Chlorinated Polyethylene Market Size, Share & Trends Analysis Report By Product (CPE 135A, CPE 135B), By Application (Impact Modifier, Wire & Cable Jacketing, Hose & Tubing, Adhesives, Magnetics, IR ABS), By Region, And Segment Forecasts, 2018 - 2025

Industry Insights

The global chlorinated polyethylene market size was estimated at USD 431.6 million in 2016. Growing demand for high-performance polyethylene products for industrial applications is expected to drive the demand over the forecast period. Increasing production of polyethylene, due to decrease in manufacturing costs is expected to translate into a heightened production of chlorinated polyethylene.

The market is expected to benefit from the increasing production of chlorine driven by growth of consumer industries. In addition, the demand for the product is expected to be driven by rising adoption of the product by consumers across the globe. However, industry growth is expected to be restrained by the production overcapacity of the product in China.

The market in China benefits from a significant manufacturing base. In addition, the economy also realized high production levels for the raw materials leading to a significant decline in production costs. Furthermore, the presence of limited regulations pertaining to product use allows for an increase in demand.

The industry is characterized by the presence of a large number of local players located in Asia Pacific on account of the rapid development of the consumer industries in the region accounting for high product consumption. In addition, the industry witnesses’ notable investments towards the research and development pertaining to the development of advanced grades.

Chlorinated polyethylene when added into the composites of polyethylene, polypropylene, and polyvinyl products impart superior properties such as impact-resistant, welding strength, and resistance to unfavorable weather conditions. There is an ever-growing demand for flexible sheeting electrical wires and cables, rubber products for seals & shoe soles, and roofing applications leading to an increase in the production levels.

Product Insights

The industry is dominated by CPE 135A with the product accounting for 38.1% of the overall production by volume in 2016. The demand for the product is expected to rise owing to increasing use of the product in vinyl sidings and impact modifiers used for consumer goods such as refrigerators and microwaves, and window profiles. 

The growing use of CPE 135A in specialty polyvinyl chloride electrical conduits and highly filled compounds owing to superior ductility offered by the product is expected to drive the market growth over the forecast period. The use of the product in the aforementioned applications is expected to witness substantial growth owing to their growing demand in vinyl fencing substrates and cap-stock applications.

The demand for CPE 135B is expected to register a growth of 7.7% from 2017 to 2025 owing to increasing use of the product as a substitute to chloroprene rubber in applications such as wires, cables, and rubber hoses. In addition, rising demand for the product as adhesive rubbers in adhesive tapes and boards is expected to drive growth over the forecast period.

Application Insights

Wire & cable jacketing application is expected to register a growth of 8.5%, by revenue from 2017 to 2025 owing to growing demand for highly durable fire retardant jacketing products to reduce the risk of fire in commercial and household establishments. In addition, growing substitution of ChlorSulfonated Polyethylene (CSPE) with the product in the application due to low cost of the product coupled with growing environmental concerns about the former is expected to drive the market growth over the forecast period. 

Hose and tubing application segment is expected to exhibit sustained growth owing to increasing use of the product industrial hoses driven by superior properties resistance to oil, chemicals, and heat. Growing use of chlorinated polyethylene in industrial and automotive tubing & hoses driven by superior chemical inertness and impact resistance is expected to drive the market growth over the next eight years.

The demand for the product used for the manufacture of magnetic rubber is expected to reach a market volume of 3,416.0 tons by 2025 owing to increasing demand for various product grades such as CPE230A, CPE 2500B, and CPE 2500A for magnetic applications. In addition, the demand for the plastic for applications such as magnetic rubber strips for refrigerators, electro-motors, and calendaring marks is expected to drive the market growth.

Growing use of chlorinated polyethylene in flexible magnets used in computers, automobiles, and electrical motors owing to their high capacity for magnetic ferrite powders is expected to drive growth over the forecast period. In addition, the development of the electrical & electronics industry is expected to provide momentum to the market growth.

Regional Insights

The market in North America is expected to exhibit a CAGR of 6.3%, by volume from 2017 to 2025 owing to increasing use of the product for industrial hoses and tubing. In addition, growing use of the product by the pharmaceutical and healthcare industry in various disease detection and drug delivery devices is expected to drive the market growth over the forecast period.

The market in China is expected to register a growth of 7.6%, by volume from 2017 to 2025 due to the presence of a large number of product consuming industries. The demand for the product is likely to grow on account of the availability of low priced products exhibiting superior performance characteristics.

Rising demand for chlorinated polyethylene in Europe for use in magnetic rubber products and hoses is expected to drive the market growth. In addition, presence of regulations limiting the product use across applications is likely to cast a restraining effect on the market growth. The demand for the product is driven by its substitution of conventionally used plastics in the automotive and industrial sectors.

Chlorinated Polyethylene Market Share Insight

The industry is characterized by mergers and acquisitions to gain market share and competitive edge. The presence of a large number of manufacturers primarily headquartered in China and Asia Pacific is expected to bode well for the industry growth. In addition, the development of advanced grades of chlorinated polyethylene by the manufacturers is likely to translate into increased product adoption.

Companies operating in the market are integrated into the production of raw materials such as polyethylene in a bid to reduce production costs. The companies also operate their business through a well-established distribution network comprising direct and third party distribution channels with varying operating margins.

Report Scope

Segments Covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global chlorinated polyethylene market on the basis of product, application, and region.

• Chlorinated Polyethylene Product Outlook (Volume, Tons; Revenue, USD Million, 2014 - 2025)

  • CPE 135A

  • CPE 135B

  • Others

• Chlorinated Polyethylene Application Outlook (Volume, Tons; Revenue, USD Million, 2014 - 2025)

  • Impact Modifier

  • Wire & Cable Jacketing

  • Hose & Tubing

  • Adhesives

  • Magnetics

  • IR ABS

  • Others

• Chlorinated Polyethylene Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • The U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa