The pipe and tubing tools market size is forecast to increase by USD 561.8 million at a CAGR of 3.2% between 2023 and 2028. The market is experiencing significant growth, driven by several key factors. Construction activities are on the rise, leading to an increased demand for pipe and tubing tools in various industries, including infrastructure and energy. In the oil and gas sector, the adoption of horizontal drilling techniques for crude oil and natural gas extraction is expanding, necessitating advanced pipe and tubing tools for efficient drilling and production. Furthermore, the expansion of crude oil and natural gas pipelines to meet rising energy demands is another significant factor fueling market growth. These trends are expected to continue, ensuring robust growth for the Pipe and Tubing Tools market in the foreseeable future.
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The market share growth by the piping equipment segment will be significant during the forecast period. Piping equipment includes valves, flanges, and actuators. The flange is a component of pipeline equipment that is used to interconnect pipes, valves, pumps, and other pieces of equipment. It is one of the essential pieces of equipment. Flanges make cleaning, inspection, and modification easier. Actuators are responsible for the movement and control of any mechanism or system, such as opening a valve. The application of valves ranges from regulating the flow of oil upstream to safeguarding the machinery by regulating the flow of oil and gas in the midstream and during the downstream refining of crude oil.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments:
The market encompasses a wide array of tools such as hacksaw, manual and automatic pipe and tube cutters, essential for cutting and manipulating pipes and tubes used in various industries. From small-scale local services to large industrial applications, these tools facilitate precise cutting of materials like steel pipes and tubes, crucial for applications ranging from water and propane distribution to structural purposes like scaffolding in petrochemical plants. Anticorrosion properties ensure longevity and rust-free operation, maintaining structural integrity under varying pressure ratings and environmental conditions. Amid challenges such as lockdowns and the COVID-19 pandemic's impact on supply chains in the second quarter, the market adapts with innovations in tool design and materials to meet the evolving demands of industries worldwide. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rise in construction activities is notably driving the pipe and tubing tools market growth. Construction activities are gaining pace in both developed and developing countries across the world. For example, in India, government initiatives such as the Smart Cities Mission, Make in India, and Housing for All programs are triggering construction activities in the country. Under the Smart Cities Mission, many cities are planned to be completed by 2022. These cities include capitals and major cities of states.
In developed regions such as the US and Europe, construction activities are gaining momentum, especially in the residential sector. Construction outlook in about 19 major countries of Europe shows bright prospects, with the Irish construction market likely to exhibit major growth in upcoming years. Similarly, in the US, the residential sector is expected to grow at a steady rate over the forecast period. As a result of these factors, the demand for tools used in the manufacturing and forming of pipes and tubing is increasing. Thus, the rise in construction activities will drive the growth of the global pipe and tubing tools market during the forecast period.
The increasing online sales of pipe and tubing tools is the primary trend driving the market. The rapid penetration of the internet and increasing consumer preference for online shopping are encouraging market vendors to expand their presence online. Vendors are entering the e-commerce space through attractive websites and a wide range of products that cater to customer needs. With the rise in e-retailing, some vendors are focusing on making their business omnipresent worldwide. This ensures that their products are available to diverse customers across regions, even without being physically present in the country.
Companies such as Amazon, Tolexo, Home Depot, and Snap-On are allowing customers to choose hand tools from a variety of products online and buy according to their needs. The online availability of pipe and tubing tools is not only making it convenient for customers but also saves their time by providing quick delivery options. This trend will foster the growth of the global pipe and tubing tools market during the forecast period.
Sluggish steel demand and a decline in steel capacity utilization are the major challenges impeding market growth. The steel industry has been witnessing sluggish growth over recent years. This can be attributed to the poor global economic environment, which has resulted in low consumption of steel across various sectors. Although some developed countries are recovering and witnessing positive growth, the market in China, the largest steel producer in the world, is experiencing slow growth because the country is moving to a consumption-based economy from an investment-led economy.
In addition, the excessive production capacity of steel manufacturers has resulted in reduced profit margins. Steel manufacturers are investing in capacity expansion at a rapid pace because of the availability of relatively attractive interest rates for new investments, low production costs, and an open international market. The Chinese government is now making efforts to restructure the steel industry by increasing its efficiency and shutting down some of the excess capacity. However, these efforts have been ineffective and are becoming hurdles to the growth of steel manufacturers. All these factors are negatively impacting the global pipe and tubing tools market growth during the forecast period.
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