India EPDM Market Outlook to 2028

India EPDM Market Overview

The Indian EPDM (Ethylene Propylene Diene Monomer) Market was at USD 257.5 million in 2023. The market's growth is primarily driven by increasing demand from the automotive and construction sectors, where EPDM is used extensively in weatherstripping, seals, and roofing membranes due to its excellent resistance to heat, oxidation, and weather.

The Indian EPDM market is dominated by a mix of international and domestic players. Key players include Reliance Industries, Indian Oil Corporation, Dow Inc., Arlanxeo, and Mitsui Chemicals. These companies have established a strong presence in the market through strategic partnerships, investments in R&D, and expansion of production capacities.

In 2023, Reliance Industries announced the expansion of its EPDM production capacity by 20% to cater to the increasing demand from the automotive and construction industries. This expansion is expected to further strengthen the company's position in the Indian market. The move comes in response to the government's push for infrastructure development and the growing automotive industry, which are expected to drive EPDM demand in the coming years.

The Gujarat was dominating the market in 2023, due to the presence of major petrochemical complexes and refineries, which are key suppliers of raw materials for EPDM production. Additionally, the state's well-developed infrastructure and proximity to ports make it a favorable location for EPDM manufacturers. The availability of skilled labor and supportive government policies further contribute to the region's leadership in the EPDM market.

India EPDM Market Segmentation

The India EPDM Market is segmented into different factors like by product type, by application and region.

By Application: The market is segmented by application into automotive, construction, and industrial. In 2023, the automotive segment held the dominant market share, due to the increasing demand for EPDM in automotive applications such as weatherstripping, seals, and hoses. The automotive industry in India has been growing rapidly, driven by rising vehicle production and sales, as well as the government's push for electric vehicles (EVs). EPDM's properties, including excellent resistance to heat, oxidation, and weather, make it an ideal material for these applications, thus contributing to the segment's leadership in the market.

By Product Type: The market is segmented by product type into standard EPDM, modified EPDM, and specialty EPDM. In 2023, standard EPDM held the dominant market share, due to its widespread use in automotive and construction applications, where it offers a good balance of performance and cost-effectiveness. Standard EPDM is preferred for its versatility and ability to meet the requirements of various industries without the need for extensive customization, making it the go-to choice for many manufacturers.

By Region: The market is segmented by region into North, South, East, and West. In 2023, the Western region held the dominant market share. This dominance is due to the presence of major petrochemical complexes and refineries that supply essential raw materials, well-developed infrastructure, proximity to key ports, and favorable government policies, all of which make it an attractive location for manufacturers and solidify its leadership position in the market.

India EPDM Market Competitive Landscape

Company

Establishment Year

Headquarters

Reliance Industries

1966

Mumbai, Maharashtra

Indian Oil Corporation

1959

New Delhi, Delhi

Dow Inc.

1897

Midland, Michigan, USA

Arlanxeo

2016

Maastricht, Netherlands

Mitsui Chemicals

1997

Tokyo, Japan

Arlanxeo: At the India Rubber Expo 2024, Arlanxeo showcased its latest sustainable and innovative synthetic rubber solutions, highlighting new developments in their EPDM product line. The company introduced a range of eco-friendly EPDM options designed to meet stringent environmental standards, reflecting its commitment to sustainability and technological advancement in the rubber industry. This move underscores Arlanxeo's focus on addressing evolving market demands and regulatory requirements.

Dow Inc.: In July 2024, Dow announced the launch of NORDEL REN EPDM, a bio-based version of its Ethylene Propylene Diene Terpolymers (EPDM), at the German Rubber Conference (DKT 2024). This product is designed to support various industries, including automotive and construction, in achieving their sustainability goals by reducing carbon footprints. NORDEL REN EPDM is produced using bio residues, ensuring it does not compete with food resources and maintains performance equivalent to traditional materials without requiring additional qualifications for use

India EPDM Market Analysis

Growth Drivers

Rapid Expansion of Construction and Infrastructure Projects: The Indian government allocated over 11.11 lakh crore to infrastructure development projects in 2024, with an emphasis on roads, bridges, and housing. EPDM rubber, known for its durability and resistance to extreme weather, is increasingly used in waterproofing membranes and roofing systems in both residential and commercial construction. This surge in construction activity is expected to boost the EPDM market, especially in regions prone to heavy rainfall and temperature fluctuations.

Surge in Renewable Energy Installations: The Government of India installed renewable energy capacity reached approximately143.64 GWas of March 31, 2024, excluding large hydropower. When including large hydropower projects, the total capacity rises to around190 GW, which includes a significant investment in solar energy infrastructure. EPDM rubber, used in solar panel sealants and cables due to its UV and weather resistance, has seen a demand spike. This driving EPDM's use in the sector. This growth in renewable energy infrastructure is anticipated to further elevate the demand for EPDM in the coming years.

Growth in Electric Vehicles (EV) Market: India's electric vehicle market is growing rapidly, with increasing demand for electric two-wheelers and passenger cars. EVs require EPDM rubber for battery sealing, gaskets, and cable insulation due to its flexibility and resistance to temperature changes. The Indian government's push for electric mobility, backed by policies such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, is expected to drive continued demand for EPDM in the EV sector.

Challenges

Environmental Regulations on Rubber Production: Stricter environmental regulations in India concerning emissions and waste disposal from chemical manufacturing plants have posed challenges to the EPDM market. Compliance with regulations like the Central Pollution Control Board's (CPCB) new standards for industrial emissions in 2024 has increased operational costs for EPDM producers. Companies are required to invest in eco-friendly technologies, which may hinder growth, especially for small and mid-sized manufacturers.

Logistics and Supply Chain Disruptions: India's supply chain infrastructure, particularly for chemical transportation, has faced bottlenecks due to inadequate rail and road connectivity in rural and semi-urban areas. In 2024, logistic costs increased by approximately 20%, leading to delays and higher transportation costs for EPDM manufacturers. These disruptions are expected to continue, especially in remote areas where demand for infrastructure development is rising.

Government Initiatives

Production Linked Incentive (PLI) Scheme for Automobiles: The Indian governments PLI scheme, the PLI-Auto scheme, which focuses on advanced automotive technology products, has a budgetary outlay of INR 25,938 crore for a period of 5 years from FY 2022-23 to FY 2026-27, incentivizes domestic production of automotive components, including those using synthetic rubbers like EPDM. The policy has encouraged international manufacturers to set up production units in India, further boosting the demand for EPDM in automotive applications such as seals, gaskets, and weather stripping.

Electric Mobility Push through FAME II: In 2024, the FAME II is set to expire on March 31, 2024, and the government has not extended it. Instead, a new initiative called the Electric Mobility Promotion Scheme (EMPS)has been introduced with a significantly lower budget of INR 500 crore, focusing primarily on subsidies for electric two-wheelers and three-wheelers. EPDM, widely used in the production of EV components like battery packs, wiring insulation, and seals, benefited from this policy as more electric vehicles entered the market. The scheme also supports domestic production of EV components, further enhancing EPDM demand.

India EPDM Market Future Outlook

The India EPDM Market is projected to grow exponentially by 2028, driven by continued growth in the automotive and construction sectors. The adoption of green building materials and the rising demand for sustainable and durable materials are anticipated to further boost the market. Additionally, advancements in polymer technology and increasing investments in R&D are expected to create new growth opportunities for EPDM in various applications.

Future Market Trends

Shift Towards Bio-based EPDM Rubber: By 2028, India is likely to experience a shift towards bio-based EPDM rubber due to stricter environmental regulations and growing demand for sustainable materials. The government's support for bio-based manufacturing through subsidies will encourage this transition, contributing to a larger share of bio-based EPDM in the market. This trend will align with global efforts to reduce reliance on petrochemical-based products and promote eco-friendly alternatives.

Increased Usage of EPDM in Electric Vehicle Components: By 2028, India's electric vehicle market is expected to see substantial growth, leading to a higher demand for EPDM rubber in various components like battery seals and insulation. As electric vehicle production increases, EPDM's role in ensuring thermal stability and durability will become more crucial. Government initiatives to support local EV production are likely to further enhance EPDMs importance in automotive applications, especially in meeting the needs of the evolving EV market.
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