The global ethylene propylene diene monomer market size was valued at USD 3.90 billion in 2017 and is projected to witness a CAGR of 6.5% from 2018 to 2025. Rising product demand from Asia Pacific region coupled with growth in R&D investments is projected to propel the ethylene propylene diene monomer (EPDM) market. Furthermore, demand for bio-based products is likely to augment the market development during the forecast period. 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 characterized by a strong resistance to heat, 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 a rise over the coming years due to rapidly expanding application sectors including automotive and building & construction. Usually, EPDM is produced from petroleum-derived raw materials, such as ethylene and propylene.
Initially, renewable materials were used as a replacement for technical products; however, they resulted in insufficient performance in rubber applications. However, as the end-use industries are focusing on reducing carbon footprint, especially in transportation and automotive sectors, key manufacturers are incorporating the use of renewable sources for enhanced sustainability of end products.
In 2013, Arlanxeo, a joint venture between Saudi Aramco and Lanxess AG, introduced Keltan eco, a bio-based EPDM, into the global market. The product line consists of six different grades, the bio-based content of which ranges between 50% and 70%. Bio-based grade is primarily designed for applications that require high-performance, as well as sustainability.
Keltan eco is derived from bio-based ethylene, which is supplied by Braskem, a company located in Brazil. Braskem derives bio-based ethylene from sugarcane at its production plant in Triunfo, Brazil. The replacement of a single bio-based component does not alter the technical performance property of the EPDM, such as oxidative and water resistance, health and safety, and processing and handling properties.
Major application segments in the global EPDM market are building & construction, wires & cables, electrical & electronics, lubricant additive, plastic modifications, automotive, tires & tubes, and others. Automotive was estimated as the largest application segment in 2017. In automotive industry, the product is used in hydraulic brake systems, wire & cable harnesses, tubing, window spacers, radiators, belts, weather stripping & seals, glass run channel, and door, window, & trunk seals. It is also used in interior trim, striker plate blinds, and under the hood. The product is witnessing an augmented demand in these applications as it offers a non-reflective and premium-quality finish.
Specialty coatings can also be applied during the production of weather seat as they enhance the chemical resistance of EPDM. Lubricant additive is the fastest-growing application in the market. The product finds application as additive in lubricants to enhance the viscosity index and performance in changing weather and temperature. It allows the oil structure to adapt to temperature changes and maintain its grades. Key applications as lubricant additive include motor oil for automobiles, lubricating greases, heavy-duty diesel, maritime, and industrial oil. It is also used as a viscosity modifier for lubricant. Robust growth of automotive and industrial production is projected to fuel the demand for lubricants, thereby influencing the segment development over the forecast period.
Asia Pacific accounted for the largest market share in 2017 and is projected to expand further due to the high product demand from key industries including automotive, building & construction, and electrical & electronics. Since the past few years, manufacturing industry in 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 to well-equipped, world-class manufacturing facilities through the implementation of protectionism, financial investment, and regulatory support. Moreover, low labor costs and close proximity to raw material suppliers is further attracting the investors. China, Indonesia, South Korea, India, and Taiwan are expected to drive the Asia Pacific market over the forecast period. Globally, China is one of the largest producers and consumers of EPDM.
The global EPDM market is characterized by the dominance of a few prominent companies including The Dow Chemical Company, Lanxess AG, Sumitomo Chemical Co., Ltd., Lion Elastomers, LLC, Mitsui Chemicals, and Exxon Mobil Corporation. These market participants have a vast geographic presence coupled with large production capacities. The market is also characterized by the presence of various regional companies with medium-scale production capacities. Such domestic manufacturers possess a considerable potential to influence the prices offered by major companies, leading to a strong competition in the regional, as well as global, market.
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Attribute |
Details |
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Base year for estimation |
2017 |
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Actual estimates/Historical data |
2014 - 2016 |
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Forecast period |
2018 - 2025 |
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Market representation |
Volume in Kilotons, Revenue in USD Million, and CAGR from 2018 to 2025 |
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Regional scope |
North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa |
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Report coverage |
Revenue forecast, competitive landscape, growth factors and trends |
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Country Scope |
U.S., Canada, Mexico, Germany, U.K., France, Italy, Russia, China, India, Japan, South Korea, Brazil, Argentina, Saudi Arabia, and South Africa |
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15% free customization scope (equivalent to 5 analyst working days) |
If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization |
This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest 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 ethylene propylene diene monomer market report on the basis of application and region:
Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Building & Construction
Wires & Cables
Electrical & Electronics
Lubricant Additive
Plastic Modifications
Automotive
Tires & Tubes
Others
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
North America
U.S.
Canada
Mexico
Europe
Germany
U.K.
France
Italy
Russia
Asia Pacific
China
India
Japan
South Korea
Central & South America
Brazil
Argentina
Middle East & Africa
Saudi Arabia
South Africa
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