Cross-Linked Polyethylene Market Report

The growing consumer preference for cross-linked polyethylene over high density poly ethylene (HDPE) due to its thermosetting nature, excellent mechanical strength and better stress crack resistance, as well as the increased demand for plastic pipes in the solar industry, drive market expansion. The significant increase in global solar PV installations, projected to be between 407-446 GWdc in 2023 and estimated to reach 2-5 TWdc by 2030, drives a high demand for PEX pipes. With around 60% of these installations in China and the United States playing a significant role, there is a crucial requirement for dependable, weather-resistant piping solutions. PEX pipes are increasingly favored for their durability and flexibility, essential for managing large-scale solar farm infrastructure, and are projected to see significant growth aligning with the anticipated 4–15 TWdc cumulative PV installations by 2050.

In the global cross-linked polyethylene market, the automotive segment is projected to be the fastest-growing area of application. The automotive application is projected to expand the fastest throughout the forecast period. Additionally, the increasing use of PEX foam in medical packaging applications to protect medical instruments, implants, and other surgical devices from damage is expected to provide enormous opportunity for PEX manufacturers. According to the Elsevier Public Health Emergency Collection, 310 million major surgeries are performed globally annually, including 40 to 50 million in the United States and 20 million in Europe.

PEX tubing cannot be utilised in applications that are exposed to sunlight since it degrades rapidly. When exposed to sunlight, the molecular structure degrades, causing the piping to become weak and rupture. It must be stored away from sunlight before to installation and must also be protected from sunlight after installation. Even 30 days of exposure to direct sunlight can cause embrittlement, which leads to early tubing failure. As a result, PEX is not recommended for use in outdoor settings or regions exposed to sunlight. The change of crude oil prices puts PEX producers in a tough spot, affecting profitability models.

Moreover, half of the PEX market is controlled by the major producers. As a result, major producers are under intense competitive pressure to lower PEX prices in order to acquire market share. The fluctuating crude oil prices in recent years have had an impact on the polymer value chain, causing a similar trend in the unit pricing of the basic raw material, primarily polyethylene, which has a direct impact on the PEX market. Due to the risk of leakage and the release of organic carbon and VOCs, there is a shift towards using polypropylene pipes rather than PEX pipes, which is anticipated to provide a significant challenge for industry players.

Major industry leaders utilize strategies that focus on launching new products, merging with competitors, and purchasing companies to grow their customer base and enhance their range of products. For instance, in October 2023, Avient Corporation introduced its Syncure XLPE 200 Series, expanding its portfolio of cross-linkable polyethylene formulations with innovative flame-retardant grades. These new materials eliminate the use of decabromodiphenyl ethane (DBDPE), responding to anticipated regulatory changes in Canada. The Syncure XLPE 200 Series offers a DBDPE-free alternative while maintaining exceptional flame resistance and UL 44 compliance, making it ideal for low-voltage wire and cable insulation in various systems, including building wires and service entrance cables.

However, in October 2023, TotalEnergies and Borealis celebrated the launch of their Baystar joint venture's new Borstar polyethylene (PE) unit in Bayport, Texas. Utilizing Borstar 3G technology for the first time in North America, Bay 3 enhances sustainability through advanced polymers that support light weighting and increased post-consumer recycled content. This development, following the inauguration of an ethane cracker in Port Arthur, underscores TotalEnergies' strategic expansion in the United States petrochemical market.

In terms of GDP, China's economy is the biggest in the Asia-Pacific. Growth in the construction industry, increasing expenditures in industrial and public infrastructure and the expansion of gas pipelines, water transmission and sewer systems driven by rapid urbanisation will be the key factors driving the market in the region during the forecast period. According to the International Trade Administration, total infrastructure investment over the 14th Five-Year Plan period (2021-2025) will be around US$ 4.2 trillion. China is the world's second-largest pharmaceutical market. The pharmaceutical market is rapidly expanding as a result of the country's growing middle-class and rapidly ageing population and increasing incomes. The Chinese government issued Healthy China 2030, a blueprint outlining its continued intent to emphasize health as a precondition for long-term social and economic growth. Also, increased pharmaceutical research in the country would boost demand for XLPE throughout the forecast period. Over the forecast period, such factors will enhance market demand.