Technical Foam Market Extends at a Healthy CAGR of 6.5% by 2030

Introduction

Technical foam consists of foam solutions designed for commercial and industrial use. Foams explicitly intended for industrial applications, such as heat and noise insulation, lamination, packaging, and sealing, fall under the "technical foams." It is composed primarily of polyurethane, polyethylene, polystyrene, and expanded foam, in addition to various polymers and elastomeric blends. Foam can be molded into blocks, cut from sheets, or sliced into sheets to create multiple three-dimensional forms. As both open- and closed-cell foams, it is available in a vast array of colors. The characteristics of technical foams include density, cell count, and hardness. Additionally, antistatic, conductive, or antimicrobial properties can be infused into the foam. Reusable packaging inserts made from polyurethane and polyethylene foams are one of the most common applications of technical foams in everyday life.

Several factors are currently driving the global market for technical foam, including an increase in demand for specialized foam from the automotive and transportation industry, an increase in demand for acoustic solutions to combat noise pollution, and an increase in demand for energy-efficient buildings. The low density, low heat conduction coefficient, and low water absorption of foam seats and door panels make them suitable for cushioning applications. In addition, technical foams allow automotive engineers to design lighter components to improve fuel economy. Technical foam solutions provide superior energy absorption and acoustic insulation to increase passenger comfort. However, fluctuations in the availability and price of raw materials and the health risks associated with using spray foam restrain the growth of the market for technical foam.

Market Dynamics

The Increasing Demand from Electronics, Automotive, and Healthcare Industries to Drive the Global Technical Foam Market

Since technical foams can cushion and absorb shock and vibration, they are an excellent choice for the packaging of electronic appliances. Throughout the forecast period, the market for electronics is anticipated to increase globally. Moreover, the expansion of the middle class increases the demand for consumer devices and electronics. The rapid development of internet services in various developed and developing economies across the globe is creating robust growth prospects for the consumer electronics market. This is anticipated to increase demand for foam-based electronic packaging solutions such as clamshells and cases. Because of the expansion of e-commerce logistics, increased demand for electronic packaging is expected.

Additionally, the automotive industry was one of the leading contributors to the demand for technical foams in 2019. It is anticipated that this sector will remain one of the top contributors throughout the forecast period. The automotive industry utilizes foams primarily to enhance fuel efficiency, comfort, noise reduction, and device protection. In heavy and light commercial vehicles, automotive foam products have considerable expansion potential. The inherent lightness of polymeric foams permits the automotive industry to design cars with reduced emissions and enhanced fuel economy. As a result, the demand for technical foams will gradually increase as the automotive market grows.

Global healthcare expenditures are anticipated to increase during the forecast period. Consequently, the demand for medical-grade cushioning and packaging is expected to increase due to population growth and rising healthcare costs. In producing orthopedic implant packaging, foam materials such as XLPE and PU are utilized. Polyester and polypropylene rigid foams are used in the packaging of medical devices and for custom thermoforming into trays or clamshells. Foam-based medical packaging helps preserve the integrity of the packed product by adhering to stringent quality control standards. Consequently, these factors are anticipated to stimulate the market for technical foam over the forecast period.

A Shift Towards Bio-Based Technical Foam to Create Global Technical Foam Market Opportunities

Bio-based foams are not a novel concept, but the trend is still effective and supported by new product innovations. In 2019, the TR-EECell foam product line was awarded the highest DIN CERTCO bio-based certification. The product is composed almost entirely of biomass-derived components (sugar cane). The ethanol required for the foam is derived from fermented sugar cane juices extracted during the final three steps of extraction and is therefore unfit for human consumption. Bio-Foam is highly eco-friendly due to its composition of renewable resources. After use, Bio Foam can be recycled into solid PLA or reformed into a new foam product. This creates better prospects for the market for technical foam.

Regional Insights

Asia Pacific will command the market with the largest share during the forecast period and grow at a CAGR of 6.85%. China was the most significant contributor to revenue in 2019 and is projected to remain a major contributor throughout the forecast period. This is due to the nation's flourishing construction, electronics, and healthcare industries. Also utilized in the construction and packaging industries are technical foams. Like China, India is an essential region for the growth of the technical foam market over the forecast period. China and India both have expanding populations and rising living standards. Thus, the demand for insulation solutions for buildings increases.

Europe will hold a revenue share of USD 18,691 million and grow at a CAGR of 6.25%. The European market for technical foam is primarily driven by the automotive and transportation sectors and the medical industry. The automotive and packaging industries are anticipated to increase their use of polymer foams, thereby driving up market demand. It is expected that the government's role in vehicle emission management will play a significant role in the increase in demand for foam solutions in the future. In addition, the need for rigid and flexible polyurethane in applications such as construction, building insulation, and flexible packaging is expected to accelerate the growth of the European technical foam market. Additionally, the inclusion of governing bodies such as EUROPUR, the European association of manufacturers of flexible polyurethane foam blocks, encourages the growth of new investment opportunities in the technical foam market.

Key Highlights

• The global technical foam market had a revenue share of USD 35,454 million in 2021, envisioned to advance at a CAGR of 6.5% and reach USD USD 58,677 million during the forecast period. 
• Based on product foam, the flexible foam segment is estimated to have the most significant market proportion during the forecast period and grow at a CAGR of 5.71%.
• Based on material, the polyurethane segment is expected to hold the most significant market proportion during the forecast period and grow at a CAGR of 6.51%.
• Based on the end-user industry, the automotive & transportation sector is expected to grow at a CAGR of 6.45% and hold the largest market share during the forecast period.
• Based on regional analysis, Asia Pacific will command the market with the largest share during the forecast period and grow at a CAGR of 6.85%.

Competitive Players

Competitive Players in the Market

• 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
• Zotefoams Plc.

Recent Developments

Market News

• In 2022, Armacell acquired AD IZOLIR, a significant manufacturer of pre-insulated pipes, focusing on diversifying Armacell's product portfolio.
• In 2022, BASF SE and Confoil collaborated to develop DualPakECOâ, a certified compostable and dual ovenable food tray based on paper.

Segmentation

Global Technical Foam Market: Segmentation

By product foam

• Flexible
• Rigid
• Spray

By material

• Elastomeric
• Polyurethane
• Polyethylene
• Others 

By end-user industry

• Automotive & Transportation
• Electrical & Electronics
• Building & Construction
• Medical
• Sporting Equipment
• Packaging
• Others

By region

• North America 
• Europe
• Asia Pacific
• LAMEA