Abstract: With the country's increased investment in infrastructure construction, the domestic demand for water supply pipelines has maintained a steady growth rate. In particular, in terms of water supply network rehabilitation, the market size of trenchless repair of water supply pipelines in China will reach 447 million yuan in 2023, an increase of 145 million yuan from 2022. At present, the development momentum of China's water supply network rehabilitation industry is strong, and it is expected that the industry will have great potential for development in the future.
Key words: water supply pipeline development status, water supply pipeline length, water supply pipeline demand, water supply pipeline industry development trend
1. Definitions and Classification
A water supply pipeline is a system of piping used to transport drinking water or industrial water. These pipes are usually made of various materials, including metal (such as iron pipes, copper pipes, stainless steel pipes, galvanized pipes), plastics (such as PB pipes, PP-R pipes, etc.), plastic-composite metal pipes (such as steel-plastic composite pipes, aluminum-plastic composite pipes, etc.), concrete pipes (cement pipes), etc. A network of water supply pipes is usually connected to a water source, such as a reservoir, river, or underground water source, and is delivered to where it is needed through a pump system, such as a residence, commercial building, industrial facility, etc. While ensuring the supply of water resources, water supply pipelines also need to consider the safety, stability and environmental protection of pipelines.
Second, the status quo of industry development
1. Total water resources
The mainland is a big demand for water resources. In 2021, the total precipitation and total water resources of the mainland were significantly higher than the average of previous years, and the national water storage was generally stable. Compared with 2021, the precipitation and water resources in 2022 were less than the multi-year average, and the spatial and temporal distribution of water resources was uneven. In some areas, the water storage of large and medium-sized reservoirs has decreased, and the water storage of lakes has been relatively stable. The average annual precipitation in mainland China in 2022 is 631.5 mm, 2.0% less than the multi-year average. In 2022, the country's total water resources were 2,708.81 billion cubic meters, 1.9% less than the multi-year average. The national average precipitation in 2023 will be 615.0 mm, 3.9% less than normal. In 2023, the country's total water resources will be 2,478 billion cubic meters.
In 2022, the surface water resources of the mainland were 2,598.44 billion cubic meters, a decrease of 232.61 billion cubic meters from 2021, the amount of groundwater resources was 792.44 billion cubic meters, a decrease of 27.13 billion cubic meters from 2021, and the non-duplication of groundwater and surface water resources was 110.37 billion cubic meters.
2. Water supply
The water supply of the mainland includes comprehensive domestic water (including residential water and public building water); water use for industrial enterprises; watering roads and green spaces, etc. Since the founding of the People's Republic of China, especially since the reform and opening up, the water supply industry in mainland cities has developed rapidly. According to statistics, in 2012, the mainland's water supply reached 613.12 billion cubic meters, and by 2021, the mainland's water supply reached 592.02 billion cubic meters, an increase of 10.73 billion cubic meters over 2020, 599.82 billion cubic meters in 2022, and 610 billion cubic meters in 2023.
3. Pipeline demand
With the country's increased investment in infrastructure construction, the domestic demand for water supply pipelines has maintained a steady growth rate. In 2023, the total demand for water supply pipelines in mainland China will be 178,100 kilometers, of which 95,300 kilometers will be for plastic pipes in the water supply field, a decrease of 9,800 kilometers from 2022, 55,200 kilometers of metal pipes in the water supply field, a decrease of 8,900 kilometers from 2022, 20,700 kilometers of plastic and composite metal pipes, a decrease of 3,100 kilometers from 2022, and 6,900 kilometers of cement and other pipes, a decrease of 00,800 kilometers from 2022.
3. Dialysis of industry segments
1. Plastic composite metal pipe
Plastic-plastic metal pipe is a new type of water supply pipe, mainly including aluminum-plastic composite pipe, steel-plastic composite pipe and outer dissolved aluminum-plastic composite pipe. In 2015, the demand for plastic composite metal pipes in China was 16,100 kilometers, in 2022, the demand for plastic composite metal pipes in China increased to 23,800 kilometers, and in 2023, the demand for plastic composite metal pipes in China will be 20,700 kilometers.
Third, the industrial chain
1. Industrial chain structure
With the progress of science and technology, the production technology and quality of the water pipe and pipe industry have been continuously improved, such as the pipes produced by new material technology, which can greatly reduce the production cost and improve the strength, corrosion resistance and life of the pipe.
The application fields of water pipe and pipeline products involve industry, agriculture, municipal, construction and other aspects. Water pipe products have a wide range of applications and broad market prospects. With the increase in investment in infrastructure construction, the domestic demand for water pipes has maintained a steady growth rate, especially in urban water supply and drainage, water pipes and pipelines play an increasingly important role.
In the history of the development of water pipes and pipelines, it has experienced the evolution of galvanized steel pipes, composite pipes, plastic PP-R pipes, copper pipes and stainless steel pipes. The industry is constantly upgrading, in order to better meet the problems of healthy water and environmentally friendly life.
2. Downstream demand area - pipe network repair
The underground pipe network is the lifeline of urban construction and development, and it is also one of the material bases for the survival and development of urban residents. The underground pipe network mainly includes water supply, exhaust, gas, heat and other pipelines within the city. Pipeline repair refers to the use of various technologies to restore the normal use function of damaged and leaking pipelines, including external anti-corrosion layer repair and internal repair, also known as excavation repair and trenchless repair.
Although the traditional excavation and restoration methods are simple to construct, due to the development of the city, the excavation and restoration are more and more restricted, and at the same time affect the environment, traffic and residents' lives. Trenchless repair technology emerged in Western countries in the 80s of the twentieth century, developed rapidly in Europe, Japan and the United States, and has begun to be applied in many countries. With the rapid development of the mainland economy, urban construction has accelerated, and trenchless repair technology has been applied in municipal engineering. At present, trenchless repair technology mainly includes winding and splinting, pipe hoop method, welding method and other application methods.
According to statistics, in 2023, the national trenchless pipeline repair market capacity will reach 40.266 billion yuan. In the context of the irreversible trend of urbanization, in order to ensure the sustainable development of the national economy, increase the development and utilization of urban underground space, and build the city-related infrastructure underground, it has undoubtedly become one of the important development directions of urban construction in the future.
In particular, in terms of water supply network rehabilitation, the benefits of water supply network rehabilitation include extending the service life of pipelines, preventing disasters and accidents, improving the quality of water supply, reducing resource waste and costs, and choosing efficient and environmentally friendly repair technologies. Modern technology and equipment, such as non-destructive testing, can be used in the restoration process to carry out precise repairs, while paying attention to environmental protection and reducing the impact on the surrounding environment. In developed countries, the need for rehabilitation of water pipelines is likely to be more urgent due to the relatively old infrastructure, and the market capacity may be larger. In emerging markets or developing countries, with the acceleration of urbanization and the increase in the level of industrialization, the demand for water supply networks is also increasing, and the market capacity is gradually expanding. At present, the trenchless repair of water supply pipelines in China has a strong development momentum. According to statistics, the scale of trenchless rehabilitation of water supply pipelines in China will increase from 96 million yuan in 2015 to 302 million yuan in 2022, and the scale of trenchless rehabilitation of water supply pipelines in China will reach 447 million yuan in 2023, an increase of 145 million yuan from 2022. In the future, with the continuous improvement of people's awareness of environmental protection, the application of trenchless repair technology will continue to expand, and the market prospect will be broader.
Fourth, the industry development environment - related policies
The construction of urban and rural water supply and drainage projects in the mainland is of far-reaching significance to ensuring the health of residents and ensuring economic construction. The national government and local governments have successively introduced relevant policies to ensure people's daily water supply and drainage needs, and continue to increase the importance of the construction of water supply pipeline system, which has brought new development opportunities for the water supply pipeline industry. For example, the "Implementation Plan for the Aging and Renovation of Urban Water Supply and Drainage Pipelines in Hainan Province (2023-2025)" clarifies the scope of the renovation of water supply and drainage pipelines.
Fifth, the market competition pattern
1. Major enterprises
At present, the representative enterprises are Zhejiang Weixing New Building Materials Co., Ltd., Anyuan Pipeline Industry Co., Ltd., Aikang Enterprise Group (Shanghai) Co., Ltd., Jinsu Enterprise Group (Shanghai) Co., Ltd., Wuhan Jinniu Economic Development Co., Ltd., Rifeng Enterprise Group Co., Ltd., China Lesso Group Holdings Co., Ltd., Zhejiang Zhongcai Pipeline Technology Co., Ltd., Shanghai Baidie Pipe Industry Technology Co., Ltd., etc.
2. Representative enterprise - Zhejiang Weixing New Building Materials Co., Ltd
Weixing New is mainly engaged in the manufacture and sales of various types of medium and high-end new plastic pipes, and its products are divided into three series: first, PPR series pipe fittings, which are mainly used in cold and hot water supply in buildings; The second is PE series pipe fittings, which are mainly used in municipal water supply, heating, gas, drainage and sewage and other fields; The third is PVC series pipe fittings, which are mainly used in drainage and sewage and power sheathing and other fields.
According to the company's announcement data, the sales volume of Weixing's new pipeline in 2023 will be 293,700 tons, a decrease of 9.53% compared with 20221; the output was 302,500 tons, a decrease of 1.40% compared with 2022; The gross profit margin was 46.33%, a decrease of 0.3 percentage points from 2022.
Sixth, the development trend of the water pipe and pipeline industry
In recent years, with the improvement of the people's legal awareness, the majority of tap water users have the largest proportion of funds for urban water safety pipeline projects (some cities are the only financing channels), in addition to the enterprise's own funds, water quality safety has put forward higher requirements, the safe operation of the water supply network is more and more affected by many aspects, the coastal and provincial capital water division mainly uses government investment or subsidies, and the municipal water division mainly uses the attention of the business, the quality of the pipe that constitutes the water supply network is an important factor to ensure the safety of urban water supply.
At present, the water supply industry ductile iron pipe market is almost monopolized by two brands, in sharp contrast, the plastic pipe market has many manufacturers, many brands, mixed sources of raw materials, uneven quality, scattered users, and is in a state of fierce competition. In the coming period, ductile iron pipes will be the main body of pipe applications in the water supply industry.
As a pipeline manufacturer, we should pay close attention to the advantages of our company in the production of certain pipe diameters, and should not be greedy. Pipe manufacturers need to improve their production processes and production costs to better meet the needs of water supply enterprises.
Nowadays, the implementation of green buildings and other measures to ensure people's daily drainage needs, the state and relevant governments continue to increase the importance of the construction of urban drainage pipeline system, and the water pipe pipeline industry has been further supported and promoted by policies.