Foam Tape Market

Market Overview

Foam Tape market size was valued at USD 9.01 billion in 2022. It is projected to reach USD 15.88 billion by 2031, growing at a CAGR of 6.50% during the forecast period (2023-2031). In 2022, the Asia-Pacific region had a significant portion of the global market. The double-sided tape market in Asia Pacific is being driven by strong demand from the automotive, building, and construction industries.

Foam tapes are made by adding a thin layer of adhesive to various foam types, wherein the type of adhesive and foam determines the strength, cost, ease of use, and life of the foam tape. These tapes find a multitude of applications in various industries, such as building and construction, automotive, holding, and electrical and electronics. Moreover, foam tapes are self-adhesive and pressure-sensitive and, hence, can be used as a substitute for liquid and permanent fasteners and uniform spot welds. With the increasing adoption of foam tapes in various industries such as construction, automotive, paper and printing, and electronics, the global foam tape market is expected to witness significant growth during the forecast period. The growth of the automotive sector, in particular, is expected to provide impetus to the growth of the foam tape market, as acrylic foam tapes are extensively used in this sector to provide strong bonding in metal and plastic. Key automotive players are moving from mechanical fasteners to automotive foam tapes with adhesive properties to reduce vehicle weight.

Market Dynamics

Foam Tape Market Drivers

Rising Wide-Range Application of Foam Tape

Foam tape is primarily used in the building, construction, and automotive industries. The market for foam tape is being driven by the rising trend of using electronic devices and lightweight cars. Foam tape is frequently used in automobiles for mounting badges and scripts, attaching trim, and joining different materials. A US Department of Energy study also found that a 10% reduction in vehicle weight could increase fuel efficiency by 6–8%. The weight is reduced, and there are significant fuel and maintenance cost savings due to foam tapes used in place of conventional mechanical fasteners. One of the main end-use markets for foam tape is the building and construction sector, particularly in APAC, South America, and the Middle East. In the building and construction sector, foam tape is also frequently used for applications such as insulation, glazing, abatement, and HVAC.

Increasing Demand for Product Longevity

Welded metal-to-metal bonding requires much more certifications, training, and inspections than automotive tapes, which drives up labor costs. Adhesive tape application requires little training and results in higher-quality output at a lower cost. Lowering the cost of the final product benefits both the consumer and the manufacturer because it boosts sales. In addition, unlike fasteners, which only distribute holding power where they are installed, adhesives distribute holding power along the entire bond line. Adhesives also create a stronger bond and hold things together much more effectively than fasteners.

Foam Tape Market Restraints

High Cost of Raw Materials

Foam tape is manufactured using a variety of raw materials, such as polyethylene, polyurethane, acrylic, release liners, nitrile, EVA, adhesives, and refined petroleum materials. The majority of these raw materials are derivatives derived from petroleum and are, therefore, susceptible to changes in crude oil prices. Manufacturers and converters like Henkel, 3M, H.B. Fuller, and Sika AG raise the costs of raw materials like adhesives, backing materials, and release liners, which drives up the cost of foam tape. The rise in the price of foam tape products has an impact on the market globally for end users in the automotive and building and construction industries.

Foam Tape Market Opportunities

Increasing Technological Advancements

Due to strict environmental protection laws and consumer preference, the demand for biodegradable and environmentally friendly foam has grown over the past few years. Manufacturers or converters of foam tape are now able to coat tapes on P.E., PU, and acrylic foam types without releasing any solvents or water, thanks to the development of hot-melt-based and U.V. hot-melt-based technologies. Particularly in the Asia Pacific, the use of hot-melt and U.V. hot-melt technologies is on the rise. Specialty tapes are the focus of innovations like curable foam tape (U.V. and E.B., or both rubber and acrylic systems). All of these elements offer market participants the chance to produce cutting-edge products for various applications. Demand in sectors like automotive, aerospace, solar power, and wind power is anticipated to be driven by ongoing product developments by numerous companies to produce high-performance and affordable foam tapes during the forecast period.

Regional Analysis

The global foam tape market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

The Asia-Pacific region is the largest contributor to the market and is expected to grow at a healthy CAGR during the forecast period owing to the increasing demand from automotive, building and construction, and electronics sectors in economies such as China, India, South Korea, and others. Population growth, along with the growth of industries such as food & beverage and hygiene products, is also generating significant demand for foam tapes in the Asia Pacific.

North America is expected to witness dynamic growth in the foam tape market during the forecast period owing to the well-established construction and automotive industries in the region. Foam tapes offer high-temperature resistance and low fogging in automotive manufacturing. Due to the high penetration of healthcare and automotive industries, the region is expected to lead the global foam tape market during the forecast period. Polyurethane foam is associated with environmental benefits such as energy efficiency and reduced weight, which drive its adoption in the automotive industry.

Europe is expected to witness significant growth in the foam tape market during the forecast period due to new technological implementations in the automotive sector for vehicle production. Furthermore, Europe's automotive sector is focusing on green vehicles, the de-carbonization of conventional engines, information technology infrastructure, and safety. Increasing demand for electrically-conductive tapes for electronic shielding is further expected to foster market growth in the coming years.

The LAMEA region is expected to witness moderate growth in the global foam tape market during the forecast period. The market in this region is mainly driven by consumer demand from the electronic sector. The robust growth of the electronics sector is supported by several economic indicators and factors, such as the UAE's fast-growing population and an increasing number of tourists. South American countries are witnessing industrial growth, which will drive the growth of the foam tape market in the region.

Segmental Analysis

The global foam tape market is segmented by resin, technology, type, and end-user.

Based on resin, the global market is bifurcated into acrylic, rubber, and silicone.

The acrylic segment is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period because it outperforms silicone in terms of tack and peel adhesion. It can be used in a variety of environmental settings thanks to its excellent cohesion and resistance to humidity. Foam tapes made from acrylic resin are also less expensive than those made from other materials. Due to its excellent adhesion qualities, it finds extensive use in the medical and automotive industries.

The silicone segment is expected to witness a higher CAGR owing to the remarkable properties of these foam tapes, such as durability and resistance of protective coatings to moisture and corrosion. Silicone resin-based tapes can sustain adhesion over a high-temperature range and offer superior adhesion on difficult surfaces.

Based on the technology, the global market is bifurcated into solvent, water, and hot melt.

The solvent segment is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period due to its exceptional chemical resistance. When foam tapes need to have qualities like high tensile strength, longevity, and peel and shear strength, solvent-based technology is used. Solvent-based foam tapes are also strong and resistant to a wide range of temperatures, making them ideal for a variety of applications.

The hot-melt segment is expected to grow at a significant rate owing to the higher strength and quicker adhesion of these tapes as compared to solvent-based and water-based tapes. Hot-melt technology offers excellent adhesion, a quick set, ease of use, and fast processing, which in turn spurs the segment's growth.

Based on type, the global market is bifurcated into polyethylene, polyurethane, and acrylic.

The polyethylene segment is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period. PE-backed foam tape has qualities like shock absorption, noise and vibration cancellation, and vibration dampening. This growth is due to its use in a wide range of applications in the building and construction, and automotive industries, both of which are expanding quickly in the APAC region as a result of rising private and public investments, a growing population, and a focus on the renewable energy sector.

The acrylic segment is expected to grow at a significant rate owing to the ability of these tapes to withstand a high level of vibration in the automotive sector. The acrylic foam type is appropriate for bonding with many substrates, such as higher surface energy plastics, unpainted surfaces, glass, wood, metals, composite materials, and plastics, which are used in numerous industries.

Based on end-user, the global market is bifurcated into automotive, building and construction, paper and printing, and electronics.

The automotive segment is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period. Foam tape simplifies and enhances the design's appearance and functionality of a vehicle. It also reduces the use of bolts, rivets, and screws and reduces the likelihood of developing rust when exposed to rain and other weather conditions. Foam tape can absorb vibration and sound, which reduces rattling and muffling sounds, making the end-user experience more pleasant.

The paper and printing segment is expected to grow at a significant rate as foam tapes are widely used in paper production. During the running of paper machines, coaters, calendars, and sheeters, foam tapes aid integral tasks during paper production, such as reel closing, splicing, and core start.

Recent Developments

• In September 2022, TESA SE developed a new packaging tape using recycled post-consumer PET as a backing material. This includes 70% recycled PCR and a water-based acrylic adhesive system for its manufacture. It is stronger, wear- and tear-resistant, and eliminates noise.
• In August 2022, LINTEC developed a new environmentally friendly, plastic-alternative label stock product that can be used with direct thermal printers.