15-Jun-18 Albany, New York, -- The presence of a handful of companies at the top has rendered the global ethylene propylene diene monomer (EPDM) market highly consolidated. According to Transparency Market Research (TMR). Over 80% of the global market was held by the top six companies in 2015. These were Mitsui Chemicals, LANXESS AG, Kumho Polychem, ExxonMobil Chemical Company, The Dow Chemical Company, and Lion Copolymer LLC. However, the market is witnessing a rising influx of local vendors, which is expected to intensify the prevailing competition in the forthcoming years. This will also ease the level of consolidation, thereby creating growth opportunities for the new entrants.
As per TMR, the market players are concentrating on mergers and acquisition to strengthen their market position. Besides this, leading companies are likely to focus on expanding their businesses to tap on opportunities across emerging nations. Because these strategies are aimed at business expansion, they are expected to positively influence the global ethylene propylene diene monomer market.
TMR has pegged the global ethylene propylene diene monomer market to reach US$4.20 bn by the end of 2024, increasing from US$2.63 bn in 2015. Therefore, the market is forecast to show a steady CAGR of 5.4% between 2016 and 2024. While the market is expected to witness considerable growth opportunities in most parts, fluctuation in raw material prices may hamper their growth to an extent.
Demand from Automotive Industry to Fuel Growth Prospects
Among end users, the automotive industry held nearly 40% of the global ethylene propylene diene monomer market in 2015. The industry demonstrated robust growth over the last few years, which has subsequently fuelled EPDM demand. According to TMR, expansion of the automotive industry in Latin America, Asia Pacific, and North America will create considerable growth avenues for the EPDM market. Considering this, the rising demand for advanced vehicles will bode well for the market.
In addition to this, the demand for EPDM is expected to rise in the thermoplastic modification sector. The rising demand for thermoplastic olefin will in turn present attractive growth opportunities to the global ethylene propylene diene monomer market. Regionally, the demand from Asia Pacific and Latin America will enable the market gain impetus in the coming years. As per TMR, Asia Pacific accounted for nearly 40% of consumption recorded in the global EPDM market in 2015.
Intensifying Price Pressures due to Oversupply of EPDM Pose Threat to Market
The paradigm shift witnessed in its demand-supply dynamics over the past years has become a serious concern for the global EPDM market. As per TMR, the demand for ethylene propylene diene monomer outstripped its global supply in 2010. However, the situation nearly reversed over the next few years. As a result of capacity addition by key vendors post economic downturn, the market is currently reeling under the oversupply of EPDM. This factor is likely to accelerate competition, thus intensifying price pressures. As a result of this the growth witnessed in the global ethylene propylene diene monomer market is expected to get hampered to an extent. Nonetheless, the rising demand from emerging nations is forecast to create attractive growth opportunities for the market in the coming years.
Source: Globe Newswire
Previous News
Next News
{{comment.DateTimeStampDisplay}}
{{comment.Comments}}