by Cross linked polyethylene (XLPE) is widely used in insulation of electric power cables as it offers high dielectric strength, flexibility, chemical resistance, long working life and easy processability. XLPE finds application as cable insulation due to its high temperature stability, good electrical properties and moisture resistance. Owing to its superior chemical properties, it protects transmission lines from moisture penetration as well as other environmental contaminants. Rising power transmission projects worldwide is another key factor augmenting the demand for cross linked polyethylene cable insulation.
The global Cross Linked Polyethylene Market is estimated to be valued at US$ 7.6 billion in 2023 and is expected to exhibit a CAGR of 7.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends
One of the major trends witnessed in the cross linked polyethylene market is the growing use of XLPE in oil and gas pipelines. Cross linked polyethylene provides corrosion resistance to pipelines and reliability of operation across varying climatic conditions. Moreover, it reduces fugitive emissions and offers greater flexibility for future expansion. With rising offshore activities and new pipeline projects coming up globally, the consumption of XLPE for pipeline insulation is expected to surge substantially over the coming years. Another trend gaining attention is the use of nanocomposite technology for further improving the properties of XLPE. By adding nanofillers like carbon nanotubes and clay, the heat resistance and electrical insulation capability of XLPE can be enhanced. Leading market players are focusing on development of nano-reinforced XLPE formulations to meet the evolving performance requirements of power cables and pipes industries.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low as the Cross Linked Polyethylene Market is consolidating. Significant capital requirements and regulations prevent new players from entering the market easily.
Bargaining power of buyers: The bargaining power of buyers is moderate. Buyers have a fair degree of choice with a number of regional and international vendors. However, switching costs are high which reduces the buyer power.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. The availability of raw materials is high, but suppliers still have a moderate amount of power owing to differentiated products and services.
Threat of new substitutes: The threat of new substitutes is low as Cross Linked Polyethylene provides unique properties that are not easily imitable.
Competitive rivalry: The competitive rivalry is high due to the presence of few global players capturing major market share and regional players competing based on pricing and product quality.
Key Takeaways
The global Cross Linked Polyethylene Market Demand is expected to witness high growth. The Asia Pacific region dominated the market with highest market share in 2022 due to rapid industrialization and urbanization. Key players operating in the region are expanding their production capacities to meet the rising demand. The global cross linked polyethylene market is estimated to be valued at US$ 7.6 billion in 2023 and is expected to exhibit a CAGR of 7.6% over the forecast period 2023 to 2030.
Regional analysis – North America is expected to grow at fastest pace during the forecast period primarily owing to increasing oil and gas pipeline construction activities in the United States and Canada. Increasing petrochemical industry and infrastructure activities in Brazil and Argentina are fueling the cross linked polyethylene demand in South America region.
Key players – Key players operating in the Cross Linked Polyethylene Market are DowDuPont, Borealis AG, LyondellBasell Industries NV, PolyOne Corporation, Exxon Mobil Corporation, 3H Vinacom Co., Ltd., Falcone Specialities AG, Hanwha Chemical Corporation, and PolyGel LLC. Key players are adopting various organic and inorganic growth strategies such as new product launches, contracts, agreements, joint ventures, mergers and acquisitions to strengthen their global footprint.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
