The global ethylene octene copolymer market is expected to grow at a CAGR of 5.1% during the forecast period, 2023–2031.
The ethylene octene copolymer market is likely to witness a significant growth rate, owing to the low number of players involved in this market and the array of applications the market possesses. Ethylene octene copolymer is an elastomer based on ethylene, which brings remarkable compatibility with polyolefins such as polypropylene and polyethylene. Besides, the presence of a monomer octene in ethylene octene copolymer results in lower crystallinity levels while maintaining in the copolymer a higher level of flexibility. Blends of ethylene octene copolymer are likely to provide high impact properties which can be used in many applications such as in molded automotive interior and exterior, housing and household applications, and many other applications having low-temperature requirements.
Pellet-based ethylene octene copolymer exhibits various characteristics such as easy mixing, processability, and handling. On the basis of these properties, ethylene octene copolymer is also majorly used as an impact modifier of polypropylene in a bid to act as a replacement for ethylene propylene diene rubber (EPDM) and ethylene-propylene rubber (EPR). The ethylene octene copolymer is still likely to be in the nascent stage, owing to a few numbers of players involved in the direct manufacturing of this product.
Over the past several decades, there has been a considerable increase in the number of people who have brought an automobile. Availability of an array of options in terms of size of the car, transmission, and brand along with easy credit availability are some of the factors which have led to an increase in the number of consumers having an automobile. However, there has been a considerable decline in recent years. This is likely to restrict the demand for ethylene octene copolymer in automotive manufacturing.
There are several companies and independent garages that offer vehicle maintenance services. Consumers are now opting to service their existing vehicles instead of buying a new car. This will provide original equipment manufacturers (OEMs) with an opportunity to grow and expand their presence. In addition to this, the automotive aftermarket will serve as an additional source from which there will be a potential increase in the demand for ethylene octene copolymer. The automotive aftermarket is anticipated to be around USD 750 billion, and with the fall in the sales of new vehicles, especially passenger vehicles, the demand for ethylene octene copolymer is expected to increase.
The increase in the sales of consumer products does not solely depend on increased consumer income. The majority of consumer product companies are coming up with innovative ways to increase customer engagement. For instance, influencer engagement via social media such as Instagram and Twitter. In addition to this, consumer product companies are also coming up with innovative ways to package their product in a bid to make it even more attractive for the buyer. Brick and mortar retail stores and e-commerce websites have been instrumental in increasing product and brand awareness about various consumer products. The number of people using the internet has been increasing significantly and has led to higher exposure to e-commerce. These factors are likely to lead to provide an impetus to the procurement of consumer products, which will lead to an increase in demand for ethylene octene copolymer.
There has been an increase in the number of jobs in the last few decades. Companies have been opening manufacturing facilities and research departments in emerging economies such as India, Malaysia, Thailand, Brazil, among other nations. This has also increased the consumer base for selling various consumer products. This is evident by the rise in consumer spending in recent years. For instance, consumer spending in the year 2016 was around USD 56.30 trillion and has risen by over USD 6 trillion in the year 2018.
Asia-Pacific is home to emerging economies such as India, Thailand, Malaysia, among others. Besides, the region is swiftly turning into one of the most lucrative manufacturing hubs, especially in South Asia and Southeast Asia. The rapidly growing urban middle class is further boosting the region’s economy. Consumerism and job growth over the past decades have helped this region to become one of the most attractive marketplaces over recent times. In addition to this, there have been some positive initiatives in various economies, attracting foreign investments, leading to the ease of doing business. Governments of these economies have been designing policies to attract investors. Moreover, the inexpensive labor and an abundance of natural resources, such as water and land, aid producers of ethylene octene copolymer to set up their production facilities in this region.
North America and Europe, too, are likely to anticipate a significant growth rate during the forecast. Western Europe is expected to have the dominant share, with economies such as Germany, the U.K., France, and Spain being some of the leading economies in the European ethylene octene copolymer market. The North American region will be benefitted by the presence of economies such as the U.S., which is among the leading global trading partners. However, geopolitical tensions such as the U.S.–China trade war and Brexit are likely to restrict the growth of this market to a certain extent. Furthermore, several leading economies in this market are likely to invest more in research and development in this product. Also, the restrictions mandating the use of various chemicals are foreseen to limit the growth of the ethylene octene copolymer market during the forecast period.
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