The high-density polyethylene (HDPE) market is expected to register a CAGR of over 4% during the forecast period. The major factors driving the market studied include increasing use of plastic pipes as substituents and robust demand from the packaging Industry. Rising popularity of HDPE in engineering applications is expected to significantly hinder the growth of the market studied.
- Asia-Pacific is expected to dominate the market during the forecast period.
- Recycling of high-density polyethylene (HDPE) films and ultra-high molecular HDPE gaining momentum are likely to act as opportunities in the future.
Key Market Trends
Growing Demand from Pipes and Tubes Application
- HDPE pipes and tubes are used in various industry sectors, such as agriculture, sewage and manholes, marine, cold water supply, mining, fire loops, etc.
- In many countries, these HDPE pipes and tubes are used, due to their high performance and strength properties. The pipes and tubes are manufactured under the recognized standards, such as API, ASTM, AWWA, NSF, AGA, EPA, DNR, DOT, CSA, etc.
- There are a number of undergoing projects, which are using HDPE pipes and tubes, in the medium- to large-scale market.
- The water control projects and several new construction projects are using new multi-layer HDPE pipes.
- This may be a new opportunity in the market, since it saves the cost of expensive bedding materials and delivers higher reliability and durability, thus majorly boosting the market during the forecast period.
China is Expected to Dominate the Demand in the Asia-Pacific Region
- China is the largest economy in the entire Asia-Pacific, in terms of GDP. The growth in the country remains high, but is gradually diminishing, as the population is aging, and the economy is rebalancing from investment to consumption, manufacturing to services, and external to internal demand.
- China's construction industry developed rapidly, due to the central government's push for infrastructure investment, as a means to sustain economic growth. The country stands to be the world's largest manufacturing economy, and owing to this, the country's packaging requirement is huge.
- Despite the volatile growth in the real estate sector, the significant development of rail and road infrastructure by the Chinese government to withstand the expanding industrial and service sectors has resulted in significant growth of the Chinese construction industry in the recent years. As the construction industry is dominated by state-owned enterprises, increased government spending is boosting the industry in the country.
- Moreover, the country witnessed rapid growth in the fast-moving consumer goods (FMCG) market. The growth of the FMCG market was majorly driven by the increased spending on premium and healthier products by the middle-class consumers in the country.
- Furthermore, countries, such as India and Japan, have also been contributing to the growth of the market studied. This is expected to further drive the demand for HDPE market over the forecast period.
The high-density polyethylene (HDPE) market is partially consolidated in nature. Some of the major players of the market studied include Dow, INEOS, SABIC, LyondellBasell Industries Holdings B.V., and Exxon Mobil Corporation, among others.
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