India Expanded Polyethylene (EPE) Foam Market Size, Share & Trends Analysis Report By Application (Electronics Packaging, Insulation, Construction, Automotive), And Segment Forecasts, 2019 - 2025

Report Overview

The India expanded polyethylene (EPE) foam market size to be valued at USD 140.0 million by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 4.2% during the forecast period. The rising popularity of EPE foams as good thermal insulation in the electronics packaging and insulation sectors is projected to have a positive impact on demand. In addition, the positive outlook for the automotive sector in emerging economies particularly, India as a result of new product launches and urban development is expected to promote the penetration of these products in near future. EPE foam has a wide application due to its properties, such as excellent thermal insulation, resistance to moisture, durability, flexible mechanical features, and ease of transportation. However, due to the lack of recyclability, the product generally ends up in landfills. The growing concern over environmental issues regarding EPE and its disposability are projected to restrain the growth of the market.

Growth of the construction industry is propelled by various policies in emerging markets, such as India and China, as well as the growing implementation of Building Information Modeling (BIM) in European nations, which attempts to combine architecture, construction, and engineering tools to produce more efficient plans and better manage existing and new infrastructure.

Growing importance of green building, which refers to the use of environmentally viable and resource-efficient processes throughout a building’s lifecycle, is likely to boost the demand for EPE foam as an insulating material over the projected period.

EPE is an ideal choice for green building design as it utilizes recycled content and offers high energy efficiency, which are tangible environmental advantages. Most of the goals associated with green building are met by the application of EPE, such as localized manufacturing, which reduces the impact of distant transportation of materials and reduces jobsite waste and labor cost during installation.

India Expanded Polyethylene (EPE) Foam Market Trends

The market is propelled by the increase in research and development activities in chemistry and polymer architecture that have increased the use of expanded polyethylene foams in a variety of industries. The extended polyethylene (EPE) foam business saw a significant increase in demand in emerging economies that focus on the design and construction of infrastructure. Furthermore, the advances in the protective packaging sector and the increase in population are expected to fuel market growth. The thriving e-commerce business, particularly in emerging markets is expected to help the plastic industry owing to the rapid technical improvements.

The buying cost and availability of raw materials are the two elements that influence the cost structure of EPE products. Low-density polyethylene resin, naphtha, high-density polyethylene resin, and additives are the primary materials used in the manufacture of polyethylene foams. Owing to the increased global demand, war, and foreign military action, oil prices have been extremely volatile in the previous years. The market is impacted by price fluctuations in petrochemical-based raw materials.

Polyethylene foams have grown in popularity as a result of the continuous advancement of chemistry and polymer structures as they meet environment standards. The market is expected access to resources such as drilled oil will gradually decline. CO2-based polyols are also anticipated to replace existing petroleum-based products because CO2 is less expensive over petroleum-based raw materials.

Application Insights

On the basis of application, the market can be segmented into electronics packaging, mattresses, insulation, construction, automotive, and others. The insulation segment held around 26.1% of overall India expanded polyethylene (EPE) foam market in terms of revenue in 2016.

Expanded polyethylene foam is extensively used for insulation in air conditioners, cold water pipes, household and commercial refrigerators, industrial chillers, and air handling units. Continuous growth due to commercial and residential construction activities along with rising consumer spending on luxury goods is expected to drive the demand for air conditioning systems in India.

In addition, low ownership rate and rising disposable income is expected to favorably impact market growth. The commercial sector is expected to exhibit high growth in requirement of proper air conditioning systems owing to growing infrastructure spending, as well as demand for educational buildings, retail stores and healthcare which is expected to propel requirement of the product in air conditioning systems manufacturing over the forecast period.

Electronics packaging segment held another largest share in the overall market. Expanded polyethylene foam packaging solutions are designed and manufactured to protect products from magnetic, electrostatic, atmospheric, shock damage, or vibration. The solutions include different packaging types including boxes, liners, materials, storage containers, and spacers.

Vibration dampening, electric insulation, moisture, and weather are some of the factors that impact the product during transportation or storage. Therefore, proper selection of packaging is primarily dependent on the type of product that is packaged and surrounding environmental conditions. All abovementioned will impact the growth in electronics packaging positively over the forecast period.

Regional Insights

In terms of region, South India accounted for USD 33.8 million in 2016 in terms of revenue and is anticipated to expand at a CAGR of 4.0% over the forecast period. The region accounted for the largest market share. Tamil Nadu is among the top ten automobile manufacturing hubs globally and has a capacity to produce over 1.4 million cars per year. Automobile manufacturing units of several companies including Ford Motors, BMW, Royal Enfield, Renault, Mitsubishi, and Daimler is situated in Tamil Nadu making it an ideal market for EPE foam in South India.

India’s electronics industry is the most robust in South Indian states. The region has a total of two BrownField EMC’s and nine Greenfield EMC’s. The construction sector is also expected to witness growth at a good pace in states including Karnataka, Tamil Nadu, Andhra Pradesh, and Telangana because of a surge in the requirement of household infrastructure. These factors are expected to propel demand regional demand over the forecast period.

The major states driving growth in East India include West Bengal, Bihar, Jharkhand, and Assam. The government of India’s Make in India scheme coupled with initiatives by the regional governments is expected to attract automobile and electronics manufacturers over the forecast period.

Key Companies & Market Share Insights

The market is highly competitive with industry players undertaking several activities including mergers, acquisitions, capital expansions, and strategic alliances to reinforce their competitive positions. Established players are concentrating on expanding their share alongside productivity through technological innovation as well.

The market is fragmented in nature owing to the presence of numerous manufacturers. The pricing framework depends on raw material suppliers and manufacturers. The market is marked by a large number of companies in Gujarat and Maharashtra. Mergers and acquisitions and joint ventures are some of the key strategies adopted by the key players to increase market presence.

Government policies favoring growth of the automotive, electronics, and construction industry, coupled with the demand for efficient packaging solutions, will propel the market over the forecast period. Companies cater to extensive fabrication requirements in domestic markets and engage in mergers and acquisitions to address cross-border demand through capacity expansion and product diversification.

The India EPE foams market is dominated by major players, such as Supreme Industries Limited, Raghav Industries Ltd., Royal EPE Foam Private Limited, IRE-TEX Premier India Limited, Suvi International (P) Ltd., Sri Sai Speciality Packagings & SSSP Safety Solution, Orion Pack Art, Laxmi EPE Foam Sheets, Polytec Packins (India) Pvt. Ltd., Rohit Poly Products Private Limited, Superpacks, Rhyno Group, and Goldcoin Foam Pvt. Ltd.

Recent Developments

• In March 2021, Recticel announced the purchase of FoamPartner. The buyout would relay a huge significance in adding more resources and talent to encourage business  excellence, augment its global reach, and overall boost the adoption and implementation of sustainable innovations and cutting-edge solutions to global marketplaces

• In February 2020, PAI(Paribas Affaires Industrielles) became Armacell's majority shareholder. KIRKBI, a holding and investment company and Armacell's senior management team own the remaining shares

India Expanded Polyethylene (EPE) Foam Market Report Scope

India Expanded Polyethylene (EPE) Foam Market Segmentation

This report forecasts revenue and volume growth at regional levels 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 India expanded polyethylene (EPE) foam market report on the basis of application and region:

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

  • Electronics Packaging

  • Mattresses

  • Insulation

  • Construction

  • Automotive

  • Others

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

  • East

  • West

  • North

  • South