Cross Linked Polyethylene

Global Cross Linked Polyethylene Market Is Estimated To Witness High Growth

by

The Cross Linked Polyethylene market is estimated to be valued at US$ 5,323.1 Mn in 2022 and is expected to exhibit a CAGR of 7.47% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Cross linked polyethylene (XLPE) is a type of polyethylene where small amounts of other substances, known as cross linking agents, are introduced. It is used as an insulation for power cables in higher and medium voltage applications. XLPE has superior dielectric properties and stress cracking resistance as compared to PVC, making it suitable for underground cabling systems and overhead power lines.

Market Dynamics:

Cross Linked Polyethylene market is witnessing high growth owing to increasing construction activities across the globe and superior material properties of XLPE. Rising investments in transmission and distribution infrastructure projects by utilities to meet the growing demand for electricity is augmenting the market growth. Also, XLPE offers better electrical insulation, heat resistance, mechanical properties and life cycle as compared to traditional materials, which is further propelling its demand in the power cable industry. Moreover, XLPE overcomes many limitations of PVC such as moisture resistance and stress cracking, making it ideal for marine cables and offshore wind farm applications.

  • SWOT Analysis:

  • Strength:
    • Cross linked polyethylene has good mechanical strength, durability and stress crack resistance properties which makes it suitable for various applications.
    • It exhibits high density, impact resistance and chemical resistance which increases its usage in various end-use industries.
    • Low cost of production and easy availability of raw materials provides competitive advantage.
  • Weakness:
    • Vulnerable to fluctuations in raw material prices as it is derived from petrochemical sources.
    • Requires high compression ratio during processing which leads to high capital and energy costs.
  • Opportunity:
    • Growing demand from industries such as utilities, oil & gas and plumbing is expected to drive the market growth during the forecast period.
    • Increasing research and development activities to enhance properties of cross linked polyethylene for new applications can further boost the market.
  • Threats:
    • Availability of substitute products such as linear low density polyethylene acts as a major threat.
    • Stringent environmental regulations regarding plastic waste disposal can hamper the market growth.

Key Takeaways:

The Global Cross Linked Polyethylene Market Growth is expected to witness high, exhibiting CAGR of 7.47% over the forecast period, due to increasing demand from industries such as oil & gas, plumbing and utilities.

Regional analysis

North America dominates the global cross linked polyethylene market, accounting for around 35% of the overall market share. This is attributed to increasing investment in oil & gas pipeline infrastructure activities in the region. Asia Pacific exhibits the fastest growth on account of rapid industrialization and infrastructural developments in major economies like China and India.

Key players

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.

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