EPDM Market

The EPDM market size is estimated to be USD 3.9 billion in 2023, and it is projected to reach USD 5.2 billion by 2028 at a CAGR of 5.9%. One of the key factors expected to propel the growth of the EPDM market is the increasing usage of EPDM in automotive and construction & building application areas. Additionally, growth potential in emerging economies in the Asia Pacific region offers opportunities for the EPDM market.

EPDM Market Size, Dynamics & Ecosystem

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EPDM Market Dynamics

Driver: Increasing use of EPDM polymer in blended products

EPDM, an elastomer renowned for its resilience against ozone, UV radiation, temperature fluctuations, and weathering, does not, however, possess resistance to hydrocarbon fuels. To augment its performance, it is often combined with other chemical compounds. When bolstered with butyl rubber (IIR), EPDM gains strength and resilience against ozone and heat, making it ideal for tire inner tubes. In various tire applications, EPDM blends with natural rubber and styrene-butadiene rubber (SBR). The tire industry, buoyed by the steady recovery of the automotive sector, is expected to drive demand for EPDM in this domain.

Restraint: Availablity of substitutes of EPDM

EPDM rubber stands out for its exceptional resistance to ozone, UV radiation, and weathering, boasting an extended product lifespan compared to other elastomers. However, it does exhibit limitations such as

• EPDM demonstrates inadequate resistance to non-polar solvents and petroleum-based fuels.
• For sheet roofing applications, EPDM primarily comes in black.
• Recycling is difficult.

In response, companies are directing efforts toward crafting products with heightened performance and sustainability. They're exploring diverse thermoplastic elastomers like TPV and TPO, which are gradually replacing EPDM rubber in automotive and construction applications.

Opportunity: Development of environment-friendly technology for production of EPDM

Companies are concentrating their efforts on developing environmentally friendly technologies and products across various end-use industries to minimize CO2 footprints. By utilizing renewable raw materials in production processes, they aim to enhance sustainability. This technology is anticipated to yield substantial revenue streams as it not only conserves energy but also increases production rates by significantly reducing the number of manufacturing steps required for EPDM. Moreover, operational costs and time are further reduced as the catalyst stage is eliminated from the manufacturing process. Arlanxeo, based in the Netherlands, is at the forefront of this movement, producing bio-based EPDM under the product grade name Keltan ECO. Derived from sugarcane, ethylene is obtained from ethanol to produce this EPDM, which boasts a bio-based content of up to 70%.

Challenges: Difficulty in recycling of EPDM

EPDM stands as a thermoset elastomer, created from ethylene and propylene monomers, which facilitates cross-linking or vulcanization at elevated temperatures using cross-linking agents such as sulfur or peroxides. While thermoset rubbers exhibit enhanced performance in terms of temperature and chemical resistance, they pose challenges in recycling compared to thermoplastic elastomers. This recycling difficulty arises from the presence of the cross-linked structure inherent in thermoset rubbers.

ECOSYSTEM OF EPDM MARKET

EPDM Market Segmentation & Geographical Spread

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“Automotive segment emerges as the fastest growing by application segment in the EPDM market.”

Categorized on the basis of application, the EPDM market includes segments such as automotive, building & construction, plastic modifications, tires and tubes, wire & cables, lubricant additives, and other applications. Notably, the automotive segment emerges out as a fastest-growing segment within this market. Moreover, with the continuous improvement in living standards and the ongoing development of new technologies, the market is poised for further expansion in the near future.

“Solution Polymerization process is fastest growing segment by form in the EPDM market.”

In terms of the manufacturing process, the solution polymerization process emerges as the largest and most rapidly expanding segment of EPDM during the forecast period. Current polymerization and catalyst technologies offer the capability to tailor polymers to meet precise and challenging application and processing requirements.

“APAC is the speediest-growing market for EPDM market.”

The Asia Pacific region stands out as the largest and most rapidly expanding market for EPDM, closely followed by North America and Europe. The growth of the EPDM market in Asia Pacific is fueled by heightened demand across various end-use industries within the region. Key areas driving this demand include construction and building, automotive, plastic modifications, tires and tubes, wire and cables, lubricant additives, and others. The market's momentum in this region is propelled by the automotive sector's recovery in countries such as China, India, and Southeast Asian nations. The shift towards the development of New Energy Vehicles (NEVs) to mitigate carbon emissions is poised to further drive the automotive industry which supports the growth of EPDM in the forecast period.

Key Market Players

Key stakeholders steering the trajectory of the EPDM market include ARLANXEO (Netherlands), DOW (US), Exxon Mobil Corporation (US), Kumho Polychem (South Korea), PetroChina Company Limited (China), Versalis S.p. A.(Italy), SK geo centric Co., Ltd. (South Korea), ENEOS Holdings, Inc. (Japan), and Mitsui Chemicals, Inc. (Japan. To solidify their positions in this competitive market, these industry frontrunners have judiciously employed a range of growth strategies. This encompasses acquisitions, diversifying their product lineup, geographical expansions, and others. Through these strategic maneuvers, they aim to cater to the escalating demand for EPDMs, particularly from dynamic emerging markets.

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Scope of the Report

:

This research report categorizes the global EPDM market on the basis of Type, End-use Industries, and Region.

EPDM Market, By Manufacturing Process

• Solution Polymerization Process
• Slurry/Suspension Process
• Gas-phase Polymerization Process

EPDM Market, By Application

• Automotive
• Building & Construction
• Plastic Modifications
• Tires & Tubes
• Wire & Cables
• Lubricant Additives
• Other Applications

EPDM Market, By Region

• Asia Pacific (APAC)
• North America
• Europe
• South America
• Middle East & Africa

The market has been further analyzed for the key countries in each of these regions.

Recent Developments

• In June 2023, ARLANXEO has partnered with Qingdao University of Science and Technology, to invest in enriching the local talent, which further helps to support the upgradation of the synthetic rubber industry in China.
• In February 2023, Lion Elastomers signed a distribution agreement with Prime Plastics to distribute its products in the EU market.
• In November 2022, Lion Elastomers signed a distribution agreement with ChemSpec Canada Inc. to distribute its products in Canada.
• In October 2022, Lion Elastomers collaborated with ARISAN, to sell the company’s product in Turkey.
• In August 2022, Lion Elastomers invested USD 22 million to construct a new multi-level production building housing two new finishing lines at its elastomeric polymer manufacturing facility in Ascension Parish
• In March 2022, ARLANXEO has increased the annual capacity of the EPDM plant by 15%. This helps to meet the rising demands for EPDM across the country.

Frequently Asked Questions (FAQ):

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