A report by Transparency Market Research (TMR) states that the spike in the production of automobiles is likely to create a mammoth demand for global ethylene propylene diene monomer (EPDM) market, a synthetic rubber, in the near future. The increasing pressure amongst automobile manufacturers to improve the efficiency of vehicles has been the driving force behind the uptake of EPDM. Thus, several components such as interiors of vehicles and bumpers are made out of EPDM, as the synthetic rubber allows these parts to weigh less thereby ensuring improved fuel efficiency. The thermoplastic modification industry is also likely to show significant demand for EPDM in the near future. The research states that industries such as medical devices, packaging, construction, and consumer goods are also fueling the growth of the market with increasing demand for thermoplastic vulcanizates (TPV) and thermoplastic olefins (TPO).
Leading Players Focus on Mergers and Acquisitions to Enter Emerging Markets
Analysts have observed that the leading players in the global market are focusing toward strengthening their activities in the emerging economies, as the automotive sector in these countries is at its all-time high. The key players in the global EPDM market are Kumho Polychem, ExxonMobil Chemical Company, Mitsui Chemicals, LANXESS AG, The Dow Chemical Company, and Lion Copolymer LLC. To build a strong base in the developing regions of Asia Pacific and Latin America, these players are expected to strategize on entering profitable mergers and acquisitions in the coming years. According to TMR, the global EPDM market is expected to be worth US$4.20 bn by 2024, progressing at a CAGR of 5.4% between the forecast period of 2016 and 2024.
Asia Pacific to Retain Lead in Global Market over Forecast Period
Geographically, the global EPDM market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Of these, Asia Pacific has emerged as a substantial consumer and producer to EPDM. The region is expected to maintain its status quo as the electrical and construction industries are gaining momentum with hefty investments in infrastructural plans. Asia Pacific will remain the frontrunner in the global market as the region boasts a strong presence of manufacturers producing electrical equipment parts. Research indicates that China will be the leading consumer of EPDM in the coming few years.
The Middle East and Africa and Latin America are also expected to show a remarkable growth rate in the overall EPDM market. The demand for EPDM in these regions will be dictated by the persistent rise in consumption and production of rubber and plastic components that are required for electrical work, plastic modification, and in automotive industries. On the other hand, North America and Europe will witness a slowdown in the demand for EPDM as the regions are struggling to revive its automotive sector, a fairly large consumer of EPDM, since the economic recession.
Browse the full Global Ethylene Propylene Diene Monomer (EPDM) Market report at http://www.mrrse.com/ethylene-propylene-diene-monomer-rubber
The global ethylene propylene diene monomer (EPDM) market is anticipated to witness a sudden emergence of small and medium-sized players as consumers are tilting their preference towards bio-based products. Thus, a significant number of players are expected to align their research and development strategies to match these needs in the near future to remain relevant to the changing demands of the global consumers.