Cross-linked Polyethylene (PEX) Market by Type (HDPE, LDPE), Technology (PEXa, PEXb, PEXc), End-use Industry (Wires & Cables, Plumbing, Automotive), Region (North America, Europe, Asia Pacific, South America, MEA) - Global Forecast to 2028
The cross-linked polyethylene (PEX) market is projected to grow from USD 7.6 billion in 2023 to USD 11.0 billion by 2028, recording a CAGR of 7.6% during the forecast period. The expansion of the cross-linked polyethylene (PEX) market is primarily propelled by several key factors. One significant driver is the increasing demand for cross-linked polyethylene (PEX) in the automotive sector, where it finds extensive use in wiring and cable applications. Additionally, the construction industry, both in terms of pipes and wiring applications, has been a pivotal growth contributor. These trends are particularly pronounced in the emerging economies of the Asia Pacific region.
In the automotive sector, cross-linked polyethylene (PEX) has gained prominence due to its excellent electrical insulation properties and durability, making it a preferred choice for wiring and cable systems. As the automotive industry continues to evolve and expand, especially in Asia Pacific, the demand for cross-linked polyethylene (PEX) in this sector is expected to remain robust.
Furthermore, the construction industry, which includes applications like pipes and wiring, has witnessed a surge in the utilization of cross-linked polyethylene (PEX). Its flexibility, corrosion resistance, and ease of installation make it an attractive option for various construction projects. In the context of Asia Pacific, where rapid urbanization and infrastructure development are ongoing, the adoption of cross-linked polyethylene (PEX) in construction applications is poised for continued growth.
Another crucial factor driving the cross-linked polyethylene (PEX) market is the increasing need for plastic pipes in the global solar industry. Solar energy has gained significant traction as a renewable energy source, and cross-linked polyethylene (PEX) pipes play a pivotal role in solar thermal systems. These pipes are well-suited for transporting heat transfer fluids in solar panels due to their thermal resistance and durability. As the global shift towards renewable energy sources like solar power continues to gain momentum, the demand for cross-linked polyethylene (PEX) in the solar industry is expected to rise steadily.
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Cross-linked polyethylene (PEX) Market Dynamics
Driver: Growth in Automotive industry
In today’s rapidly evolving technological landscape, the growth of the automotive industry stands out as a key driving force for cross-linked polyethylene (PEX) market. Automotive is one of the fastest-growing application segments in the global Cross-linked polyethylene (PEX) market. One of the primary reasons behind this is the increasing utilization of cross-linked polyethylene (PEX) in the production of various automobile parts and components. This includes applications in automotive wiring systems, where PEX is valued for its electrical insulation properties, durability, and resistance to extreme temperatures. The growth of the automobile industry directly translates into an increased demand for PEX materials to be integrated into these components. Additionally, the declining market share of PVC (Polyvinyl Chloride) in automotive applications is driving the search for alternative materials. Cross-linked polyethylene (PEX) is well-positioned to fill this gap. Its superior characteristics, such as resistance to chemical corrosion and enhanced mechanical properties, make it an attractive choice for insulation in automotive wires and cables. Consequently, the demand for PEX in this specific application is anticipated to rise significantly in the near future.
Restraints: Safety issues and chances of plumbing failure
PEX piping systems have their own set of limitations. One notable concern is the potential for PEX pipes to fail under certain conditions. This is mainly because PEX is highly flexible and ductile, allowing for the installation of bends. However, if these bends are too sharp or steep, they can put excessive stress on the PEX material, leading to failures. Additionally, pipes can fail when exposed to chlorine within the water or due to overexposure to sunlight before installation, and as far as fittings are concerned, the main failure in a brass fitting used with cross-linked polyethylene (PEX) is caused by dezincification.
Another drawback of PEX is its susceptibility to oxidative degradation and embrittlement when exposed to hot chlorinated water. This contrasts with CPVC, which is not vulnerable to damage from chlorinated water. While working with drinkable water supplies, it is quite common that the water comes from the water treatment facility with a small level of chlorine in it to disinfect the water supply. However, in cross-linked polyethylene (PEX) pipes, chlorine can cause oxidation on the inner wall of the pipes. To combat this issue, PEX pipes are typically infused with significant amounts of antioxidant stabilizers during manufacturing to prevent them from becoming brittle.
Opportunity: Increased demand for cross-linked HDPE
Cross-linked high-density polyethylene (HDPE) holds a significant share in the cross-linked polyethylene (PEX) market, and its dominance can be attributed to several key factors. Notably, its higher density, superior strength, and enhanced chemical resistance contribute to creating valuable opportunities for increased product sales. One noteworthy aspect to consider is the material's greater density, which sets it apart in terms of performance. This attribute not only adds to its overall strength but also enhances its resistance to various chemicals. These characteristics collectively bolster its appeal in the market and pave the way for its growth.
A pivotal driver of its market expansion is the rising demand for pipes and tubing. This burgeoning demand signifies a promising trajectory for cross-linked HDPE within the cross-linked polyethylene (PEX) market. The material's unique properties position it as a preferred choice in this context, aligning with the industry's evolving needs. Moreover, cross-linked HDPE is finding increased application in chemical storage tanks, demonstrating its versatility and competitive edge over alternative materials. It outperforms substitutes like linear polyethylene, fiberglass-reinforced plastic, and stainless steel in various aspects, such as durability, corrosion resistance, and cost-effectiveness. This growing adoption in chemical storage solutions further bolsters the development and expansion of the cross-linked polyethylene (PEX) market, solidifying the position of cross-linked HDPE as a pivotal player in this arena.
Challenges: Fluctuations in the prices of raw materials
Fluctuations in the prices of raw materials, particularly polyethylene, and various cross-linking agents, along with the broader volatility in crude oil prices, have emerged as significant challenges in the cross-linked polyethylene (PEX) market. PEX is a widely used material in plumbing, heating, and insulation applications due to its flexibility, durability, and cost-effectiveness. However, its production heavily relies on polyethylene and cross-linking agents, which are derived from crude oil. The fluctuation of crude oil prices also puts cross-linked polyethylene (PEX) producers in adverse situations, which, in turn, affects the profitability models. As crude oil prices fluctuate due to geopolitical tensions, supply and demand imbalances, and other economic factors, the PEX industry faces a precarious situation. These price variations directly impact manufacturing costs, forcing PEX producers to constantly adapt their pricing strategies. Such uncertainty can have ripple effects throughout the supply chain, affecting both manufacturers and consumers, posing a challenge for businesses operating in the PEX market. The changing crude oil prices in the last few years have affected the polymer value chain and caused a similar trend in the unit prices of the basic raw material, primarily polyethylene, which directly affects the cross-linked polyethylene (PEX) market. This fluctuation can mount pressure on the cross-linked polyethylene (PEX) producers to reduce the prices of cross-linked polyethylene (PEX) products to have a competitive edge in the market..
Market Ecosystem
By type, HDPE segment is estimated to dominate the overall cross-linked polyethylene (PEX) market.
HDPE is expected to be the largest type of cross-linked polyethylene (PEX)used globally in terms of both value and volume. Cross-linked High-Density Polyethylene (HDPE) stands as a versatile material of choice for plumbing applications due to its exceptional blend of properties. One prominent application of HDPE is in the manufacturing of pipes and tubing, and it has gained considerable prominence in the construction and industrial sectors. HDPE pipes are renowned for their ease of installation. Their lightweight nature and flexibility enable rapid deployment, reducing labor and installation costs. This swiftness in installation can be especially advantageous in time-sensitive projects. The flexibility of HDPE pipes is also a pivotal feature. It allows them to adapt to different terrains and ground movements without compromising their structural integrity. This flexibility ensures a longer service life for the pipelines, as they can withstand ground shifts and settle into their surroundings. Additionally, the most appealing aspects of HDPE pipes is their cost-effectiveness. Their low material and installation costs contribute to overall project savings. Furthermore, their longevity and resistance to corrosion result in lower maintenance and replacement costs over the long term.
By technology, PEXa segment is estimated to dominate the overall cross-linked polyethylene (PEX) market.
PEXa is expected to be the largest technology of cross-linked polyethylene (PEX)used globally in terms of both value and volume. The PEXa technology uses peroxide cross-linking to produce cross-linked polyethylene (PEX). It is the most common method used for the cross-linking of polyethylene. In this method, organic peroxide, generally in its original form, is used as an initiator. The peroxide process performs "hot" cross-linking above the crystal melting point. This process takes slightly longer than the other two methods as the polymer has to be kept at a higher temperature and pressure for long periods during the extrusion of the material. The reaction takes place until all peroxide is consumed or the temperature falls below the decomposition point and finally leads to the three-dimensional cross-linked structure of polyethylene. Dicumyl peroxide (DCP) is widely used for cross-linking of thermoplastics. The cross-linking efficiency of DCP is more than other peroxides. This technology provides the highest flexibility (softness) and the highest degree of cross-linking compared to other technology types.
By end-use industry, wires & cables is the largest market for cross-linked polyethylene (PEX).
By end-use industry, Wires & cables is the largest end-use industry of cross-linked polyethylene (PEX). Cross-linked polyethylene (PEX) has found significant applications in the wires and cables industry due to its excellent electrical and mechanical properties. PEX is commonly used as insulation and jacketing material for various types of cables and wires, and its demand is expected to increase in the future for several reasons. In the wires and cables industry, PEX is used primarily as an insulation material for power cables and communication cables. Its high-temperature resistance, electrical insulation properties, and resistance to moisture make it an ideal choice for protecting the conductive elements within the cables. PEX's ability to maintain its structural integrity even in extreme conditions, such as high heat or exposure to chemicals, makes it a durable and reliable option for long-lasting cable insulation. Furthermore, PEX is valued for its flexibility and ease of installation. Its flexibility allows for easier bending and routing of cables, reducing the labor and time required for installation. This is particularly advantageous in the construction and infrastructure sectors, where the demand for efficient and cost-effective cable installation solutions is high. The ongoing development of global infrastructure, including the expansion of power grids, telecommunications networks, and renewable energy projects, will drive the demand for high-quality cables and wires. PEX's versatility and reliability position it as a suitable material to meet these demands.
Asia Pacific is expected to be the largest market during the forecast period
The Crossed-Linked Polyethylene (PEX) market in Asia Pacific is projected to register the highest CAGR between 2023 and 2028. Asia Pacific leads the global Crossed-Linked Polyethylene (PEX) market in terms of volume and value The Asia Pacific region is experiencing a rising demand for Crossed-Linked Polyethylene (PEX) across various sectors, including plumbing, wires & cables, and automotive applications, with a particular focus on China, Japan, and India. This surge in demand is primarily propelled by several factors. These include the continuous expansion of the construction industry, heightened research and development efforts by major industry players, the ready availability of raw materials, and the implementation of strategies to cater to the increasing demand for cross-linked polyethylene (PEX) in both well-established and emerging applications. One of the driving forces behind this market growth is the consistent increase in construction expenditures, particularly in emerging nations such as India and Indonesia. Additionally, substantial investments in industrial and public infrastructure projects are contributing significantly to the expansion of the PEX market in the Asia Pacific region.
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Key Market Players
The major key players in the cross-linked polyethylene (PEX) market include Dow, Inc. (US), Borealis AG (Austria), LyondellBasell Industries Holding B.V. (Netherlands), Avient Corporation (US), Exxon Mobil Corporation (US), Finproject S.p.A. (Italy), SACO AEI Polymers (US), HDC Hyundai EP Company (South Korea) and 3H Vinacom Co., Ltd (China)
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Report Metric |
Details |
Years Considered |
2021–2028 |
Base year |
2022 |
Forecast period |
2023–2028 |
Unit considered |
Value (USD Million), Volume (Kiloton) |
Segments |
Type, Technology, End-use Industry, and Region |
Regions |
North America, Asia Pacific, Europe, South America, and the Middle East & Africa |
Companies |
The major players are Dow, Inc. (US), Borealis AG (Austria), LyondellBasell Industries Holding B.V. (Netherlands), Avient Corporation (US), Exxon Mobil Corporation (US), Finproject S.p.A. (Italy), SACO AEI Polymers (US), HDC Hyundai EP Company (South Korea) and 3H Vinacom Co., Ltd (China) |
This research report categorizes the global cross-linked polyethylene (PEX) market based on Technology, End-use Industry and Region
The cross-linked polyethylene (PEX)Market, By Type:
- HDPE
- LDPE
- Others
The cross-linked polyethylene (PEX)Market, By Technology:
- PEXa
- PEXb
- PEXc
The cross-linked polyethylene (PEX)Market, By End-use Industry:
- Wires & Cables
- Plumbing
- Automotive
- Others
The cross-linked polyethylene (PEX)Market, By Region:
- Asia Pacific
- Europe
- North America
- Middle East & Africa
- South America
Recent Developments
- In July 2023, LyondellBasell acquired a 50% stake in Stiphout Industries B.V., a Dutch recycling company. The acquisition is part of LyondellBasell's strategy to invest in recycling and plastic waste processing companies.
- In February 2023, Borealis, Neste, Uponor, and Wastewise Group have collaborated to successfully produce pipes made of cross-linked polyethylene (PEX) based on feedstock gained from chemically recycled post-industrial waste plastic from PEX pipe production.
- In June 2022, Borealis Bornewables and Uponor have collaborated to create the world's first cross-linked polyethylene (PEX) pipes based on renewable feedstock. The new PEX Pipe Blue products are made from Borealis' Bornewables polyethylene (PE), which is derived from second-generation natural resources, such as waste from pulp production or residues from food processing oils. This makes the PEX Pipe Blue products up to 90% more sustainable than conventional fossil-based PE-X pipes.
- In September 2021, Versalis, Eni's chemical company, acquired full ownership of Finproject, including its subsidiary Padanaplast, while retaining all of the existing management and employees. This strategic merger aims to establish a leading supply chain in the specialty polymer market, enhancing Versalis' competitive position.
- In August 2020, Borealis completed the acquisition of a controlling stake in South Korean compounder DYM Solution Co. Ltd. The acquisition solidifies Borealis' position as a partner of choice for global wire and cable customers. DYM Solution is a leading compounder in South Korea, with a focus on semi-conductive, halogen-free flame retardant (HFFR), rubber, and silane cross-linkable compounds. The acquisition will give Borealis a strong foothold in the growing South Korean wires & cables market and will also expand its global reach.
Frequently Asked Questions (FAQ):
What is the major driver influencing the growth of the Cross-linked polyethylene (PEX) Market?
The major driver influencing the growth of the cross-linked polyethylene (PEX) market is growth in Automotive industry
How is the Cross-linked polyethylene (PEX) Market Segmented?
The cross-linked polyethylene (PEX) market is segmented into type, technology and end-use industry.
What is the major challenge in the Cross-linked polyethylene (PEX) Market?
Fluctuation in raw material prices is the major challenge that can affect the growth of cross-linked polyethylene (PEX).
How is the Cross-linked polyethylene (PEX) Market segmented by technology?
By technology, the cross-linked polyethylene (PEX) market is segmented into PEXa, PEXb and PEXc.
What are the major opportunities in the Cross-linked polyethylene (PEX) Market?
Increasing demand for cross-linked HDPE is major opportunities in the Cross-linked polyethylene (PEX) Market.
How is the Cross-linked polyethylene (PEX) Market segmented by end-use industry?
By mode of supply, the cross-linked polyethylene (PEX) market is segmented into Wires & Cables, Plumbing, Automotive and Others.
Which region has the largest market for Cross-linked polyethylene (PEX)?
Asia Pacific region has the largest market for cross-linked polyethylene (PEX). The Asia-Pacific region has witnessed a rise in demand from end-use sectors such as wires & cables, plumbing, and automotive, which has contributed to the growth of the cross-linked polyethylene market in the region
How is the market segmented based on region?
On the basis of region, the market is segmented into North America, Asia Pacific, Europe, South America, and Middle East and Africa.
Who are the major manufacturers of cross-linked polyethylene (PEX)s?
The major manufacturers of cross-linked polyethylene (PEX)s are Dow, Inc. (US), Borealis AG (Austria), LyondellBasell Industries Holding B.V. (Netherlands), Avient Corporation (US), Exxon Mobil Corporation (US), Finproject S.p.A. (Italy), SACO AEI Polymers (US), HDC Hyundai EP Company (South Korea) and 3H Vinacom Co., Ltd (China).
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Extensive secondary sources, directories, and databases such as Hoovers, Bloomberg BusinessWeek, Factiva, and OneSource have been used to identify and collect information for this technical, market-oriented, and commercial study of the cross-linked polyethylene (PEX) market. In-depth interviews were conducted with various primary respondents which included key industry participants, subject matter experts (SMEs), C-level executives of key industry players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information and to assess prospects.
Secondary Research
In the secondary research process, various secondary sources have been referred to for identifying and collecting information for this study. Secondary sources included annual reports, press releases, and investor presentations of companies; white papers; publications from recognized websites; and databases. Secondary research has mainly been used to obtain key information about the supply chain of the industry, the total pool of key players, market classification & segmentation according to the industry trends to the bottom-most level, regional markets, and key developments from both, market- and technology-oriented perspectives.
The market size of cross-linked polyethylene (PEX) has been estimated based on secondary data available through paid and unpaid sources, and by analyzing the product portfolios of key companies. This data has been further validated through various primary sources.
Primary Research
The cross-linked polyethylene (PEX) market comprises various stakeholders in the supply chain and includes suppliers, manufacturers, and end-product manufacturers. Various primary sources from the supply and demand sides of the cross-linked polyethylene (PEX) market have been interviewed to obtain qualitative and quantitative information. Primary participants from the supply side include key opinion leaders, executives, vice presidents, and CEOs of companies in the market. Primary sources from the demand side include experts from end-use industries, associations, and institutions involved in the market, and key opinion leaders.
Following is the breakdown of primary respondents
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Notes: *Others include sales, marketing, and product managers.
Tier 1: >USD 5 Billion; Tier 2: USD 1 Billion– USD 5 Billion; and Tier 3: <USD 1 Billion.
Market Size Estimation
The supply-side and demand-side approaches have been extensively used, along with several data triangulation methods, for market size estimation and forecast of the overall market segments listed in this report. Extensive qualitative and quantitative data were analyzed to list key information/insights throughout the report. The research methodology used to estimate the market size includes the following:
- The key players in the industry were identified through extensive secondary research.
- The supply chain of the industry and market size, in terms of value, were determined through primary and secondary research.
- All percentage shares split, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research includes the study of annual reports, reviews, cross-linked polyethylene (PEX) associations, and newsletters of key industry players along with extensive interviews with key officials, such as directors and marketing executives.
Global cross-linked polyethylene (PEX) Market: Top-Down Approach
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Global cross-linked polyethylene (PEX) Market: Bottom-Up Approach
Data Triangulation
After arriving at the overall market size, the total market was split into several segments and subsegments. To complete the overall market estimation process and arrive at the exact statistics for all the segments and subsegments, data triangulation and market breakdown procedures were employed, wherever applicable. Data was triangulated by studying various factors and trends from both the demand and supply sides.
Market Definition
The Cross-linked Polyethylene (PEX) industry is a dynamic sector within the broader plastics and materials industry that primarily focuses on the production, distribution, and application of cross-linked polyethylene, a versatile and high-performance polymer material. PEX, or cross-linked polyethylene, is a remarkable type of plastic material characterized by the formation of a three-dimensional network of high molecular weight compounds through the bonding of its molecular chains. This cross-linking process greatly enhances several key properties of polyethylene, including its resistance to heat deformation, abrasion, chemicals, and stress-cracking. The transformation brought about by cross-linking turns polyethylene from a thermoplastic material into a thermosetting one, significantly increasing its overall strength and durability. PEX finds widespread use across diverse applications. It is commonly employed in building construction for pipework and tubing systems due to its ability to withstand temperature fluctuations and resist corrosion. In addition, PEX is favored for hydronic radiant heating and cooling systems, where its flexibility and resistance to temperature extremes are particularly advantageous.
Moreover, PEX serves as excellent insulation for high-voltage electrical cables, ensuring their safety and longevity. Its properties also make it an ideal choice for natural gas and offshore oil applications, as well as for transporting various chemicals. Furthermore, it plays a crucial role in the transportation of sewage and slurries, where its robust and corrosion-resistant nature is highly beneficial.
Key stakeholders
- PEX manufacturers.
- PEX traders, distributors, and suppliers
- End-use industry participants of different segments of the PEX market
- Government and research organizations
- Associations and industrial bodies
- Research and consulting firms
- Research & development (R&D) institutions
- Environmental support agencies
- Investment banks and private equity firms
Report Objectives
- To define, describe, and forecast the size of the cross-linked polyethylene (PEX) market in terms of value.
- To provide information about the factors (drivers, restraints, opportunities, and industry-specific challenges) influencing the growth of the market
- To forecast and analyze the market based on type, technology and end-use industry.
- To analyze and forecast the market size with respect to five main regions, namely, Asia Pacific, North America, Europe, South America, and Middle east and Africa, along with their respective key countries
- To analyze competitive developments such as mergers & acquisitions, joint ventures, and investments & expansions in the market
- To analyze opportunities in the market for stakeholders and provide a detailed competitive landscape of the market leaders
- To strategically profile the key players in the market and comprehensively analyze their core competencies
Available Customizations:
Along with the given market data, MarketsandMarkets offers customizations as per the specific needs of the companies. The following customization options are available for the report:
Product Analysis:
- Product Matrix which gives a detailed comparison of the product portfolio of each company
Regional Analysis:
- Further breakdown of the Rest of Asia Pacific cross-linked polyethylene (PEX) Market
- Further breakdown of Rest of Europe cross-linked polyethylene (PEX) Market
- Further breakdown of Rest of South America cross-linked polyethylene (PEX) Market
- Further breakdown of Rest of Middle East & Africa cross-linked polyethylene (PEX) Market
Company Information:
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Cross-linked Polyethylene (PEX) Market
Information regarding the market scenario of PEX Market, along with a comparison between PEX-a, -b and -c
Specific information on Global PEX-a/b/c market and suppliers
Market research for PEX in portable water service line
Company contacts for resins used to make all three type of PEX pipe.