Gauri Cmi
by on April 16, 2024
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Cross Linked Polyethylene is a polyethylene thermoplastic material which is produced via a crosslinking process, providing it with distinct properties of hardness, cross-linking density and chemical resistance. XLPE is used in applications that require high strength like wire and cable insulation, gas and water pipe, and pressure-resistant hoses. It has advantages such as chemical resistance, durability and strength over traditional polyethylene. With growing construction activities globally, the demand for gas and water pipes made from XLPE is rising significantly.

The Global Cross Linked Polyethylene Market is estimated to be valued at US$ 6590.3 Mn  in 2024 and is expected to exhibit a CAGR of 3.3%  over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Cross Linked Polyethylene Market Growth are BASF SE, Celanese Corporation, Daicel Corporation (Polyplastics Co. Ltd), DuPont de Nemours Inc., Ensinger, Korea Engineering Plastics Co. Ltd, Mitsubishi Chemical Corporation, Westlake Plastics Company, and Yuntianhua Group Co. Ltd. Growing construction activities and rising investments in infrastructure development projects are driving the demand for Cross Linked Polyethylene globally. Technological advancements like advances in cross-linking technology have improved the properties of XLPE, increasing its adoption in new applications.

Market Trends

Rise in global energy demand: Growing energy consumption worldwide is fuelling investments in setting up new transmission and distribution networks for oil and gas. This is driving the demand for XLPE which is used in manufacturing oil and gas pipes.
Growth of electric vehicles: With rising environmental concerns, electric vehicles sales are growing rapidly. XLPE finds wide usage as insulation for EV charging cables and wires which is boosting its demand.

Market Opportunities
Development of bio-based XLPE: Researchers are working on developing bio-based XLPE from renewable sources like plant-oils which can provide sustainability benefits over conventional XLPE.
Expansion in cable industry: Growth of global cable industry aided by increasing investment in telecommunication infrastructure offers significant opportunity for XLPE demand as it is largely used for cable insulation and jacketing.

Impact of COVID-19 on Cross Linked Polyethylene Market Growth
The COVID-19 pandemic has significantly impacted the growth of the global cross linked polyethylene market. During the initial lockdown phases imposed across various countries, the demand from end-use industries such as plumbing, wire and cable, and automotive experienced a notable decline. Manufacturing and production facilities were shut down due to labour shortages and supply chain disruptions. This led to reduced consumption of cross linked polyethylene and thereby hampered the market growth in 2020.

However, with gradual lifting of restrictions in 2021, industrial operations resumed with enhanced safety protocols. This revived the consumption of cross linked polyethylene to some extent. But production levels are still below pre-pandemic levels due to workforce limitations. Moreover, rising raw material prices pose a major challenge for market players. To overcome this, manufacturers have increased cross linked polyethylene product prices which is restraining demand recovery from certain cost-sensitive end-use segments.

Moving forward, the market is expected to regain momentum from 2022 with accelerated vaccination drives and reopening of economies. Manufacturers need to focus on expanding production capacities, ensuring supply chain resilience, optimizing costs and developing value-added products to gain competitive advantage in the post-pandemic era. Collaboration with downstream sectors for long-term supply agreements can aid market stability.

In terms of geography, North America accounted for the largest share of the global cross linked polyethylene market in terms of value in 2021. This was attributed to high usage of cross linked polyethylene in applications like potable water pipes, cable protection, and wire sheathing. Asia Pacific is expected to be the fastest growing regional market during the forecast period owing to rising investments in infrastructure development and reviving automotive sector across China and India.

The demand for cross linked polyethylene is concentrated majorly in the Asia Pacific region in terms of value. This can be attributed to presence of developing countries like China and India which are witnessing rapid industrialization and infrastructure development. The high consumption of cross linked polyethylene in the construction sector for applications like plumbing and piping has boosted the regional market size over the recent past. Factors such as low-cost manufacturing, growing focus on rural connectivity and expansion of electronics industry are projected to further augment the demand for cross linked polyethylene in Asia Pacific in the approaching years.

Similarly, in terms of growth rate, the Latin American market is expected to register the fastest expansion for cross linked polyethylene during the forecast period. This can be accredited to factors such as recovering economic conditions, rising foreign investments, government initiatives for renewable energy development and upgrading of aging power infrastructure. Additionally, improving automotive sector driven by expanding vehicle parc and emerging electric vehicles industry is likely to provide lucrative opportunities to market players. The growth of end-use industries will continue supporting cross linked polyethylene consumption in Latin America.

 

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