South African plastic pipes and fittings market is expected to witness high growth woing to rising government spending on infrastructure projects according to 100 paged Ken Research report published in April 2019.
The report titled "South Africa Plastic Pipes and Fittings Market Outlook to 2023 - By PVC – UPVC, MPVC, CPVC, HDPE, and O-PVC; By End User Application (Infrastructure, Bulk Water, Irrigation, Mining and Others); By Organized and Unorganized Segment" provides a comprehensive analysis on the South Africa plastic pipes and fittings market.
Overview and size: South Africa plastic pipes and fittings market was observed in its growth stage and the market is highly correlated with the development in the sewage and drainage, irrigation and mining industries in South Africa. The market has grown at a slower pace than expected due to the economic slowdown in the country which adversely affected the infrastructure sector as government spending has substantially reduced over the years. Rare Plastics,
Swan Plastics and Sizabantu Plastics are the market leaders of PVC, HDPE and O-PVC pipes and fittings respectively in terms of revenue, as of 2018. O-PVC being the emerging sector has only one domestic manufacturer in the country. Majority of these pipes and fittings are manufactured in the country and the rest are imported from countries such as Botswana, Spain, China and others. Leading end user applications of PVC plastic pipes and fittings in South Africa were towards sewage, drainage, water transmission and distribution, irrigation and others whereas, HDPE plastic pipes were majorly used within mining sector especially in grout lines for transferring minerals and wasters in the mines.
· By type of plastic pipes and fittings: In 2018, PVC pipes and fittings dominated the industry followed by HDPE and O-PVC segment in South Africa. Demand for PVC pipes and fittings has been increased majorly due to high demand from its application areas. uPVC pipes contributed the highest sales in PVC pipes and fitting segment. It is a growing demand of plastic pipes in ir- rigation, mining and irrigation sectors as well.
· By end user applications of HDPE plastic pipes: In 2018, mining contributed the highest share to the HDPE plastic pipes and fittings market of South Africa. Mining industry relies heavi- ly on its plastic pipe infrastructure for water distribution, dewatering and slurry disposal. The sewage and drainage systems is the second largest end-user of HDPE pipes followed by bulk water and other applications such as chemical, oil, gas and plumbing in terms of revenue.
· By end user applications PVC plastic pipes: PVC plastic pipes and fittings in South Africa were majorly used towards infrastructure applications including water transmission, sewage and drainage purposes. In 2018 the segment dominated the country’s plastic pipes and fittings mar- ket owing to the growing water infrastructure needs and the need to replace old pipe infrastruc- ture. The irrigation sector had the second highest application of PVC plastic pipes because of their low cost; followed by bulk water and other sectors such as chemical, oil, gas and plumbing in terms of revenue generated in the industry.
· By market structure: Organized players with high manufacturing capabilities were witnessed to dominate the South African plastic pipes and fittings market. However, the total number of unorganized players has been increased over the past few years, primarily because of the rising demand for low cost plastic pipe products in the country which have the same quality.
By domestic sales and import: The domestically manufactured products acquire majority of the market share in terms of sales volume which comprises of all the types of plastic pipes and fittings. The low price of raw material is one of the reasons for high market share of domestically manufactured pipes. Imported products on the other hand are brought in from countries, such as Botswana, Spain and China.
Comparative landscape: South Africa Plastic pipes and fittings market is concentrated in case of PVC and HDPE plastic pipes with a few leading companies capturing the majority of market share in terms of revenue. The domestic manufacturers such as Rare Plastics, Marley, Gradco, DPI and Flo- Tek are the major companies of PVC pipes and fittings in terms of production volume in 2018. Similarly, HDPE pipes and fittings have three major players namely Swan Plastics, Flo-Tek and Sizabantu Plastics constituting most of the market share in terms of production volume. In case of O-PVC, Sizabantu Plastics is the only domestic manufacturer in 2018. The domestic manufac- turers compete generally on the basis of price, quality and product availability.
Future outlook and projections: Growth in plastic pipe segment within South Africa is expected to increase due to efforts to expand access to potable water and sewage systems. Opportunities exist for water and sewer systems, as a considerable share of the South African population do not have access to drinking water supply or improved sanitation. It is anticipated that the PVC pipes will grow at the fastest pace among all type of plastic pipes, due to high demand expected from their end users.
The use of HDPE pipes is expected to basically reduce due to substitution by O-PVC plastic pipes in the near future. In the case of end user applications, plastic pipes used in mining industry along with water supply and infrastructure pipelines is expected to increase at fastest pace among other end user applications.
South Africa Plastic Pipes and Fittings Market Outlook to 2023, Ken Research, www.kenresearch.com
South Africa: Revenue of plastic pipes and fittings market was 5.4% in 2013-2018, HIX Publishing, KWD globalpipe, issue: 725, www.kwd-globlapipe.com