The global ethylene propylene diene monomer (EPDM) market is marked
by an extremely high level of consolidation, with the top six
companies accounting for over 80% of the market in 2015, states TMR
in a recent report. These top six companies, including ExxonMobil
Chemical Company, Kumho Polychem, LANXESS AG, Mitsui Chemicals, Lion
Copolymer LLC, and The Dow Chemical Company, are the key determinants
of the overall development of the market presently.
However, a large number of local vendors are venturing in the global
EPDM market, a trend which is expected to intensify the competition
substantially in the market in the next few years.
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This trend is also expected to bring down the level of consolidation,
leading to the development of sustainable growth prospects for new
entrants as well. Mergers and acquisitions are likely to have a major
impact on the overall dynamics of the market and companies are
expected to increase their focus on emerging markets with promising
growth opportunities.
Rising
Demand for EPDM from Automotive Industry Key Driving Force
The automotive industry is the most prominent consumer of EPDM,
accounting for a share of over 40% in the overall consumption of EPDM
in the global market in 2015. The automotive industry has seen
significant expansion in the past few years, especially across
developing economies such as Asia Pacific and Latin America.
Developed regions such as North America and Europe have also
witnessed sustainable growth in the automotive industry post the
economic downturn of 2008. In the next few years as well, the
automotive industry will exhibit favorable growth in the global
market and present vast growth opportunities for the EPDM market.
The sector of thermoplastic modification is also expected to present
promising growth opportunities for the global EPDM market in the next
few years. The vast rise in the global demand for thermoplastic
olefins (TPO) and thermoplastic vulcanizates (TPV) across industries
such as construction, packaging, medical devices, and consumer goods
will help fortify the projected trend.
Oversupply
of EPDM Owing to Consistent Capacity Additions to Intensify Price
Pressure
The global EPDM market has witnessed a prominent shift in its
demand-supply dynamics in the past few years. In 2010, the global
demand for EPDM outstripped the global supply. However, the situation
has almost reversed in the past few years. Owing to substantial
capacity additions by major vendors such as LANXESS, Mitsui
Chemicals, Kumho Polychem, and ExxonMobil Chemical Company post the
recent economic depression, the market presently struggles with the
oversupply of EPDM.
This factor is expected to expedite the competition in the market,
adding to the price pressures of existing manufacturers. As a result,
the growth prospects of the market are expected to be hampered to a
certain extent in the next few years.
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Emerging
Economies to Present Most Promising Growth Prospects
The global EPDM market is expected to expand at a healthy pace of
5.4% over the period between 2016 and 2024. The market, which had a
valuation of US$2.63 bn in 2015, is expected to rise to US$4.20 bn by
2024. From a geographical perspective, emerging economies such as
Asia Pacific and Latin America are expected to lead to the most
lucrative growth opportunities for the global EPDM market in the next
few years. Asia Pacific, which accounted for the dominant share of
over 40% in the overall global EPDM consumption in 2015, is expected
to remain the dominant regional market over 2016 to 2024 as well.
This review is based on a recent market research report published by
Transparency Market Research, titled “Ethylene Propylene Diene
Monomer (EPDM) Market - Global Industry Analysis, Size, Share,
Growth, Trends and Forecast 2016 - 2024.”
For
this study, the market has been segmented as follows:
EPDM
Market: End-user Analysis
- Building & Construction
- Electrical
- Plastics
- Automotive
- Lubricant Additive
- Others (Rubber Goods, etc.)
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