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The U.S. mechanical tube & pipe market size was valued at USD 1.95 billion in 2021. The market is projected to grow from USD 2.05 billion in 2022 to USD 2.98 billion by 2029, exhibiting a CAGR of 5.5% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the U.S. market exhibited a decline of 4.9% in 2020 as compared to 2019.
Mechanical tubes & pipes are products used for the functioning of other equipment &/or machineries in various industries. The products are used for mechanical and light gauge structural applications. These products offer excellent corrosion resistance, strength, durability, workability, and stable mechanical properties. The most common types of mechanical tubes are Hot Rolled/Finished Seamless tubes (HRS), Cold Drawn Seamless tubes (CDS), and Hot Rolled or Cold Rolled Electric Weld tubing (HREW/CREW). The product finds application in industries such as chemical, textile machinery, dairy and food processing, fertilizer, pesticide, modern architecture, construction industry, agriculture, pharmaceutical, water treatment facilities, oil and gas processing, synthetic fiber processing, desalination, pulp & paper, refinery & petrochemicals, shipbuilding, power generation. Growing product demand for the aforementioned applications is primarily driving the market size.
COVID-19 Impact on Manufacturing Sectors Affected Market Growth
The country has been severely affected by the pandemic and led to restrictions on the supply and transport of finished products and raw materials, thereby impacting the mechanical tube & pipe value chain. Several end-use industries were forced to shut down factories, causing severe demand decline. For example, secondary products demand such as chemical, textile, shipbuilding also reduced due to country-level lockdown. Moreover, textile manufacturers also faced supply shortages due to trade restrictions from China and India during the first half of 2020. However, the market showed gradual growth from the second quarter of 2021, as the market went through normalization. The normalization can be attributed to the rising demand for mechanical tube & pipe from the reopening of facilities.
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Rising Adoption of Mechanical Tubes & Pipes in HVAC Systems, Furniture, and Fitness to Boost Market Growth
The rising adoption of mechanical tube & pipe in the HVAC systems, furniture, and fitness applications will offer lucrative opportunities for the market to grow positively. HVAC systems mainly consist of heating, ventilation, and air conditioning. In the HVAC system, mechanical steel popes are mainly utilized to ensure appropriate fluid transmission and flow from one point to another. The transfer and movement of these fluids in a well-organized pipe system are designed to offer comfortable ventilation in industrial environments such as malls, showrooms, theaters, or even residential. Furniture tubes made from galvanized steel have a high demand in the United States. This is due to their various characteristics such as uniformity in shape, smooth surface, highly durable, corrosion-free, and high load-bearing capacity. Increasing interior design, mainly in the commercial spaces and increasing high demand for furniture from newly constructed houses, has increased mechanical steel pipes consumption. Moreover, the rapid growth of the sports industry and increasing consciousness amongst the people pertaining to health fitness has resulted in the adoption of steel pipes due to advantageous properties such as light and durability.
Surging Demand from Automotive and Agriculture Industries to Drive Market Growth
In the automotive industry, mechanical tube & pipes are mainly used as automobile muffler condensation pipe, automobile axle tubes, automobile shock absorbers, and automobile exhaust pipes & control shaft tube stack pipes. The rapid growth of the U.S. automotive industry and increasing demand for light vehicles will drive product consumption. According to Select USA (The International Trade Administration), in terms of car sales and manufacturing, the U.S. is the world's second-largest market. Moreover, the high demand for mechanical tube & pipe can be seen in the agriculture industry in order to supply the water in farms. The demand is attributed to its various properties, such as excellent toughness, hardness, corrosion resistance, and tensile strength. Agriculture is one of the major industries in the U.S., with a wide range of components ranging from farming to food production to food services. According to the U.S. Department of Agriculture (USDA), agriculture, food, and associated industries contributed USD 1.109 trillion to the U.S. GDP in 2019, accounting for 5.2% of total GDP. This would result in increasing the product demand in the agriculture industry.
Availability of Low-cost Alternatives for Steel Pipes & Tubes to Hinder Market Growth
The availability of cheap alternatives, including aluminum & plastic pipes and aluminum tubes has declined the demand for steel pipes & tubes. This acts as a major restraint for the market in the U.S. during the review period. The steel used in the tubes and pipes is heavy and not water-resistant like these alternatives. Further, some of the alternatives’ properties are also better compared with steel, including corrosion resistance. Plastic tubes and pipes as an alternative to steel find high consumption in the agriculture industry. This is due to their high tensile strength, ability to withstand pressure & stress, durability, flexibility, and cheap cost. Also, it does not corrode or rust, unlike metal piping, thereby increasing the shift toward better alternatives. Furthermore, stringent regulation for steel pipes and tube manufacturing-led several manufactures to switch for the production of alternate options. This results in restricting the consumption of steel-based tubes & pipes and acts as a restraint for the U.S. mechanical tube & pipe market growth.
Seamless Steel Tubes Segment to Account for Dominant Share due to its High Demand from End-users
Based on type, the market is segmented into seamless steel tubes, welded steel tubes, and others.
The seamless steel tubes segment dominated the market and is expected to retain its dominance through the forecast period. The product is widely used in the form of boiling water pipe, water wall pipe, superheated steam pipe for locomotive boilers, superheated steam pipe, large and small smoke pipe, and arched brick pipe. With the development of steel production & consumption, the carbon steel pipe usage is expected to increase in steel structures such as kitchen utilities, furniture, gas heating and ventilation, vehicle and agricultural equipment manufacturing. The rising consumption of tubes for the aforementioned applications will drive the segment.
Welded steel tubes & pipes are made of steel plate or steel strip through crimp forming welding. Different technology processes are used for processing, including ERW Steel Pipe, SSAW steel pipe, LSAW steel pipe, and DSAW Steel Pipe, which have application in water, transporting oil, natural gas and heating water or steam. The growing concerns toward the environment will significantly boost the segment's growth. Others include aluminum tubes, iron and steel, plastic, and alloy tubes. Aluminum exceptionally absorbs heat hence aluminum tubes serve as a great material for temperature control applications, including solar power gadgets, refrigerators, and air conditioners. The qualities such as strength, durability and lightweight of aluminum tubes are mostly required for items such as hydraulic systems, fuel lines, braces, and frames.
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Automotive Parts Segment had Largest Share owing to Significant Product Usage in these Parts
Based on application, the market is categorized into agriculture industry, automotive parts, HVAC systems, furniture, fitness, and others.
The automotive parts segment accounted for the largest market in 2021, where steel-based mechanical tube & pipes are used for heavy-duty truck frame components, including landing gear and rear guards, trailer side rails, exhaust systems, and RV frame components. Moreover, steel pipes prevent instances of broken tubing in exhaust pipes as they are subjected to high heat levels. All these factors contribute to the rapid adoption of steel pipes and tubes in the automotive industry, thereby leading to market growth.
In the agriculture segment, steel tubing is used as an alternative to rollover protection structures, handle/lever, moveable and stable irrigation systems, valves, fittings, automation equipment, filters, emitters, farm gates, and other irrigation applications. The demand for expeditious crop yield leads to the usage of advanced machinery, which results in the high consumption of steel tubes & pipes. In HVAC systems, the product is used to prevent system failure replacement on existing tubing. The adoption of modern and advanced methods in the HVAC systems is anticipated to drive the segment growth.
The furniture segment is projected to have substantial growth supported by the rise in consumer lifestyle for aesthetic home & office demands, further increasing renovation activities. The product is used for making tables, legs of chairs, and beds. These benefiting properties of steel pipes include withstanding load & impact and long-lasting life support segment growth.
The increase in fitness equipment as a result of health and fitness trend has become a lifestyle. The extensive size and gauge options and the ability to attain tight tolerance are benefits of steel that further increase the product demand. The others segment includes mechanical tube & pipe use for building & construction and electrical applications. Infrastructure development activities such as high-rise buildings, airports, and dams will support the segment growth.
The U.S. market stood at USD 1.95 billion in 2021. In terms of volume and value, the U.S. is witnessing huge product demand due to a strong presence of end-use industries. The oil & gas industry is expected to be gaining rejuvenation due to upcoming fuel demand, which drives the consumption of mechanical tube & pipe in the region. Furthermore, several end-use industries such as furniture, fitness, and agriculture are rising due to growing demand from consumers for home décor products, gym and fitness equipment, and farming machineries and tools. The aforementioned product demand shall boost the U.S. mechanical tube & pipe market growth.
In addition, the improving lifestyle of consumers supported by high disposable income is also positively affecting the market. The lifestyle improvement is surging demand for modern home architecture and interior, thereby creating mechanical tube & pipe demand. Also, the country has seen a high shift toward the trend for healthy lifestyle and fitness to meet the social norm, which has propelled gym & fitness equipment demand in gyms and household use. All the factors altogether are driving the market for mechanical tube & pipe.
Growth Strategies by Key Industry Players in Market to Improve Positions
The key players in the market are Nucor Corporation, Zekelman Industries, TimkenSteel, Cleveland-Cliffs Inc., Bull Moose Tube, and Tenaris S.A. The company profiles have adopted strategies such as acquisition, increasing investment, capacity improvement, and new product development for gaining competitive advantage. For example, in January 2020, Tenaris S.A. announced completion of acquiring a U.S. based steel pipe manufacturer IPSCO Tubulars, Inc. from PAO TMK. The acquisition price was estimated based on a debt-free, cash-free basis while the final amount was paid in cash, followed by contractual adjustments, amounting to USD 1,067 million.
The report offers an in-depth market analysis of the value chain and emphasizes key aspects including key companies, applications, and types. Moreover, the report provides insights on major market trends while highlighting major industry developments. In addition to the above mentioned factors, the report covers different factors which have contributed significantly to the market growth in recent years.
Value (USD Billion) and Volume (Kiloton)
By Type and Application
Fortune Business Insights says that the U.S. market worth was USD 1.95 billion in 2021 and is projected to reach USD 2.98 billion by 2029.
In 2021, the market value stood at USD 1.95 billion.
Growing at a CAGR of 5.5%, the market will exhibit steady growth during the forecast period (2022-2029).
The seamless steel tubes segment is expected to be the leading segment.
The growing demand for automotive and agriculture industries is the primary driver of the market.
Nucor Corporation, Zekelman Industries, TimkenSteel, Cleveland-Cliffs Inc., Bull Moose Tube, and Tenaris S.A. are the top players in the market.
The robust product demand in the HVAC systems, furniture, and fitness will drive the product adoption.
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