The global market is anticipated to have a steady CAGR of 4.2% during the period from 2023 to 2033. The overall market size is predicted to expand from US$ 59.4 billion in 2023 to US$ 89.6 billion by 2033. Previously, the ethylene copolymers market was thriving at a CAGR of 3.5% from 2018 to 2022, resulting in a market size of US$ 57.4 billion in 2022.
Demand for ethylene copolymers is gradually increasing, owing to their qualities, such as heat resistance, chemical reactivity, formulation flexibility, and cohesion and adhesion. The packaging and automobile industries are also expected to boost the adoption of ethylene copolymers. Further, the market for ethylene copolymers is projected to be fuelled by food packaging.
The industry is expected to increase further as customers become mindful of waste packaging and recycling. Increased research and development initiatives for technological and equipment development, as well as creative product offerings by companies, are all contributing to the demand for ethylene copolymers.
The global market size may be hampered by fluctuating raw material prices and regulatory regulations on various compounds. Nonetheless, there are chances for market players to engage in this market, given the consistent growth of the chemical processing industry and the automotive and packaging industries.
Ethylene-propylene copolymers are amorphous, random, and rubbery polymers made by polymerizing monomers with the Ziegler–Natta catalyst. These are synthetic rubbers that can be used for both special and ordinary purposes.
Ethylene-propylene copolymers are available from many producers in worldwide ethylene-propylene copolymers market for usage in rubber and polyolefin modification. Moreover, in thermoplastic adhesive systems, ethylene-propylene copolymers are employed as basis polymers. Bitumen and TPO roofing membranes are another important application for these copolymers.
Building and construction, automotive, and electrical and electronics are some of the key end-user industries for ethylene-propylene copolymers (E&E). EPDM (ethylene-propylene-diene monomers) are preferred for electrical insulation, gaskets, and lamination.
As per ethylene copolymers market analysis, ethylene-propylene-diene monomers are in high demand. Manufacturers are seeking to offer novel products as a result of environmental concerns in industrialized countries of Europe. As a result, demand for ethylene-propylene copolymers is rising.
The global vehicle industry’s increasing need for ethylene-propylene copolymers is regarded as a key factor driving the global market. Ethylene-propylene copolymers are used to make weather stripping and seals for automobiles. Also, these copolymers are added to motor oils as a supplement. Engine mounts, brake parts, and windshield wipers are among the products made with them.
Another significant factor driving demand for ethylene-propylene copolymers is an increase in the need for industrial rubber for use in tire manufacturing. Additionally, the global vehicle rubber-molded components market is expected to be revolutionized in the forthcoming years as a result of research and development operations in the automobile and automobile component sectors.
The ethylene-propylene copolymers market share is expected to benefit from an increase in demand for lightweight automotive components to produce fuel-efficient automobiles during the projected period.
What is Propelling the Ethylene Copolymers Market?
The global market study indicates that there are a few factors that are expected to lead the market growth are:
- Increased profit margins.
- Increased research and development activities for technical and equipment development.
- Continuous innovation in organizations.
- Rising significant advantages of ethylene copolymers.
- Growing preference for plant-derived beverages and lactose-free drinks.
- Rising packaging reusability, and economic advantages.
Increased industry research and development activities, as well as modernization and technological developments in manufacturing procedures, might generate new chances for the market over the forecast period.
Which is the Leading Segment in the Ethylene Copolymers Market by End User?
The market is dominated by food & beverages, which is developing at a CAGR of 14.2 percent. Because of the shift in consumer desire for branded packaged products, the packaged food and beverage market is seeing increased demand.
Chocolates, biscuits, snack bars, savory snacks, spreads, dressings, baked goods, baby food, sauces, health beverages & juices, and other foods all contribute to this increase. Because of the growing trend of online shopping and the opening of supermarkets and hypermarkets, urban consumers are increasingly gravitating toward branded foods. The market outlook has changed significantly owing to this.
What Restrains the Ethylene Copolymers Market?
Countries all across the world are enforcing severe restrictions requiring the use of renewable and biodegradable materials. Because of its detrimental impacts on the environment, a new era of technological materials is replacing the old traditional manner of using plastics.
New-age polymers such as Polyethylene Furanoate (PEF), Polyhydroxyalkanoate (PHA), and other biopolymers are environmentally benign and renewable. Further, the growing threat of substitutes is restraining the market growth.
How does Competition Influence the Ethylene Copolymers Market?
Companies are spending on research and development activities such as developing technical skills, developing cutting-edge equipment, and forming research partnerships, all of which assist companies in generating creative solutions. Further, companies engage in such operations to increase their market share by developing innovative products.
The global ethylene-propylene copolymers market is fragmented, with small, medium, and large firms competing for market share. Leading players in the global ethylene-propylene copolymers market are forming alliances to develop improved technologies for use in the manufacture of ethylene-propylene copolymers.
The businesses are pursuing a variety of growth strategies and spending hugely on the development of technologically advanced, one-of-a-kind, and biodegradable products.
Avantium N.V. was awarded a Horizon 2020 grant for 25 million euros ($28 million) to develop an innovative value chain for plant-based furan dicarboxylic acid and polyethylene furanoate, which are used to make biodegradable products.
The new expansion is being fueled by an increase in demand for renewable and biodegradable materials. Further, green polyethylene and bio-based EVA resin, for example, are guiding the chemical sector toward sustainable innovation.
