Last year, more than 2 billion meters were sold in Europe’s Top 20 markets as the market for Sanitary Pipes & Fittings suffers by the declining housing market and other problems. The long-term growth trend remains intact and surface heating and cooling will become more important in the next few years. Regarding the material types, metal pipes will see its market shares decline from 18.2% in 2021 to 15.9% in 2027, as the latest study by InterConnection Consulting shows.

Radiator Connection Pipes Have, Are and Will Lose Market Shares

The Sanitary Pipes and Fittings market is segmented into surface heating and cooling, radiator connections, and hot and cold water installations. The market share for radiator connections is expected to decline from 25.5% in 2021 to 23.5% by 2027, driven by Europe’s shift to energy-efficient heating solutions. However, the surface heating segment may not see consistent gains across all countries. In Germany, for example, the number of radiators installed in renovations has increased recently due to cost and ease of installation, leading to a temporary rise in market share. Nevertheless, the long-term outlook for surface heating and cooling pipes is strong, with a projected market share of 36.5% by 2027 in Europe.

Plastic Pipes Are The Most Popular Choice

Plastic pipes hold a dominant market share of approximately 46%, with slight growth expected in the coming years. Multilayer pipes are the biggest gainers, projected to increase their market share from 35.3% in 2021 to 37.0% by 2027. Conversely, metal pipes are expected to decline in relevance due to rising prices for materials like copper and steel. Within the plastic segment, PEX (Crosslinked Polyethylene) commands the largest share, primarily used for surface heating and cooling systems, while multilayer pipes are favored for radiator connections and hot and cold water installations. Regional variations are notable; for instance, plastic pipes account for only about 11% of the market in Germany due to concerns over water quality, compared to 36% in the Czech Republic for the same application.

The Majority of Pipes Are Bought First by Wholesalers

Most companies prefer to sell their products through wholesalers and retailers, with indirect distribution channels dominating the market. In Russia, these channels account for 68% of sales, while in Poland, nearly 100%. The average market share across Europe is about 94%. This dominance is driven by the convenience of a “one-stop-shop” for installers, efficient supply chains in countries like Norway, and the strong market power of building product stores in Germany and Switzerland.

Producers of sanitary pipes and fittings should strategically pivot towards developing plastic and multilayer pipes, particularly in the surface heating and cooling segment, while considering regional preferences for these materials. Implementing customer loyalty and retention programs, alongside fostering direct relationships with installers, will enhance market share in this growing segment.

25/10/2024

Copyright: Interconnection, Publication free of charge for coverage regarding the study and InterConnection Consulting.