Page 15 - ITAtube Journal 3 2024

Market information
view the prospects of ICE vehicles more
positive. Anyhow stainless-steel tubes for
exhaust systems will most likely face a
negative CAGR of about -5,4%/year.
Overall, the automotive industry faces
the challenge of the transition to electro-
mobility and the question how they can
continue to serve markets in which elec-
tromobility cannot be introduced due to
restrictions in the availability of electrical
energy. Car manufacturers must there-
fore pursue all drive technologies to avoid
losing major market potential. Environ-
mentally 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. From 2035,
no new cars fuelled with fossil diesel or
petrol may be registered in Europe. There
is to be an exception to the ban on com-
bustion engines for e-fuels. This already
determines major structural changes for
automotive industry including those sup-
pliers of tubular products. In this area of
conflict, the automotive industry, including
its suppliers of tube products, must find
suitable business approaches. Industrial
relocations to non-European countries are
increasingly being observed.
The mechanical engineering market
segment, which accounts for around 9%
of global pipe production, has developed
well in recent years in line with global GDP
(figure 15).
During the financial- and corona crisis, the
market was characterized by higher volatil-
ity with sharp slumps and rapid recoveries.
Since 2023, the current further recovery
was slowed down by geopolitical circum-
stances. Asia, and China in particular,
although increasingly self-sufficient, are
still the largest markets for the purchase
of machinery. It remains remarkable that
the Chinese industry has taken the global
lead in machine sales since the coronavi-
rus crisis.
Figure 16: Global Construction Market 2023-2030
Source: Next Move Strategy Consultinggreatest variety of tubular products. Cylin-
der-, precision-, ball bearing- and turned
part tubes, to name just a few prominent
representatives of this market segment,
certainly offer interesting prospects for
tube and pipe manufacturers.
The construction market, which accounts
for around 5% of the global pipe market,
represents another opportunity for pipe
manufacturers with growth potential.
The Construction Market size was valued
at USD 10.43 trillion in 2023 and is pre-
dicted to reach USO 16.10 trillion by 2030,
with a CAGR of 5.9% from 2024 to 2030
(figure 16).
The construction industry plays a vital role
in the economy. The sector is involved
in a wide range of projects, including
residential, commercial, industrial, civil
engineering and institutional construc-
tion, with multiple stakeholders such as
architects, engineers, contractors, sup-
pliers, developers, investors and govern-
ment agencies involved in the process.
Despite the challenging macroeconomic
and geopolitical environment, the global
construction industry has shown moderate
growth momentum in 2024, with output
increasing by 1% in real terms. Construc-
tion activity in the US and Northeast Asia
also picked up in the first half of 2024,
driving global construction output growth.
With high interest rates, new investment
in residential construction fell sharply. The
infrastructure, energy & utilities and indus-
The USA’s intentions for decoupling must
trial sectors will remain the main drivers of
be considered, which could become a
construction output.
game changer for the global mechanical
With an increased emphasis on envi-
engineering industry. The USA and Europe
ronmentally friendly practices, such as
also remain important sales regions.
the use of green building materials and
This market segment certainly offers the
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