Cross-linked Polyethylene (PEX) Market

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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Scope of the Report

:

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.

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