Flexible pipe market to cross $ 1 bn by 2020

The global flexible pipe market (made from materials such as HDPE, PA, PVDF and others) is estimated to grow from about $ 0.82 billion in 2015 to $ 1.02 billion by 2020, at a CAGR of 3.7 percent between 2015 and 2020, according to a Marketsandmarkets (MM) report.
 
While increasing offshore & onshore drilling and exploration processes are driving the demand for flexible pipes, low oil prices are expected to inhibit the growth of the market to some extent. Flexible pipes are used for the transfer of fluids and liquids such as crude oil. They can operate under high temperature and pressure conditions.
   
Flexible pipes are used in offshore and onshore applications in the oil & gas industry. In 2015, the offshore application segment is estimated to account for the largest share of the overall flexible pipes market. The market in this application segment is also projected to register the highest CAGR between 2015 and 2020.
 
Over the years, the North American region has dominated the flexible pipes market. The rising demand for flexible pipes in this region has been mainly driven by the new discoveries of various oil & gas reserves. The presence of key market player in this region also contributed to the growth of the flexible pipes market in the region.
 
“The offshore application segment is the major contributor to the growth of flexible pipes in North America. The Middle East & Africa region is the second-largest consumer of flexible pipes, globally. The market in this region is mainly driven by the growing oil & gas industry and discoveries of new oil & gas reserves. The Middle East & Africa flexible pipes market is expected to be the fastest-growing market in the world between 2015 and 2020,” said the report.
 
Though the flexible pipe market is growing at a significant growth rate, certain factors such as decreasing prices of crude oil and rising cost of production are acting as restraints to the growth of the market. The manufacturers of flexible pipes are expected to enjoy a significant share of the flexible pipes market in the near future. Entering related industries and targeting new markets will enable flexible pipes manufacturers to have a diversified business portfolio and increase in revenue generation. This will help overcome the effects of a volatile economy, added the report.