Chlorinated Polyethylene (CPE) Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, China, Japan, South Korea, Germany - Size and Forecast 2024-2028

Chlorinated Polyethylene (CPE) Market Forecast 2024-2028

The Chlorinated Polyethylene (CPE) Market size is forecast to increase by USD 353.92 million, at a CAGR of 7.72% between 2023 and 2028.  The growth rate of the market depends on several factors, including growing demand for durable and weather-resistant materials, increasing use of chlorinated polyethylene in manufacturing industry, and rising focus on lightweight materials made from chlorinated polyethylene. It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historical data from 2018-2022, besides analyzing the current market scenario.

What will be the Market Size During the Forecast Period?

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Market Definition 

Chlorinated polyethylene is a thermoplastic material that is manufactured by chlorinating polyethylene. Polyethylene is one of the most widely used plastic materials. It is made from various ethylene-based monomers. Chlorine is used in the chlorination process to introduce chlorine into the structure of the polyethylene material. The result of the chlorination process is a material that has improved chemical and physical properties.

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Market Dynamics

Key Market Growth Analysis Driver

Growing demand for durable and weather-resistant materials is notably driving market growth. One of the main reasons for the increasing demand is the ability of chlorinated polyethylene to withstand extreme environmental conditions. Many industries, including construction, automotive, and consumer goods, are increasingly turning to chlorinated polyethylene to improve the life and durability of products and services. For example, in the construction industry, chlorinated polyethylene is used to create weather-resistant sealants and adhesives, as well as roofing materials that are resistant to ultraviolet rays (UV) rays, extreme temperatures, and moisture. 

Moreover, the ability of chlorinated polyethylene to resist oils, chemicals, and elements improves the performance and durability of automotive components and parts. As consumers increasingly expect longevity and durability in the products that they buy, the automotive industry is turning to chlorinated polyethylene to satisfy these needs. These factors will drive the growth of the market during the forecast period. 

Significant  Market Trends and Analysis

Growing demand for chlorinated polyethylene in construction and automotive industries is an emerging trend shaping market growth.  It has unique chemical resistance properties, especially in terms of flexibility and impact strength, which makes it a popular choice for a variety of applications in the construction industry. It has become increasingly popular in the construction industry due to the increasing demand for its use in construction materials, such as pipes, cables, and adhesives. Adhesives that are based on CPE offer enhanced bonding strength, which helps improve the structural integrity of construction projects. 

Moroever, the growing demand for automobiles around the world, combined with the demand for high-performance materials in the industry, has led to the growth of the use of chlorinated polyethylene in the automotive industry. For example, in the manufacturing process of automotive Weatherstrips that are commonly used as beading on automobile doors and windows/windshields, chlorinated polyethylene is incorporated to provide flexibility and durability. This increases the life of the sealing components. These factors will boost the growth of the market during the forecast period.

Major Challenge

Price volatility in raw materials like chlorine and polyethylene is a significant challenge hindering market development. The market price of chlorine is affected by several factors, including supply-demand dynamics, regulatory changes, and energy prices. For example, if the demand for chlorine increases from other end-user industries, such as water and wastewater treatment, pharmaceuticals, etc., the availability of chlorine to produce chlorinated polyethylene may decrease, resulting in an increase in the prices of chlorine. In addition, polyethylene, another essential raw material used in the production of chlorinated polyethylene, is subject to price fluctuations as a result of changes in the price of crude oil, supply chain issues, and geopolitical factors. Since crude oil is the main raw material used in the manufacturing of chlorinated polyethylene, any changes in global oil prices have a direct effect on the cost.

For instance, geopolitical tensions in oil-producing countries like Russia cause supply issues and subsequent price fluctuations in the industry, which has a direct impact on the production costs of chlorinated polyethylene manufacturers. Therefore, volatility in the prices of major raw materials used in manufacturing chlorinated polyethylene is expected to hinder the growth of the market during the forecast period.

Segmentation by Type, Application , and Geography

Type Analysis 

The market share growth by the CPE 135A segment will be significant during the forecast years. CPE 135A refers to chlorinated polyethylene, a type of thermoplastic material that is commonly used in the production of various industrial and consumer products. It is known for its excellent chemical resistance, weatherability, and impact strength.

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The CPE 135A segment was the largest and was valued at USD 303.25 million in 2018. CPE 135A plays an important role in the formulation of thermoplastic elastomers. As a component of thermoplastic elastomer formulations, CPE 135A improves the elastomer properties of the finished product. Thermoplastic elastomers are widely used in the automotive industry, in wire and cable insulation applications, in footwear, and in various consumer goods. The automotive industry primarily uses thermoplastic elastomers that contain CPE 135A for the production of flexible and impact-resilient components, including weather seals and gaskets, as well as interior trim. These factors under the CPE 135A segment will fuel the growth of the market during the forecast period. 

Application Analysis 

Based on application, the market has been segmented into impact modifier, wire and cable jacketing and hose and tubing and others. The impact modifier?segment will account for the largest share of this segment.? Impact modifiers are additives that are incorporated into polymers to enhance their toughness, impact resistance, and durability. The automotive industry requires impact-resistant materials that provide durability to various automotive components. Chlorinated polyethylene, including impact modifier materials, is used in the manufacturing of automotive seals and gaskets, as well as other automotive components, to improve resistance to environmental and mechanical stress. Many electronic devices require impact-resistant housing and components to protect them. Due to the chemical resistance inherent in chlorinated polyethylene and the toughness provided by impact modifiers, chlorinated polyethylene acts as an ideal material for the production of electronic enclosures, cable insulation, and connectors. These factors under the impact modifier segment will drive the growth of the market during the forecast period.

Region Analysis

APAC is estimated to contribute 52% to the growth of the global market during the projection period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.

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Further, this region encompasses diverse economies, cultures, and industrial landscapes, making it a key player in the demand-supply dynamics. The demand for chlorinated polyethylene in APAC has seen significant growth in recent years. Several factors have contributed to this growth. One of the main reasons is the increasing industrialization and urbanization in China, India, and Southeast Asian countries. For instance, according to the Press Information Bureau of India, the urban population of India in 2023 was about 35% of the overall population, and it is expected to increase to 53% by 2047. Many countries have seen an increase in construction activities, which has, in turn, led to an increase in demand for chlorinated polyethylene in applications like PVC impact modifiers, wire and cable jackets, and roofing materials.

In addition, China is one of the leading countries in APAC and the world in the manufacturing and construction industries. The country's strong industrial base and increasing emphasis on infrastructure development have led to an increase in the demand for chlorinated polyethylene for use in a variety of applications. For example, chlorinated polyethylene is widely used in the manufacturing of flame-retardant wires and cables. There are certain mergers and acquisitions taking place as well in the chemical industry in APAC. For instance, Continental AG and INOVYN announced a strategic partnership in August 2022 to integrate bio-attributed PVC into Continental's automotive surface materials to reduce carbon emissions from Continental's automotive products while responding to the growing market demand for bio-based, sustainable solutions. These factors will drive the growth of the regional market during the forecast period.

Key Companies

Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches to enhance their presence in the market.

Aurora Plastics LLC - The company offers chlorinated polyethylene such as TPO based CPE with very low halogen content, superior low temperature properties and good flame characteristics.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including Aurora Plastics LLC, Hangzhou Keli Chemical Co. Ltd., Jiangsu Tianteng Chemical Industry Co. Ltd., Lianda Corp., Resonac Holdings Corp., Shandong Gaoxin Chemical Co. Ltd., Shandong Novista Chemicals Co. Ltd., Shandong Xiangsheng New Materials Technology Co. Ltd, Shandong Xuye New Materials Co. Ltd., Sundow Polymers Co. Ltd., and Weifang Yaxing Chemical Co. Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research and growth report predicts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.  

• Type Outlook 
  • CPE 135A
  • CPE 135B
  • Others

• Application Outlook
  • Impact modifier
  • Wire and cable jacketing
  • Hose and tubing
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • China 
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The Chlorinated Polyethylene (CPE) market is influenced by diverse factors, including the versatility of High-density polyethylene (HDPE) and its resistance to ozone and weathering. Ongoing research and development contribute to innovations in CPE applications, spanning from PVC siding, window profiles, and fences to specialized polyvinyl chloride electrical conduits. With highly filled compounds, CPE finds applications in the building and construction industry, offering durable solutions. Additionally, it plays a vital role in packaging applications, contributing to the efficiency and resilience of plastic packaging in various end-use enterprises. The CPE market remains dynamic, adapting to evolving needs and industry requirements, making it a significant player in the plastics market.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across APAC, North America, Europe, Middle East and Africa, and South America
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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