April 21, 2024

Cross Linked Polyethylene Market Propelled By Rising Infrastructural Development

The cross linked polyethylene market has been growing steadily over the years owing to rising infrastructural activities across both developed and developing nations. Cross linked polyethylene or XLPE is a closed-cell, lightweight polyethylene foam that exhibits excellent chemical and temperature resistance along with good electrical insulation. It is used as an insulating material for power cables used in telecommunication networks, energy transmission and distribution lines. The global cross linked polyethylene market is estimated to be valued at US$ 9.6 billion in 2030 and is expected to exhibit a CAGR of 3.3% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Rising infrastructural development has been a key growth driver for the cross linked polyethylene market. As both developed and developing countries undertake large scale infrastructure projects related to rail, road, energy and telecommunication networks, the demand for power cables has witnessed a significant uptick. Cross linked polyethylene due to its lightweight, durability and environmental stability characteristics has emerged as a preferred material for insulating power cables used in such infrastructure projects. The market has particularly benefitted from huge investments in developing countries to upgrade and expand national infrastructure. Continued focus on infrastructure across major economies is expected to propel the demand for cable and thereby drive growth of the cross linked polyethylene market over the forecast period.

SWOT Analysis
Strength: Cross linked polyethylene pipes and tubings exhibit high resistance to heat and chemicals. They also have very long lifespan and are durable.
Weakness: The manufacturing cost of cross linked polyethylene pipes and tubings is high compared to other alternatives. Installation of these pipes requires experienced labor.
Opportunity: Growing demand from oil & gas industry for transportation of crude oil and natural gas. Increasing spending on infrastructure development in developing nations.
Threats: Fluctuation in raw material prices affect the cost of cross linked polyethylene pipes. Easy availability of substitutes like HDPE pipes poses competition.

Key Takeaways
The global cross linked polyethylene market demand is expected to witness steady growth due to rising infrastructural development activities worldwide.

The Asia Pacific region dominates the market and is expected to grow at the fastest rate during the forecast period. Countries like China, India, Indonesia, and Malaysia are witnessing rapid urbanization and industrial development which is driving the demand for cross linked polyethylene pipes for water supply and sewerage applications.

Key players

operating in the cross linked polyethylene market include The Dow Chemical Company, Armacell International S.A., Borealis AG, LyondellBasell Industries Holdings B.V., Silon s.r.o., ExxonMobil Corporation, PolyOne Corporation, Akzo Nobel N.V., Arkema Group, The Lubrizol Corporation etc. These companies have strong distribution network and are focusing on new product development and capacity expansion strategies to strengthen their market position

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it