US demand for pipe is expected to rise 7.3 per cent per year to $63.5 billion in 2018, says a new report.

Gains will be driven by strong growth in crude oil and natural gas activity, as pipe is used extensively in drilling and oil and gas pipeline applications. Demand will also be supported by a projected rebound in building construction expenditures. These and other trends are presented in Plastic & Competitive Pipe, a new study from The Freedonia Group, a Cleveland-based market research firm.

According to analyst Matt Zielenski, “Steel accounted for the largest share of pipe demand by value in 2013 with 62 per cent of the total, supported by its use in the large oil and gas market. Steel pipe is dominant in oil and gas applications due to its low cost, durability, and compression strength.” The high level of drilling activity and the efforts of oilfield service professionals to increase the size and scope of the nation’s network of transmission and distribution lines will drive gains.

Plastic pipe demand is anticipated to rise at the most rapid pace of all materials, advancing 8.7 per cent annually through 2018. Growth will be spurred by the increasing use of plastic pipe at the expense of such materials as steel and concrete. In such applications as potable water and sewer and drainage, plastic pipe will increasingly be specified by consumers trying to reduce maintenance and replacement costs.  Rebounding building construction expenditures will spur demand for plastic pipe used as conduit, gas distribution, and drain, waste, and vent pipe.