Cross Linked Polyethylene Market Growth Accelerating at 7.47% CAGR

Market Overview:

Cross linked polyethylene (XLPE) is a polyethylene thermoplastic manufactured by cross-linking polyethylene. It helps in improving the durability and strength of the material. XLPE is non-polar and non-reactive in nature. It has several beneficial properties such as chemical and corrosion resistance, high tensile strength and flexibility. Due to these properties, XLPE is widely used for manufacturing insulated cables. It is also used as a coating for electric wires, pipes and in linings for underground tanks. The non-reactive nature and durability of XLPE makes it ideal for use in applications requiring long service life.

Market key trends:

One of the key trends witnessed in the global cross linked polyethylene market is its increasing consumption in utility cables and wires. XLPE possesses excellent electrical insulation properties along with high dielectric strength, ensuring protection from short circuits. Its inorganic inorganic chemical structure makes it suitable for cables and wires used in high voltage transmission and distribution lines. Stringent government regulations pertaining to cable reliability and safety have further propelled the replacement of older cables with XLPE insulated ones. With growing investments into upgrading electric grids around the world, demand for XLPE insulated cables is expected to rise at a steady pace over the forecast period.

Porter's Analysis:

·         Threat of new entrants: The cross linked polyethylene market requires high investment for raw material and machinery. This creates entry barriers for new players.

·         Bargaining power of buyers: Large buyers have significant influence over prices due to high bargaining power. They can play suppliers against each other.

·         Bargaining power of suppliers: Few suppliers exist for key raw materials used to produce cross linked polyethylene. This gives them bargaining power over prices.

·         Threat of new substitutes: Some alternative materials like linear low density polyethylene pose threat of substitution. However, properties like abrasion resistance make cross linked polyethylene irreplaceable for certain applications.

·         Competitive rivalry: The market has presence of many international players. Intense competition keeps pricing pressure on companies.

Key Takeaways:

The Global Cross Linked Polyethylene Market Size is expected to witness high growth, exhibiting CAGR of 7.47% over the forecast period, due to increasing demand from construction and automotive industries. Cross linked polyethylene finds wide usage in wire and cable insulation, healthcare products, pressure pipes etc.

Regional analysis: Asia Pacific dominates the global cross linked polyethylene market and is expected to continue its dominance during the forecast period. Growing construction and automotive industries in China and India are major drivers of demand. North America and Europe follow Asia Pacific in terms of market share.

Key players operating in the cross linked polyethylene market are ExxonMobil Chemical Company, LyondellBasell Industries, 3H Vinacom Co., Hanwha Chemicals, Arkema Group, AkzoNobel N.V., Falcone Specialities AG, Borealis AG, and PolyOne Corporation. ExxonMobil Chemical and LyondellBasell are market leaders due to their large production capacities and global presence. 3H Vinacom is a leading Chinese producer while Hanwha Chemicals and Borealis have strong presence across Asia and Europe respectively.

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