The versatile properties of EPDM, including waterproofing, flexibility, and electrical insulation, make it highly sought-after in industries where O-rings, gaskets, hoses, electrical insulators, and wire connectors are required. In the building and construction sector, EPDM is extensively employed in applications such as roofing, garage door seals, expansion joints, and tank liners. It is also used as a coating material in bitumen roofs. Additionally, EPDM serves as an effective modifier for enhancing the properties of thermoplastic polymers like polypropylene. Raw materials for EPDM are Ethylene, Propylene, and Diene comonomers. EPDM has a saturated polymer (polyethylene) backbone which gives it an enhanced resistance to heat, Ozone, and Light than unsaturated rubbers like nitrile rubber, Neoprene, or Styrene-Butadiene Rubber (SBR).  The physical and chemical properties of EPDM vary based on its propylene and ethylene content in it. Based on different formulations EPDM can be resistant to higher temperatures ranging from -40°C to 150 °C.

In 2021, China manufactured around 26 million cars, marking a 3% increase compared to the previous year. India also experienced significant year-on-year growth of around 30% in car production during the same period.  Furthermore, the increasing adoption of EVs presents new opportunities for EPDM in the automotive market. EPDM is utilized in EV components such as battery sealing, cable harnesses, and charging infrastructure & systems. The growing popularity of EVs, driven by environmental concerns and government incentives, is projected to boost the demand for EPDM in the coming years.

The rising production of electric vehicles in major economies, is anticipated to drive the global EPDM demand during 2022 and 2032. Furthermore, the electric vehicle market in the Asia Pacific region is anticipated to witness double-digit growth due to factors such as increasing consumer awareness, supportive government policies, and advancements in technology.

Growing consumer awareness and move toward sustainability will impact the growth of petroleum-based EPDM market in the forecast period. Arlanxeo, a joint venture between Lanxess and Saudi Aramco, has already produced eco EPDM derived from sugarcane back in 2013 under the brand name Keltan Eco EPDM. This eco EPDM contains a significant proportion (50-70%) of biobased content and possesses improved properties.

Automotive industry is the largest EPDM consumer, particularly for applications such as hoses, seals, gaskets, and weatherstripping. The growth of the EPDM market is closely tied with performance of the automotive industry. Changes in consumer demand, regulatory shifts, and fluctuations in economic conditions, can impact automotive production and, subsequently, the EPDM demand. For instance, disruptions caused due to COVID-19 pandemic had significantly affected automotive manufacturing, leading to a temporary decline in the EPDM demand.

Lion Elastomers, Exxonmobil , Dow Chemical, Versalis S.p.A., ARLANXEO, Mitsui Chemicals , Sumitomo Chemicals, JSR Corp, Kumho Polychem, Lotte Versalies Elastomers and Petro Rabigh are some of the leading EPDM producers.

 

Kumho Petrochemical, the leading EPDM manufacturer in South Korea, currently boasts a production capacity of 220 kilo tons. The company has strategic plans in place to enhance its production capabilities and is scheduled to complete the capacity expansion by 2024.

In early 2022, Arlanxeo announced its plant to increase EPDM production capacity in Changzhou, China.by 15%. The expansion aims to support the production of various Keltan grades used in new infrastructure applications such as 5G construction, ultra-high voltage systems, and charging piles. The EPDM products are also utilized in rail transit systems, new energy vehicles, and home appliances. This initiative will enhance Arlanxeo s position in the EPDM market.

Lion Elastomers, a leading synthetic rubber manufacturer, has made a significant investment of $22 million in the construction of a state-of-the-art multi-level production building in the United States. This expansion project will support the supply chains of automobile tire manufacturers and the production of various rubber goods.

Sumitomo Chemicals will be discontinuing production at its 40,000 tons EPDM plant in Chiba, Japan by the end of March 2023. A total of 125-kilo tons of EPDM capacity is scheduled to be taken off by 2023, which will improve the operating rates in China.