Credible Factors augmenting the growth of the U.S. Steel Tubing Market
Market Overview & Growth Highlights
Steel is one of the most widely used materials, particularly in construction, engineering, white goods, and automobile industries. Besides, steel is also used widely in the manufacturing of electrical motors, power generation (nuclear, conventional fuels and wind), power transmission and railway network combined with gears and engines where it has to be very tough and has to be capable of withstanding high temperatures. Further, steel is very efficient and can easily be fabricated and formed into different sizes. Using a steel tube of any diameter is easier than that of any other material. Additionally, its mass flow rate is the highest among all other materials which significantly reduces the cost of the tubes and pipes without compromising the flow rate which is one of the major factors to boost the growth of the steel tubing market over the forecast period.
Increasing usage of steel tubing owing to factors such as durability and quality, designing flexibility and low corrosion rate are expected to supplement the growth of the U.S. steel tubing market at a CAGR of 3.0% between the years 2018 and 2025 and is likely to garner USD 7,018.9 Million by the end of 2025 as compared to USD 5,596.0 Million in 2017. Furthermore, the market of the U.S. steel tubing is anticipated to achieve a Y-o-Y growth rate of 4.1% in 2025.
Market Segmentation Synopsis
The U.S. steel tubing market has been segmented by type into seamless steel pipe and welded steel pipe, out of which, the welded steel pipe segment is expected to witness highest compound annual growth rate and is showcasing huge potential for the U.S. steel tubing manufacturers to expand and strengthen their business. This is due to the increasing development of oil & gas industries in the country. Moreover, the welded steel pipe segment in the U.S. is expected to achieve Y-o-Y growth rate of 4.4% in 2025 as compared to previous year. Further, the seamless steel pipe segment is estimated to dominate the U.S. steel tubing market owing to the rising demand for seamless steel pipes in various hydro power plants and desalination plants which will positively impact the growth of the overall U.S. steel tubing market over the forecast period i.e. 2018-2025.CLICK TO DOWNLOAD FREE SAMPLE
The U.S. steel tubing market is divided by diameter into 60-120 mm, 121-180 mm and 181-245 mm. The 60-120 mm segment in U.S. is projected to hold highest market size by the end of 2025 by growing at a CAGR of 3.5% over the forecast period. Additionally, the 60-120 mm steel tubing segment in U.S. is expected to achieve absolute $ opportunity of USD 633.1 Million between 2018 and 2025. Further, the 121-180 mm segment is expected to hold second largest market in U.S. and is predicted to achieve Y-o-Y growth rate of 3.6% in 2025 as compared to previous year.
By Coating Type
The U.S. steel tubing market is segmented by coating type into fusion bonded epoxy coating and non-coated and other coating types. Among these segments, the non-coated and other coated type segment is predicted to dominate the market by holding more than 60% of the total market share in 2025, whereas, the fusion bonded epoxy coating type segment is estimated to grow with highest CAGR of 4.3% over the forecast period. Further, the fusion bonded epoxy coating segment in U.S. is expected to achieve Y-o-Y growth rate of 5.5% in 2025.
By Coating Usage
The U.S. steel tubing market is segmented by coating usage into anti-corrosion and non-anti-corrosion. Among these segments, the non-anti-corrosion segment held the largest market share in 2017 and is estimated to behold its dominance over the forecast period. Further, the anti-corrosion segment is further sub-segmented into external anti-corrosion and internal anti-corrosion, out of which, the external anti-corrosion segment in the U.S. is expected to achieve Y-O-Y growth rate of 4.8% in 2025. The increasing demand for anti-corrosion coating in various industries such as oil & gas, automotive, transportation, marine and other such industries is anticipated to bolster the growth of the anti-corrosion segment in the near future.
Market Drivers & Challenges
The U.S. steel tubing market is thriving on the back of increasing usage of steel tubing owing to its designing flexibility, durability, quality and low corrosion. Along with that, steel also provides better efficiency and can be easily fabricated and formed into different sizes. The demand for steel tubing is increasing in U.S. as steel is cost effective in comparison to other materials for longer span of time. Steel offers long-term durability which lowers the replacement and improves insurance costs and is 100% recyclable and has low impact rate on the environment which is further expected to increase the growth of the steel tubing market over the forecast period in the U.S. region. Besides, the increasing initiatives by various governments for environmental sustainability are expected to boost the steel tubing market owing to its easy acceptance and sustainable material standards. Additionally, the growing demand for steel in building and construction industry is also believed to aid the U.S. steel tubing market to grow in near future.
The reasons behind the reduced adoption of steel tubing are the presence of alternatives which might not be as durable and flexible as steel tubing but are comparatively cheaper. Further, the fireproofing costs, repairing costs, labor associated costs are estimated to slow down the growth of the steel tubing market in U.S. in upcoming years as the manufacturing or the repairing processes are labor intensive and increase the overall cost.
Some of the affluent industry leaders in the U.S. steel tubing market are U.S. Steel Tubular Products, ArcelorMittal, POSCO, Nucor Corporation, Nippon Steel & Sumitomo Metal Corporation, Zekelman Industries, TMK-Group, Victory Steel and Eagle Tubular Products.
A number of companies are launching new quality products in the steel tubing market to expand their product portfolio. For instance, the U. S. Steel Tubular Products, a subsidiary of United States Steel Corporation (NYSE: X), introduced USS-LIBERTY TC™, the company's newest American-made premium connection to oil and gas customers operating in challenging conditions. This product launch helped the company to expand its product line.
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