Low-density Poly Ethylene (LDPE) is the most commonly used polyethylene. It is produced using two popular processes, the tubular process and the autoclave process. Low-density poly ethylene is widely used across the packaging, pharmaceutical, textile, constriction, and the automotive industries. LDPE is used in the production of packaging films, dispensing bottles, and milk cartons owing to its excellent properties of chemical and heat resistance, flexibility, and durability. Moreover, in the food industry, it is used in the packaging of food products as it can easily hold the product without releasing harmful chemicals.
The Low-density Polyethylene (LDPE) market was estimated to be valued at over US$ 44.5 Billion in terms of revenue in 2022 and is predicted to grow at a CAGR of 5.8% over the forecast period (2023 to 2030)
Drivers
Increasing usage of LDPE in the automobile sector
The rising use of LDPE across the automotive industry in the manufacturing of upholstery, electrical components, and liquid reservoirs is expected to foster the market growth. The growing use of lightweight plastic in the manufacturing of automotive interior due to strict regulations pertaining to vehicular emissions is further projected to accelerate the market growth. Thus, growth in the automotive industry will favor the LDPE market growth.
Market Opportunities
The emerging applications of low-density polyethylene in injection molding, molded laboratory equipment, and adhesive laminates is expected to boost the LDPE market growth. Moreover, the growing use of LDPE in medical films is further expected to augment the low-density polyethylene market growth over the forecast period.
Market Restraints
Fluctuating raw material prices used in the manufacturing of LDPE
The fluctuating prices of raw materials used in the production of LDPE is expected to hinder the market growth over the forecast period. Instability in the production of crude oil directly impacts the supply and price of raw materials. Crude oil is one of the key products used in the manufacturing of LDPE.
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Key Takeaways
On the basis of technology, the tubular section dominated the Low-density Poly Ethylene (LDPE) market growth in 2020 with over 63% of the market share in terms of revenue, followed by the autoclave segment.
Market Trends
Increasing investments in the petrochemical industry are expected to accelerate the low-density polyethylene market growth. Increasing urbanization coupled with growth in the production of polymers is further estimated to augment the low-density polyethylene market growth over the forecast period.
The market for LDPE is anticipated to develop as more modern tubular reactor technologies are used to manufacture LDPE instead of autoclave reactors. Issues associated with autoclave reactor technology, such as high installation and operational costs, is encouraging manufacturers to use this technology, and thus propelling the market growth.
Competitive Section
The key players operating in the Low-density Poly Ethylene (LDPE) market are LyondellBasell Industries N.V, ExxonMobil Corporation, The Dow Chemical Company, Saudi Basic Industries Corporation, BASF-YPC Company Limited, Qatar Petrochemical Company Q.S.C, LG Chem Ltd., E.I. du Pont de Nemours and Company, Braskem S.A., and Formosa Plastics Corporation.
