from traditional oil & petroleum production.
The construction of a new production facility & expansion of the existing ones is anticipated to generate greater demand for these pipes, as the plants require the fitting of these pipes to transport water in a pressurized manner to the natural gas fields for drilling & exploration purposes. These pipe fittings are also needed to transport the wastewater & other fluids generated to the storage facility & disposal wells. At the clean hydrogen & clean ammonia production units, the fittings of these pipes are needed to maintain the ventilation system & the transportation of the gases. For instance:
The construction of a new production facility in the coming years is anticipated to generate increased demand for PVC pipe fittings, hence contributing to the market growth during 2023-28.
Key Trend: Growing Adoption of PVC Pipes in the Fiber Optic Cables
GCC countries such as the UAE, Saudi Arabia, Oman, and Kuwait are working on diversifying their economy & also improving the digital ecosystem of the country. These countries are constantly working on providing faster & more secure internet connectivity to attract technology companies to the country & emerge as a digital hub in the region. To achieve this, more secure fiber optic cables are being laid down under the sea & underground. These cable lines are covered with the coating of PVC pipes as they are more durable, can easily withstand harsh conditions, and can secure fiber optic cables. For instance:
The laying down of fiber optic cable in the country would require the installation of fiber optic cable lines, that in turn would require these pipes to provide an outer covering to these cables. Thus, the laying down of fiber optic cable is anticipated to boost the demand for these pipes in the country in the coming years.
Market Segmentation
Based on the Application:
Water Supply & Plumbing holds the largest share as these PVC pipes are mainly used within residential & commercial buildings to ensure proper water supply. The growth within the construction sector would generate the need for these pipes to be installed in the buildings to maintain water supply & also to support the centralized AC systems installed in these buildings. As these pipes are installed along with the HVAC or District Colling services to transport the gases & also to carry out the wastewater to the storage well. The construction of new buildings in the GCC countries would result in expanded demand, which, in turn, would facilitate the growth of the market during 2023-2028.
Based on End User:
Here, Construction Sector holds the dominant share within the GCC PVC Pipes market due to the large-scale usage of these pipes in the fittings of newly constructed buildings such as residential houses, hotels, malls, etc. In these buildings, these pipes are required for plumbing, providing duct & ventilation to the centralized air conditioning system, transporting wastewater, etc. The large-scale migration within the GCC countries has resulted in an increased demand for housing & residential buildings. Hence, the government is focusing on developing new residential areas & smart cities. For instance:
The newly constructed building would generate a higher need for these pipes & fittings, thereby creating a positive market scenario for the manufacturers in the GCC region in the upcoming years.
Regional Projection
Geographically, the market expands across:
Among all the GCC countries, Saudi Arabia holds the maximum share of the GCC PVC Pipes market due to the wide-scale presence of the oil & gas industry. The massive infrastructural development & the construction of new buildings are also augmenting the demand for these Pipes to support the plumbing & water supply as well as the ventilation needs of these buildings. Furthermore, in the coming years, owing to heavy construction in the country & the rising residential projects, such as the NEOM City project, the country is anticipated to lead the regional market.
Recent Developments in the GCC PVC Pipes market
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Frequently Asked Questions
A. The GCC PVC Pipes Market is expected to grow at a CAGR of around 4.57% during 2023-2028.
A. The growing construction within the hospitality sector is expected to drive the GCC PVC Pipes Market during 2023-2028.
A. The top players in the GCC PVC Pipes Market are Polyfab Plastic Industry LLC, Neproplast, Power Group of Companies, Modern Plastic Industries, Super Pipe, Dubai Polymer, Unitech Qatar, Qatar National Plastic Factory W.L.L, Pipes Technology Co. W.L.L, SAPPCO, etc.
A. Within the application type segment, oil & gas transportation is anticipated to hold a dominant share in the GCC PVC Pipes Market.
A. The growing use of PVC Pipes for irrigation purposes in the agriculture sector is the key trend shaping the growth of the market.
A. The soaring production capacity of clean fuel is expected to drive the GCC PVC Pipes Market through 2028.
A. Environmental concerns associated with PVCs is the possible restraint affecting the growth of the market.
