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The foam insulation market is estimated to grow at a CAGR of 8.84% between 2022 and 2027. The size of the market is forecast to increase by USD 14,586.38 million. The growth of the market depends on several factors, including increasing demand for foam insulation, properties of foam insulation, and high demand from emerging economies.
This report extensively covers market segmentation by end-user (building, construction, and others), type (polystyrene foam, polyurethane and polyisocyanurate foam, phenolic foam, polyolefin foam, and elastomeric foam), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing demand for foam insulation is notably driving the market growth, although factors such as fluctuation in crude oil prices may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Foam Insulation Market Driver
The increasing demand for foam insulation is notably driving the market growth. The global automotive industry has witnessed continuous growth leading to an increase in the demand for foam insulation in the automotive industry. Foam insulation is extensively used to manufacture different automotive parts such as side skirts, wiper cowls, roll pans, and bumpers. Increasing demand for polyisocyanurate foam and phenolic foams for insulation of automotive components and auto parts will drive the demand for foam insulation in the automotive industry.
The rising applicability in the construction industry also drives the global market. Polyurethane foams are also used as weatherproof sealants, form a seamless layer of insulation, fill gaps and seams, and cover irregular, hard-to-insulate shapes. In recent years, polyurethane foam insulation has been increased for various applications. Thus, owing to increasing infrastructure activities has led to high demand for foam insulation. Therefore, such factors will drive the global market growth during the forecast period.
Significant Foam Insulation Market Trend
Developments in end-user industries are an emerging trend in the market. Many end-user industries use foam insulation in various applications. In buildings, it acts as an air barrier that closes all the gaps, which helps save energy bills. It also makes roofs and other components airtight, which helps avoid the chance of water seepage. Furthermore, in vehicles, this is used in automotive vehicles to reduce noise and vibration, increase structural support, and help seal the cabin against road and engine noise and dust.
The expansion of the end-user sectors will result in the growth of the market. The expansion is expected to double the plant's footprint, increase production capacity, and allow the adaptation to growing marketplace demands. Therefore, such factors will influence the market growth during the forecast period.
Major Foam Insulation Market Challenge
Fluctuation in crude oil prices is a major challenge impeding the market. To produce polyurethane foams, a range of raw materials such as monomers, prepolymers, stabilizers, and colourants are used. One of the key reactive materials required to produce polyurethane foam is diisocyanate. The most widely used isocyanates for polyurethane foam production are toluene diisocyanate (TDI) and polymeric isocyanate. These isocyanates are mainly produced from benzene and its derivatives, which are manufactured from crude oil. Thus, the volatility in crude oil prices adversely affects the cost of these raw materials, in turn affecting the manufacturing cost of polyurethane foam and its uses.
Additionally, the fluctuating oil prices have compelled vendors operating in the market to adopt various cost-cutting measures. Thus, varying crude oil prices will hinder the growth of the global market during the forecast period.
Key Foam Insulation Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Foam Insulation Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alaska PUF Industries - The company offers pipes, sheets, bends, joints, and in-situ insulation. The key offerings of the company include insulation foams.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the building segment will be significant during the forecast period. Foam insulation is used in the building and construction industry mainly because of its properties of low thermal conductivity, vibration isolation, water-tightness, and anti-sound reflection. In the building and construction industry, these are used in parquet floor waterproofing, insulation boards for walls, floating floors, and insulation for ducts.
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The building segment was valued at USD 16,117.57 million in 2017 and continued to grow until 2021. Foam insulations such as polyurethane (PU) foams are affordable and durable and emit less carbon dioxide and other greenhouse gases that lead to global warming. The use of these PU foams in buildings helps in reducing heat loss during winter and keeping them cool during summer, thus saving the money required for maintaining uniform temperatures and lowering noise levels. PU insulation is most commonly used in cavity walls; roofs; around pipes and boilers; and floors. The insulating quality of rigid PU foams is high; thus, it allows builders to build thinner walls, increasing the room space. The growth of the building and construction industry, primarily in APAC and Middle Eastern countries, is expected to drive the growth of the global market during the forecast period.
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APAC is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
In 2022, APAC was the largest regional segment of the global market. The factors responsible for the market growth are the growing population and rapid urbanization; increasing demand for consumer appliances, such as refrigerators, coolers, and washing machines; the increasing investments in the construction industry, and healthcare industry; the growing automotive manufacturing hubs; and the growing e-commerce industry which requires packaging of heavy goods. Furthermore, investment of vendors in the countries such as China and others in the region will also boost the regional market in focus. Thus, these factors will fuel the regional market during the forecast period.
The outbreak of COVID-19 in 2020 had a negative impact on the regional market. However, in 2021, due to the availability of COVID-19 vaccines and the large-scale vaccination drives carried out by the governments of countries in APAC, activities in end-user industries, such as the construction, packaging, and automotive industries, gradually resumed. Therefore, the demand for foam will increase, which will boost regional market growth during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Foam Insulation Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.84% |
Market growth 2023-2027 |
USD 14,586.38 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.6 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 38% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alaska PUF Industries, Alpers Insulation, Armacell International SA, Asahi Kasei Corp., BASF SE, Berkshire Hathaway Inc., Compagnie de Saint Gobain SA, Covestro AG, DuPont de Nemours Inc., Elastochem Specialty Chemicals Inc., Green Insulation Technologies, Huntsman Corp., Isothane Ltd., Kingspan Group Plc, Owens Corning, Paulsen Insulation Co. LLC, Profoam Corp., Puff Inc., Ravago, Southern Foam Insulation, TN International, and Williams Insulation Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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