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The Market for Sanitary Pipes Benefits from the Reinvigorated Construction Industry

New Study Released by Interconnection
The market for plumbing tubes in Europes top six markets (Germany, Great Britain, Italy, France, Benelux, Poland) will grow by 3% annually until 2020. To exclude the United Kingdom from the calculation would result in even faster growth at a rate of 3.5% per year. Overall, the industrys sales increased by 2.7% last year, according to a new study by Interconnection Consulting.

Brexit Is becoming a Burden

The resurgent construction industry is naturally contributing to the positive development of the market for sanitary pipes. This applies to almost all examined markets. However, Britain is an exception here. Last year, due to the uncertainties caused by the Brexit decision, there was a decline in construction completions and thus also in the sale of sanitary pipes (-2.3%). Germany, on the other hand, is experiencing an upturn. By 2020, the volume of sanitary pipes will increase by 3.9% per year. Last year it amounted to 3.5%. The market for plumbing tubes is favored by the need for affordable housing as many German cities such as Berlin, Munich or Hamburg promote public housing projects and finish to create housing for individuals with low-income, as Laszlo Barla author of the study explains.

On the Way Back

Italy and France in turn show a moderate growth curve. In Italy, however, fragile growth is facing strong headwinds due to political uncertainties. Nevertheless, the construction industry is consolidating and is paving the way for growth in the plumbing tubes market. Interconnection expects an annual growth of 3.2% by 2020. In France experts at Interconnection also forecast future growth. Completion of residential construction grew by 8.7% in the past year compared to 2016. Sales of sanitary pipes rose by 3.2% in the same period.

Warm and Cold Water Installations Dominate

Hot and cold water installations make up the largest product group, accounting for around half of sales (50.7%). In 2017, this application segment generated just under 960 million Euros in the surveyed countries. Metal pipes for hot and cold water provide the largest sales in this area with around € 600 million, which is mainly due to the higher average prices of metal. In terms of volume, multi-layer and PVC pipes have already overtaken the metal pipes. The sales share for multi-layer pipes for hot and cold water is 19.7%, whereas for metal pipes it is only 12.8% - and the tendency is strongly decreasing.

Floor Heating Is a Growth Guarantor

The surface heating and cooling pipes for floor heating systems have the best growth prospects. By 2020, this type of application should experience the highest increase rates (multilayer pipes + 7.4%, plastic pipes + 7.1% per year). Floor heating pipes in the Benelux have the largest market share of 45.8%, followed by Germany with 39%. The UK accounts for the smallest share at 7.4%. Floor heating pipes are not very popular on the British Isles, where pipes connected to a radiator are still the most common solution.

Metal Pipes on the Decrease

A comparison of the development of the materials reveals a strong increasing demand for multilayer pipes. The current share of 36.8% is expected to increase strongly by 2020 (38.2%). Plastic pipes were also able to increase their share continuously and currently stand at 37.9%. These increases in the shares of multilayer and plastic pipes are at the expense of metal pipes, which show a strong proportionate decline. Thus, the share of metal pipes between 2013 and 2020 is expected to decrease from 30.0% to 22.5%. Only stainless steel tubes can expect a positive outlook in this segment (+ 1.0% annually until 2020).

2018-01-10 15:58:33

Copyright: Interconnection, Publication free of charge for coverage regarding the study and InterConnection Consulting

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