Page 16 - ITAtube Journal 1 2024

Market information
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be compensated as far as possible. The automotive industry offers many attractive applications for tubular products.
The greatest potential for the use of tubular products is seen in the vehicle frame, fol- lowed by the chassis and powertrain. Tube manufacturers will endeavour to enter new vehicle series with larger quantities in order to further expand their presence in the light vehicle industry.
Overall, the automotive industry faces the challenge of the transition to electromobil- ity and the question how they can continue to serve markets in which electromobility cannot be introduced due to restrictions
in the availability of electrical energy. Car manufacturers must therefore pursue all drive technologies to avoid losing major market potential. Environmentally friendly combustion technologies will continue to have their place. Political institutions, such as those in Europe, on the other hand,
are setting deadlines to ban combustion technologies including green fuels. Present discussions may be understood that this paradigm may be opened again in favour of combustion engines with green fuel. In this area of conflict, the automotive indus- try, including its suppliers of tube products, must find suitable business approaches.
The mechanical engineering market segment, which accounts for around 9% of world tube and pipe production, has
Figure 19: The Global Construction Market in Billion USD Source: Global Data
developed well in line with global GDP in recent years. During the financial- and corona crisis, the market was characterised by higher volatility with sharper declines and quick recoveries. In 2022, the current further recovery was slowed down by geo- political circumstances. Asia, and China in particular, although increasingly reaching self-sufficiency are still the largest markets for machinery purchases. It remains note- worthy that the Chinese industry has taken the global lead in machinery sales since the Corona crisis.
Here, the decoupling intentions of the USA must be observed since this may become a game changer for the worldwide mechan- ical engineering industry. The USA and Europe continue to be significant sales regions as well. This market segment cer- tainly has the greatest variety of tube prod- ucts. Cylinder-, ball bearing- and turned part tubes, to name just a few prominent representatives of this market segment, certainly show interesting prospects for tube and pipe producers.
The construction market with about 5% of the global tube market presents another opportunity for pipe manufacturers with growth potential. Despite the challenging macroeconomic and geopolitical backdrop, the global construction industry managed to continue to generate growth momentum in 2023, with output rising by 3.4% in real terms (Figure 19). Much of this was owed
to China’s surprisingly strong performance despite the prolonged real estate crisis there, which has significantly impacted investment in building activity. Construction in the US also picked up in the second half of 2023, which pushed global construction industry output growth excluding China to 2.0% in 2023. With interest rates remaining at a high level, new investment in the resi- dential buildings sector has fallen sharply. This has particularly been the case across North America and Europe, where resi- dential building permits have plummeted. The infrastructure, energy & utilities, and industrial sectors will be key drivers of construction output activity. There are
also high levels of spending across areas related to the energy transition, with invest- ment in renewable energy projects and in
ITAtube Journal April 2024