GCC GRP Pipe Market Size, Share & COVID-19 Impact Analysis, By Application (Chemicals and Oil & Gas, Industrial, Sewage, Irrigation & Drinking Water Transmission, Energy & Power, and Others), and Country Forecast, 2023-2030

The GCC GRP pipe market size was valued at USD 109.7 million in 2022 and is projected to grow from USD 113.5 million in 2023 to USD 152.5 million by 2030, exhibiting a CAGR of 4.3% during the forecast period.

Glass reinforced plastic (GRP) pipes are composite structures comprising a polymer resin matrix and glass fibers. Renowned for their extreme strength, corrosion resistance, and durability, these pipes find suitability across water and wastewater systems, industrial operations, oil and gas transportation, and infrastructure projects. Their lightweight nature, ease of installation, and ability to withstand harsh climatic conditions make glass reinforced plastic pipes an excellent choice for various fluid transport and containment applications. The growth of the GRP pipes market in the region is propelled by the oil and gas industry, water and wastewater management, and the construction sector. Furthermore, the increasing focus on sustainable and efficient infrastructure solutions contributes to the rising demand for glass reinforced plastic pipes in the GCC region.

COVID-19 IMPACT

Supply Chain Disruptions Due to Lockdown Restrictions Hampered Market Growth

The COVID-19 pandemic significantly influenced the GCC GRP pipe market. In the initial stages, disrupted supply chains, resulting from lockdowns and restrictions, impacted the production and transit of raw materials. Investment and growth slowed down, leading to reduced demand for glass reinforced plastic pipes due to project delays and cancellations across the building and construction industry.

As governments gradually loosened restrictions and implemented stimulus measures, the region began to recover. However, persistent uncertainties, lower oil prices affecting government budgets, and demand fluctuations remained significant obstacles. Despite these challenges, the demand for durable and long-lasting piping solutions persisted during the pandemic, particularly from sectors involved in water supply, sewerage, and electricity.

LATEST TRENDS

Water Industry is Fostering Opportunities for GRP Pipes Driving Market Growth

The GCC water industry offers significant opportunities for the widespread use of glass-reinforced (GRP) pipes, combining infrastructure demands with the unique features of these pipes.

As GCC countries experience rapid population growth and urbanization, the need to enhance water distribution networks and wastewater treatment systems becomes crucial. Glass reinforced plastic, known for their exceptional corrosion resistance and durability, are tailored to withstand the region’s harsh weather conditions, making them ideal for modernizing water infrastructure.

The ambitious construction and expansion of desalination plants stand out as a pivotal factor driving the potential of glass reinforced plastic pipes in the water sector. Given the GCC region’s arid climate, desalination serves as a primary source of fresh water supply, necessitating robust piping systems that can endure its effects over time.

Glass reinforced plastic pipes, renowned for their corrosion resistance, offer a reliable solution for preserving water quality and ensuring efficient distribution, thereby facilitating the long-term expansion of desalination projects. The market is expected to grow as the GCC continues to expand its desalination capacity.

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DRIVING FACTORS

Presence of Oil & Gas and Chemical Industries to Bolster the GRP Pipe Demand in the GCC Region

The oil & gas and chemical industries significantly influence the growth of these pipes in the GCC region. These industries are vital to the region's economy and require piping systems capable of withstanding extreme environments, preventing corrosion, and ensuring operational efficiency. Glass reinforced plastic pipes perfectly meet these demands, driving their increased adoption and market expansion.

Glass reinforced plastic pipes find wide application in the oil and gas sector owing to their exceptional durability and resistance to corrosive elements. Transportation of oil and gas through glass reinforced plastic often involves harsh chemicals, high pressures, and extreme temperatures. The inherent corrosion resistance of GRP pipes ensures their safe handling of corrosive fluids while maintaining integrity over time. Additionally, their lightweight nature simplifies shipping and installation, reducing operational downtime and associated costs.

In the chemicals industry, glass reinforced plastic pipes play a critical role in the safe and efficient transport of various chemicals and hazardous products. Many substances can degrade traditional piping materials, leading to leaks, failures, and environmental hazards. The chemical corrosion resistance of glass reinforced plastic ensures the containment of hazardous substances, minimizing the risk of accidents or environmental contamination. This corrosion resistance enhances safety, reduces maintenance requirements, and improves operational efficiency.

Government investments and initiatives aimed at expanding the oil and gas sector in the GCC region further drive the demand for glass reinforced plastic. The need for reliable, durable, and corrosion-resistant piping systems becomes increasingly crucial as these industries grow. With their suitability for demanding environments, glass reinforced plastic pipes are poised to play a pivotal role in supporting the ongoing development of these key sectors. Thus, the convergence of industry requirements, technological advancements, and regional economic strategies has propelled the GCC GRP pipe market growth.

RESTRAINING FACTORS

Availability of Substitute and High Initial Cost to Hinder Market Growth

The high initial prices of glass reinforced plastic pose a significant barrier to their widespread application. While these pipes offer advantages such as corrosion resistance, lightweight construction, and durability, their manufacturing, installation, and material costs can be considerably higher than those of traditional piping materials such as steel or concrete. The substantial upfront investment required for glass reinforced plastic might deter consumer preference, particularly in budget-conscious industries and projects.

Readily available alternative materials also limit the demand for glass reinforced plastic. Steel and concrete pipes are widely known and commonly used in the GCC region. The familiarity with these pipes, established supply chains, and experienced personnel working with them create a comfort zone that might impede the adoption of newer products such as glass reinforced plastic. Additionally, stringent regulations and standards in the GCC region, especially in critical industries such as oil and gas, can pose a challenge for the introduction of new products such as glass reinforced plastic. Meeting and ensuring compliance with these standards can be a complex and time-consuming process.

SEGMENTATION

By Application Analysis

Chemicals and Oil & Gas Segment Dominates Due to the Rising Product Preference from End-users

Based on application, the market is classified into chemicals and oil & gas, industrial, sewage, irrigation & drinking water transmission, energy & power, and others.

The chemicals and oil & gas segment held the highest GCC GRP pipe market share in 2022. The burgeoning petrochemical and oil & gas industries create a demand for corrosion-resistant and long-lasting piping solutions. Glass reinforced plastic pipes exhibit exceptional resistance to chemical corrosion, making them suitable for conveying corrosive chemicals, including hydrocarbons. Their lightweight characteristics and ease of installation make them ideal for both offshore and onshore oil exploration.

GRP pipes are well-suited for both irrigation and drinking water transmission systems due to their lightweight and non-corrosive nature. Their smooth inner surface reduces friction and sediment buildup, resulting in efficient water movement and lower energy consumption for pumping. Furthermore, the resistance of glass reinforced plastic pipes to biological development contributes to the preservation of water quality.

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COUNTRY INSIGHTS

GCC countries share a common vision for economic development, outlined in national development plans that emphasize diversifying the productive base to reduce reliance on the hydrocarbon sector and create more employment opportunities for the young and growing population. As part of their non-oil economic development strategies, regional managements are supporting industries such as steel, aluminum, other minerals, metals, and industrial equipment manufacturing. These efforts are expected to drive the regional market.

Saudi Arabia held the key share in 2022, with various government initiatives boosting the regional market. Many national strategies, whether in the industrial or services sectors, represent a new approach to economic development, focusing on productivity and investment-led growth to ensure stronger economic sustainability and prosperity for future generations. In 2021, Saudi Arabia launched its Made in Saudi program, targeting support for industries to expand their local footprint and enhance exports to priority markets.

The UAE is anticipated to experience significant growth. GRP pipes find applications in various sectors, including water transmission for desalination, chemical processes, power plant cooling, oilfields, sewerage, and drainage. For instance, in May 2022, Suhail bin Mohammed Al Mazrouei, the Minister of Energy in the UAE, announced the country's investment of USD 2.08 billion in new desalination plants in Dubai, Abu Dhabi, and Umm Al Qaiwain to achieve water security.

KEY INDUSTRY PLAYERS

Key Players Adopting Product Development Strategies to Maintain their Position in the Market

This market is consolidated, with a small number of large suppliers dominating the industry. Future Pipe Industries, Saudi Arabian Amiantit Co., Abu Dhabi Pipe Factory, and Anabeeb Pipes lead the market. These key players heavily invest in production capacity and focus on product launches to meet the growing demand. Some companies specifically concentrate on large-diameter pipes. For example, Future Pipe Industries is a leading entity specializing in the design and manufacturing of large-diameter composite fiberglass pipe systems. Operating in the GCC region, they serve various industries, including water and wastewater, oil & gas, industrial, and infrastructure sectors.

LIST OF KEY COMPANIES PROFILED:

• Future Pipe Industries. (UAE)


• Saudi Arabian Amiantit Co. (Saudi Arabia)


• Abu Dhabi Pipe Factory (UAE)


• Anabeeb Pipes (UAE)

KEY INDUSTRY DEVELOPMENTS:

• February 2023 - Future Pipe Industries instated 2 new production lines for FlexstrongTM - High Pressure Spoolable Pipe, with diameters up to 6 inches. The introduction of the new facility will add a capacity of 600 km per year.


• November 2021 – Future Pipe Industries signed a trial agreement with DNOC-Abu Dhabi National Oil Company to source flexstrong for multiphase flowlines and sour hydrocarbons.

REPORT COVERAGE

The market research report provides a detailed analysis of the market, focusing on crucial aspects such as company profiles of the leading players and applications. Additionally, the report offers insights into market trends and highlights vital industry developments. Alongside the mentioned factors, the report encompasses various contributors to the recent growth of the market. It includes historical data, forecasts revenue growth at regional and country levels, and analyzes the industry's latest market dynamics and opportunities.

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Report Scope & Segmentation