The global automotive foam market size is anticipated to reach USD 50.44 billion by 2025, according to a new report by Grand View Research, Inc. It is projected to expand at a CAGR of 9.8% during the forecast period. Growing population, disposable income, and purchasing power parity in emerging economies of Asia Pacific are expected to propel demand for automobiles over the forecast period, thus impacting the market for automotive foam.
Transitioning lifestyles and wide availability of low-end sports models have positively impacted automotive demand from 2014 to 2017. Easy financing of automobiles owing to the EMI concept with attractive interest rates made it simpler and affordable for a medium income group consumers to purchase a vehicle of their choice. Easy availability of loans for vehicle purchase has also affected vehicle sales on similar lines. The aforementioned factors played an important role in propelling growth of the automotive industry both in developed as well as developing regions and the trend is likely to continue in the forthcoming years.
The market is expected to face instability in terms of raw material supply over the coming years owing to uncertain operation rates and plant closures by raw material manufacturers. However, relationships between manufacturers and suppliers are expected to get stronger, thus leading to stronger tie-ups at multiple distribution levels. This is expected to be a critical factor for companies to gain a competitive advantage over the forecast period.
Increasing demand for automotive foam particularly in the emerging economies of North America, Europe, Asia Pacific, and Central and South America, offers growth opportunities for the manufacturers of automotive foam and related raw materials to expand their product portfolios and market reach. The R&D initiatives undertaken by some companies to enhance their product specifications and market reach.
Substantial growth in automotive industry in Asia Pacific has fueled the demand in the automotive foam market in recent past. Significant presence of automotive and automotive foam manufacturers has played a key role in driving the product demand over the past few years and is expected to continue over the forecast period.
Further key findings from the report suggest:
www.grandviewresearch.com/industry-analysis/automotive-foams-market
Grand View Research has segmented the global automotive foam market on the basis of type, application:
Automotive Foam Type Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Transitioning lifestyles and wide availability of low-end sports models have positively impacted automotive demand from 2014 to 2017. Easy financing of automobiles owing to the EMI concept with attractive interest rates made it simpler and affordable for a medium income group consumers to purchase a vehicle of their choice. Easy availability of loans for vehicle purchase has also affected vehicle sales on similar lines. The aforementioned factors played an important role in propelling growth of the automotive industry both in developed as well as developing regions and the trend is likely to continue in the forthcoming years.
The market is expected to face instability in terms of raw material supply over the coming years owing to uncertain operation rates and plant closures by raw material manufacturers. However, relationships between manufacturers and suppliers are expected to get stronger, thus leading to stronger tie-ups at multiple distribution levels. This is expected to be a critical factor for companies to gain a competitive advantage over the forecast period.
Substantial growth in automotive industry in Asia Pacific has fueled the demand in the automotive foam market in recent past. Significant presence of automotive and automotive foam manufacturers has played a key role in driving the product demand over the past few years and is expected to continue over the forecast period.
Further key findings from the report suggest:
- In terms of revenue, PU foam type is anticipated to reach USD 2.62 billion by 2025, growing at a CAGR of 7.9% from 2018 to 2025
- Seating application segment held the largest market share of over 42.8% in terms revenue in 2017. These foams are corrosion resistant and can bear various types of severe conditions, which is anticipated to bode well for growth
- The U.S. automotive foam market is anticipated to reach USD 8.37 billion by 2025 owing to the presence of various manufacturers and suppliers in the country
- The market is competitive with the presence of a number of global, medium, and small scale companies catering to the global and local demand
- Some of the key companies include Armacell International S.A., BASF SE, Rogers Corporation, Bridgestone Corporation, The Woodbridge Group, Recticel NV, Borealis AG and Saint-Gobain. The companies use strategy such as mergers and acquisitions and portfolio expansion to gain market share.
www.grandviewresearch.com/industry-analysis/automotive-foams-market
Automotive Foam Type Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
- Polyurethane (PU)
- Polyolefin (PO)
- Others
- Seating
- Door Panels
- Bumper System
- Others
