June 17, 2024

The Global Cross Linked Polyethylene Market Is Driven By Growing Demand In Pressure Systems Application

The global cross linked polyethylene market caters to various applications such as pressure pipes, gas pipes, plumbing pipes, drainage pipes, and others in the construction sector. Cross linked polyethylene (XLPE) is a thermoset polymer derived from high-density polyethylene through a crosslinking process. It offers enhanced chemical and stress crack resistance, toughness, and flexibility as compared to high-density polyethylene. These properties make XLPE highly suitable for pressure pipes in gas and water supply lines. Rising infrastructure development activities are propelling the pressure pipes segment which in turn is driving the overall cross linked polyethylene market.

The global Cross Linked Polyethylene Market is estimated to be valued at US$ 9.5 Billion in 2024 and is expected to exhibit a CAGR Of 3.3% over the forecast period 2024 To 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends boosting the cross linked polyethylene market is its increasing usage in power cables. XLPE has low thermal conductivity and offers high insulation properties which make it an ideal material for power cables. It provides excellent electrical insulation and mechanical strength over a wide range of operating temperatures. Owing to rapid urbanization and industrialization, there is growing demand for new transmission infrastructure and replacement of aging cables which is augmenting the use of XLPE in power cables. For instance, according to GlobalData, the global power cable market is projected to grow at a CAGR of 4.5% during 2021-2026. This will subsequently drive the demand for cross linked polyethylene in the coming years.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the cross linked polyethylene market is low as it requires huge capital investments and R&D to develop new production techniques.

Bargaining power of buyers: The bargaining power of buyers is moderate as cross linked polyethylene have applications in diverse industries; however, buyers can negotiate on price and quality standards.

Bargaging power of suppliers: The bargaining power of suppliers is low due to the presence of a large number of suppliers in the cross linked polyethylene market.

Threat of new substitutes: The threat of new substitutes is moderate as there are alternative products like high density polyethylene and linear low density polyethylene available in the market.

Competitive rivalry: The competitive rivalry in the cross linked polyethylene market is high due to the presence of numerous manufacturers globally.

Key Takeaways

The Global Cross Linked Polyethylene Market Demand   is expected to witness high growth. The global cross linked polyethylene market is estimated to be valued at US$ 9.5 billion in 2024 and is expected to exhibit a CAGR of 3.3% over the forecast period 2024 to 2031.

 

Regional analysis:

 

Asia Pacific dominates the global cross linked polyethylene market and is expected to grow at the fastest rate during the forecast period. The growth of the market in Asia Pacific can be attributed to the presence of emerging economies like China and India with expanding construction and infrastructure industries.

Key players:

 

Key players operating in the cross linked polyethylene market are DowDuPont Inc., Borealis AG, Arkema Group, ExxonMobil Chemical Company, LyondellBasell Industries NV, PolyOne Corporation, 3H Vinacom Co., Ltd., Falcone Specialities AG, Hanwha Chemical Corporation, and Polygreen Chemicals PTE Ltd.

Note:

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it