CHEMICAL SEGMENT TO HOLD LARGEST SHARE OF INDUSTRIAL HOSE MARKET

Driver: Growing infrastructure related developments

The increasing number of infrastructure-related projects is encouraging private participation in infrastructure (PPI) to invest more, thereby creating demand for hoses. Moreover, according to the United Nations data for 2019, the global population in 2018 was around 7.6 billion (4.2 billion in urban and 3.4 billion in rural areas). By 2050, the global population is projected to reach around 9.8 billion, that is, more than twice as many people in the world will be living in urban (6.7 billion) areas than in rural settings (3.1 billion). Moreover, in 2016, 512 cities were having more than 1 million people; however, by 2030, 662 cities are expected to have a population of more than 1 million people. This results in growing infrastructural developments, thereby generating demand for hoses. Most of the developments are expected to take place in APAC and Africa. Speedy urbanization and industrialization is primarily driven by infrastructural developments in APAC; this trend is creating demand for hoses as they are used for different purposes, such as material handling in the construction industry and carrying different types of fluids from one location to another in various industries.

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Restraint: Shortage of technical expertise

The installation of hoses requires specialized knowledge for fitting hoses at different sites. Hoses must not be stretched, kinked, crushed, or twisted during installation or use. Further, improperly assembled hoses may cause serious injury or property damage from whipping hose or from fire or explosion of vapor expelled from the hose. Similarly, installing a hose having improper length causes it to fray, thereby leading to a major leak.

Thus, the combination of a hose and hose fittings to make a hose assembly is a critical process that needs to be carried out by professionally trained personnel only. However, the shortage of skilled personnel with the technical expertise of industrial hoses hinders market growth.

Opportunity: Growing demand for automobiles worldwide

According to Organisation Internationale des Constructeurs d’Automobiles (OICA), in FY 2019, the global sales for passenger cars and commercial vehicles stood at USD 67 million and 25 million, respectively. The increasing sales keep the automotive sector at the forefront of innovation. The automotive sector growth can be attributed to huge investments in R&D, innovations in electric vehicles (EVs), and the emergence of autonomous driving and new mobility services. Moreover, the growing demand for automobiles in emerging economies, such as China, India, Australia, and Japan, is expected to increase the demand for industrial hoses in the coming years.

Challenge: lack of product differentiation  

Less focus of most of the companies in this market on technological innovations and the availability of a limited number of manufacturing materials are posing challenges for hose manufacturers to differentiate their products. However, a few companies are continuously investing in R&D to achieve an edge over their competitors by offering application-specific and customized hoses.

Chemical hose held the largest market share of industrial hose market in 2019

The chemical hose is expected to account for the largest share of the industrial hose market by 2025. The use of chemical hoses in chemical processing, transfer, and loading/unloading of liquid chemicals (e.g., tank trucks, rail tankers, IBC containers) for diverse technological processes in the chemicals, food, and pharmaceuticals industries is likely to accelerate the market growth. The demand for ventilators, masks, and other medical devices is high. This high demand has resulted in pharmaceutical companies coming forward and manufacturing the required medical devices and drugs. This situation has led to the prediction that the demand for chemical hoses for this industry will be high in the coming 2 to 3 quarters.

Automotive industry held share of industrial hose market in 2019

The automotive industry is expected to continue to account for the largest size of the industrial hose market. Increasing sales of vehicles due to high disposable income and purchasing power of the individuals help the automotive industry to grow at a faster rate, which, in turn, propelling the growth of the industrial hose market. Also, turbochargers are rapidly gaining demand and popularity due to their benefits, such as improved engine performance and enhanced fuel efficiency in terms of power and output. Hence, the automotive industry is likely to witness a high demand for industrial hoses during the forecast period.