Cross-Linked-Polyethylene (XLPE) Market Research Report - Global Forecast till 2030

Cross-Linked Polyethylene (XLPE) Market Research Report: By Type (High-Density Polyethylene, Low-Density Polyethylene, Others), By Technology (Peroxide Method, Silane Grafting Method, Electron Beam Processing), By Process (Chemical, Physical) and By Application (Plumbing, Wires & Cables, Medical, Chemical, Automotive, Others) – Forecast to 2030

ID: MRFR/CnM/6703-HCR | October 2022 | Region: Global | 185 Pages         

Cross-Linked Polyethylene Market

Crossed-Linked Polyethylene (PEX / XLPE) Market is projected to be worth USD 10.27 billion by 2030, registering a CAGR of 7.81% during the forecast period (2021 - 2030), The market was valued at USD 5.73 billion in 2020.

Segmentation

By Type High Density Polyethylene Low Density Polyethylene Others
By Technology Peroxide Method Silane Grafting Method Electron Beam Processing
By Application Plumbing Wires & Cables Medical Chemical Automotive Others

Key Players

  • Borealis AG (Austria)
  • Solvay (Belgium)
  • LyondellBasell Industries Holdings B.V. (The Netherlands)
  • PolyOne Corporation (US)
  • Exxon Mobil Corporation (US)
  • 3H VINACOM CO.
  • LTD (Vietnam)
  • Falcone Specialities AG (Switzerland)
  • HDC HYUNDAI EP COMPANY (South Korea)
  • SACO AEI Polymers (US)
  • SANKHLA POLYMERS PVT LTD (India)
  • SILON s.r.o. (Czech Republic)
  • Charloma Inc (US)

Drivers

  • Increasing demand for XLPE in plumbing applications
  • Widespread use in wires & cables
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Cross-Linked Polyethylene (XLPE) Market Overview


Crossed-Linked Polyethylene (PEX / XLPE) Market is projected to be worth USD 10.27 billion by 2030, registering a CAGR of 7.81% during the forecast period (2021 - 2030), The market was valued at USD 5.73 billion in 2020.


An irregular crystalline structure made up of durable thermoplastic and is very lightweight is known as polyethylene. Cross-linked polyethylene is a thermosetting resin with three types of cross-linking: peroxide cross-linking, radiation cross-linking, and silane cross-linking. It holds a high molecular weight which improves the impact strength, environmental stress cracking resistance of polymer, abrasion resistance without altering the tensile strength and density. Cross-linked polyethylene is principally utilized in the pipe and in the plumbing industry as a replacement for traditional materials such as copper, galvanized steel, PVC piping, owing to their rusting and cost of circulation. 


Due to the flexibility of the polymer, it is quickly replacing the copper pipes and tubes. It is much cheaper, resists corrosion and shows an extensive useful temperature range. Another most important function of the polymer is in the mining industry. Cross-linked polyethylene is also taking chemical storage tanks due to its high strength and heat, and chemical resistance. Its use in wear resistance joints is also examined currently. Some of the other important function of the polymer includes dental materials, automotive ducts and housings, canoes and kayaks. 


Covid-19 analysis


The outbreak of covid-19 has caused worldwide panic and economic imbalance for consumers, businesses and communities globally. The tier 1 and tier 2 companies, those who were involved with theCross-Linked polyethylene market in the production department, were forced to shut down their activities. The pandemic has led to the stoppage of production, shortage of workers and disruption of logistics in several PEX producing countries. All of these impacted in breakage of the supply chain of the Cross-Linked polyethylene market as the operation has slowed down in many manufacturing units. The pandemic has negatively impacted the end-use industries such as automotive, construction, chemicals, packaging, and consumer goods. These are the industries that require a strong distribution network and high transportation activities. Due to strict regulations implemented by the government, the lockdowns and the ban on transportation across several countries, these end-use industries cannot meet user requirements, thus weakening the growth of the Cross-Linked polyethylene market. The market is expected to have slow growth until the second quarter of 2020, as the lockdown and shutdowns continue in many regions across the world. The demand for PEX in the medical & healthcare industry will fuel the market in the virus outbreak.


Chief Factors Existing In The Market



Key Market Drivers

The most fastest-growing application segment in the global Cross-Linked polyethylene market is automotive. The use of Cross-Linked polyethylene in the production of automobile parts and components is driving the Cross-Linked polyethylene market growth. However, with the declination of the market share of PVC, the probability of other materials, PEX for insulation in automotive wires and cables, is predicted to increase during the estimated period. The increasing demand for XLPE in plumbing applications and the widespread use of wires and cables are the major drivers of the Cross-Linked polyethylene market.

Market challenges

The fluctuation in crude oil prices puts the Cross-Linked polyethylene manufacturers in a complex situation, which in turn affects the profitability models. The major manufacturers control more than half of the Cross-Linked polyethylene market share. As a result, there is severe competitive pressure on major manufacturers to reduce the price to gain Cross-Linked polyethylene market value. The change in crude oil prices in the last few years have heavily affected the polymer value chain and caused a similar trend in the unit prices of the basic raw materials, primarily polyethylene which directly affects the Cross-Linked polyethylene market. 

Market opportunities

Cross-linked HDPE states a major share in the Cross-Linked polyethylene market. The more density of the material, along with better chemical resistance and strength, creates an extra opportunity for the sales of the products. The rising demand for pipes and tubing will gradually improve product piercing in the Cross-Linked polyethylene market for cross-linked HDPE due to its unique properties. The extensive utilization and lower cost in pipes & tubes production due to their usage in hot/cold water and gases transportation is enhancing the product demand. Therefore an upward application trend in numerous areas will promote growth opportunities for the cross-linked polyethylene market.

Market restraints

The PEX tubing cannot be used in applications exposed to sunlight as it degrades speedily. If the PEX tubing is exposed to sunlight, the molecular structure breakdowns, which makes the piping become more rupture and fragile. Installation should be a priority, and it must be stored away from sunlight and needs to be protected from sunlight after installation. Leaving it exposed directly exposed to sunlight for as little as 30days may result in early tubing failure due to embrittlement. This is the reason why PEX is not preferred to be used in the exterior areas or locations that are exposed to sunlight. This is the restraining factor that affects the growth of the cross-linked polyethylene market.

Cumulative Evaluation Of The Market 


Cross-linked Polyethylene market size is projected to be worth USD 10.27 billion by 2030, registering a CAGR of 7.81% during the forecast period (2021 - 2030), The market was valued at USD 5.73 billion in 2020. Strong demand from the plumbing industry and the wires and cables manufacturing sector are the key factors expected to have a positive impact on the market in the upcoming years. The rising demand for weather, heat, and moisture resistant materials that provides better protection to wires to transfer energy effectively and efficiently is one of the key factors expected to drive the demand for cross-linked polyethylene over the upcoming years.


Market Segmentation 


The global Cross-Linked Polyethylene Market is segmented on the basis of Type, Technology, Applications, And Geography.


Under the type, The market is divided into Low-Density Polyethylene , Medium-Density Polyethylene, and High-Density Polyethylene. The High-Density Polyethylene segment is expected to report the highest share. The benefits which it provides, such as lightweight, cost-effective and ease of installation, are the reason why it can be assigned to a wide range of applications such as in plumbing and construction of pipelines.


Under the technology, the market is divided into Peroxide, Silane Grafting, and Electron Beam Processing. The Peroxide segment is expected to report the highest share. 


Under the applications, the market is divided into Wires and Cables, Automotive, Plumbing, Medical, and Others. The Wires and Cables segment is expected to report the highest market share. 


Under the regional analysis, the global Cross-Linked Polyethylene Market is divided into North America, Europe, Asia Pacific, and the Rest of the world. The Asia Pacific is expected to report the highest market share. 


Regional Analysis


According to Cross-Linked Polyethylene Market Analysis, the Asia Pacific is reported for more than 2/5th of the overall market by the end of 2018 due to the rising infrastructure activities in developing nations such as India and China. The increasing development of sewer systems, natural gas production units, expansion of pipelines etc. is found to be some of the major key factors assisting the cross-linked polyethylene demand over the upcoming years.


In European countries, the use of cross-linked polyethylene is expected to have moderate growth due to the rising demand from the automotive sector, particularly for thermal insulation, interior parts, gaskets, seals, etc.


North America in the market is reported for a small share by 2018; however, it is expected to grow at below average rate during the estimated years, supported by a positive outlook of the wires and cables industry in the U.S.


Competitive Intensity Within The Industry


Manufacturers are expected for significant investments in R&D and apply innovative solutions through advanced technology for achieving a competitive advantage. Companies are adopting a number of mergers and acquisition strategies to achieve their cross-linked polyethylene market share. In June 2018, Polyone Corporation, a leading manufacturer of specialized and advanced polymer materials, acquired Plasticomp. The acquisition will expand the company’s footprint into the LFT composites segment.Some of the key main players are Silon S.R.O., The DOW Chemical Company, Lyondellbasell Industries N.V., AkzoNobel N.V., Viacom Co., Ltd., ExxonMobil, Chemical Company Inc., Arkema Group, Borealis AG. Other prominent industry players are Falcone Specialities AG, Zimmer Inc., Hanwha Chemical, Polyline Polymers Ltd., Vanderbilt Chemicals LLC, Polyone Corporation. This enhances the growth and Cross-Linked Polyethylene market outlook.


Recent Market Developments



Jan 2022 Uponor North America will join Plumbing Manufacturers International in early 2022 and collaborate with other PMI members to address labor, supply chain, sustainability, and other issues. According to Olinger, Uponor's principal product offering is cross-linked polyethylene — or PEX-a — plumbing and heating systems for residential and commercial uses. Uponor has recently begun to provide PP-RCT, a large-diameter mechanical plumbing solution that integrates flawlessly with PEX systems.

Dec 2021 According to the contracting authority, Bulgaria's Power Distribution South, a subsidiary of Austrian energy giant EVN, has given a 7.5 million levs ($4.3 million/3.8 million euro) contract to deliver conductors to a local consortium led by enterprises Filkab and Tilkom. The collaboration will be in charge of supplying five different types of twisted conductors for air suspension with cross-linked polyethylene insulation for 0.6/1 kV voltage. The agreement was inked on December 9th. The tender received bids from five bidders, ranked only on price. Electrical Distribution South manages the power system in Bulgaria's southern and southern-eastern regions.

Report overview


This report contains all the data of the market, such as market overview, covid-19 analysis and how it affects the market, the key drivers, the market opportunities, theCross-Linked Polyethylene market forecast, the key drivers, the challenges that the market face, the market restraints, the market segmentation, the regional analysis, the competitive landscape, report overview and recent development of the market.


Key Industrial Segments



  • By type


 Low-Density Polyethylene 


 Medium-Density Polyethylene 


  High-Density Polyethylene 



  • By technology


Peroxide



  • Silane Grafting

  • Electron Beam Processing



  • By applications


Wires and Cables


Automotive


Plumbing


Medical


Others



Report Scope:

Report Attribute/Metric Details
  Market Size   2030: USD 10.27 Billion
  CAGR   7.81%(2021-2030)
  Base Year   2020
  Forecast Period   2020-2030
  Historical Data   2019
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Type, Technology, Process and Region
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Borealis AG (Austria), Solvay (Belgium), LyondellBasell Industries Holdings B.V. (The Netherlands), PolyOne Corporation (US), Exxon Mobil Corporation (US), 3H VINACOM CO., LTD (Vietnam), Falcone Specialities AG (Switzerland), HDC HYUNDAI EP COMPANY (South Korea), SACO AEI Polymers (US), SANKHLA POLYMERS PVT LTD (India), SILON s.r.o. (Czech Republic), Charloma Inc (US)
  Key Market Opportunities   The widespread usage of XLPE in wires & cables is another important factor propelling the growth of the global cross-linked polyethylene market.
  Key Market Drivers

  • Increasing demand for XLPE in plumbing applications.
  • Widespread use in wires & cables


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    Frequently Asked Questions (FAQ) :

    The global XLPE market is expected to rise to USD 10.27 billion by 2028.

    The market is expected to exhibit a strong 7.81% CAGR over the forecast period from 2021 to 2028.

    Increasing use in the production of pipes, wires and cables, and solar panels is the major driver for the XLPE market.

    Asia Pacific dominates the global XLPE market.

    Leading players in the XLPE market include Borealis AG, Solvay, and Hanwha Chemical Corporation, among others.