Global Foam Insulation Market - 2020-2027
Foam is the material which expands intentionally when combined with a foaming agent and produces a reduced-density material with open or closed cells distributed throughout the body for acoustic as well as for thermal insulating purposes. Foam insulations are designed to provide safety, reliability, and performance standards of various applications like fire safety bodies, HVAC technology systems, etc.
The foam insulations provide long-term protection against corrosion under insulation (CUI) due to its properties like low thermal conductivity which minimizes energy losses, highly flexible and can be installed quickly on irregular shapes with installations in tight spaces.
Hence foam insulations are preferred in wide variety of applications including building & constructions, automotives, HVAC systems, electronics, packagings and many others. The global Foam Insulation market valued USD XX million in 2019 and it is expected to grow at a CAGR of XX% to reach USD XX million by 2027.
The market is driven by the rising demand for foam insulation in the end-user industries like building & constructions, automotives, packaging etc. The insulation foams are used in the walls, prevent wetting and drying during floodwater. This hence increases the strength and the resilience of the building.
According to the report of Global Alliance for Buildings and Construction (GlobalABC) the buildings and construction sector, governments, companies and private investments has been increased to US$ 139 billion in 2018. This has been increased the demand for the insulation foam used in building & construction sector.
There is a rise in the awareness about the eco-friendly foams insulations hence many leading players are launching new plant based foam insulation to combat the climate change and pollution problems have created huge opportunity for the foam insulation market.
For instance on 13th May 2019, the researchers from the Washington State University in the United States developed an environmentally friendly and simple manufacturing process for making the foam, with the help of water as a solvent instead of other harmful solvents. The researchers have also created the plant based foam insulation which is an environmentally friendly replacement for polystyrene foam, or Styrofoam.
The global foam insulation market is segmented based on type, raw materials, distribution channel, end-user, and region.
In terms of type the global foam insulation market is bifurcated into rigid, flexible and spray. Among these, rigid segment has the highest market share in 2019 owing to increasing demand for the building & construction sites for thermal insulation using the rigid foams as well as growing investment for the expanding the plant manufacturing capacities by the leading players have created huge opportunity for this market.
For instance on 26th Dec 2019, the Penoplex leading manufacturer of foam insulations from Russia started a production facility of rigid type extruded polystyrene thermal insulation plant at Angren in the Tashkent, Uzbekistan. The plant has operated a modern line of European production with a capacity of 500 kg per hour.
Similarly, flexible and spray segments are also growing at faster pace owing to raising the global demand of these insulation foams in the automotives, aerospace, packaging and many other related sectors all over the world. In automotive the spray foam insulations are filled in the seating, body panels, etc of the vehicle for ensuring comfortable seating for the people.
Depending on the raw materials, global foam insulation market is divided into Polyurethane Foam, Polyisocyanurate Foam, Polyolefin Foam, Polystyrene and Expanded Polystyrene foam, Elastomeric Foam , Phenolic Foam, Stone Wool (Mineral Wool), Bio-Sourced and others. Among this, Polyurethane foam segment has the highest market share in 2019.
This is primarily due to rising global demand of the polyurethane foams for the building construction of residential, commercial and industrial purposes. According to the United Nations Industrial Development Organization (UNIDO), the global residential application segment is expected to reach highest sales reaching to a value of over US$ 36.3 billion by 2024 for the thermal insulation market required in the residential sector alone. This will propel the demand for the polystyrene foam segment for the residential as well as commercial sector in the building and construction sites.
Similarly, Polyisocyanurate Foam, Polyolefin Foam, Polystyrene and Expanded Polystyrene foam , Elastomeric Foam , Phenolic Foam, Stone Wool (Mineral Wool), Bio-Sourced segments are also growing at faster pace owing to rising demand for the various applications from the home appliances to the automobile, building & constructions, as well as for food packaging industries with surge in these plastics production around the globe.
On the basis of distribution channels, the global foam insulation market is divided into direct sales/b2b, distributor/third party Distributor and others. Among this direct sale/ B2B segment has the highest share in 2019, this is due to rising the utilization of the foam insulated materials by the end-users industries like automotive, consumer electronics, packaging etc.
Similarly, distributor/third party distributor segment is also growing at faster pace owing to rising the demand of foam insulation products with growing population and urbanization around the globe.
Depending upon the end-user, the global foam insulation market is divided into building and construction (flat roof, pitched roof, wall and floor), transportation (buses & trucks, railways, automotive (seat, car body and others) and others), packaging (food packaging, electronics packaging, consumers goods packaging and others), consumers appliances (refrigerator, washing machine, microwave and others) and others.
Among this building & construction segment has the highest share for the foam insulation market owing to raising the urbanization and surge in the global infrastructure developments projects investments around the globe. For instance as per Global Alliance for Buildings and Construction (GlobalABC) report, in United States the residential and non-residential construction sector investments is growing at the rate of 3.8% from 2015 to 2018, and has been reached to US$ 1.4 trillion in 2018. It propelled the demand for the foam insulation in the building & construction sectors for thermal insulations.
Similarly, Transport (Trucks, Railway etc), Packaging (Food packaging, Electronics consumers etc), Automotive (Seating, Car Bodies, etc), Consumer Appliance (Shoe soles, refrigeration, etc) segments are also growing at faster pace owing to growing urbanization and industrialization around the globe.
According to the in our World Data the urbanization is pertaining to occur at rapid pace with growing population around the globe with more than 4 billion people lives in urban areas globally in 2017. Thus the demand for automotives, transport, and consumers appliances has been increased in order to provide such facility to this urban population.
By region, the global foam insulation market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa. Among all of the regions, Asia-Pacific is the dominated region for the global foam insulation market and expected to grow at the highest CAGR during the forecasted period due to growing the manufacturing facilities with growing population demand for the foam insulation based products followed by North America region.
Further Asia-Pacific region has increased the demand for commercial and public infrastructure due to urbanization and population growth. According to the United Nations Industrial Development Organization (UNIDO) report the Asia/Pacific region has the highest presence of leading manufacturer and the insulation market has accounted for over 40% of global revenue in this market.
High industrialization rates and increased construction spending in the emerging economies like China, India, Indonesia, Thailand, Malaysia and the Philippines have driven the need for better foam insulation market
North America is also growing at fastest pace for the insulation foam market owing to growing demand for thermal insulation in commercial and residential buildings followed by Europe region. Further the market is driven by rising the consume awareness regarding energy conservation and regulatory policies to reduce greenhouse gas emissions with the help of the better foam insulating materials in the building & construction sector. North America growth for foam insulation market is also influenced by government initiatives such as the Weatherization Assistance Program, which promotes thermal insulation, especially in low income households.
The global foam insulation market is highly competitive with the presence of several international and local markets. Product diversification, revenue generation, and opportunities intensify the market competition. BASF SE, Covestro AG, Pittsburgh foam insulation, Recticel, Armacell international S.A., Johns Manville, Lapolla industries, inc., Huntsman international llc, Safco foam insulation llc, Saint-Gobain, Puff inc and Owens Corning are the leading market players with significant market share.
Companies are entering into the collaborations, acquisitions, mergers, and licensing for increasing their market penetration. For instance on 31st Jan 2020, the Company Saint-Gobain had completed the acquisition of Continental Building Products for the US$ 1.4 Billion deal. The acquisition has widened the product portfolio related to the plasterboard and construction solutions which has created the opportunity of at least US$ 50 Million across the North America region.