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Cross Linked Polyethylene Market is Estimated to Witness Significant Growth Owing to Growing Demand from Construction and Electrical Industries

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Alex Huge
Cross Linked Polyethylene Market is Estimated to Witness Significant Growth Owing to Growing Demand from Construction and Electrical Industries

Cross linked polyethylene (XLPE) is a polyethylene thermoplastic made via a chemical cross-linking process in which polyethylene or polyolefin molecules are joined in a covalent linking reaction using acids and organic peroxides. This cross-linking enhances the material's durability and flexibility. XLPE cables are used for medium and high voltage power transmission in underground and submarine power cables owing to their excellent electrical insulation, long operational life and reliability.

The global cross linked polyethylene market is estimated to be valued at US$ 5720.74 Mn in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Increasing infrastructure development activities across the globe is driving the demand for cross linked polyethylene market. Power infrastructure projects across developed and developing nations are increasing rapidly which requires extensive use of transmission and distribution cables. The replacement of older cable infrastructure with more reliable and efficient XLPE cables also supplements market growth. Additionally, growing adoption of cross-linked polyethylene in oil and gas pipelines owing to its resistance to corrosion and chemicals further propels the market forward. Moreover, utilization of XLPE in telecommunication cables is also spurring market demand.

SWOT Analysis

Strength: Cross Linked Polyethylene has good mechanical strength and resistance to chemicals, UV radiations and moisture which makes it suitable for usage in applications such as oil and gas pipelines, utility cables, and pressure pipes. It has very low shrinkage rate during processing and excellent environmental stress crack resistance. It provides enhanced reliability and durability to end products compared to other polyethylene resins.

Weakness: Cross Linked Polyethylene has a higher density and melt viscosity compared to linear low density polyethylene which makes processing and molding more difficult. It also has reduced flexibility at low temperatures in comparison to other polyethylene grades. The cross linking process also increases the cost of production of Cross Linked Polyethylene.

Opportunity: Growing demand for durable and corrosion resistant piping solutions from oil & gas sector and construction industry are driving growth of Cross Linked Polyethylene market. Expanding non-oil & gas applications in electrical insulation and semiconductor packaging also present opportunities. Increasing government investments in infrastructure development and replacement of aging pipelines will further support market expansion over the forecast period.

Threats: Presence of substitutes like polyvinylchloride (PVC) and polyethylene (PE) pose competition to Cross Linked Polyethylene. Volatility in raw material prices of ethylene can increase production costs. Stringent environmental regulations regarding plastic waste disposal can also affect market growth adversely.

Key Takeaways

The global Cross Linked Polyethylene market size is expected to witness high growth over the forecast period of 2023-2030. The market size is forecasted to reach US$ 5720.74 Mn by 2023 exhibiting a CAGR of 18% during the forecast period.

Regional analysis: North America currently dominates the global Cross Linked Polyethylene market due to high demand from oil & gas industry. The Asia Pacific region is expected to grow at the fastest pace due to rising infrastructure development activities and replacement of aging pipelines in countries like China and India.

Key players: Key players operating in the Cross Linked Polyethylene market are AZUR DRONES SAS, Microdrones GmbH, Parrot Drones SAS, Aerialtronics, FLIR Systems, Inc, Flyability, Aria Insights, Delair, Autel Robotics, Kespry Inc, ideaForge, and others. These players are focusing on new product launches and expansion in emerging markets to gain higher market share.

Get more insights on this topic: https://www.trendingwebwire.com/cross-linked-polyethylene-market-size-and-outlook-2023-2030/

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