The market for cross-linked polyethylene (XLPE) market is expected to register a CAGR of around 6% during the forecast period. Major factors driving the market studied are low-cost, flexible, and Easy Installation.
- Fluctuation in raw material prices is expected to hinder the growth of the market studied.
- Rapid urbanization is likely to act as an opportunity in the future.
Key Market Trends
Building and construction to Dominate the Market
- Building and construction are one of the major end-user industries in which cross-linked polyethylene is used. PEX tubing is a solid choice for radiant floor heating in residential housings. This heating system varies from traditional heating options, by heating the floors and any objects touching the floor. Radiant heating provides a more even, consistent heat to a room.
- Besides, cross-linked polyethylene (XLPE) tubing and piping are being widely used in plumbing operations, replacing copper and galvanized steel, and PVC piping, due to rusting, cost, and circulation. Due to its flexibility during installation, and cheaper cost than copper, it is finding more preference.
- XLPE-based tubing and piping resist corrosions and perform well under a wide range of temperatures, allowing transportation of both heated water and cold water. Hence, this is being widely used in chilled and hot water pipe insulation. XLPE can run straight from a distribution point to an outlet fixture, without the need for cutting or splicing the pipe. This reduces costs in installing joints, as well as the drop in pressure, due to turbulence induced at the transitions.
- The direct supply line from the water source to an appliance, using just one connection, is also possible. The durable nature of XLPE gives the piping more lifespan, as compared to metal and other thermoplastic pipes.
- The growing application of cross-linked polyethylene pipes is expected to drive the market, during the forecast period.
Asia-Pacific is the fastest growing Market
- In the Asia-Pacific region, China is the largest economy in terms of GDP.
- China is currently spending only about 3% of the global healthcare spending, to address the healthcare needs of 22% of the world’s total population. To reduce this gap, China is investing heavily in its domestic healthcare sector.
- The Chinese government increased its per capita subsidy for Basic Medical Insurance (BMI) to RMB 450. This will result in the growth of healthcare expenditure, and, in turn, increase the production of healthcare products on the whole.
- Additionally, growth in the construction sector, increased investments in industrial and public infrastructure, development of gas pipelines, water transmission, and sewer systems fueled by rapid urbanization, are the key factors that will drive the studied market, in the country, during the forecast period.
- China is the second-largest market for pharmaceuticals, globally. The market for pharmaceuticals is emerging rapidly, owing to the growing middle-class and rapidly-aging society in the country, rising incomes, and increasing urbanization.
- Chinese government promulgated Healthy China 2030, a blueprint that outlines its ongoing intent to prioritize health as a precondition for sustained social and economic development. Additionally, growing research on pharmaceuticals, in the country, will also augment the demand for XLPE, during the forecast period.
- Such factors are boosting the demand for the market studied during the forecast period.
The cross-linked polyethylene (XLPE) market is fragmented in nature. Some of the major players include Dow, Nouryon, Borealis AG, LyondellBasell Industries Holdings B.V., and PolyOne Corporation, among others.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support