Cross Linked Polyethylene Market Poised for Significant Growth Due to Rising Usage in Pipes & Fittin

Author : CMI Blogging | Published On : 16 Apr 2024

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.

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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