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| Cross Linked Polyethylene Market Growth |
Cross linked polyethylene is a polyethylene thermoplastic vulcanizate that has
elastic behavior similar to thermoset rubber but can be processed like ordinary
thermoplastic. It has superior chemical resistance, stress crack resistance and
high creep resistance making it suitable for use in wide range of applications
such as pipe & fittings, wires & cables, coatings and others. Rapid
urbanization and growth of construction industry has increased the demand for
reliable piping systems which drives the demand for cross linked polyethylene
in pipes and fittings industry.
The global cross linked polyethylene market is
estimated to be valued at US$ 6590.3
million in 2024 and is expected to
exhibit a CAGR of 3.3% over the forecast period from 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. These players are focusing on
expansion of production facilities and new product development to gain
competitive edge in the market.
The rising applications of cross linked polyethylene in pipe fittings industry
presents lucrative growth opportunities for market players. Growing
construction of oil & gas pipelines and rehabilitation of aging water
supply networks across regions also augments the market opportunities.
The global players are expanding their presence in emerging economies of Asia
Pacific and Latin America to tap the growing demand for piping solutions from
water management and infrastructure development projects. Collaborations with
local partners help establish strong distribution and aftermarket service
networks in these regions.
Market Drivers
Growing construction and infrastructure development activities are the key
drivers for cross linked polyethylene market. Rapid urbanization and rise in
population has increased the investments in development of oil & gas
pipelines, water supply networks and construction of new residential &
commercial buildings which drives the demand for reliable piping solutions.
Market Restraints
Fluctuating raw material prices especially of petroleum based feedstocks can
hamper the market growth. Strict environmental regulations regarding recycling
at end-of-life and adverse impact of plastic pollution also pose restraints
over the demand.
Segment Analysis
The cross linked polyethylene market is dominanted by the pipes and fittings
segment. This segment accounts for over 30% of the total market share owing to
rising demand from the oil and gas industry. Cross linked polyethylene is
extensively used to manufacture pipes due to its durability, chemical
resistance, stress cracking resistance and longevity in stressful environments
like seawater. In the pipes and fittings segment, pressure pipes dominate the
market as cross linked polyethylene pipes have high demand in the
transportation of natural gas, crude oil, water, sewage and slurries.
Global Analysis
The Asia Pacific region dominates the global cross linked polyethylene market
and accounts for more than 40% of the total market share. Rapid
industrialization and infrastructural development activities coupled with large
oil and gas reserve bases in countries such as China and India is driving the
market in this region. China leads the market owing to its large production
base of pipes and fittings. North America is another major market for cross
linked polyethylene due to rising shale gas extraction activities. The US
accounts for a major demand for cross linked polyethylene pipes used in onshore
and offshore oil and gas pipelines. Europe is also a significant regional
market however its market growth is slow owing to stringent environmental
regulations regarding plastic products.
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