16-Nov-16 Ethylene Propylene Diene Monomer (EPDM) market size is expected to reach US$4.28 bln by 2024; according to a report by Global Market Insights, Inc.
Global EPDM market size is mainly categorized on primary applications which include construction, electrical & electronics, plastics, automotive, lubricant additives, and others. Automotive dominated the application base and accounted for over 40% of the global EPDM market share in 2015. It is widely used in manufacturing automobile components such as bumpers, door seals, and braking system. Growing consumer demand for automotive and wide range of applications in this space is likely to ensure continued gains in this sector.
Construction, on the other hand is expected to help demand grow rapidly (over 6%) in terms of revenue by 2024. Increasing construction spending in BRIC nations is anticipated to propel EPDM market share for construction applications. Along with the above applications, increasing potential for polymer modification in the industrial sector will boost demand. Global personal & commercial automotive sales were approximately 90 million units in 2015.
It is also a key raw material used in plastic modification in thermoplastic olefins (TPO) and thermoplastic vulcanizates (TPV). Light-weight and increased strength characteristics of TPO make it attractive for automotive and construction sectors. This in turn helps the automotive industry to abide by various stringent government regulations aimed at reducing carbon emissions produced by vehicles.
Global production capacity has witnessed steady expansion by industry players, resulting in product oversupply, which may hinder EPDM market price trends. Petroleum based products are required in production and therefore fluctuating crude oil prices may negatively impact industry growth. However, the development & commercialization of bio based EPDM products is anticipated to provide new industry growth opportunities in the near future.
Key insights from the report include:
* Electrical & electronics applications were valued at over US$140 mln in 2015. Excellent thermal and mechanical characteristics makes product desirable for electrical & electronics application.
* Lubricant additive applications are estimated to expand at over 4% CAGR from 2016 to 2024.
* US. EPDM market is set to reach US$940 mln by 2024. High customer spending on luxury vehicles is likely to boost regional industry growth. U.S. plastics applications were valued at over US$60 mln in 2015 and forecast to rise with over 4% CAGR. UK EPDM market size for construction application is estimated to reach US$15 mln with over 4% CAGR. Asia Pacific was dominant regional market in 2015. Increasing construction activities along with growing automobile manufacturing units is anticipated to be key factor propelling regional EPDM market growth. Indian market is forecast to reach US$130 mln, with estimated gains at over 7% CAGR.
