Cross Linked Polyethylene Market Is Expected To Be Flourished By Growing Construction Industry

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Cross linked polyethylene or XLPE is a highly cross linked polyethylene. It is used as an insulating material in power cables. XLPE is known for its insulation, moisture resistance and dielectric properties. It is used as an insulating layer in power cables used in medium to high voltage transmission and distribution networks. The global power cable industry has been growing steadily with increasing investments in power transmission and distribution infrastructure around the world. particularly in developing countries. The growing construction industry worldwide especially residential and commercial construction has also augmented the demand for power cables boosting the cross linked polyethylene market.

The global cross linked polyethylene Market is estimated to be valued at US$ 8.2 billion in 2023 and is expected to exhibit a CAGR of 3.3% over the forecast period 2023 to 2028, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
The growing construction industry has been a major driver for the cross linked polyethylene market. Rapid urbanization and industrialization have increased the demand for reliable power supply. This has augmented investments in transmission and distribution infrastructure which uses XLPE insulated power cables extensively. According to United Nations, worldwide urban population is expected to increase by 60% by 2030. Also, private construction spending in countries like China, India and Africa is witnessing strong growth over last few years. This is expected to boost the demand for cross linked polyethylene over the forecast period. Further, the opportunity highlighted in heading i.e. growing construction industry will continue to flourish the cross linked polyethylene market by increasing demand for power cables used extensively in infrastructure projects.

Segment Analysis
The global Cross Linked Polyethylene market is segmented on the basis of type and application. On the basis of type, the market is divided into high density polyethylene and low density polyethylene. The high density polyethylene segment dominates the market accounting for nearly 65% share owing to its widespread usage in wires and cables applications. The high strength and durability of HDPE makes it suitable for usages where longevity and resistance to moisture is required.

PEST Analysis
Political: There are no major political risks affecting the Cross Linked Polyethylene market globally. Most countries support growth of construction and infrastructure industries which drive the market.
Economic: The market is expected to grow at a steady pace aligning with the stable economic conditions worldwide. Growth in end use industries such as construction will contribute to market growth.
Social: Rising population and rapid urbanization have increased infrastructure development globally. This will drive demand from construction applications of Cross Linked Polyethylene.
Technological: Developments in cross linking technologies have improved characteristics of XLPE such as stress cracking resistance. This has increased its usage in wires and cables replacing PVC.

Key Takeaways
The global Cross Linked Polyethylene market share is expected to witness high growth.

Regional analysis:

The Asia Pacific region currently dominates the Cross Linked Polyethylene market and is expected to maintain its leading position during the forecast period. China, India and other South Asian countries are witnessing rapid industrialization and infrastructure growth which will propel the demand for XLPE from various end use industries in the region.

Key players

related content comprises Key players operating in the Cross Linked Polyethylene market are The Dow Chemical Company, Borealis AG, Lyondellbasell Industries N.V., Polyone Corporation, Arkema Group.

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