Recycled Polyethylene Market Trends

Growth Drivers

• Growing Production of Automotive - Across the globe, over 84 million motor vehicles were manufactured which indicated a surge of close to 5% when compared to the year 2021. Hence, the demand for polyethylene is also predicted to grow since it has several applications in automotive. PE is known for its impact resistivity and capability of absorbing low moisture which is why it is significantly utilized in the production of exterior and interior components. Moreover, the utilization of PE has also been seen in rocker panels, car fender liners, and door handles. Also, it is an attractive material for automotive covers and other protective barriers. Additionally, PE is ideal for vehicles that need minimal weight such as fuel tanks, tubing, and hoses. This is because PE is considered to be the most lightweight material. Also, the resistivity of PE to chemical corrosion is high. Hence, components that are disclosed to automotive fluids including fuel, oil, and coolant are demanding PE. Therefore, since the demand for PE is high in automotive various manufacturers are making use of recycled polyethylene. Consequently, the recycled polyethylene market revenue is predicted to surge.
• Surge in Use of Recycled Polyethylene in Construction - The construction sector is another major industry that contributes to huge carbon emissions on account of the growing use of concrete, wood, and aggregates. Hence, the preference for recycled polyethylene is growing in the construction sector as along with sustainability it offers easiness to use. Moreover, in contrast to wood and metal, plastic is resistant to rot, water, and corrosion, which makes it unique in demanding environments and tough weather conditions. Hence, the recycled polyethylene market demand for recycled polyethylene is estimated to experience a surge.
• Rising Integration of IoT in Recycling Polyethylene - The Internet of Things has successfully shaped all industry sectors from retail, education, automobile, and healthcare to entertainment. Hence, its importance is also estimated to rise in recycling and waste management systems. For instance, it is predicted that the installation of robotics might rise in recycling facilities to segregate the bulk tasks with any error and least harm to the worker who might have indulged in sorting hazardous material. These robots equipped with cameras, sensors, and high-tech computer systems to promote machine learning, may offer productivity twice as fast, and boost the material quality output and its resale value.

Challenges

• Growing Demand for Virgin Plastic
• Lack of Efficiency in Collecting Raw Material - Still, in many parts of the world, no proper measures have been considered to recycle plastic hence most of the plastic waste is disposed of at sea. Such a factor might also hinder the recycled polyethylene market growth for recycled polyethylene.
• High Price of Recycled Polyethylene - Usually, the cost of recycled polyethylene is high as compared to conventional plastic. This is because, recycled polyethylene production demands machinery & equipment, service for waste collection, and more. The cost charged by these services is fixed and cannot be altered which is why the price of recycled polyethylene also increases. Therefore, the recycled polyethylene market is projected to restrain from growing in revenue.