Ethylene Propylene Diene Monomer Market Size, Share & Trends Analysis Report By Application (Building & Construction, Wires & Cables, Electrical & Electronics, Lubricant Additive), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global ethylene propylene diene monomer market size was valued at USD 5.1 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.5% from 2022 to 2030. Rising demand from the Asia Pacific region, coupled with the growth in R&D investments and demand for bio-based products, is likely to propel the product demand during the forecast period. Ethylene Propylene Diene Monomer (EPDM) is a synthetic elastomer, which is produced as a copolymer of propylene and ethylene combined with pendant diene to cross-link the polymer. It is a kind of synthetic rubber, which is characterized by a strong resistance to heat, weather, ozone, fluids, and oxidized chemicals. It is also resistant to mild acids, synthetic brake fluids, water, ethylene glycol, and other liquids. The global demand for EPDM is anticipated to witness lucrative growth over the forecast period on account of the massive expansion of the application sectors including automotive and building and construction.

Product innovation, coupled with rising expenditure on research & development activities, is anticipated to drive the demand for EPDM in the U.S. The various application areas of EPDM are expected to witness significant growth in the upcoming years. In recent years, the demand for EPDM arising from the building and construction industry has witnessed favorable growth in the U.S. on account of infrastructural developments. EPDM is finding increased utilization in the construction industry for residential housing and industrial applications. The overall U.S. construction industry is expected to observe favorable growth owing to new import tariffs, changing trade deals, huge infrastructural projects, and immigration reforms. Moreover, application areas of EPDM in other applications are expected to continue to drive the market over the forecast period.

Conventionally, EPDM has been produced from petroleum-derived raw materials such as ethylene and propylene. However, as the end-use industries are focusing on reducing the carbon footprint, especially in the transportation and automotive sectors, key manufacturers are incorporating the use of renewable sources to enhance the sustainability of end products. Initially, the use of renewable materials as a replacement for technical products produced insufficient results in high-performance rubber applications. However, on account of several extensive research & development activities, performance-efficient variants have found versatile applications in various industries.

Demand for EPDM is expected to rise significantly in the automotive industry in Canada owing to the rising demand for new vehicles, mainly among the aging baby-boom population in Canada and the U.S. Moreover, favorable economic conditions are anticipated to continue to support the Canadian motor vehicle manufacturing industry. However, improving vehicle technology, which aids in extending the average length of vehicle ownership, coupled with easy access to ridesharing and carpooling, is anticipated to restrain the demand among urban millennials. Allard Motor Works, Bombardier Recreational Products, Bombardier, Inc., Canadian Electric Vehicles, Dupont Industries, and Conquest Canada are among the key domestic manufacturers operating in the automotive industry in Canada.

The automotive manufacturing industry in Mexico is witnessing lucrative growth opportunities. The lower value of the US dollar as compared to currencies such as the Euro and Yen has attracted the attention of global auto manufacturers, particularly from the North American Free Trade Agreement (NAFTA) region. Low tariffs along with low production costs on account of the broad reach of Mexico's free trade agreements have contributed substantially to attracting significant investments. Exports to nearly 44 countries from Mexico are exempted from tariffs, including the 10% tariff imposed by the EU on imported motor vehicles. Thus, a rise in automotive manufacturing activities is likely to propel the demand for EPDM in the coming years.

Application Insights

The automotive segment emerged as the largest application segment in 2021 and accounted for more than 40.0% share of the overall revenue. Major application segments are building and construction, wires and cables, electrical and electronics, lubricant additive, plastic modifications, automotive, tires and tubes, and others. Some of the applications of EPDM in the automotive segment include hydraulic brake systems, wire & cable harnesses, tubing, window spacers, radiators, belts, weather stripping and seals, glass run channel, and door, window, and trunk seals. It is also used in the interior trim, striker plate blinds, and under the hood. The product is witnessing an augmented demand in automotive applications as it offers a non-reflective and premium quality finish. Specialty coatings can also be applied during the production of weather seats as they enhance the chemical resistance of EPDM.

EPDM cable is a tough rubber-sheathed cable, which consists of a black outer sheath with various conductors inside. It provides a waterproof, abrasion-resistant, and corrosion-resistant protective covering for insulated electric cables. Common types of EPDM wires and cables include lead wire, appliance wiring, power cables, welding cables, and direct burial cables. EPDM lead wire is widely utilized on account of its strong abrasion resistance, dielectric strength, and excellent mechanical properties.

EPDM is widely utilized in the electrical and electronics industry owing to the increasing demand for a reliable and environment-friendly flexible insulation material in high-temperature applications. EPD retains its physical characteristics throughout its service life and involves low maintenance and repair costs. In addition, it has outstanding durability, a high degree of stability, and the ability to withstand a large range of normal weathering. EPDM can also be used in electrical cable jointing as a medium for water resistance. The rapid expansion of the electrical and electronics industry and its manufacturing product industry is projected to propel the demand for EPDM over the forecast period.

Lubricant additive is expected to emerge as the fastest-growing application segment over the forecast period. EPDM finds application as an additive in lubricants to enhance the viscosity index and performance in changing weather and temperature conditions. It allows the oil structure to adapt to temperature changes and maintain its grades. Key applications as lubricant additives include motor oil for automobiles, lubricating greases, heavy-duty diesel, maritime, and industrial oil. It is also used as a viscosity modifier for lubricants. Robust growth of automotive and industrial production is projected to fuel the consumption of lubricants, thereby influencing the demand on a positive note over the forecast period.

Regional Insights

The Asia Pacific accounted for the largest revenue share of more than 40.0% in 2021. The market in the Asia Pacific is primarily driven by the ascending product demand from the key industries including automotive, building and construction, and electrical and electronics. Over the past few years, the manufacturing industry in the Asia Pacific has been attracting significant investments from leading MNCs. Companies from Northeast Asia are mainly engaged in pushing their economies to grow in key sectors pertaining to raw material extraction, manufacturing, and services. Thus, the governments across the region have transformed the rural industries into well-equipped world-class manufacturing facilities through the implementation of protectionism, financial investment, and regulatory support.

Rising car production and sales, coupled with an improving macroeconomic outlook, are expected to be the primary drivers of the market in France. The EPDM industry is also evolving owing to the constant research & development activities. However, strengthening labeling regulations in France and high competition among EPDM producers are anticipated to hamper the market growth over the forecast period.

Industrial manufacturing in Saudi Arabia has witnessed steady growth in the past few years. A shift in focus toward the non-oil private sector in Saudi Arabia to boost manufacturing and other end-use industries and diversify the economy of the country is projected to drive the market over the forecast period. In addition, the efforts exerted by the government to support the growth of the industrial sector and achieve strategic and economic goals are anticipated to largely contribute to the market growth in the coming years.

Moreover, the availability of cheap labor and close proximity to raw material suppliers are attracting the interest of investors in the region. China, Indonesia, South Korea, India, and Taiwan are expected to drive the regional market over the forecast period. Globally, China is one of the largest producers and consumers of EPDM. It is expected to further contribute to the growth of the market in the coming years.

Key Companies & Market Share Insights

Key market participants have a vast geographical presence, coupled with large production capacities. Moreover, the market is characterized by the presence of various regional as well as local players with medium production capacities. These domestic players possess a considerable potential to influence the prices offered by these companies by lowering their own product prices. Some prominent players in the global ethylene propylene diene monomer market include:

• The Dow Chemical Company

• Exxon Mobil Corporation

• Firestone Building Products Company, LLC

• Johns Manville, Inc.

• KUMHO POLYCHEM

• Lanxess AG

• Lion Elastomers, LLC

• Mitsui Chemicals, Inc.

• PetroChina Company Limited

• Rubber Engineering & Development Company (REDCO)

• SK Global Chemical Co., Ltd.

• Sumitomo Chemical Co., Ltd.

• Versalis S.p.A.

• Warco Biltrite

Ethylene Propylene Diene Monomer Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2019 to 2030. For the purpose of this study, Grand View Research has segmented the global ethylene propylene diene monomer market report on the basis of application and region:

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • Building & Construction

  • Wires & Cables

  • Electrical & Electronics

  • Lubricant Additive

  • Plastic Modifications

  • Automotive

  • Tires & Tubes

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • U.K.

    • Italy

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa