US Pipe Products & Markets

Report Overview

    Featuring 158 tables and 47 figures

Why are plastic pipes replacing metal pipes?  

• Cost

• Ease of installation

• Corrosion Resistance 

Demand for pipe products in the US is forecast to increase 1.5% per year to 13.6 billion linear feet in 2028, valued at $62.8 billion. Advances in real terms will be supported by:

• rebounding oil and natural gas drilling

• improvements to the nation’s storm sewer networks to mitigate the impacts of severe flooding and other natural disasters

• rising investment in water supply infrastructure

• recovering commercial building construction that will promote growth in the water distribution and drain, waste, and vent markets

• the continued replacement of aging metal pipe with plastic in construction applications

In market value terms, demand is expected to decline as pipe prices (particularly those for metal pipe) continue to moderate following spikes in 2021 and 2022.

Government Funding for Improving Water Infrastructure Boosts Potable Pipe Sales

All levels of government have increased funding in recent years to combat the aging, and in some cases unsafe, water and sewer pipe networks in the US. This trend will continue during the forecast period – for example, in May 2024, the Biden administration announced a $3 billion program to replace the nation’s remaining lead water pipe systems. These funding increases will in turn boost sales for pipe used in potable water applications, particularly PVC and polyethylene, which are corrosion resistant, and easy to install, and cost less per linear foot than metal pipes.

Increasing Rural Broadband Access & Data Center Construction Fueling Demand for Conduit

Demand for pipe used for conduit will be boosted by the rapid rise of generative AI, which has precipitated a boom in US data center construction. These facilities use conduit intensively to protect wiring systems and prevent the disruption of data transfers. Producers of conduit will also benefit from recent federal funding for increased high-speed internet access in rural communities that have relied on satellite connections for decades.

Average Pipe Prices to Moderate from Record Highs

Inflation had a major impact on the US pipe industry in both 2021 and 2022, as average prices increased in excess of 30% in each of those years. Shortages and supply chain complications led to a surge in raw materials like steel, copper, and plastic resins. However, the industry’s supply issues have been resolved and prices have begun to moderate.

The average price for pipe is expected to decline from its high, inflation-induced bases. In particular, steel pipe is expected to see average price decreases of 8% per year. This will be partially attributable to a global steel glut that has been driving prices down in 2024, a trend that will continue through 2028.

Historical Market Trends & Growth Factors

Pipe is used in a wide variety of markets and applications. As a result, demand is influenced by an array of economic factors:

• New building construction activity determines demand for DWV, water service and distribution, gas distribution, and conduit pipe.

• Pipe used in the oil and gas market is impacted by energy demand, drilling activity, and the price of oil and natural gas.

• Government spending influences demand for sewer and potable water applications, as well as for pipe used as structural supports in bridges and other large structures.

• Manufacturing activity determines demand for pipe used in industrial processing, mechanical, and OEM applications.

Oil and gas drilling and construction activity have the most significant impact on pipe demand and are responsible for much of the market volatility seen on a year-to-year basis in the industry.

Demand for pipe is also influenced by a diverse range of more general factors such as:

• raw material costs

• supply chain dynamics and product availability

• residential and commercial improvement and repair activity

• the amount of cropland planted

Because pipe is a commodity product used in a number of mature industries, demand in value terms is impacted by price fluctuations, although manufacturers will often absorb increased costs in order to keep their prices competitive.

Foreign Trade & Impact of Tariffs

Foreign trade plays a significant role in the US pipe market, particularly the steel pipe segment.

• Historically, steel pipe totaled around 60-70% of US pipe imports in value terms in any given year.

• However, the imposition of a number of anti-dumping duties and tariffs by the Trump administration – most notably on China – caused imports of steel pipe to drop significantly in 2018 and 2019.

• These tariffs have remained in place during the Biden administration, which have continued to hold down the amount of steel pipe imported from China.

Imports also account for a sizable share of demand for some plastic pipe, as these products are inexpensive to produce and ship. PEX pipe, for example, is frequently imported from China. While tariffs also remain on these products, they have had little effect on trade or production, as US-made PEX pipe can remain competitive even without tariffs due to low natural gas costs.

Plastic and steel account for most of the exports from the US. Plastic’s light weight makes it easy to ship, while steel pipe is in demand internationally for oil and gas applications.

Ductile iron and copper pipe are traded far less than either steel or plastic pipe because these metals tend to hold smaller shares of relevant product segments, in part to due to strong competition from low-cost plastic pipe. In addition, ductile iron is often too heavy to ship cost effectively, limiting its trade.

Trade of pipe made from other materials – such as concrete – is rare due to the high cost of shipping heavy, large diameter products.

Pricing Patterns

Pipe prices are affected primarily by raw material costs, but are also a function of pipe diameter and thickness. As a result, the price per foot can be markedly different from the price per pound for a given pipe material depending on the diameter of pipe used:

• The four pipe materials with the lowest per pound cost – concrete, clay, ductile iron, and steel – have the highest per foot costs, simply because they tend to be produced in larger diameters.

• Conversely, copper and other nonferrous pipe is mostly used in small diameters, so it has higher per pound costs but lower per foot costs.

Following average price increases in excess of 30% in both 2021 and 2022, average prices for pipe products in the US fell by nearly 10% in 2023. This is due primarily to supply chains normalizing, as well as a steel glut that is driving down the price of steel at a rate faster than other pipe materials.

Following a drop in 2023, steel, copper, and ductile iron pipe prices will continue to moderate in the near-term as prices for those metals normalize. Price growth for plastic pipe will be supported by increases in the cost of resins.

Sustainability Initiatives

Recycling & Reuse

Recycling in the pipe industry is most common in metal products, such as steel, ductile iron, and corrugated aluminum pipe:

• Ductile iron pipe is produced entirely from scrap iron and steel.

• Corrugated steel pipe can also be produced from scrap.

• Long lengths of corrosion-free ductile iron, carbon steel, and stainless steel are reused to a limited extent.

• Ductile iron and steel pipe with minimal amounts of wear can be reconditioned and reused.

In many cases, however, metal pipe cannot be reused or reconditioned. In those cases, the pipe is sold for scrap, where it is melted down for use in new pipe or other products.

Recycling of plastic pipe is not as widespread as metal pipe because it is much more difficult to recycle resins once they have been blended with additives. This is most evident in the PVC pipe segment, where until recently these modified plastic products could not be recycled.

However, manufacturers and other plastic industry professionals have worked to develop ways of recycling modified plastic resins. For PVC pipe, these processes generally involve the use of special chemicals that remove additive compounds from the plastics, leaving behind PVC resins that can be blended with virgin resins.

Recycled plastics have not commonly been used in pipe production because of concerns over their performance. However, this has changed in recent years due to:

• growing sustainability concerns
• a requirement that government agencies purchase materials with recycled content whenever feasible

Study Scope

This study analyzes the US pipe industry. Historical data (2013, 2018, and 2023) and forecasts for the years 2028 and 2033.

For purposes of this report, pipe is defined as a tubular section or hollow cylinder used primarily to convey substances that can flow – such as liquids and gases (fluids), slurries, powders, and masses of small solids. Although distinctions are sometimes made between pipe and tubes, for the purposes of this study the terms “pipe”, “tube”, and “tubular products” are used interchangeably.

Pipe can be made from a variety of materials, including:

• steel
• plastic
• copper
• ductile iron
• concrete
• aluminum
• other nonferrous metals
• clay

Copper line sets and coated copper are included in the scope of the study.

Pipe is a critical component in a number of industries, including building construction & renovation, oil and gas production and distribution, chemical processing, and manufacturing. Key applications and uses for pipe include:

• structural and mechanical:
  • refrigeration equipment, HVAC equipment, and appliances
  • transportation equipment (e.g., aircraft and spacecraft, automobiles, buses, heavy trucks, light trucks, recreational vehicles)
  • other structural and mechanical (e.g., fencing, light poles, furniture, solar panels)
• potable water:
  • water transmission
  • water distribution
  • service and rural water
• oil and natural gas:
  • oil and natural gas drilling
  • oil and natural gas transmission
  • natural gas distribution
• storm and sanitary sewer
• conduit
• industrial processing
• drain, waste, and vent
• irrigation

Excluded from the scope of this study are the following:

• fittings
• fixtures
• gutters
• downspouts
• hoses
• pipe liners/lining and relining