The global Cross Linked Polyethylene (PEX) market is projected to grow from US$6.1 bln in 2019 to US$8.3 bln by 2024, at a CAGR of 6%, as per MarketsandMarkets™. This growth is attributed to the growing demand in the automotive and power industries as well as expansion of the construction industry in the developing economies, globally. In addition, the solar industry is expected to be a factor in driving the PEX market, with producers continuously looking to replace the conventional materials.
The wires & cables application is expected to drive the demand for PEX. PEX exhibits high resistance to flame and heat deformation, which makes it suitable for wires & cables. The high demand from the wires & cables application is due to the increasing urbanization and rapidly rising building infrastructure and construction sectors. Urbanization and growing construction sector have impacted the energy and power demand in the residential, commercial, and industrial sectors. This has augmented investments in smart networks and upgrading of power transmission and distribution systems, which is driving the market. All these factors, along with the increasing R&D spending on new product development, developing economy, favorable trade policies & conditions, and growing middle-class population, are expected to boost the PEX market in developing countries during the forecast period.
HDPE is projected to be the fastest-growing type segment of the PEX market. Most of the cross-linked pipes manufactured globally are made from cross-linked HDPE owing to its superior properties such as high tensile strength and resistance to cracks and deformation that occurs due to external factors such as temperature, stress/strain, and climatic changes. It is also easier to install. Unlike the traditional systems that use copper for piping and tubing, cross-linked HDPE does not corrode and maintains its flexural strength. HDPE is used in the packaging of milk jugs, detergent bottles, margarine tubs, and others. HDPE is also used in fireworks. Increasing population, along with the availability of low-cost labor and feedstock, in this region is contributing to higher building & construction activities, which is driving the market for cross-linked HDPE in various applications.
APAC is estimated to be the largest and fastest-growing PEX market. This growth is attributed to the rapidly growing economy, growth opportunities available in the market, increasing urbanization, and rapidly growing building infrastructure. Moreover, the growing consumption of plastic pipes due to natural gas production and residential & non-residential building construction expenditures in the leading countries of APAC, such as Japan, Australia, and China, are estimated to increase the demand for PEX. Moreover, steady improvements in construction spending in emerging countries such as India and Indonesia and improved investments in industrial and public infrastructure are the key factors responsible for market growth. The need for extremely consistent and corrosion-resistant quality pipes for residential as well as industrial purposes has further positively impacted the PEX market in this region.