by Cross linked polyethylene (XLPE) finds wide usage in various end use industries such as plumbing, electrical & electronics, and wires & cables owing to its properties such as high tensile strength, chemical resistance, and durability. XLPE is extensively used for manufacturing pressure pipes, insulation of power cables, and wire & cable coverings. The growing construction and infrastructure development activities across the globe are fueling the demand for reliable and durable piping and wiring systems, which in turn is driving the sales of XLPE.
The global Cross Linked Polyethylene Market is estimated to be valued at US$ 6590.3 Mn in 2024 and is expected to exhibit a CAGR of 3.3% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends gaining traction in the cross linked polyethylene market is the increasing consumption of cross linked polyethylene in electrical and telecommunication cables. XLPE provides high dielectric strength, excellent voltage endurance, and resistance to thermal oxidation, making it a preferred material for insulation in power cables. The surging investments in power transmission and distribution infrastructure across developing nations are propelling the demand for XLPE insulated cables. Moreover, the growing adoption of 5G networks is augmenting the usage of fiber optic cables sheathed with XLPE for signal transmission. The superior insulation and weather resistance properties of XLPE ensure longevity of such cables.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the cross linked polyethylene market is moderate. High capital requirements for setting up a new manufacturing plant act as a barrier for new players.
Bargaining power of buyers: The bargaining power of buyers in the cross linked polyethylene market is low. Buyers have limited options and switching costs are high in this market.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Raw material suppliers have strong influence due to availability of raw materials.
Threat of new substitutes: The threat of substitutes is low. Cross linked polyethylene offers superior performance over other substitutes like LDPE, HDPE.
Competitive rivalry: The intensity of competition is high among major players in the market.
Key Takeaways
The global cross linked polyethylene market is expected to witness high growth. Global Cross Linked Polyethylene Market Size is estimated to be valued at US$ 6590.3 Mn in 2024 and is expected to exhibit a CAGR of 3.3% over the forecast period 2024 to 2031.
Regional analysis: Asia Pacific region dominated the global cross linked polyethylene market in 2021 and is expected to continue its dominance during the forecast period. China is the largest producer and consumer of cross linked polyethylene globally.
Key players: Key players operating in the cross linked polyethylene market 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. Key players are focusing on expanding their production capacities to cater to the growing demand for cross linked polyethylene.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
