CROSS LINKED POLYETHYLENE MARKET ANALYSIS

Polyethylene is a low-cost commodity plastic that can be reused due to its thermoplastic nature. Cross-linking of polyethylene helps enhance its thermal resistance and the end product obtained is transformed from thermoplastic to thermosetting plastic.

Driver

High density polyethylene (HDPE) segment dominated the market in 2022 according to the stats provided by Coherent Market Insights. Cross-linked HDPE is gaining traction over raw HDPE due to its thermosetting nature, high mechanical strength, and better stress crack resistance. Furthermore, cross-linked HDPE can be produced economically, and thus finds wide application in domestic and industrial plumbing services. This, in turn, is fueling the growth of the global cross linked polyethylene market, a trend that is expected to sustain over the forecast period (2023-2030)

Market Overview

Plumbing was the largest application segment in the global cross linked polyethylene market in 2022 and is expected to retain its dominance throughout the forecast period. Conventionally used plumbing materials such as copper and PVC do not perform well in high temperatures and when highly chlorinated water is transported through them over prolonged periods. This is a key and highly lucrative growth area for manufacturers of cross-linked polyethylene to exploit. Thus, various players in the market are focusing on R&D activities to deploy cross-linked polyethylene (PEX) pipes for the supply of chlorinated water and for radiant heating applications. Also, other emerging applications such as the use of PEX pipes in mining activities and solar applications are also paving way for the growth of the cross-linked polyethylene market globally.

The global cross linked polyethylene market was valued at US$ 5,323.1 million and  in 2022 and is expected to expand at a CAGR of 7.47% in terms of revenue and 6.1% in terms of volume during 2023 – 2030.

Market Restraint:

If the PEX tubing exposed to sunlight, the molecular structure breakdown, which makes the piping become more fragile. It should be stored away from sunlight and needs to be protected from sunlight after installation. Exposed to sunlight may result in early tubing failure. This is why PEX is not preferred to be used in the exterior area and this is the factor which affect the growth of the cross –linked polyethylene market.

Covid-19 Analysis:

Companies who produce cross-linked polyethylene were forced to shut their production due to covid-19. The pandemic has led to the shortage of workers, and disruption of logistics in several PEX producing countries. This impacted breakage of supply chain of cross linked polyethylene market.

Figure 1. Global Cross Linked Polyethylene Market, By Application (2022)

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Automotive segment is expected to be the fastest-growing application area in the global cross linked polyethylene market

Among application, the automotive segment is expected to witness the fastest growth over the forecast period. Automotive sales in China grew by 15%, in the U.S. grew by 0.2%, and in Europe 7% Y-o-Y growth in 2022 Therefore, the automotive segment is expected to drive growth of the market due to the rapid growth in the automotive industry. PEX plumbing is a type of plastic tubing made from high density polyethylene. Apart from being the newest player in the water supply line game, PEX is also used for radiant floor heating tubing.

Figure 2. Global Cross Linked Polyethylene Market, Market Share by Type (2022)

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 The industry can be divided on the basis of its type as high-density polyethylene (HDPE) and low-density polyethylene (LDPE), among others. The industry can be divided based on its processes as chemical and physical.

Regional Insights

Asia Pacific, followed by North America and Europe, accounted for a major share in the global cross linked polyethylene market both in terms of revenue and volume in 2022, and the trend is estimated to remain the same over the forecast period. In 2022, Asia Pacific held a share of 47.68% in terms of volume. The growing demand for plumbing in Asia Pacific, due to the growing population, increased urbanization, and growth in commercial sector, is expected to drive the growth of the global cross linked polyethylene market over the forecast period. According to a study conducted by Coherent Market Insights, the global plumbing market is expected to witness a CAGR of 6.3% from 2017 to 2025 which is expected to fuel the global cross linked polyethylene market. Growing urbanization and increasing construction activities especially in emerging economies of India, China and other countries in Latin America is a major factor fueling demand for effective plumbing works, subsequently fueling the growth of the cross-linked polyethylene market. For instance, as per statistics released by India Brand Equity Foundation (IBEF)—a Trust in 2022 established by the Department of Commerce, Ministry of Commerce and Industry, Government of India—the Indian government plans to invest US$ 376.53 billion in infrastructure development over the following three years.

Multinational players

Major players in the global cross linked polyethylene market include ExxonMobil Chemical Company, LyondellBasell Industries, 3H Vinacom Co., Hanwha Chemicals, Arkema Group, AkzoNobel N.V., Falcone Specialities AG, Borealis AG, and PolyOne Corporation.