The market for engineered foam is expected to register a CAGR of over 4% , globally, during the forecast period. An increase in the demand from the building and construction industry and the packaging industry is driving the market. On the flip side, stringent environmental regulations and volatile raw material prices are hindering the growth of the market.
- The engineered foam market is expected to grow during the forecast period, owing to the increasing demand for insulation in the building and construction segment.
- The Asia-Pacific region is expected to dominate the global market, with the largest consumption rates being registered in countries, such as China and India.
Key Market Trends
Increasing Demand for Insulation in the Building and Construction Industry
- Engineered foam is widely used as an insulator in the building and construction industry and is expected to be the fastest-growing market during the forecast period.
- Rigid foam insulation is innovative in the building and construction industry, a material that significantly reduces a building’s energy usage and helps control interior temperature.
- Gaps and air leaks lead to high energy bills and let valuable resources go to waste. High-performing foam insulation can effectively seal gaps and air leaks and help to maintain interior air temperature at desired levels.
- According to the United States Department of Energy, heating and cooling account for about 50% of total energy consumption in a typical home. Foam insulation provides lowering energy bills by reducing air leaks and thereby decreasing the heat transfer between indoor and outdoor environments
- Additionally, the engineered foam provides moisture insulation by restricting the moisture to pass through the walls which leads to the growth of mold in the building.
- New environmental policies that are aiming at reducing fossil fuel consumption and energy conversation are encouraging the manufacturers in the direction of using foam as insulation in the building and construction industry.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region is expected to dominate the market for engineering foams during the forecast period, due to an increase in demand from countries like India and China.
- Engineered foam is being widely used in beds, couches, chairs, seats, and shoes. Memory foam materials provide good support and excellent pressure relief. One great benefit from memory foam is that it uses body heat and pressure to foam into exact shape.
- Engineered foam is widely used in aerospace to provide excellent comfort during travel. In defense, the engineered foam is used to provide protective cases that will provide extra cushioning to carry delicate equipment and to protect it from damage. In 2019, China has allocated around USD 177.61 billion for military and defense sector.
- In the e-commerce industry, engineered foam is used in protective packing to prevent the goods from getting damaged during transport. China and India have the largest share in the e-commerce market around the world. China’s e-commerce market is dominated by Alibaba whose market share is around 59%. The company’s annual revenue in FY 2019 has seen 51% year-on-year growth and this has increased the consumption for engineered foams in packaging.
- Engineered foams manufactures are adding fire retardants to foam to prevent the fires mishaps, to limit the spreading of fire and to limit the damage caused by fire.
- As a result of its superior properties such as insulation and its ability to limit the damage caused by fires the use of engineered foams in building and construction is expected to drive the market.
The global engineered foam market is partially fragmented, with the players accounting for a marginal share of the market. A few companies operating in the market include BASF SE, Polymer Technologies Inc., Rubberlite Inc., Flexipol, and Nomaco.
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