The global modularization market size was $9,556.0 million in 2020, and is expected to reach $14,949.0 million by 2030, with a CAGR of 5.7% from 2021 to 2030. Modularization is the act of constructing pipe spools, pipe racks, and skids at offsite fabrication yards. These products are used in oil & gas and petroleum refinery industries as they help reduce on-site construction cost & time in addition to ability of these products to sustain huge temperature conditions.
Increase in demand for piping spools and modular skid systems in the oil & gas industry, petrochemical industries, and others is anticipated to cater to the modularization market growth. Moreover, petrochemical companies that are situated in the prominent regions of North America drive the growth of the global modularization market. The increase in demand for pipe rack modules in various end-user industries such as power, chemicals, and others industries, are projected to boost the growth of the global modularization market. An increase in construction activities for oil & gas refineries, and other projects, which in turn, surges the demand for pipe rack modules is anticipated to cater to the growth of the market. For instance, the UAE government invested around $21.8 billion on offshore oil project named as Upper Zakum. In addition, increase in demand for carbon steel in modular process skid owing to its advantageous features such as faster project completion, cost savings, higher quality fabrication, reduced safety issues, lower space requirements, portability, and improved security, fuel the growth of the market.
Moreover, major players such as Prosaic Steel and Alloys, Haihao Group, and others deal with the production of stainless steel pipe spools, and pipe racks. For instance, Haihao Group offered 3PE anti-corrosion coating steel pipes spools with durability of up to 50 years. It protects corrosion from natural gas and artificial gas. It is easy to bend and transport. Moreover, increase in adoption of stainless-steel pipes is projected to cater to the growth of the global modularization market.
However, fluctuation in raw material prices and in foreign exchange rates limit the growth of the market. Technological innovation in the piping spools, and modularization products are anticipated to provide lucrative opportunities for the growth of the global modularization market.
By Service
Process and pipe rack modules segment holds dominant position in 2020
The global modularization market is segmented on the basis of service, material, end-user industry, and region. On the basis of service, the market is divided into prefabricated pipes (spools), process skid fabrication, process & pipe rack modules, and others. Prefabricated pipes (spools) segment generated the highest revenue in 2020. By material, the market is divided into stainless steel, carbon steel, alloy steel, and others. The carbon steel segment dominated the market in 2020. On the basis of end user industry, the market is categorized into power plant, petroleum refineries, offshore, shipbuilding & marine, chemical & fertilizers, pharmaceutical and others. The petroleum refineries segment generated the highest revenue in 2020.
Region wise, the global modularization market analysis is conducted across North America (the U.S., Canada, and Mexico), Europe (the UK, France, Germany, Italy, and Rest of Europe), Asia-Pacific (China, Japan, India, and Rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). In 2020, Asia-Pacific was the highest contributor to the global modularization market share, and is anticipated to secure a leading position during the forecast period.
By Material
Carbon Steel segment is expected to grow at a significant CAGR
Competition Analysis
Key players profiled in this report include Fluor Corporation, SHV Holdings N.V. (Mammoet), Arabian International Company for Steel Structures, Larsen & Toubro Limited (L & T Piping Center), ENKA INSAAT VE SANAYI (CIMTAS PIPE FABRICATION AND TRADING CO. LTD.), YENA ENGINEERING B.V., PROSAIC STEEL AND ALLOYS, Metal Forge India, Honeywell International Inc (Honweywell UOP), and ChelPipe Group.
Major players are engaged in adopting product launch, and product development as a key developmental strategy to improve the product portfolio of modularized products such as pipe spools and pipe racks. For instance, in May 2020, Cimtas Pipe Fabrication and Trading Co, a subsidiary of ENKA Isaat Ve Savayi started to manufacture LSAW pipe and fitting for the Propane Dehydrogenation (PHD) plant in Kallo, Belgium. Total of 2,100 tons of carbon steel LSAW pipes are used in project with diameter ranging from 18” to 60”, and 130 tons of butt weld fittings with a diameter range of 2” to 104”, with tees, elbows, and reducers.
By Region
Asia-Pacific is expected to dominate the market during the forecast period.
Key Benefits For Stakeholders
- The report provides an extensive analysis of the current modularization market trends and future estimations.
- Extensive analysis of global modularization market is conducted by following key product positioning and monitoring of the top competitors within the market framework.
- A comprehensive analysis of all the regions is provided to determine the prevailing opportunities.
- The global modularization market forecast analysis from 2021 to 2030 is included in the report.
- The key market players within the global modularization market are profiled in this report and their strategies are analyzed thoroughly, which help understand the competitive outlook of the global modularization market.
Global Modularization Market Segments
By Service
- Prefabricated Pipes (Spools)
- Process Skid Fabrication
- Process & Pipe Rack Modules
- Others
By Material
- Stainless Steel
- Carbon Steel
- Alloy Steel
- Others
By End User Industry
- Power Plant
- Petroleum Refineries
- Offshore, Shipbuilding, and Marine
- Chemical and Fertilizers
- Pharmaceutical
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- UK
- France
- Germany
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Players
- Fluor Corporation
- SHV Holdings N.V. (Mammoet)
- Arabian International Company for Steel Structures
- Larsen & Toubro Limited (L & T Piping Center)
- ENKA INSAAT VE SANAYI (CIMTAS PIPE FABRICATION AND TRADING CO. LTD.)
- YENA ENGINEERING B.V.
- PROSAIC STEEL AND ALLOYS
- Metal Forge India
- ChelPipe Group
- Honeywell International Inc (Honeywell UOP)
Global Modularization Market Report Highlights
| Aspects | Details |
 By Service |
|
 By Material |
|
 By End User Industry |
|
 By Region |
|
 Key Market Players | Chel Pipe Group, Metal Forge India, ENKA INSAAT VE SANAYI (CIMTAS PIPE FABRICATION AND TRADING CO. LTD.), YENA ENGINEERING B.V., Honeywell International Inc (Honeywell UOP), Larsen & Toubro Limited (L & T Piping Center), Fluor Corporation, SHV Holdings N.V. (Mammoet), Arabian International Company for Steel Structures, PROSAIC STEEL AND ALLOYS |
Analyst Review
A rise in drilling and exploration of oil & gas is anticipated to fuel the growth of the market. In addition, surge in use of pipe spools in end users such as power plant, chemical, and others, are expected to supplement the growth of the market. For instance, in 2019, COOEC-Fluor Heavy Industries, Co., Ltd. (COOEC-Fluor), a joint venture of Fluor Corporation has vigilantly accomplished the pipe spool fabrication share of its scope of work for the Kuwait Integrated Petroleum Industries Company (KIPIC) Al-Zour project in Kuwait. COOEC-Fluor delivered over 95,000 pipe spools by fabricating 337,000 linear meters of alloy, carbon, and stainless-steel pipe. Further, the growth in demand for natural gas is expected to lead to rise in exploration and production activities, which in turn, fuels the growth of the global modularization market. For instance, the natural gas reservation production reached from 73.7 trillion cubic meters (tcm) to 75.5 trillion cubic meters (tcm) between years 2008 to 2018.
Major players are focusing on launching highly durable and strong pre-fabricated stainless-steel pipe spools in the market. This in turn, is anticipated to positively contribute toward the growth of the market. To cite an instance, in 2018, Hebei Haihao Group launched stainless steel pipe and alloy steel pipe spools for construction of belts, and roads. The stainless-steel pipe is available in size of 40”. However, factors such as requirement of high initial capital investment and fluctuation in raw material prices are anticipated to hamper the growth of the global modularization market. On the other hand, technological advancement in the pipe spools & pipe rack products, is expected to provide the lucrative opportunities for the market players in the global modularization industry.
The Global modularization market size was $9,566.0 million in 2020 and is projected to reach $14,949.0 million in 2030, growing at a CAGR of 5.7% from 2021 to 2030.
The forecast period considered for the Global modularization market is 2021 to 2030, wherein, 2020 is the base year, 2021 is the estimated year, and 2030 is the forecast year.
The base year considered in the Global modularization market is 2021.
The report for Global modularization market doesn’t provides Value Chain Analysis, but if there is a requirement for the same, it could be added as an additional customization.
On the basis of end user industry, the pharmaceutical segment is expected to be the most influencing segment growing in the Global modularization market report.
Based on service, prefabricated pipes (spools) segment generated the highest revenue, accounting for 44.0% of the market share, and is projected to grow at a CAGR of 4.2% from 2021 to 2030.
The report contains an exclusive company profile section, where the leading 10 companies in the market are profiled. These profiles typically cover company overview, geographical presence, and market dominance (in terms of revenue and volume sales).
Asia-Pacific is expected to provide more business opportunities for Global modularization market in the future.
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