Report Overview

A heightened demand for steel pipes and tubes from the major oil & gas industry and an increasing number of large infrastructure development projects across the Kingdom are expected to drive the Saudi Arabia Steel Pipes and Steel Tubes Market during the forecast period between 2024 and 2030.

Saudi Arabia Steel Pipes and Steel Tubes Market – Industry Trends & Forecast Report, 2030

Saudi Arabia Steel Pipes and Steel Tubes Market size was estimated at USD 435.92 million in 2023. During the forecast period between 2024 and 2030, the Saudi Arabia Steel Pipes and Steel Tubes Market size is projected to grow at a CAGR of 5.11% reaching a value of USD 587.12 million by 2030. Prominent drivers of the Saudi Arabia Steel Pipes and Steel Tubes Market are the increasing allocation of funds to infrastructure development, supported by a growing GDP, is complemented by a substantial reservoir of oil reserves in the region. Steel pipes, integral for transporting water, oil, and gas, require meticulous attention to pressure ratings and precise measurements of both outside and inside diameters. Renowned for corrosion resistance, steel tubes play a vital role in structural applications like scaffolding, where precise outside diameters are crucial for determining load-bearing capacity. The market is further stimulated by the demand from emerging oil and gas projects, as well as the petrochemical industry's reliance on steel pipes and tubes for diverse applications, including wind turbines, batteries, medical devices, plastics, detergents, packaging, tires, and automotive components. Moreover, government investments in infrastructure development, driven by rapid industrialization and population growth in developing economies, are anticipated to contribute significantly to market expansion.

By volume, the Saudi Arabia Steel Pipes and Steel Tubes Market size was estimated at 9.32 million tons in 2023. During the forecast period between 2024 and 2030, the Saudi Arabia Steel Pipes and Steel Tubes Market size is expected to reach the volume of 10.03 million tons by 2030. Presently, Saudi Arabia stands at the forefront of steel production, with pivotal mega projects like Neom, the Red Sea Project, and Qiddiya shaping the nation's infrastructure and construction trajectory. Notably, initiatives like Saudi Vision 2030 underscore the government's commitment to diminishing reliance on oil and fostering economic diversification. This strategic plan involves substantial investments, generating heightened demand for stainless steel pipes and tubes, benefiting leading companies in the sector such as Al-Jazera and Rezayat Group.

Steel Pipes and Steel Tubes Market – Overview

The Steel Pipes and Steel Tubes Market refers to the global industry involved in the manufacturing, distribution, and trade of steel pipes and tubes. These products are integral components in various sectors such as construction, oil and gas, water infrastructure, and industrial applications. The market encompasses a wide range of steel pipe and tube types, including seamless, welded, and spiral welded variants, catering to diverse structural and fluid transport needs. Factors influencing the market include economic growth, infrastructure development, and demand from sectors like energy and manufacturing. The industry plays a crucial role in supporting essential infrastructure and economic activities worldwide.

Saudi Arabia Steel Pipes and Steel Tubes Market

Growth Drivers

Rising Demand from the Oil & Gas Industry

The escalating demand from the oil & gas industry is poised to drive the growth of the steel pipe market in Saudi Arabia over the forecast period. This surge is primarily attributed to the increased production of oil and gas, specifically tailored to meet the demands of the transportation sector. Within this industry, steel pipes and tubes play a pivotal role, serving as essential components for the transportation of gas and liquid. The prevalent use of alloy steel and carbon steel in manufacturing these pipes underscores the importance of raw material considerations. Manufacturers, mindful of raw material prices, strategically engage suppliers who offer cost benefits, thereby fortifying their position in catering to the rising demand from the dynamic oil and gas sector.

Challenges

Fluctuations in Steel Prices

Fluctuations in steel prices pose a significant restraint to the growth of the Saudi Arabia Steel Pipes and Steel Tubes Market. The market's stability is challenged by the inherent volatility in steel prices, impacting manufacturing costs and overall project economics. Uncertainties in steel pricing create challenges for market players, influencing their strategic decision-making processes and potentially hindering long-term investments in the industry. Such fluctuations introduce complexities in project planning and budgeting, posing obstacles to the seamless expansion of the steel pipes and tubes market in Saudi Arabia.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Steel Pipes and Steel Tubes Market

The Saudi Arabia Steel Pipes and Steel Tubes Market experiences profound impacts due to escalating geopolitical tensions. The increased political instability disrupts regional trade, causing fluctuations in steel prices and impacting the supply chain. Saudi Arabia, a key player in the global oil industry, is highly sensitive to geopolitical shifts influencing energy markets and subsequently affecting the demand for steel pipes. As a visible consequence of these tensions, steel companies in Saudi Arabia respond to weak demand by implementing substantial price hikes. This surge is linked to heightened raw material costs influenced by geopolitical events, such as the Russian invasion of Ukraine and subsequent economic sanctions. These disruptions in the supply chain and elevated commodity prices pose formidable challenges for the steel market. Simultaneously, potential sanctions or trade restrictions on Saudi Arabia could impede international partnerships and restrict market access. The industry's resilience in navigating these challenges hinges on effective diplomatic resolutions and strategic economic diversification efforts by the Saudi Arabian government.

Saudi Arabia Steel Pipes and Steel Tubes Market

Segmental Coverage

Saudi Arabia Steel Pipes and Steel Tubes Market – By Technology

By technology, the Saudi Arabia Steel Pipes and Steel Tubes Market is divided into Seamless, Electric Resistance Welded, and Submerged Arc Welded segments. The seamless segment holds the highest share in the Saudi Arabia Steel Pipes and Steel Tubes Market by technology. It is primarily due to the country's rapid growth. The establishment of new production plants, particularly in response to the burgeoning demand from the Middle East and Africa, contributes to this trend. Robust demand for oil country tubular goods (OCTG) and line pipes in the next five years is bolstered by ongoing developments in oil and gas drilling and infrastructure. Furthermore, the increasing establishment of production plants in chemical, food processing, and automotive sectors, coupled with the growing utilization of seamless steel in construction, emerges as a key driver propelling the Saudi Arabia seamless steel pipes and tubes market during the forecast period.

Saudi Arabia Steel Pipes and Steel Tubes Market – By Application

By application, the Saudi Arabia Steel Pipes and Steel Tubes Market is divided into Oil & Gas, Chemicals & Petrochemicals, Automotive & Transportation, Mechanical Engineering, Power Plant, and Construction segments. The oil & gas segment holds the highest share in the Saudi Arabia Steel Pipes and Steel Tubes Market by application. It can be attributed to the nation's strategic focus on energy production. Saudi Arabia, a major player in the global oil and gas industry, experiences consistent demand for steel pipes and tubes for oil extraction, transportation, and infrastructure. The robust growth of this segment is propelled by ongoing investments in oil and gas exploration, drilling, and pipeline projects, reinforcing the crucial role of steel pipes and tubes in facilitating the extraction and transportation of hydrocarbons within the region.

Competitive Landscape

Major players operating in Saudi Arabia Steel Pipes and Steel Tubes Market include Saudi Steel Pipe Bending Factory, Alazzaz Steel and Pipes, Al-Jazera Factories for Steel Products (JASCO), Tirox Steel Pipes and Tubes, Alkafaa Limited Company, Gulf Pipe Supply and Services, and Tenaris Saudi Arabia. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Development

• In November 2023 - Welspun Corp Ltd, a global leader in line pipe manufacturing, announced that its associate company, East Pipes Integrated Company for Industry (EPIC) in Saudi Arabia, secured a contract exceeding SAR 440 million with Saudi Aramco for the production and supply of large diameter steel pipes. The financial impact is anticipated in the second and third quarters of the fiscal year 2024–2025, extending the collaboration established in May 2023 for a SAR 1.8 billion contract with Aramco. EPIC, a prominent manufacturer of Helical Submerged Arc Welded pipes in Saudi Arabia, demonstrates excellence in execution, quality, and customer focus, aligning with the Kingdom's Vision 2030 objectives.

• In August 2023 - Saudi Arabian Oil Co. (Aramco) awarded a contract worth SAR 301.9 million (USD 80.4 million) to Saudi Steel Pipe Co. for oil & gas tubing.

Scope of the Report

By Technology

• Seamless

• Electric Resistance Welded

• Submerged Arc Welded

By Application

• Oil & Gas

• Chemicals & Petrochemicals

• Automotive & Transportation

• Mechanical Engineering

• Power Plant

• Construction