Pipe Expo 2026 Briefing: Welded Steel Pipes Rise on Cost-Effectiveness, Oil and Gas Sector Remains Top Demand Driver

Pipe Expo 2026 has learned that in the global steel pipe market, Electric Resistance Welded (ERW) pipes are steadily expanding their market share, driven by cost advantages and technological advancements, and are expected to lead all product segments with a compound annual growth rate of 5.6% over the forecast period. From an application perspective, the oil and gas industry remains the dominant consumer of steel pipes, with demand growth projected at 6%.

In terms of technology segmentation, the market is primarily divided into three categories: seamless pipes, ERW pipes, and submerged arc welded (SAW) pipes. Among these, ERW pipes hold a dominant market position due to their significant cost-effectiveness. The report notes that the integration of advanced technologies such as modern high-frequency welding has greatly enhanced ERW product performance, making them interchangeable with seamless pipes under moderate temperature and pressure conditions. Given that ERW pipes are typically 20% to 30% cheaper than seamless alternatives, this price advantage continues to drive their penetration across a broader range of applications. Nevertheless, seamless pipes maintain an irreplaceable competitive edge in demanding, high-specification applications, owing to their superior inherent mechanical properties.

From an application standpoint, the oil and gas sector accounts for the largest share of steel pipe consumption. Pipe Expo 2026 understands that applications in this sector span the entire industry chain, including oil and gas drilling and production (OCTG), long-distance transmission pipelines, and refinery process piping. Sustained global demand growth for crude oil directly drives expansion in the oil and gas industry, which in turn transmits upstream to the steel pipe market. With the advancement of deep-sea oil and gas development, shale gas extraction, and enhanced recovery projects in mature oil fields, the demand for high-performance steel pipes remains robust.

Beyond oil and gas, the chemical and petrochemical sectors, automotive and transportation, mechanical engineering, and power generation also represent significant downstream markets. Pipe Expo 2026 notes that, notably, against the backdrop of carbon neutrality, steel pipe manufacturers are increasingly facing downstream customer scrutiny over the full-lifecycle carbon emissions of their products. This is compelling companies to accelerate the development of low-carbon processes while maintaining performance advantages. For ERW manufacturers, how to layer green attributes on top of their low-cost foundation may well become a key differentiating factor in the next phase of competition.

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