The global market for EPDM rubber is on the rise and is projected to reach a value of USD 5.2 billion by 2028. This represents a compound annual growth rate (CAGR) of 5.9% during the forecast period. One of the key drivers of this growth is the automotive industry, which has a strong demand for EPDM across various applications.
EPDM rubber plays a vital role in the manufacturing of rubber parts used in automotive vehicles. China, in particular, stands out as a pivotal player in the automotive market, actively promoting the development of new-energy vehicles (NEVs) including fuel cell electric vehicles (FCVs), plug-in hybrid electric vehicles (PHEVs), and battery-electric vehicles (BEVs). This commitment to sustainable transportation solutions is expected to fuel a steady growth trajectory in car production, with NEVs projected to represent 25% of sales by 2026.
The automotive industry relies heavily on EPDM rubber for various applications, such as hoses, gaskets, body sealing, weather-stripping, brake parts, windshield wipers, and other components under the hood. The versatility and importance of EPDM rubber in the automotive manufacturing process are evident through its wide range of applications.
Although the EPDM market faces challenges like the availability of substitutes and anti-dumping duties imposed by China, there are also opportunities for growth. The increasing demand for electric vehicles (EVs) and the development of environmentally friendly technology for EPDM production are some of the factors that create potential for growth in the market.
The Asia Pacific region is witnessing the fastest growth in the EPDM market. This can be attributed to the presence of EPDM producers in the region and the strong growth in construction projects and the automotive sector. With these factors in play, Asia-Pacific is expected to continue driving the demand for EPDM in the coming years.
Key players in the EPDM market include ARLANXEO, DOW, Exxon Mobil Corporation, Kumho Polychem, PetroChina Company Limited, Versalis S.p.A., SK Geo Centric Co., Ltd., ENEOS Holdings, Inc., Mitsui Chemicals, Inc., and others. These companies employ various strategies such as expansions, acquisitions, joint ventures, and new product developments to enhance their positions in the market.
The growth of the EPDM market reflects the increasing importance of EPDM rubber in the automotive industry. With the rise of NEVs and the demand for sustainable transportation solutions, the demand for EPDM is expected to continue growing in the coming years.