Ethylene Propylene Diene Monomer (EPDM) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• Over the medium term, the major factor driving the growth of the market studied is the growing demand from the construction industry and the growth in the electric vehicles market.
• Since EPDM is derived from petroleum-based raw materials, the fluctuations in oil prices can restrain the market studied.
• The emergence of bio-based EPDM can be seen as an opportunity for the market studied.
• Asia-Pacific dominated the market and is expected to continue its dominance during the forecast period.

Ethylene Propylene Diene Monomer Market Trends

Automotive Segment to Dominate the Market

• Ethylene propylene diene monomer (EPDM) rubber is a copolymer of propylene, ethylene, and a small amount of non-conjugated diene monomers used in the automotive industry for various applications as weatherstripping, sealing systems for glass and windows, hose, and tubing, tires, and belts amongst others.
• Weatherstripping or weather seals is a system that seals any openings. They are flexible or semi-rigid and can take vibrations caused by vehicle movement.
• Weatherstripping is used to prevent the entry of water and rain partially or completely into the automobile from outside by either rerouting or returning the water. Also, it prevents the movement of air from the automotive interior to the outside and vice versa. This helps in saving energy on heating, ventilation, and air conditioning (HVAC).
• Each door in the automobile will need at least 20 feet of material, and every window requires a minimum of 10 feet of material. The trunk of the automobile may also require much larger amounts of material depending on the size of the automobile. It indicates the demand for rubber in the automobile for weather stripping and sealing applications.
• EPDM’s resistance to abrasion, cutting, tearing, and tensile strength, EPDM is preferred in most applications. EPDM rubber is used for weather strip and sealing applications in almost all automobiles, such as passenger cars, lightweight commercial vehicles, busses, coaches, and heavy trucks, of which light commercial vehicles dominate the weather strip and sealing application.
• Globally, according to OICA, the sales of vehicles (all types) in the year 2021 were 82.68 million units, and the total production was 80.14 million units.
• The total production of cars in the United States in 2021 was 1.56 million units, and that of commercial vehicles was 7.60 million units registering an increase of 4%.
• Hence, owing to the above-mentioned aspects, the automotive segment is expected to dominate the market.

Asia-Pacific Region to Dominate the Market

• Asia-Pacific dominated the market with a share and is likely to continue its dominance during the forecast period. Asia-Pacific is a hub for automotive and construction industries globally and is the major region driving the demand for EPDM.
• The Chinese automotive manufacturing industry is the largest in the world. The country observed a growth of 3% in the production of commercial vehicles and cars in the year 2021, with a total production of 26.08 million vehicles.
• China's revenue from consumer electronics is expected to show an annual growth rate of 2.04%, resulting in a projected market volume of USD 175,670 million by 2025.
• The construction industry is the second-largest industry in India, with a GDP contribution of about 9%. It is predicted that the Indian construction industry is expected to emerge as the third-largest market in the world, with a size of almost USD 1 trillion by the end of the forecast period.
• The Japanese electrical and electronics industry is one of the world’s leading industries. In 2021, domestic production by the Japanese electronics industry surged by 11% year-on-year to JPY 10,932.2 billion (~ USD 99.75 billion) due to the strong export performance of electronic components and devices and the growth in telecommunications infrastructure equipment due to lifestyle changes.
• All the aforementioned factors, in turn, are projected to have a significant impact on the market during the forecast period.

Ethylene Propylene Diene Monomer Market Competitor Analysis

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