Cross Linked Polyethylene Market Estimated to Witness Growth

Market Overview:

Cross linked polyethylene (XLPE) is a polyethylene thermoplastic resin which has been cross linked using irradiation, peroxides or silane grafting. It is used for manufacturing of gas pipes, pressure pipes, electrical cable coverings and adhesive tapes due to its excellent chemical and corrosion resistance. XLPE demonstrates high molecular weight, outstanding mechanical properties and superior stress cracking resistance compared to conventional polyethylene.

Market Dynamics:

The growing construction industry is a major driver estimated to propel the cross linked polyethylene market growth over the forecast period. According to Global Construction 2030, the global construction output is expected to grow by 85% to US$ 15.5 trillion by 2030. This growth is attributed to rapid urbanization and industrialization across developing regions such as Asia Pacific and Middle East & Africa. Construction projects require reliable pipes for plumbing, drainage and irrigation systems which boost the demand for cross linked polyethylene.

Furthermore, increasing usage of XLPE in pipes and fittings applications is another driver estimated to augment the market expansion. Properties such as UV resistance, high durability and greater heat resistance make XLPE ideal for manufacturing pipes used in water supply systems, sewerage, cable protection, and drainage applications. These pipes find vast usage in residential, commercial and infrastructure construction projects.

Segment Analysis:

The Global Cross-Linked Polyethylene Market Demand is dominated by the pressure pipes segment which accounts for over 35% of the total market share. Cross-linked polyethylene is highly used in pressure pipe applications due to its high-pressure handing capacity and resistance to chemicals. The demand for cross-linked polyethylene from the pressure pipes segment is expected to increase further during the forecast period owing to the rising investments in water supply and wastewater infrastructure across regions.

PEST Analysis:

  • Political: Regulations regarding the use of lead and other toxic substances in pipeline infrastructure are expected to drive the demand for cross-linked polyethylene pipes and tubes.
  • Economic: Growth in the construction sector along with investments in petrochemical industries will boost the cross-linked polyethylene market.
  • Social: Increasing spending on water infrastructure development and connectivity in rural areas will propel the usage of cross-linked polyethylene pipes.
  • Technological: Advancements in production technologies have enhanced the physical and chemical properties of cross-linked polyethylene, increasing its application in hoses, tubing, and wire insulation.

Key Takeaways

The global cross-linked polyethylene market growth is expected to witness high, exhibiting a CAGR of 7.47% over the forecast period, due to increasing investments in infrastructure development. The Asia Pacific region dominates the market and is expected to grow at the fastest pace during the forecast period owing to high economic growth in countries such as China and India. Key players operating in the cross-linked polyethylene market are ExxonMobil Chemical Company, LyondellBasell Industries, 3H Vinacom Co., Hanwha Chemicals, Arkema Group, AkzoNobel N.V., Falcone Specialities AG, Borealis AG, and PolyOne Corporation. Key players are focusing on capacity expansions to cater to the growing demand.

The global cross-linked polyethylene market size for 2022 was estimated at US$ 5,323.1 Mn. The Asia Pacific region dominated the market, accounting for over 40% of the global demand, led by China, India and other developing nations. The increasing investments in water supply, wastewater treatment, and oil & gas pipeline projects are expected to drive the consumption of cross-linked polyethylene in the region.

Key players operating in the cross-linked polyethylene market are focusing on new product launches and capacity expansion strategies to gain higher market share. For instance, in 2020, LyondellBasell Industries commissioned a new 30 kiloton per annum cross-linked polyethylene plant in Germany to meet the rising demand from the infrastructure sector. Similarly, 3H Vinacom Co. is planning capacity additions across China and India.




Read more –

Leave a Comment