Page 11 - ITAtube Journal 1 2019

Nonetheless, since the level of pipe use in cars is growing in par- allel, this remains an attractive market segment for pipe produc- ers.
The market segment mechanical engineering, representing 9% of the total pipe and tube market, is highly diverse due to an almost endless number of potential appli- cations. I will confine myself here to that of cold drawn hydraulic cylinder tubes, a market that has displayed significant growth since 2012. (Fig.7)
In the 4 years from 2012 to 2016 the market grew by US$1.5 billion (about US$375 million p.a.). By 2020, experts project further growth of US$1.9 billion (about US$475 million p.a.).
With such growth potential, the supply of cold drawn cylinder tubes to the hydraulic cylinder market represents an attractive volume market for tubes.
Another worthwhile market for tube producers is the construction market, representing about 5% of world tube production. The global construction market is growing in step with global GDP growth, as already discussed in the last update in October 2018.
Primary applications for tubes in the construction market are sky- scrapers and bridges. Here we find significant competition between steel/tube structures on the one hand, and concrete elements on the other. The trend in emerg- ing economies to build high-rise towers is favorable toward the application of steel/tube struc- tures (Fig.8).
The same strong competition between steel/pipe structures and concrete elements applies for bridges. Tube producers need
Fig.5: World car production Source: Statista
Fig.6: Car sales by region 2017-2018 Source: Statista
Fig.7: World market of hydraulic cylinders in US$ billions Source: Statista 2019
to direct considerable lobbying efforts at both these major seg- ments of the construction market to further convince regulation authorities and project stakehold- ers as to the advantages of steel/ tube structures as cost effective, aesthetic and sustainable alterna- tives to concrete elements.
A market which used to be very important is the energy market. Because this market mainly con- sists of boiler tube applications in fossil and nuclear power plants and in many regions of the world this market segment has almost disappeared, its global signifi- cance has dwindled until it now
Market information
ITAtube Journal No1/February 2019
11