Seamless Steel Tubes Market Expected to Reach $84.9 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Seamless Steel Tubes Market," The Seamless Steel Tubes Market Size was valued at $45.5 billion in 2022, and is estimated to reach $84.9 billion by 2032, growing at a CAGR of 6.3% from 2023 to 2032.

A seamless steel tube is a pipe that has no weld seams, guarantees a smooth internal and exterior surface finish, and facilitates efficient fluid and gas movement. The transportation of fluids and gases in sectors such as oil & gas, automotive, and construction seamless steel tube is used.

The rise in industrialization, urbanization, and infrastructure expansion drives the current continuous rise in the global steel market. Seamless tubes, which are essential in numerous applications, have gained popularity with the growth of the steel industry. Seamless tubes are widely used in industries including oil & gas, energy production, and industrial machinery. The market for seamless steel tubes is anticipated to grow due to the increase in demand for the steel industry.

Market growth for seamless steel tubes has increasingly been driven by the construction and automotive industries. Seamless tubes are utilizedin the automotive industry for suspension systems, exhaust systems, and other vital parts that need to be durable, corrosion-resistant, and strong. The construction industry relies on seamless tubes for structural applications similar to other industries, such as foundations, columns, and beams where durability and dependability are crucial. There is a rapid increase in demand for seamless steel tubes as a result of the increase in demand from these industries. Such factors are expected to drive the seamless steel tubes market growth.

The rise in number of small-scale industries in emerging markets and government initiatives to promote them, such as Pradhan Mantri Mudra Yojna and Credit Guarantee Fund Trust for Small Business (CGTMSE) propels the growth of small-scale industries, which in turn boosts the demand for seamless steel tubes for industrial equipment. Moreover, increase in number of manufacturing companies is expected to create opportunities for expansion of the seamless steel tubes market as seamless steel tubes are widely used in factories of manufacturing companies.

The price of raw materials is one of the key issues that restrains market growth. Steel, the main component of seamless tubes, is subject to price fluctuation caused by variables such as change in demand, trade tensions, and the availability of essential supplies. The high cost of raw materials raises questions about profitability and could result in higher costs for seamless tubes, for manufacturers, which is projected to have an impact on market expansion. Industry participants have emphasized production process optimization, looking into alternative raw materials, and adopting strategic sourcing techniques to address this issue.

The seamless steel tube sector has made large investments in low-emission furnaces in response to growth in environmental concerns. Modern techniques and technologies are used by these sophisticated furnaces to minimize carbon emissions and lower energy usage during production. Manufacturers seek to lessen their environmental impact, enhance their sustainability credentials, and abide by strict emission requirements by implementing low-emission furnaces. These expenditures support the market for long-term survival and competitiveness of seamless steel tubes while demonstrating dedication of the industry to environmental responsibility.

In 2022, Asia-Pacific dominated the seamless steel tubes market share, in terms of revenue, followed by Europe and North America. Moreover, the seamless steel tubes market in Asia-Pacific is anticipated to grow with a higher CAGR during the forecast period. Growth in construction and industrial sectors in countries, such as China, India, Malaysia, and Indonesia has been an instrumental factor for the large market size in Asia-Pacific.

Various key players in the seamless steel tubes industry have adopted many development strategies such as product launches, business expansion, acquisitions, partnerships, and mergers. For instance, in September 2022, Tata Metaliks, a subsidiary of Tata Steel started construction of a pipe plant in Kharagpur, West Bengal, India. Moreover, in March 2021, Nucor Corporation announced the expansion of its tube manufacturing capacity by building a $160 million tube mill in Kentucky, near its existing Gallatin Sheet Mill plant. This expansion is expected to allow the company to serve a wider range of customers and also allow the company to utilize its existing Gallatin Sheet Mill plant. Such development strategies are expected to enhance the market positions of the key players in the seamless steel tubes market.

However, various businesses in the seamless steel tubes market are expected to witness a slow growth rate in the coming year, owing to the looming recession in major countries driven by the Ukraine-Russia war. The inflation has already led to higher prices of materials in various industrial sectors, which are the end-user industries of seamless tubes and related products.

KEY FINDINGS OF THE STUDY

• The report provides an extensive analysis of the current and emerging global seamless steel tubes market forecast, trends and dynamics. 
• Depending on material, the carbon steel segment was the largest revenue generator in 2022.
• By process, the hot rolled segment generated the highest revenue in 2022.
• Based on end user, the oil and gas segment dominated the market in 2022.
• Region wise, Asia-Pacific dominated the market in 2022 and anticipated to dominate the global seamless steel tubes market throughout the study period.
• The report provides an extensive analysis of the global seamless steel tubes market opportunity of the market. 
• The forecast of global seamless steel tubes market analysis from 2022 to 2032 is included in the report.