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 the 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 the U.S. to developing countries, such as India.
Growing population, in emerging economies from the 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 labeling, storage, and usage. The labeling, transport, usage, and storage of automotive foam and related raw materials is permitted, provided the safety regulations are stringently followed.
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 provides 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 the fuel efficiency of vehicles, which has compelled companies to invest in R&D to achieve higher engine efficiency and make innovative changes in 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 the Asia Pacific is expected to accelerate the use of polyolefin foam over the forecast period.
Based on the 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 long hours for conditions requiring longer travel time.
Automotive foam indoor panels held a significant share of the market and are 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. Also, 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 indoor panels over the forecast period.
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. Also, in countries such as the U.S., there is an increase in the 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 the 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 minibusses in emerging economies across North America, Europe, and the 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.
The Asia Pacific was the leading segment in 2017 in terms of revenue and is expected to continue its dominance over the forecast period. The automobile industry in the region is expected to be fueled by the rise in spending capacity. Also, 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 the U.K. and Germany. The number of vehicles being used in the U.K. has increased over the years owing to 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.
The market is characterized by the presence of various well-established players, such as Armacell International S.A. and Saint-Gobain. The companies face intense competition as the 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 the majority of them have a 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.
Attribute |
Details |
The base year for estimation |
2017 |
Actual estimates/Historical data |
2014 - 2016 |
Forecast period |
2018 - 2025 |
Market representation |
Volume in kilotons, Revenue in USD Million & CAGR from 2018 to 2025 |
Regional scope |
North America, Europe, Asia Pacific, Central & South America, Middle East & Africa |
Report coverage |
Revenue forecast, company share, competitive landscape, growth factors and trends |
Country Scope |
U.S., Germany, U.K., Japan, China, India, Brazil |
15% free customization scope (equivalent to 5 analyst working days) |
If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization |
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 this study, Grand View Research has segmented the global automotive foams market report based on 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
The U.K.
Asia Pacific
China
India
Japan
Central & South America
Brazil
Middle East & Africa
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