North America Precision Tubes Market By Product Types (Seamless, Welded) By Size (Thin Wall, Thick Wall) By End Use (Automotive, HVAC & Refrigeration, Energy, Mechanical Engineering and Others) and By Country (U.S., Canada)

Precision Tubes Market Outlook

The Precision valves market was valued at USD 4,225.0 Mn in 2019 and is projected to reach USD 5,165.1 Mn by 2027, expanding at a CAGR of 3.7% during the forecast period. Precision tubes are deployed in several applications such as oil and gas, automotive, HVAC, mechanical engineering, energy, cement, and construction industries.

Precision tubes are typically made out of stainless steel, nickel, titanium, aluminum, and various alloys. The production process of precision tubes starts from steel strips. The process of making precision tubes involve many steps such as welding, annealing, treatment of the surface, and threading. Towards the end of the process, the tubes are shaped and cut as per the requirements of the end-users. Non-destructive examination is conducted to assess the strength of the precision tubes and other tests are carried out to inspect leakages and assess surface roughness.

Subsequently, the precision tubes are packaged and shipped. Precision tubes come in various strengths such as formable, high-strength formable, and others as per the need for application. Precision tubes come in various shapes such as square, round, coil, rectangle, u-shaped, and hydraulic honed tubes. The outside diameter of precision tubes play an important part in stability.

Precision tubes are used in shock absorbers, propeller shafts, tie rods, gas spring applications, side impact beam, and stem steering system. Precision tubes are found in the bicycle industry, textile industry, and furniture applications.

Precision Tubes Market Dynamics

Increasing Investments in Energy Sector

The energy sector, particularly gas production in the US and Canada, has wide consumption in domestic markets. In the recent years, gas from the US is being increasingly exported to different countries. This is anticipated to enhance the demand for precision tubes. Proposed infrastructure expenditure in the US, if approved, is predicted to boost the momentum.

Shale gas exploration and production is anticipated to rise steadily during the forecast period inducing the market growth. The amount of investments in the energy sector reflect the market growth of precision tubes, owing to high employment of precision tubes in the energy sector.

Growing demand from Healthcare Industry

Precision tubes are used in medical equipment and devices, owing to its strength, formability, and exceptional finishes on both the inside and outside diameter of the tube. The usage of precision tubes in these devices is predicted to rise. Healthcare is a major industry in the US. Significant growth of the healthcare industry is anticipated during the forecast period in North America.

The COVID-19 has expedited the growth of health-related solutions. Usage of cardiac stent implants, heart valves, surgical implants, cardiac rhythm management, and neuromodulation device therapies is increasing, owing to the prevalence of heart problems in the region. This, in turn, is anticipated to propel the market.

Volatility in Raw Material Prices

The cost of raw materials remains a top concern among precision tubes manufacturers. Volatility in the price of raw materials such as that of steel remains a challenge to the manufacturers of precision tubes. Changes in trade policies, geopolitical factors, and imbalance in demand and supply affect the price and the supply & demand for raw materials such as steel used in manufacture of precision tubes. Fluctuating raw material prices affect cash flows and earnings of companies. This, in turn, is anticipated to hamper the North America precision tubes market growth during the forecast period.

Technological Developments and Advancements

Technological innovations help reduce waste levels and downtime, improve responsiveness to customer demands, result into fast turnaround times, and enhance product design and quality, while streamlining relationships with suppliers and customers. Manufacturers are opting for extensive substitution of manual measurements through automated measuring devices and new technologies such as Premium Quality Finishing (PQF). This is likely to create opportunities for the North America precision tubes market.

Precision Tubes Market Segmental Outlook

Based on product types, the North America precision tubes market is segmented into seamless and welded. The seamless segment held a significant share of the market in 2019, due to high strength, durability, and ability to withstand high pressure offered by this type of tubes. The welded segment is anticipated to expand at a high CAGR during the forecast period owing to its benefits such as low cost and fast lead times as compared to seamless tubes, which is expected to drive the segment.

In terms of sizes, the market is divided into thin wall and thick wall. The thin wall segment is projected to expand at a considerable CAGR during the forecast period, owing to increasing demand for thin wall tubes for various applications including aerospace and nuclear power generation. The thick wall segment is held a major share of the market in 2019, due to increasing adoption of thick-walled precision tubes among end-users for drilling, boiler tubes, and in several components of car, tractor, and aircraft.

On the basis of end-uses, the North America precision tubes market is classified as automotive, HVAC & refrigeration, energy, mechanical engineering, and others. The automotive segment accounted for a significant share of the market in 2019, owing to rising demand for two wheelers, three wheelers, personal cars, commercial vehicles, and heavy vehicles.

The automotive segment is anticipated to grow significantly in the coming years. The energy segment is estimated to expand at a significant pace during the forecast period. This growth is attributed to the increasing demand for these tubes from boiler manufacturing OEMs.

Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the North America Precision Tubes Market
• Historical, Current and Projected Market Size in terms of Value
• Potential & Niche Segments Exhibiting Promising Growth Covered
• Industry Drivers, Restraints and Opportunities Covered in the Study
• Recent Industry Trends and Developments
• Competitive Landscape & Strategies of Key Players
• Neutral Perspective on North America Precision Tubes Market Performance

Segments

By Product Types

• Seamless
• Welded

By Sizes

• Thin Wall
• Thick Wall

By End-Use

• Automotive
• HVAC & Refrigeration
• Energy
• Mechanical Engineering
• Others

By Country

• U.S.
• Canada

Key Market Players Profiled in the Report

• AMETEK.Inc.
• ArcelorMittal
• BENTELER International AG
• Metal-Matic
• Michigan Seamless Tube, LLC
• NIPPON STEEL CORPORATION
• Plymouth Tube Company USA
• PTCAlliance
• SSAB AB
• Webco Industries, Inc.
• Zekelman Industries

Competitive Landscape

• Top players in the market include AMETEK Inc., ArcelorMittal, G & J Steel & Tubing, Inc., Hofmann Industries Inc, Infra-Metals Co., LIBERTY Steel Group, Mega Steel & Tube, Morris Coupling Co., Nippon Steel Corporation, SSAB AB, Webco, PTC Alliance, Zekelman, Metal-Matic, Michigan Seamless, Plymouth Tube, Benteler, and Mannesmann. These companies are considered as key manufacturers of North America Precision Tubes based on their revenue, product offerings and supply chain management system.
• The players are adopting key strategies such as acquisition, collaborations, and geographical expansion where there is potential opportunity for the North America Precision Tubes market.