Ultra High Molecular Weight Polyethylene Market - Forecast(2023 - 2028)

Ultra High Molecular Weight Polyethylene Market Overview

Ultra High Molecular Weight Polyethylene Market size is estimated to reach US$3.1 billion by 2027, after growing at a CAGR of 10.1% during the forecast period 2022-2027. Ultra High Molecular Weight Polyethylene(UHMWP) also known as high-modulus polyethylene belongs to the thermoplastic polyethylene family. The increasing use of UHWMPE in the manufacture of lithium-ion battery separators is expected to provide a lucrative opportunity for market participants. Rising product demand from defence applications, as well as its superior physical properties compared to other polymers, are expected to drive market growth during the forecast period. For instance, According to the Military of Defence, UK, in 2020/21, the government spend £42.4 billion on defense, a £2.5 billion increase over the previous year. The covid-19 pandemic majorly impacted the Ultra High Molecular Weight Polyethylene Market due to restricted production, supply chain disruption, logistics restrictions and a fall in demand. However, with robust growth and flourishing applications across major industries such as the military and others, Ultra High Molecular Weight Polyethylene is anticipated to grow rapidly during the forecast period.

Ultra High Molecular Weight Polyethylene Market Report Coverage

The “Ultra High Molecular Weight Polyethylene Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Ultra High Molecular Weight Polyethylene industry.

By Form: Sheet, Rods, Tubes, Fibers, Films, Tapes and Others.
By Application: Filtration, Batteries, Additives, Medical Grade & Prosthetics, Food Processing Machinery Parts, Automotive Winching, Membranes and Others.
By End-use Industry: Transportation (Automotive, Aerospace, Locomotive and Marine), Medical & Healthcare, Food & Beverages, Oil & Gas, Water Treatment, Textile Industry, Chemical & Pharmaceutical, Electrical & Electronics and Others.
By Geography: North America (the USA, Canada and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Belgium and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and Rest of South America), Rest of the World (the Middle East and Africa).

Key takeaways

• Asia-Pacific dominates the Ultra High Molecular Weight Polyethylene Market size. The increase in demand for applications such as filtration and others is the main factor driving the region's growth.
• One of the primary factors contributing to the Ultra High Molecular Weight Polyethylene Market's favourable outlook is significant growth in the automotive industry around the world.
• Growing demand from the medical sector and increasing applications for high-performance polymers are driving the market growth.
• However, fluctuation in raw materials is limiting the Ultra High Molecular Weight Polyethylene industry growth.

Ultra High Molecular Weight Polyethylene Market Segment Analysis – by Application

The Medical Grade & Prosthetics held a significant share in the Ultra High Molecular Weight Polyethylene Market share in 2021 and is projected to grow at a CAGR of 9.2% during the forecast period 2022-2027. UHMWPE belongs to thermoplastic polyethylene and has been regarded as one of the most preferred materials for the manufacture of medical implants. It has been relied on because of its high resistance to wear and abrasion, as well as its excellent durability. These properties have increased product demand in medical applications in recent years. With the rise in the demand for Ultra High Molecular Weight Polyethylene across the globe, the demand for Ultra High Molecular Weight Polyethylene is anticipated to rise for various applications, which is projected to boost the market growth during the forecast period.

Ultra High Molecular Weight Polyethylene Market Segment Analysis – by End-use Industry

Transportation held a significant share in the Ultra High Molecular Weight Polyethylene Market share in 2021 and is projected to grow at a CAGR of 9.6% during the forecast period 2022-2027. Ultra High Molecular Weight Polyethylene or high-modulus polyethylene is used in the plastic injection molding automotive parts as the friction part of the axle sleeve, sliding sleeve and lining material equipment. According to the Energy Information Administration (EIA), by 2035, there will be 1.7 million automobiles worldwide. According to the International Organization of Motor Vehicle Manufacturers (OICA), automobile output increased by 10% in the first nine months of 2021, to 57.26 million vehicles, up from 52.15 million units in the same period last year. With the rise in automotive production across the globe, the demand for Ultra High Molecular Weight Polyethylene is anticipated to rise for various applications, which is projected to boost the Ultra High Molecular Weight Polyethylene industry's growth in the automotive industry during the forecast period.

Ultra High Molecular Weight Polyethylene Market Segment Analysis – by Geography

The Asia-Pacific held a significant share in the Ultra High Molecular Weight Polyethylene Market share in 2021 and is projected to grow at a CAGR of 10.9% during the forecast period 2022-2027. The flourishing growth of Ultra High Molecular Weight Polyethylene is influenced by its major applications across major industries, along with growing development in automotive production and developing the base for Ultra High Molecular Weight Polyethylene in APAC. According to India Brand Equity Foundation, in 2021, the Indian passenger car market was valued at US$ 32.70 billion and it is expected to grow to US$ 54.84 billion by 2027. According to India Brand Equity Foundation, by 2030, the Indian aerospace and defense (A&D) market is expected to reach US$ 70 billion. According to International Trade Administration, China remains the world's largest vehicle market in terms of both annual sales and manufacturing output, with domestic output expected to reach 35 million vehicles by 2025. Thus, the growth of Ultra High Molecular Weight Polyethylene in the region is being aided by the increasing automotive sector in APAC, thereby dominating the market in the Asia-Pacific region.

Ultra High Molecular Weight Polyethylene Market Drivers

Bolstering Growth of the Electric Vehicles:

Ultra High Molecular Weight Polyethylene or high-modulus polyethylene extends the range of electric vehicles by improving vehicle efficiency. Higher demand for lightweight electric vehicles is likely to contribute to the products' rising popularity. According to the International Energy Agency (IEA), Worldwide electric vehicle production reached 10 million in 2020, representing a 43 percent increase over 2019.  According to Niti Aayog, In September 2021, the Production-Linked Incentive (PLI) scheme worth INR 26,058 crore (US$3.5 billion) was approved for automotive manufacturing focusing on electric vehicles and hydrogen fuel cell vehicles. With the rise in the demand for electric vehicles and increasing government investment across the globe, the demand for Ultra High Molecular Weight Polyethylene is anticipated to rise for various applications, which is projected to boost the market growth in the electric vehicles industry during the forecast period.

Rising Demand for Oil & Gas

UHMWPE fibers belong to thermoplastic polyethylene and are used in rope and cordage products in oil and gas exploration. The market growth is expanding due to its extensive properties like remarkable strength-to-weight ratio, superior performance and cost-effectiveness. According to India Brand Equity Foundation, by 2030, India's oil consumption is projected to expand by 50%, compared to a 7% increase in global demand. According to the Government of Canada, Oil production in Canada increased by 18% in August 2022 compared to August 2020. Thus, significant growth in the oil & gas industry is fuelling the growth of the Ultra High Molecular Weight Polyethylene Market size, thereby driving the market growth.

Ultra High Molecular Weight Polyethylene Market Challenge

Fluctuation in Raw Material:

The fluctuation in raw material of Ultra High Molecular Weight Polyethylene is anticipated to restrain the market's expansion on a global scale. One of the primary raw materials used in the production of polycarbonate is crude oil. According to the BP Statistical Review of World Energy 2021 report, crude oil prices have fluctuated in recent years. For instance, the Brent crude oil price decreased from US$52.39/bbl in 2015 to US$43.73/bbl in 2016, then increased from US$54.19/bbl in 2017 to US$71.31/bbl in 2018 and then decreased to US$41.84/bbl in 2020. This results in a considerable increase in prices, which drives up manufacturing costs and reduces manufacturers' profit margins, thereby limiting the Ultra High Molecular Weight Polyethylene Market growth.

Ultra High Molecular Weight Polyethylene Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Ultra High Molecular Weight Polyethylene Market. The Ultra High Molecular Weight Polyethylene Market’s top 10 companies are:

1. LyondellBasell Industries Holdings B.V
2. Koninklijke DSM N.V
3. China Petrochemical Corporation
4. Crown Plastics, Inc
5. Braskem
6. Asahi Kasei Corporation
7. Celanese Corporation
8. Dotmar Engineering Plastics
9. Honeywall International, Inc
10. Mitsui Chemicals, Inc

Recent Developments

• In June 2022, Repsol announced to construct a new UHMWPE plant in Spain. The new plantpolyethene produces ultra-high molecular weight polyethylene (UHMWPE), which will open by 2024 and have a capacity of 15,000 tonnes per year.
• In March 2021, Celanese Corporation announced plans to increase its GUR UHMWPE production capacity in Europe. The expansion will help the company's high-value GUR engineered materials portfolio grow significantly.
• In June 2020, DSM launched a value-added product portfolio for ultra-high-molecular-weight polyethylene (UHMWPE), bringing the unique benefits of UHMWPE within reach of more manufacturers.

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