Automotive Foams Market Size, Share & Trends Analysis Report By Type (Polyurethane, Polyolefin), By Application (Seating, Door Panels), By End Use (Cars, LCV, HCV), By Region, And Segment Forecasts, 2019 - 2025

Industry Insights

The global automotive foams market size was estimated at USD 23.9 billion in 2017 and is anticipated to register a CAGR of 9.8% over the forecast period. The market is anticipated to be driven by the growth of global automotive industry, which has been experiencing growth and reaching pre-recession economic levels in some regions. Since 2014, there has been a positive outlook in the automobile sector in economies ranging from developed countries, such as U.S. to developing countries, such as India.

Growing population, in emerging economies from Asia Pacific, coupled with rising disposable income and purchasing power parity is expected to drive demand for automobiles over the forecast period. This factor is anticipated to bode well for the demand in this market during the forecast period.

Toluene Diisocyanate (TDI), polyols, ethane, and propane are the key raw materials used for manufacturing automotive foam. Fluctuations in prices of these raw materials are expected to impact the product demand over the forecast period. Integration across the value chain is expected to be a crucial factor, as most manufacturers are trying to manage costs, backward as well as forward integration has become essential. The demand for these raw materials from other application industries is expected to impact their availability. Other companies are also focusing on increasing their production capacities to meet the rising product demand.

The regulatory framework for the automotive foam market is governed by the U.S. Food and Drug Administration (FDA), the U.S. Environment Protection Agency (EPA), European Commission, Registration, Evaluation, Authorization, & Restriction of Chemicals (REACH), and European Chemicals Agency (ECHA). The framework specifies the chemical and physical dangers of raw materials and the general requirements for their labelling, storage and usage. The labelling, transport, usage, and storage of automotive foam and related raw materials is permitted, provided the safety regulations are stringently followed.

Type Insights

In 2017, Polyurethane (PU) foam dominated the global market in terms of revenue. Increasing penetration of foam based components for automotive parts and interiors of the vehicles is expected to positively impact this demand. Its excellent mechanical strength properties, weight reduction abilities, wear and weathering resistance have made it one of the most important materials in automobile production. PU foam is used in various automobile components including seats, armrests and headrests, door panels, bumpers, and various other parts. It reduces the overall weight of the vehicle and provide greater fuel efficiency.

Polyolefin foam held a significant market share in 2017 and is expected to witness steady growth over the forecast period. Regulatory authorities have laid down obligatory norms to increase fuel efficiency of vehicles, which has compelled companies to invest in R&D to achieve higher engine efficiency and make innovative changes in the vehicle design. On account of these norms, the emerging Asian economies including India, Singapore, and Thailand are rapidly becoming manufacturing hubs for electric vehicles for the European companies. The rapid growth in electric vehicle manufacturing in Asia Pacific is expected to accelerate the use of polyolefin foam over the forecast period.

Application Insights

On the basis of application, the market is segmented into seating, door panels, and bumper systems and other applications. Seating application segment dominated the global market in terms of revenue in 2017. The increasing automobile production across the globe owing to rising disposable income and spending capacity is expected to impact overall market growth. Using foam in car seats provides support to the tailbone and back. As a result, the vehicle driver can sit for longer hours for conditions requiring longer travel time.

Automotive foam in door panels held a significant share of the market and is expected to witness steady growth over the forecast period. The increasing demand for vehicles in emerging economies owing to increasing disposable incomes, rapid urbanization, and changing lifestyles has directly impacted the demand for noise control products in automobiles. In addition, the growing market for replacement auto-parts and increasing customizations being done by customers post purchase is anticipated to augment the demand for automotive foam in door panels over the forecast period.

End-use Insights

In 2017, cars held the largest market share. Increasing demand for low emission vehicles has forced manufacturers to innovate and develop new technologies that help reduce the environmental impact caused. These trends are expected to drive automotive production and impact the market over the forecast period. With the growing working population in countries, such as India and China, the demand for all types of passenger cars is expected to rise. In addition, in countries such as U.S. there is an increase in sale of vintage vehicles. This rise in demand is expected to propel the overall demand in the market during the forecast period.

LCV’s are expected to witness significant growth over the forecast period. LCV’s were produced as a compact truck. They are built ruggedly, have lower operating costs, powerful fuel efficient engines, and are utilized for intra-city. Increasing production of LCV across the globe is expected to act as a key driver. Increasing demand for LCV’s, such as delivery vans, pickup trucks, and minibuses in emerging economies across North America, Europe, and Asia Pacific owing to expanding logistic networks of various types of product manufacturers is likely to impact production, which in turn is expected to drive the product demand over the forecast period.

Regional Insights

Asia Pacific was the leading segment in 2017 in terms of revenue, and is expected to continue its dominance over the forecast period. Automobile industry in the region is expected to be fueled by the rise in spending capacity. In addition, regulatory authorities have laid down obligatory norms to increase the fuel efficiency of vehicles, which has compelled companies to invest in R&D to achieve higher engine efficiency and make innovative changes in the vehicle design.

Europe held a significant market share in 2017, attributed to the growing automotive industry in U.K. and Germany. The number of vehicles being used in U.K. has increasing over the years owing to a steady economic growth in the country. The presence of major automobile manufacturers in the region who are continuously increasing their production capacity is expected to impact the regional product demand over the forecast period.

Automotive Foams Market Share Insights

The market is characterized by the presence of various well-established players, such as Armacell International S.A. and Saint-Gobain. The companies face an intense competition as majority of them are among the top chemical producers and have a large consumer base. They are well-established and have strong and distribution networks. The key players cater to the demand from the automotive industry. The influence of major players on the market is quite high as majority of them have global presence.

Some of the key manufacturers present in the industry are Armacell International S.A., BASF SE, Rogers Corporation, Bridgestone Corporation, The Woodbridge Group, Recticel NV, Borealis AG, and Saint-Gobain.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at a global, regional, and country level and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global automotive foams market report on the basis of type, application, end use, and region:

• Type Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Polyurethane (PU)

  • Polyolefin (PO)

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Seating

  • Door Panels

  • Bumper System

  • Others

• End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Cars

  • LCV

  • HCV

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa