Ultra-high Molecular Polyethylene Market Trends
Growth Drivers
- Growing Investment in Electric Vehicles– Global investment in electric vehicles (EVs) exceeded USD 425 billion in 2022, representing a 50% increase over the previous year. While government support accounts for only 10% of this funding, the remainder comes from consumer purchasing. Ultra-high molecular polyethylene is used as a battery separator in electric vehicles and venue in other electronic items.
- Increasing Production of Chemicals– Ultra-high molecular polyethylene has great retardancy for chemicals. Therefore, it is suitable for the application of chemical storage, pipelines, and even chemical processing equipment. Global chemical production increased by roughly 2.5% in the first half of 2022.
- Growing Use of UHMWPE in the Cosmetic and Pharmaceutical Industry- UHMW-PE parts are used in tobacco, cosmetic, and pharmaceutical packaging machines because they are free of impurities, lubricants, rust, and corrosion. UHMW-PE parts are safe and sanitary, with FDA and USDA approval for food contact.
Challenges
- Ultra-High Molecular Polyethylene and its Raw Materials are Expensive - The UHMWPE manufacturing process is complicated and demands specially designed machinery. When compared to other polymers, this can result in greater production costs, inhibiting its cost competitiveness in certain industries.
- Less tolerance of UHMPWE towards high temperature
- Restriction in using UHMPWE in intricate designs.
Ultra-High Molecular Polyethylene Market: Key Insights
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Programme), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favourable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labour as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
11.6% |
|
Base Year Market Size (2024) |
USD 2.36 billion |
|
Forecast Year Market Size (2037) |
USD 9.97 billion |
|
Regional Scope |
|
