Download Sample, Rising Automotive and Transportation Industry Expand the Foam Insulation Market
The demand for foam insulation market has been increasing due to the increase in the automotive building and construction sectors. The use of polyurethane foam is mostly done for car dashboards and door panels. Thus, due to the rising automotive and transportation industries, the foam insulation market is expected to rise. Speaking about the demand for the automotive sector, according to the data of the International Organization of Motor Vehicle Manufacturers, the global sale of motor vehicles was recorded at 92.7 million in 2023, where compared, it rose as the sales in 2022 were recorded at 82.8 million and showed a growth of 12%, which is expected to rise at the same pace. Similarly, the transportation industry has experienced a sharp growth.
According to the data of the Bureau of Transportation Statistics, the transportation industry is growing at a steady pace and has significantly contributed to the United States economy, as in 2022 the demand for transportation amounted to US$2.3 trillion, which is approximately 9% of the gross domestic product. Thus, with the rising automotive and transportation industries, the demand for the foam insulation market is expected to rise.
According to the data of the Bureau of Transportation Statistics, the transportation industry is growing at a steady pace and has significantly contributed to the United States economy, as in 2022 the demand for transportation amounted to US$2.3 trillion, which is approximately 9% of the gross domestic product. Thus, with the rising automotive and transportation industries, the demand for the foam insulation market is expected to rise.
Increasing Demand for Consumer Appliances and Construction Industry to Fuel the Market
The demand for white goods or consumer appliances is forecasted to grow due to the rising urban population of the world, which is forecasted to grow by 6 billion by 2045, showcasing a growth of 1.45x. Also, the world of home appliances is experiencing a revolution focused on convenience, with refrigerators capable of generating shopping lists and washing machines that adjust to user preferences. For instance, 32% of U.S. households have access to smart home technology, which is expected to grow to 57% by 2025. Thus, with the demand for consumer appliances, the demand for foam insulation is expected to experience some upward trend.
Also, the demand for the construction market is expected to support the growth of the foam insulation market. Also, according to the data from Census.gov, the global demand for the construction industry in 2030 is expected to double compared to 2020. As per the data, the global construction market amounted to US$6.4 trillion in 2020 and is projected to reach the target of US$ 14.4 trillion by 2030. Thus, due to the rising consumer appliance and construction industries, the demand for the foam insulation market is projected to grow.
Also, the demand for the construction market is expected to support the growth of the foam insulation market. Also, according to the data from Census.gov, the global demand for the construction industry in 2030 is expected to double compared to 2020. As per the data, the global construction market amounted to US$6.4 trillion in 2020 and is projected to reach the target of US$ 14.4 trillion by 2030. Thus, due to the rising consumer appliance and construction industries, the demand for the foam insulation market is projected to grow.
Recent Trends in the Foam Insulation Industry:
- Rise in demand for recycled and biodegradable materials in foam insulation.
- Invention of high-performance foams with superior thermal resistance.
- Stringent building codes are driving demand for high-efficiency insulation solutions.
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Environment Awareness and Complex Usability Limits the Foam Insulation Market Growth
The major challenge that is faced by the insulation foam market is the rising health concerns. The foam insulation, specifically polyurethane-based, raises environmental questions as it releases volatile organic compounds (VOCs) during the production and installation of the foam, which leads to air pollution and increases health issues. Many foam insulation uses products like hydrofluorocarbons (HFCs), which are considered a direct threat to the ozone layer.
Furthermore, foam insulation is considered difficult to recycle and most of the time lands in landfills, contributing to the waste problems. Also, the installation of foam acts as a challenge to the foam insulation market as it needs specialized equipment such as spray guns and mixing tools, which directly affect the complexity and cost of the process. It requires highly skilled technicians who are trained in handling material, including the use of personal protective equipment (PPE), to manage potentially harmful chemicals.
Furthermore, foam insulation is considered difficult to recycle and most of the time lands in landfills, contributing to the waste problems. Also, the installation of foam acts as a challenge to the foam insulation market as it needs specialized equipment such as spray guns and mixing tools, which directly affect the complexity and cost of the process. It requires highly skilled technicians who are trained in handling material, including the use of personal protective equipment (PPE), to manage potentially harmful chemicals.
Expansion and Collaboration Leading the Foam Insulation Market Demand
In September 2019, Huntsman Corporation announced the opening of its new polyurethane systems house in Dubai. It was situated within the Jebel Ali Free Trade Zone (JAFZA) and strengthened Huntsman's downstream capabilities in the Middle East and North Africa. This increased its capacity to produce polyurethane systems and polyester polyols for customers across the region. The new systems house comprised a production area equipped with manufacturing equipment, including blenders, reactors, filling stations, a control room, offices, and quality control laboratories.
In May 2019, BASF and Shanghai Harvest Insulation Engineering Co., Ltd (Harvest) signed a strategic collaboration agreement to develop polyurethane (PU) insulation solutions for the cryogenic and shipbuilding industries in China. According to the agreement, BASF in China exclusively supplied its polyurethane insulation solutions to Harvest, including PU spray foam, polyurea coating systems, adhesive, and PU cryogenic block foam systems, for insulating its liquefied petroleum gas (LPG), liquified natural gas (LNG), and liquefied ethane gas (LEG) carriers, as well as gas storage tanks.
In May 2019, BASF and Shanghai Harvest Insulation Engineering Co., Ltd (Harvest) signed a strategic collaboration agreement to develop polyurethane (PU) insulation solutions for the cryogenic and shipbuilding industries in China. According to the agreement, BASF in China exclusively supplied its polyurethane insulation solutions to Harvest, including PU spray foam, polyurea coating systems, adhesive, and PU cryogenic block foam systems, for insulating its liquefied petroleum gas (LPG), liquified natural gas (LNG), and liquefied ethane gas (LEG) carriers, as well as gas storage tanks.
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Europe and Asia Pacific Shows Lucrative Opportunities for Foam Insulation Market
The foam insulation market is expected to grow in the Europe region due to the rising construction market, especially in the United Kingdom. According to the data of the International Trade Administration, the construction market in the United Kingdom will reach the mark of US$ 386 billion in 2023. The strongest and rapidly growing subsector of the construction market is infrastructure.
In 2023, the infrastructure output increased by 4.6%. Also, the United Kingdom has committed to investing US$ 127.4 billion to back the infrastructure market from 2022–23 to 2024–25. Thus, due to rising construction demand, the demand for foam insulation is expected to grow rapidly. Also, the Asia Pacific building and construction market is showing promising opportunities for the foam insulation market.
As per the data of the International Trade Administration, China is considered the world's largest construction market. Also, as per the reports, China has invested a total of US$ 4.2 trillion in the design and construction sector, which makes China a promising market. Similarly, the Indian construction market presents a lucrative opportunity for the foam insulation market. According to the forecast of the Indian Brand Equity Foundation, the Indian construction industry will reach the mark of US$1.4 trillion by 2025.
In 2023, the infrastructure output increased by 4.6%. Also, the United Kingdom has committed to investing US$ 127.4 billion to back the infrastructure market from 2022–23 to 2024–25. Thus, due to rising construction demand, the demand for foam insulation is expected to grow rapidly. Also, the Asia Pacific building and construction market is showing promising opportunities for the foam insulation market.
As per the data of the International Trade Administration, China is considered the world's largest construction market. Also, as per the reports, China has invested a total of US$ 4.2 trillion in the design and construction sector, which makes China a promising market. Similarly, the Indian construction market presents a lucrative opportunity for the foam insulation market. According to the forecast of the Indian Brand Equity Foundation, the Indian construction industry will reach the mark of US$1.4 trillion by 2025.
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The report provides a detailed overview of the foam insulation market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for foam insulation market has been offered for all regional market share, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the foam insulation market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the foam insulation market. Some key country and region included in the foam insulation market report as follows:
| Regions | Countries |
|---|---|
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Poland, Netherlands, Switzerland, Belgium, Austria, Sweden, Norway, Denmark, Finland, Ireland, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Singapore, Malaysia, Vietnam, Thailand, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Egypt, Morocco, Algeria, Israel, Iran, Kenya, Turkey, Rest of MEA |
Foam Insulation Market Research Report Covers In-depth Analysis on:
- Foam insulation market detailed segments and segment-wise market breakdown
- Foam insulation market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in foam insulation industry)
- Current, historical and forthcoming 10 years market valuation in terms of foam insulation market size (US$ Mn), volume (Units), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Foam insulation market demand analysis
- Foam insulation market pricing analysis over forecast period (by key segment and by region)
- Foam insulation market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in foam insulation market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in foam insulation market
- Foam insulation market sales and distribution strategies
- A comprehensive overview of parent market
- A detailed viewpoint on foam insulation market forecast by countries
- Mergers and acquisitions in foam insulation market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What are the primary drivers of the foam insulation market?
The increasing focus on energy efficiency, stringent building codes, and growing awareness of climate change are the primary drivers of the foam insulation market.
Which regions are expected to dominate the global foam insulation market?
North America and Europe are expected to dominate the global foam insulation market due to stringent energy efficiency regulations and a well-established construction industry.
What are the challenges faced by players in the foam insulation market?
Some of the key challenges faced by players in the foam insulation market include high raw material costs, stringent environmental regulations, and intense competition.
What are the opportunities for growth in the foam insulation market?
The growing demand for energy-efficient buildings, increasing focus on sustainable construction practices, and the expansion of the construction industry in emerging economies are some of the key opportunities for growth in the foam insulation market.
