According to a new report published by Allied Market Research, titled, "Technical Foam Market by Product Form, Material, and End-use Industry: Opportunity Analysis and Industry Forecast, 2020-2027,"
The global technical foam market was valued at $31.3 billion in 2019, and is projected to reach $50.7 billion by 2027, registering a CAGR of 6.2% from 2020 to 2027.
Technical foam encompasses all the foam solutions developed for industrial and commercial applications and helps in achieving specific function such as thermal and noise insulation, laminating, packaging, and sealing. It is made from various polymers and elastomeric blends that mainly include polyurethane (PU), polyethylene (PE), polystyrene (PS), and expanded foam. One of the most common applications of technical foam in our daily life includes the reusable packaging inserts made from foam materials such as polyurethane and polyethylene.
The global technical foam market is driven by increase in demand for acoustic and thermal insulations in the automotive and construction sectors. Foam insulation can help to effectively seal gaps and close air leaks, maintain indoor air temperature, and reduce a building’s energy usage. In addition, significant usage of polymer foams in electronics appliances as a lightweight protective material positively impact the market growth.
By product form, the flexible foam segment held the highest market share in 2019. Flexible foam has found use in furniture, transportation, and packaging. In the automotive industry, flexible foam is used for achieving safety, durability, and comfort. Reduced weight and increased fuel efficiency provide increased mileage and speed as demanded by the consumers.
By material, polyurethane emerged as the market leader, owing to wide application in automotive, electronics, and furniture. Polyurethane foam offers strength being lightweight at the same time. Moreover, it is moisture resistant and durable.
By end-use industry, the automotive & transportation segment accounted for highest market growth. Rise in demand for light-weight and fuel efficient vehicles have led to increase in applications of technical foams in the automotive & transportation industry
Asia-Pacific accounted for the highest market share in 2019 in the global technical foam market. Urban expansions in countries such as India and China, as well as presence of well-established automotive and electronics industries are some of the underlying factors responsible for the highest market share.
Some of the major players profiled in the report include Armacell, BASF SE, Covestro AG, Dow Inc., Furukawa Electric Co. Ltd., Huntsman Corporation, Kaneka Corporation, Recticel, Rogers Corporation, SABIC, Sealed Air Corporation, Sekisui Chemical Co. Ltd., Woodbridge Group, and Zotefoams Plc.
Major players have adopted product launch, business expansion, and acquisition to sustain the intense market competition. For instance, in April 2018, Huntsman Corporation acquired Demilec, one of North America's leading manufacturers and distributors of spray polyurethane foam (SPF) insulation systems for $350 million. This helped Huntsman to expand its spray polyurethane foam market across the globe targeting new customer segments.
Key findings of the study
- By region, Asia-Pacific is projected to grow at the highest CAGR of nearly 6.6%, in terms of revenue, during the forecast period.
- By product form, Flexible foam segment held the largest market share in 2019. Flexible foam has an exhaustive application area that includes furniture, automotive interior, and packaging.
- By material, the polyurethane (PU) segment holds the largest market share in the global technical foam market, owing to the extensiveness of PU foam in various end-use industries such as automotive, electronics, and building & construction.
- By end-use industry, the automotive & transportation application segment accounted for highest market growth. Rising demand for light-weight and fuel efficient vehicles have led to increasing applications of technical foams in the automotive and transportation industry
Impact Of Covid-19 On The Global Technical Foam Market
- The abrupt shutdown of operations in major economies severely impacted economic growth, thus, changing consumer spending patterns.
- Loss of employment led to decline in per capita income. This reduced the demand for various electronics products and sports, and recreational equipment; thus, negatively impacting the market growth.
- The COVID-19 pandemic disrupted the electronics industry and the entire supply chain, creating shortage of raw material supply.
- China, the epicenter of the pandemic had to shut down its electronic OEMs and contract manufacturing, and focus on essential products.
- Construction projects that required technical foams had to be halted or postponed due to lack of sufficient workforce. Delays in construction of new buildings led to decline in the demand for insulation materials that includes technical foams.