The global cross-linked polyethylene (XLPE) market is predicted to grow from $ 6.4 billion in 2020 to $ 8.5 billion in 2025, with a compound annual rate of 6.1% during the foreseen period.
This expansion is attributed to growing call in the automotive and energy sectors, as well as the expansion of the construction industry in developing economies. Furthermore, the solar industry is predicted to play a leading role in the XLPE industry as producers continually seek to replace conventional materials. Polyethylene is a low-cost basic plastic that can be reused and remodeled due to its thermoplastic nature. Crosslinking of polyethylene helps to produce a polymer that exhibits high molecular weight, which improves the abrasion resistance, heat resistance, impact resistance, and environmental stress cracking resistance of polyethylene without affecting its resistance to weathering traction and its density. Also, after crosslinking, the final product is transformed from a thermoplastic to a thermoset plastic material with high mechanical strength. XLPE finds applications in plumbing, pipe, and wire and cable.
Depending on the type, high-density polyethylene (HDPE) is a prominent segment of the crosslinked polyethylene industry. Cross-linked HDPE is in high call due to its thermoset nature, which offers better mechanical strength and resistance to stress cracking compared to traditional HDPE. In addition, crosslinked HDPE is widely used in the production of pipes and tubes for transporting gases and hot/cold water, and its low cost makes it a rapidly growing segment of the crosslinked polyethylene industry.
A group of leading European material manufacturers and equipment technology developers, together with Borealis, a leading provider of innovative and value-creating plastic solutions, have come together to design a one-step production process for polyethylene Crosslinked High performance peroxide pipes (PE-Xa).
The expansion of the worldwide cross-linked polyethylene industry is primarily due to its strong call in piping systems, water service pipes, and heating and cooling systems. This polymer quickly replaces copper tubes and pipes due to its high flexibility, low cost, high resistance to corrosion and ability to withstand a wide range of temperatures. Another important factor driving the expansion of the worldwide cross-linked polyethylene industry is the widespread use of XLPE in wire and cable. Furthermore, the escalating adoption of XLPE foam in the medical industry in packaging applications to protect surgical instruments, implants and other surgical devices from damage is predicted to create enormous opportunities for XLPE producers.
There is a shift towards using polypropylene pipes instead of XLPE pipes due to the risk of leakage and release of organic carbon and VOCs, which is likely to represent a significant challenge for industry players.
The automotive industry is also contributing to the expansion of the cross-linked polyethylene industry. For power transmission and distribution channels, cross-linked polyethylene is widely used for manufacturing battery cables and auto parts. Call is predicted to continue to grow due to the increase in hybrid and electronic cars.
Fluctuations in crude oil prices are also predicted to pose a challenge to XLPE production. Plumbing disaster risk and various safety concerns are limiting the expansion of the worldwide cross-linked polyethylene industry.
Cross-Linked Polyethylene Market By type:
HDPE was the dominant segment in 2018 due to its escalating application in pipes and tubes. In addition, it is easy to install and does not corrode and has a high flexural strength. LDPE is mainly preferred in plastic packaging like grocery bags and plastic packaging. It also finds application in wires and cables.
Cross-Linked Polyethylene Market By technology:
The peroxide segment had the largest industry share in 2020 and will likely post the highest CAGR during the review period due to its ability to produce the highest and most consistent degree of crosslinking. Additionally, this method also offers resistance to stress cracking and harsh chemicals.
Cross-Linked Polyethylene Market By process:
The chemical segment accounted for the largest industry share in 2020 as it resulted in more efficient XLPE production compared to the physical process. The physical segment is predicted to exhibit a healthy CAGR due to its ability to produce XLPEs that are widely used in the medical industry for implantation of prostheses in body parts.
Cross-Linked Polyethylene Market By application:
The plumbing segment had the largest industry share in 2020, due to the growing call for XLPE in water and sewerage distribution networks. The wire and cable segment is predicted to record the highest CAGR due to the expansion of the electronics and telecommunications industries.
The Cross-Linked Polyethylene Market Report includes the segmentation of Regions with their respective Countries.
APAC is predicted to be the largest and fastest growing XLPE industry. This expansion is attributed to rapid economic growth, the increasing opportunities in the industry, escalating urbanization, and the rapid development of construction infrastructure. In addition, escalating consumption of plastic pipes is predicted due to natural gas production and spending on construction of residential and non-residential buildings in major APAC countries such as Japan, Australia, and China. Furthermore, the constant improvement of construction spending in emerging countries such as India and Indonesia and the improvement of investment in industrial and public infrastructure are the main factors responsible for the expansion of the industry. The need for extremely consistent, corrosion resistant quality tubing for residential and industrial purposes has also had a positive impact on the XLPE industry in this region.
The expansion of the North American cross-linked polyethylene industry is driven by the escalating use of XLPE in plumbing applications in residential buildings and industries. The United States is predicted to be the main industry in the region. The expansion of the European industry is predicted to be driven by escalated automotive production and the growing call for XLPE in medical packaging solutions and dental materials. Industry expansion in the Middle East and Africa will likely be driven by expansion in the automotive and construction industries. The expansion of the cross-linked polyethylene industry in the region is mainly due to the growing call for XLPE in plumbing and water distribution systems
The Dow Chemical Company (US), Borealis AG (Austria), Solvay (Belgium), LyondellBasell (Netherlands), ExxonMobil Corporation (US), PolyOne Corporation (US), 3H Vinacom Co., Ltd. (Vietnam), Falcone Specialities AG (Switzerland), Hanwha Chemical Corporation (South Korea), and HDC Hyundai EP (South Korea) are the dominating players working in the XLPE industry.
1.1 Market Definition
1.2 Study Deliverables
1.3 Base Currency, Base Year and Forecast Periods
1.4 General Study Assumptions
2. Research Methodology
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Econometric Modelling
2.2.4 Expert Validation
2.3 Analysis Design
2.4 Study Timeline
3.1 Executive Summary
3.2 Key Inferences
4. Drivers, Restraints, Opportunities, and Challenges Analysis (DROC)
4.1 Market Drivers
4.2 Market Restraints
4.3 Key Challenges
4.4 Current Opportunities in the Market
5. Market Segmentation
5.1.2 High Density Polyethylene (HDPE)
5.1.3 Low Density Polyethylene (LDPE)
5.1.4 Y-o-Y Growth Analysis, By Type
5.1.5 Market Attractiveness Analysis, By Type
5.1.6 Market Share Analysis, By Type
5.2.3 Wires & Cables
5.2.5 Y-o-Y Growth Analysis, By Application
5.2.6 Market Attractiveness Analysis, By Application
5.2.7 Market Share Analysis, By Application
5.3.4 Y-o-Y Growth Analysis, By Process
5.3.5 Market Attractiveness Analysis, By Process
5.3.6 Market Share Analysis, By Process
5.4.3 Silane Grafting
5.4.4 Electron Beam
5.4.5 Y-o-Y Growth Analysis, By Technology
5.4.6 Market Attractiveness Analysis, By Technology
5.4.7 Market Share Analysis, By Technology
6. Geographical Analysis
6.1.1 Regional Trends
6.1.2 Impact Analysis
6.1.3 Y-o-Y Growth Analysis
18.104.22.168 By Geographical Area
22.214.171.124 By Type
126.96.36.199 By Application
188.8.131.52 By Process
184.108.40.206 By Technology
6.1.4 Market Attractiveness Analysis
220.127.116.11 By Geographical Area
18.104.22.168 By Type
22.214.171.124 By Application
126.96.36.199 By Process
188.8.131.52 By Technology
6.1.5 Market Share Analysis
184.108.40.206 By Geographical Area
220.127.116.11 By Type
18.104.22.168 By Application
22.214.171.124 By Process
126.96.36.199 By Technology
6.2 North America
6.1.2 United States
6.3.6 South Korea
6.5 Latin America
6.4.5 Rest of Latin America
6.6 Middle East & Africa
7. Strategic Analysis
7.1 PESTLE analysis
7.2 Porter’s Five analysis
7.2.1 Bargaining Power of Suppliers
7.2.2 Bargaining Power of Consumers
7.2.3 Threat of New Entrants
7.2.4 Threat of Substitute Products and Services
7.2.5 Competitive Rivalry within the Industry
8. Market Leaders' Analysis
8.1 The Dow Chemical Company
8.1.2 Product Analysis
8.1.3 Financial analysis
8.1.4 Recent Developments
8.1.5 SWOT analysis
8.1.6 Analyst View
8.2 Borealis AG
8.3 ExxonMobil Chemical Company, Inc.
8.4 LyondellBasell Industries
8.5 Arkema Group
8.6 PolyOne Corporation
8.7 AkzoNobel N.V.
8.8 Hanwha Chemicals
8.9 3H Vinacom Co., Ltd
8.10 Falcone Specialities AG
9. Competitive Landscape
9.1 Market share analysis
9.2 Merger and Acquisition Analysis
9.3 Agreements, collaborations and Joint Ventures
9.4 New Product Launches
10. Market Outlook and Investment Opportunities
a) List of Tables
b) List of Figures