India’s plastic pipes industry is poised for accelerated expansion, with a projected compound annual growth rate (CAGR) of 14% over FY24–FY27, according to a recent report by Motilal Oswal Financial Services Ltd. The market is expected to scale up from Rs 54,100 crore in FY24 to an estimated Rs 80,500 crore by FY27, driven by strong demand across housing, irrigation, water supply, and sanitation sectors.
The report highlights replacement demand as a significant growth catalyst. Despite challenges in residential launches—down 38% during calendar years 2012–2020—PVC and CPVC pipes have shown consistent momentum, with FY20 sales up 46% compared to FY12. The durability and affordability of plastic pipes, which constitute just 2–3% of total building costs, have further boosted their uptake.
Historically, plastic pipe manufacturers have seen robust performance during real estate rebounds. In FY24, sales rose 1.8x over FY20, reaffirming the sector’s responsiveness to housing cycles. Notably, plumbing and irrigation segments contributed 84% to the industry’s applications in FY14–24, with CPVC, HDPE, UPVC, and PPR pipes witnessing strong growth.
Public infrastructure schemes such as the Jal Jeevan Mission (with a Rs 67,000 crore outlay), PM Krishi Sinchayee Yojana (PMKSY), and smart city initiatives are also driving demand. The report emphasizes the untapped potential in rural irrigation—around 52% of India’s cultivated land still lacks proper irrigation—presenting a significant opportunity for PVC pipe deployment.
Urban infrastructure and energy distribution are also undergoing transformation, led by high-performance polymer pipes. HDPE, MDPE, and PEX pipes are gaining traction in city gas distribution (CGD) due to their flexibility, cost-effectiveness, and corrosion resistance. With the government aiming for 70% CGD coverage by 2030 and an increase in the gas share in India’s energy mix from 6.7% to 15%, this segment is set to expand rapidly.
Technological advancements are also redefining applications. CPVC pipes are enabling efficient hot and cold water systems, OPVC is replacing ductile iron pipes in sewage networks, and HDPE pipes are playing a key role in micro-irrigation and urban projects. These developments are expected to widen market opportunities and ensure long-term growth.
The housing sector remains a core driver, with strong launch pipelines and recurring replacement needs ensuring sustained demand for plastic piping solutions, the report concludes.
