Increase in Investments in Water and Wastewater Treatment Infrastructure Bolsters Flanges Market Growth
According to our latest study on "Flanges Market Analysis to 2031 – Global Analysis – by Type and Industry," the market is expected to grow from US$ 7,460.20 million in 2023 to US$ 10,589.40 million by 2031; it is anticipated to record a CAGR of 4.5% from 2023 to 2031. The report includes growth prospects owing to the current flanges market trends and their foreseeable impact during the forecast period.
Large portions of the US water and wastewater systems network were built over a century ago. When pipes, systems, and pumps reach the end of their expected lifespan, they must be upgraded, replaced, or reinforced. In addition, many systems need to be equipped for the new requirements. The country faces a rise in population, an increase in treatment requirements, and the effects of climate change. Hence, the US government is focusing on building new water and wastewater treatment facilities and replacing or refurbishing the old infrastructure. For instance, in August 2022, the United States Department of Agriculture announced a US$ 75 million investment in an infrastructure development project that involves offering clean drinking water and sanitary wastewater systems to Greenbrier County residents in the rural area. Additionally, in December 2022, the US government stated an investment of US$ 84.7 million from President Biden's Bipartisan Infrastructure Act to help 36 communities in drought in the Western part of the US. According to American Water (the US water and wastewater utility company), the company will invest ~US$ 13 billion every year from 2022 to 2027. This investment is aimed at the replacement of aging water pipeline infrastructure, upgrading pumping facilities, modernizing existing facilities or building new ones, ensuring fire safety, and maintaining state-of-the-art water quality standards. The increase in investments in the water and wastewater treatment infrastructure worldwide propels the demand for flanges, contributing to the growing flanges market size.
Flanges Market Share — by Region, 2022
Flanges Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type (Weld Neck, Slip-On, Socket Weld, Lap Joint, Blind, and Others), Material (Stainless Steel, Carbon Steel, Alloy Steel, and Others), Industry (Oil & Gas, Chemical & Petrochemical, Power Generation, Manufacturing, Water Management, Food & Beverages, Others), and Geography
Flanges Market Trends, Size, Analysis, Top Players 2021-2031
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Source: The Insight Partners Analysis
Based on type, the flanges market is segmented into weld neck, slip-on, socket weld, lap joint, blind, and others. Among these, the weld neck segment held the largest flanges market share in 2023. A flange is an external or internal rim joint at the end of a pipe. It is used in various industries. The oil & gas industry is a major end-use industry for flanges. Weld neck flanges are commonly used to connect valves to piping systems, enabling easier maintenance and removal of pipe fittings. These products are used in industries such as food & beverages, oil & gas, and chemical & petrochemical, where pipes are used to transport liquids. China, India, Italy, and Germany are among the leading suppliers of flanges. Several key players in the flanges market are adopting strategies to expand their business across the globe. For instance, in June 2021, Ameriforge, AFG Holdings Corporation's subsidiary producer, acquired Maass Flange Corporation to expand its business in the US. With this acquisition, Maass Flange Corporation expanded its business in the US, Canada, and Mexico, and it became part of Ameriforge. Maass Flange Corporation is a domestic manufacturer of nickel alloy and stainless-steel flanges in North America.
The scope of the flanges market report focuses on North America (the US, Canada, and Mexico), Europe (Spain, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). Growing government emphasis on mitigating environmental pollution and rising concerns for public health protection from waterborne diseases are anticipated to accelerate the growth of water treatment management facilities in Europe. Strict government regulations for water and wastewater treatment facilities and an increase in financial aid to support infrastructure development are major driving factors for the flanges market in Europe. Key factors bolstering the flanges market size include the growing number of exploration activities in the oil & gas sector and the rising number of new mineral exploration projects.
The Middle East & Africa has a high potential for natural gas production, owing to the major gas fields in the Arabian Iranian basin. The Permian Khuff formation is an important gas-bearing horizon. The abundance of natural gas and a rise in demand for natural gas from different end users are expanding the oil and gas pipeline infrastructure in the region, leading to a positive impact on the flanges market growth.
The mounting energy demand in South America is attributed to population growth and industrialization, which fuels the requirement for gas. As a result, the gas industry in South America draws considerable investments from domestic and foreign companies. Collaborations between national oil companies and international players drive the oil & gas industry's growth. For instance, in August 2023, Exxon announced its strategies to develop its sixth offshore oil project worth US$ 12,93 billion in Guyana.
The US, Canada, and Mexico are the major nations contributing to the growth of the flanges market in North America. In 2022, the US showcased the highest natural gas production capacity, followed by Canada and Mexico. Ixachi, Coulomb Phase 2, Quesqui, Nejo (IEPC), Leo, May, Koban, and Powerball are a few of the natural gas-producing fields in North America. The increase in government initiatives and funding for the development of gas pipeline infrastructure is anticipated to boost the flanges market over the forecast period. In July 2023, the US Department of Interior invested ~US$ 152 million as a part of the Bipartisan Infrastructure Law to bring clean and reliable drinking water to communities across the West US. The projects were initiated in California, Colorado, and Washington in an area of 1.7-million-acre feet for the additional water storage capacity. The funding was also made available to advance water storage capacities in that area. Thus, the growing investment in water and wastewater management infrastructure is propelling the growth of the flanges market in North America.
In 2023, American Pacific Mining Corp stated that one drill rig remained to test the Christmas or Red Creek Target area during the demobilization of the 2023 mountain drilling program. The cyclic redundancy check (CRC) Target is one of 12 known VMS assignments at the Palmer Project apart from the mineral resources of the Palmer and AG deposits. The growing focus on mineral exploration is projected to drive the flanges market.
The US is one of the largest producers of crude oil globally. The country comprises ~8,650 oil rigs that are currently in operation and produce crude oil for domestic consumption and exports. The number of offshore rigs rose from ~436 in 2020 to 580 in 2021 and 721 in 2022, which is anticipated to have a positive impact on the demand for flanges in the US. The rise in demand for gas further augmented gas production operations across the US, fueling the gas pipeline infrastructure growth in the US and increasing the application of flanges in the country. In the US, the demand for water treatment systems is widely generated by agricultural, commercial, municipal, industrial, and institutional end users.
AFG Holdings, Inc.; Armetal Stainless Pipe; Coastal Flange, Inc.; Flanschenwerk Bebitz GmbH; General Flange and Forge LLC; Mass Global Group; METALFAR Prodotti Industrial SpA; Proflange; Sandvik AB; and Texas Flange are among the key players profiled in the flanges market report. Companies operating in the flanges market mainly focus on product and service enhancements by integrating advanced features and technologies into their offerings.
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