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Automotive Foam Market Overview
The Automotive Foam Market size
is projected to grow at a CAGR of 9.0% during the forecast period 2022-2027 and reach US$ 51.7 billion by 2027. Automotive foams can be categorized into
various types which include polyolefin, styrene, polyvinyl chloride, phenolic,
melamine, polyurethane foam and more. They are used in a wide range of automotive
applications such as car trunk systems, dashboard fillers, seating elements,
door panels, shock-absorbing components and other similar applications. The
expansion of automotive foam is primarily driven by its usage in the automotive
industry. In 2020, the surge in the COVID-19 pandemic negatively impacted the
automotive production activities as a result of the country-wise shutdown of automotive sites,
shortage of labor and the decline of supply and demand chain all over the world, thus,
temporarily affecting the growth of the automotive foam industry. However, a
steady recovery in automotive production activities has been witnessed since
2021, which in turn, is driving the demand for automotive foam. For instance,
according to the International Organization of Motor Vehicle Manufacturers
(OICA), the total global automobile production reached 80.2 billion units in
2021, an increase of 3% as compared to 77.7 billion units in 2020. An increase
in automotive production along with the surging demand for electric vehicles is
expected to drive the growth of the Automotive Foam Market size in the coming
years. On the other hand, fluctuating prices of raw materials may confine the
growth of the market.
Automotive
Foam Market Report Coverage
The
"Automotive Foam Market Report–Forecast (2022-2027)” by IndustryARC,
covers an in-depth analysis of the following segments in the Automotive Foam
Market.
By Type: Polyurethane, Polyolefin, Styrenic, Polyvinyl
Chloride, Phenolic, Melamine and Others.
By Application: Car Trunk Systems, Dashboard Fillers, Seating Elements, Door Panels, Shock-Absorbing
Components, Car Battery Insulation Systems, Gas Tank Pads, Cable Sleeves &
Wire Wraps, Others.
By End-Use: Passenger Cars, Light Commercial
Vehicles (Bus, Vans, Coaches, Two-Wheelers, Three-Wheelers, Others) and Heavy
Commercial Vehicles (Heavy-Duty Trucks, Construction Vehicles, Agricultural
Vehicles, Others).
By Geography: North
America (the USA, Canada and Mexico), Europe (UK, Germany, France, Italy,
Netherlands, Spain, Denmark, Belgium and the Rest of Europe), Asia-Pacific (China,
Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan,
Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile
and Rest of South America), Rest of the World [Middle East (Saudi Arabia, UAE,
Israel and Rest of Middle East) and Africa (South Africa, Nigeria and Rest of
Africa)].
Key Takeaways
- The polyurethane foam type in Automotive Foam Market held a significant share in 2021. Its wide range of characteristics, along with excellent impact resistance and stain resistance made it stand out in comparison to other types of automotive foam available in the market.
- Passenger car segment held the largest share in Automotive Foam Market in 2021, owing to the increasing demand for automotive foam from the passenger car sector across the world. The ability of automotive foams such as sound absorption, vibration or shock absorption and insulation makes them ideal for use in multiple components within passenger cars.
- Asia-Pacific dominated the Automotive Foam Market in 2021, owing to its increasing demand from the automotive sector of the region. For instance, recent insights from the International Organization of Motor Vehicle Manufacturers (OICA) state that the total automobile production in 2021 in Asia-Pacific increased by 28% in comparison to 2020.
- A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Automotive Foam Market Report.
Figure: Asia-Pacific Automotive Foam Market Revenue, 2021-2027 (US$ Billion)
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Automotive Foam Market Segment Analysis – by Type
The Polyurethane
foam segment held a significant Automotive Foam Market share of over 18% in
2021, owing to the range of characteristics and benefits it offers over other
types of automotive foam. For instance, polyurethane foam offers better noise
reduction and shock absorption in comparison to polyolefin, polyvinyl chloride, phenolic and other types of automotive foam. It also offers better electrical
insulation properties along with higher dimensional stability and durability as
compared to other types of automotive foam. Polyurethane foam is comparatively
lightweight and offers excellent resistance to moisture, air and mold. Moreover,
it is quite versatile, can be easily adapted to a range of designs and is more
economical and cost-effective in comparison to other types of automotive foam.
Hence, all of these properties of polyurethane foam are driving its demand over
other types of automotive foam, which in turn, is expected to boost the growth of the market during
the forecast period.
Automotive Foam Market Segment Analysis – by End-use
The passenger
car segment held the largest Automotive Foam Market share of over 25% in 2021, owing to the increasing production of
passenger cars across the world. For instance, recent insights from the
European Automobile Manufacturers' Association (ACEA) state that total
passenger car production during the fourth quarter of 2020 reached around 34
million in Asia-Pacific, 14 million in Europe, 1.3 million in the Middle
East/Africa, 1.7 million in South America and 9.6 million in North America
respectively. Moreover, according to the International Organization of Motor Vehicle
Manufacturers (OICA), the total production of passenger cars in South America,
Asia-Pacific and Africa increased by 11%, 7% and 8% respectively in 2021 as
compared to 2020.
Automotive foam such
as polyolefin,
styrene, polyvinyl chloride, phenolic, melamine, polyurethane foam and more are primarily used in car trunk systems, dashboard fillers, seating
elements, door panels, bumpers, car battery insulation systems, cable sleeves
& wire wraps and other automobile components, owing to its excellent noise
reduction, shock absorption and electrical insulation properties. Thus, such an
increase in passenger car production is expected to increase the demand for automotive
foam, owing to their above-mentioned properties. This is expected to expand the
Automotive Foam Market size during the forecast period.
Automotive Foam Market Segment Analysis – by Geography
Asia-Pacific
held a dominant Automotive Foam Market share of around 35% in the year 2021. The
consumption of automotive foam is particularly high in this region due to its
increasing demand from the automotive sector. For instance, recent insights
published by the OICA (International Organization of Motor Vehicle
Manufacturers) during the fourth quarter of 2020 state that around 25 million,
3.5 million, 8 million and 3.4 million units of vehicles were produced in
China, South Korea, Japan and India, respectively, which in turn, contributed
to approx. 50% of the global automobile production during the year 2020.
Moreover, according to the South Korean Ministry of Trade, Industry and Energy,
automobile production in South Korea amounted to 271,054 units in December
2021. It further states that Hyundai Motor and GM Korea account for about 53.3%
of total domestic automobile production in the country. Furthermore, in
December 2021, the automobile manufacturers in South Korea such as Hyundai
Motor produced 119,621 units while Kia had 1,15,941 units respectively.
In this way, such an increase in automobile production in multiple countries across the region is expected to increase the demand for automotive foams. These automotive foams are used in car trunk systems, dashboard fillers, seating elements, door panels, bumpers, car battery insulation systems, cable sleeves & wire wraps and other automobile components, owing to its excellent noise reduction, shock absorption, moisture resistance and electrical insulation properties. This is expected to drive the growth of the market during the forecast period.
Automotive Foam Market Drivers
An increase in automotive production
The properties of automotive foam such as excellent shock absorption, noise reduction, electrical insulation, moisture resistance and properties along with excellent resistance to moisture, air and mold make them ideal for use in various automobile components which include car trunk systems, dashboard fillers, seating elements, door panels, shock-absorbing components, automobile battery insulation systems, gas tank pads and more. According to a recent study published by the German Association of Automotive Industry during the fourth quarter of 2020, the new registration of motor vehicles reached up to 16,763 units in Europe, 37,467 units in Asia, 3080 units in South America, 17,421 units in North America, 12,733 units in Western Europe and 5180 units in other regions worldwide. Moreover, according to the International Organization of Motor Vehicle Manufacturers (OICA), the production of heavy-duty vehicles in Europe reached 3,08,300 units in 2021, an increase of 31% in comparison to 2,36,328 units in 2020. It further states that the total automobile production in 2021 in Europe, America, Asia and Africa increased by 25%, 17%, 28% and 37% respectively in comparison to 2020. Hence, an increase in global automotive production is expected to increase the demand for automotive foams for use in various components of an automobile, owing to its above-mentioned properties. This is anticipated to drive the growth of the market in the upcoming years.
Surging demand for electric vehicles (EV)
The availability of a wide range of models,
upgraded technology, eco-friendliness, lower maintenance cost, increasing
customer awareness, along with the availability of subsidies and tax rebates are
some of the major factors driving the demand for electric vehicles. For
instance, according to International Energy Agency (IEA), in the year 2019, the
total production of electric cars at the global level reached 2,089,366
units 2020, an increase of around 39% in comparison to 1,502,985 units in 2019. Moreover, according to a recent
study published by the International Netherlands Group (ING), the demand for the production and development of electric vehicles has been increasing since the
pandemic. It states that the global sales of new electric vehicles have
increased by 50% in 2021 and it is expected to increase by 8% in 2022. It
further states that the sales of electric vehicles have increased by 14% in
Europe, 9% in China and 4% in the United States. In this way, such surging
demand and production of electric vehicles in multiple regions across the world
is expected to increase the demand for automotive foam such
as polyolefin,
styrene, polyvinyl chloride, phenolic, melamine and polyurethane foam for use in dashboard fillers, seating elements, bumpers, door panels,
car battery insulation systems and other components of the electric vehicle. This
is expected to accelerate the growth of the Automotive Foam Market in the
upcoming years.
Automotive Foam Market Challenge
Fluctuating prices of raw materials
Some of the raw
materials required for the production of automotive foam are obtained from
crude oil. As a result, fluctuations in the prices of crude oil may hinder the
growth of the market. For instance, in 2020, the international benchmark for
petroleum prices across the world also known as Brent crude prices decreased to
US$ 9.12 per barrel, which was the lowest record since December 10, 1998.
Likewise, in April 2020, India’s Crude Oil Basket (COB) reached US$ 19.90 per
barrel, which was the lowest record since February 2002. During the first 11
months of the year 2020-21, the average annual price of India’s COB was around
US$ 42.72 per barrel, which decreased by 30% more than the average COB price in
2019-20. Furthermore, as per revised estimates for 2020-21, the COB has
increased by around 35% from its initial budget estimate. In this way, such
uncertainty regarding the price of crude oil may affect the prices of raw
materials that are used in the production of automotive foam. Thus, such
instability and fluctuating prices of raw materials may limit the growth of the
automotive foam industry during the forecast period.
Automotive Foam Industry Outlook
Technology launches, acquisitions and increased R&D activities are
key strategies adopted by players in the Automotive
Foam Market. The top companies in Automotive Foam Market are:
- Johnson Controls
- Woodbridge Foam Corporation
- Lear Corporation
- Bridgestone Corporation
- BASF SE
- Armacell
- Rogers Communications
- Vitafoam Nig. Plc
- Saint-Gobain
- The Dow Chemical Company
Recent Developments
- In October 2021, Huntsman launched its new range of low-emission MDI-based foam systems for use in interior components of an automobile. The newly launched products will allow automotive foam manufacturers to produce high-performance polyurethane foam while reducing interior emission levels significantly.
- In July 2019, Sekisui Chemical Co. Ltd. launched its new production line of polyolefin foam for automotive interiors in China. The main motive of the launch was to expand the company’s product portfolio and to meet the increasing demand for high-performance automotive foams in the country.
Relevant Reports
Report Code: CMR 0093
Report Code: CMR 0482
Report Code: CMR 1059
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