The global market for plastics pipes is expected to slump by -7.1% in the year 2020 and thereafter recover to reach US$40.1 billion by the year 2027, trailing a post COVID-19 CAGR of 5.6% over the analysis period 2020 through 2027. Due to the pandemic, production activity has been disrupted in various sectors, while significant disruptions are also witnessed in supply chains due to the lockdown measures and travel restrictions imposed by governments to curb the spread of virus. All of these factors are having significant effect on the demand dynamics of steel pipes market and denting revenue generation of market players. The interruptions to global economic activity are on an unprecedented scale whereby economies are poised for steep contractions during 2020. With the Wuhan virus spreading to countries across geographies, virtually every country's economy is severely disrupted as governments fight to contain the virus. Governments are beefing up emergency budgets for healthcare, sanitation and social security to fight the pandemic. The shutdown has disrupted economic activities in a manner hitherto unimagined and the human cost of the pandemic is continuing to grow and is expected to deal an unprecedented blow to economies worldwide.

During the first half of 2020, with the coronavirus associated lockdowns, civil engineering starts were low as compared to the previous year 2019. While residential starts declined significantly, non-residential work experienced greater impact. The COVID-19 spread and its associated effect on commercial activity and market sentiments is having far-reaching repercussions at multiple levels on the engineering and construction industry across the globe. Global construction output is estimated to decline in 2020 against the backdrop of looming COVID-19 led economic crisis. However, the severity of impact of COVID-19 on the construction sector is expected to vary by country. Nations which have been able to control the spread of the virus are expected to witness a modest impact, while other countries where the virus spread has been less contained are expected to experience a sharper decline in growth. Lockdowns, material supply chain disruption, labor shortages and restrictions enforced by various countries to curb spread of the COVID-19 virus are expected to result in suspension of ongoing projects, thereby impacting the demand for construction supplies such as pipes. In addition, projects in their pre-construction phases are anticipated to be delayed for extended periods due to concerns related to building permits, contracts and tendering. Among the factors impacting the construction spending is the loss in private household investments due to high level of uncertainty around unemployment.

In the US, about 40% of the construction firms reported layoffs in April due to deferred projects and supply chain disruptions. Commercial construction is expected to be impacted by the significant slump in sales and profits experienced by firms. Drop in business/leisure trips, rise in remote working, increase in online spending is expected to affect investments in hotels, offices and retail spaces. Public sector construction spending is likely to suffer due to increasing debt levels and the loss of business tax revenues, due to the Covid-19 crisis. Covid-19 is also disrupting infrastructure projects. Infrastructure development is likely to be delayed as governments are increasingly reallocating resources for essential requirements. Also, project financing, project completion, as well as future projects in pipeline are witnessing uncertainties due to the lockdowns imposed amid covid-19. Engineering, procurement, and construction (EPC) contractors are likely to face issues in regards to liquidity crunch, non-payments, and contract cancellations in case the economic downturn extends further. In the post COVID-19 period, growth will be led by a combination of greater government emphasis on irrigation, strong private sector participation in water supply projects, and improved multi-lateral lending for water-related sectors presents significant potential for growth. Demand is expected to improve for pipe products, which exhibit optimum balance between workability and strength, meet specific requirements for individual applications, and help reduce weight of finished products. The need to redevelop and restore the ageing public sewer system also offers opportunities for the pipe industry. Attributes such as low cost, durability, strength, lightweight, high chemical resistance, flexibility, and easy molding, are expected to make plastic pipes one of the most sought after products in various applications. Growing adoption of pipes in construction, in electric conduit and in the natural gas sector and for crop irrigation, among other applications is expected to fuel demand through the forthcoming years. In the construction end-use area, growing spending and resurging activity in the US market is expected to significantly drive demand for various types of plastic pipes. The trend of substitution of iron, copper, concrete, and steel pipes with plastic pipes in various construction applications is expected to continue to gain momentum, given the advantages of low-cost, superior performance and ease of installation of these pipes.