U.K. MDPE pipe market for water supply is estimated to expand at a CAGR of 1.66% during the forecast period 2021 -2031

U.K. MDPE Pipe Market for Water Supply: Introduction

Transparency Market Research delivers key insights on the U.K. MDPE pipe market for water supply. In terms of value, the U.K. MDPE pipe market for water supply is estimated to expand at a CAGR of 1.66% during the forecast period, owing to numerous factors regarding which TMR offers thorough insights and forecasts in its report on the U.K. MDPE pipe market for water supply.

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MDPE pipe is extremely strong and 100% resistant to corrosion. MDPE pipe is largely used as sewerage pipe and water supply pipe. PE pipes have been in use since more than 60 years. They are easy to install, strong, and durable. They can be recycled into new PE pipes upon reaching the end of their service life. As a result, PE pipe systems are highly cost efficient. Medium density polyethylene density (MDPE) lies between 0.926 and 0.940 g/cm3. Its heat capacity and tensile strength are found to be between 1.916 kJ/kg.K and 12.4–19.3 Mpa, respectively. Its young modulus falls between 172 MPa–379 MPa. Combined, these properties of MDPE make it a sustainable shock and drop resistance material.

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Existing companies as well as new entrants in the MDPE pipe market need to focus on competitive pricing, as key players operating in the market have integrated operations. Companies in the MDPE pipe market need to focus on enhancing the quality of raw materials used in MDPE pipes and reducing the production cost. MDPE pipe manufacturers can backward integrate into the production of raw materials (ethylene). This would help lower the cost of procuring raw materials. It would also provide manufacturers with an opportunity to supply raw materials to small players operating in the MDPE pipe market. Existing MDPE pipe manufacturers can focus on R&D investments to enhance properties of MDPE pipes in order to meet the requirements of industrial, water supply, and agricultural applications.

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U.K. MDPE Pipe Market for Water Supply: Dynamics

The investment in water infrastructure has been increasing significantly across the U.K. Presence of aging water infrastructure and rise in issues pertaining to pipe leakage are some of the major factors that are driving investments in water infrastructure. According to the Consumer Council for Water, England and Wales lost 3.1 billion liters of water every day from leakage, i.e. overall leakage levels increased by 1.2% in 2019, compared to that in the previous year. Thames Water is the worst offender, as it loses around 179 liters of water per property each day, while Southern Water is the best, as it leaks less than 80 liters of water per property per day. The rise in the demand for water due to the growing population, primarily in London, is another factor propelling investment in the water infrastructure sector.

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London's population is expected to increase by 8.8% up to 2026. This is anticipated to boost the demand for water. Water & wastewater companies and governments are making significant investments to improve the water supply infrastructure. Water companies in England and Wales announced a plan to invest more than US$ 63 Bn between 2020 and 2025 in improvement of services, a 13% rise on current investment levels. This would help deliver a significant cut in leakage of 16%, an overall real-term reduction in bills of more than 4%, and 90% increase in help for people who have difficulty paying their bill. The investment would also fund a new environmental program that would clean and improve 8000 km of rivers.

Southern Water announced plans to invest approximately US$ 2.6 Bn; of this, US$ 293.4 Mn is in addition to its regulatory allowances. This investment program aims to improve Southern Water’s treatment works, pumping stations, and sewer network, which currently cause the most performance issues. This US$ 2.6 Bn investment equates to investing US$ 1,275.5 per property in Southern Water’s customer base. In January 2020, the U.K. water services regulation authority introduced a package of US$ 65.1 Bn to improve water supply services for customers and the environment for the next five years.

Of this, US$ 16.6 Bn of additional investment – equivalent to US$ 7.7 Mn every day for five years – is dedicated to build a new reservoir in Hampshire and the construction of a pipeline connecting water supply from North Lincolnshire to Essex. Demand for MDPE pipe can be linked with the investment in water infrastructure, as MDPE pipes (PE-80) are majorly used for transportation of safe, clean, potable water. Thus, rise in investment in water infrastructure is anticipated to drive the demand for MDPE pipe for water supply, thereby boosting the U.K. MDPE pipe market for water supply.

U.K. MDPE Pipe Market for Water Supply: Key Players

Detailed profiles of providers of MDPE pipe for water supply have been provided in the U.K. MDPE pipe market for water supply report to evaluate their financials, key product offerings, recent developments, and strategies. Key players operating in the MDPE pipe market for water supply in the U.K. are Borealis AG, INEOS, LG Chem, Dow, SCG Chemicals Co., NOVA Chemicals Corporate, Westlake Chemical Corporation, BASF SE, LyondellBasell Industries Holdings B.V., and SABIC.

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