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Figure 12: Global Construction Output 2017 versus 2021 Source: Construction Intelligence Center 27th June 2018.
nificantly melt down if the ramp up curve would be flatter. In such a case the industry may even not reach minimum critical lot sizes.
The market of mechanical engi- neering for tubes and pipes, rep- resenting 9% of the total tube and pipe market, is quite diversified due to its uncounted applications.
The impact due to the corona epi- demic will be different for many products. Assuming most com- panies will postpone any possi- ble capital investment to secure the assets, the demand for tubes and pipes will consequently be reduced as well. The pressure on tube and pipe producers serving this market on production flex- ibility and efficiency will even further increase over and above the present, already demanding, level.
Another attractive market for tube and pipe producers is the
construction market, representing about 5% of the world tube pro- duction. The construction market is steadily growing along with the GDP growth. There is some hope, if the world recession would be only of a short duration, as stip- ulated by many analysts, the con- struction market and its suppliers would experience only smaller impacts due to the corona epi- demic.
The growth potential of the con- struction market is quite impres- sive (Figure 12).
Another report recently released, Global Construction 2030, fore- casts the volume of construc- tion output will grow by 85% to 15.5 trillion worldwide by 2030, with three countries, China, USA and India, leading the way and accounting for 57% of the global growth. The benchmark global study from Global Construction Perspectives and Oxford Econom-
ics, show average global con- struction growth of 3,9%/year to 2030, outpacing that of global GDP by over 1 percentage point, driven by developed countries recovering from economic insta- bility and emerging countries to industrialize. The construction market in India will grow almost twice as fast as China to 2030, providing a new engine of growth in emerging markets. India´s urban population is expected to grow by a another 165 million by 2030, swelling Delhi by further 10,4 million people to become the world´s second largest city. Due to this market potential the Indian chapter of the ITA has just organ- ized a well-attended and most recognized conference in Mumbai regarding the structural applica- tions for tubes and pipes.
When it comes to Europe, whilst it won´t recover to reach pre-cri- sis levels until 2025, the UK is
Market information
ITAtube Journal No1/July 2020
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