The Global Foam Blowing Agent Market was valued at USD 1.57 Billion in 2022 and is projected to reach USD 2.44 Billion by 2030, registering a CAGR of 5.67% for the forecast period 2023-2030.
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Market Definition
Foam-blowing agents give foam substrates their cellular structure and are now considered necessary ingredients. The polymer foam offers several benefits, including low product reduction rates, small material amounts, and acoustic and heat insulation. Additionally, methyl formate, HFO, and methylal are just a few of the eco-friendly products that can benefit from the use of foam-blowing agents. Additionally, non-toxic and direct foaming agents were introduced, leading to a revolution in foam-blowing agents, because of their low global warming potential (GWP) and zero ozone depletion potential (OPD). Because foaming agents have the best isolation qualities, are efficient and environmentally friendly, and are competitive, the market for foam-blowing agents is predicted to grow significantly. In the coming years, it is projected that the construction and automotive industries will continue to see a spike in the use of polymer foams.
Market Size:
- 2022: USD 1.57 Billion
- 2030: USD 2.44 Billion
- CAGR (2023-2030): 5.67%
Foam Blowing Agent Market Dynamics
Drivers Propelling the Demand for Foam Blowing Agent include:
Increasing use of polymer foam in the building industry to support market expansion:
One of the factors propelling the foam-blowing agents’ market is the use of polymer foam in the building industry. Chemicals known as foam-blowing agents are utilized in the production of foam products, including cushioning, packaging, and insulation. Foam-blowing agents are used in the production of polymer foam insulation materials, which are widely used in construction to reduce heat transfer and increase energy efficiency. The need for foam-blowing agents is rising along with the demand for energy-efficient construction. One of the biggest end-use markets for foam-blowing agents is the construction industry. The use of polymer foam insulation is anticipated to rise in response to the growing demand for energy-efficient buildings, which could propel the market for foam-blowing agents. Furthermore, polymer foam insulation is finding new uses outside of the building industry. It is utilized, for instance, in refrigeration, cold storage, and industrial insulation, among other applications. The market for foam-blowing agents may rise as a result of the growing usage of polymer foam in the building industry, but this is only one of the factors propelling the industry. Important market drivers include the need for lightweight materials, government regulations, and technological advancements. Consequently, in recent years, the global market CAGR for foam-blowing agents has increased due to various factors related to the product, due to factors fueling the growth of the foam-blowing Agent market.
For instance, in June 2022, according to Owens, Owens Corning announced today that it has signed an agreement to acquire Natural Polymers, LLC, an innovative manufacturer of spray polyurethane foam insulation for building and construction applications, based in Cortland, Illinois. The transaction is subject to regulatory approvals and other customary conditions and is anticipated to close in the third quarter. “This acquisition advances Owens Corning’s strategy to strengthen our core building and construction products and expand our addressable markets into higher-growth segments,” said Todd Fister, president of Owens Corning’s Insulation business. “Natural Polymers’ proven technology enables us to offer our customers a more diversified insulation product portfolio and solidify our commitment to provide long-term, sustainable solutions.”.
Expansion of automotive sector to Continue Driving Market Growth:
Lightweighting is becoming more and more important to the automotive industry to cut emissions and improve fuel economy. By using blowing agents to create them, foam materials are lightweight and help reduce the overall weight of vehicles without sacrificing structural integrity. Foams and other lightweight materials contribute to increased fuel efficiency by lowering the overall weight of cars. Automakers are looking for foam solutions with low density and high strength, which are often powered by foam-blowing agents, as consumers and governments place a higher priority on environmental sustainability and fuel efficiency. To improve comfort and offer acoustic insulation, foam materials are used in car interiors for headliners, seats, and other components. These materials are produced in part by foam blowing agents, satisfying consumer demand for higher-quality and more comfortable car interiors. Vehicles with thermal insulation use foam materials made with blowing agents. This is especially crucial for controlling temperature and enhancing energy efficiency in both conventional cars with sophisticated climate control systems and electric vehicles (EVs). Automotive safety applications use foams with exceptional energy absorption qualities as impact-absorbing materials in crash pads and bumpers. The creation of energy-absorbing foams that improve vehicle safety is aided by foam-blowing agents. The increasing need for lightweight materials in EV manufacturing is a result of the world's transition to more sustainable transportation methods and the expanding market for electric vehicles. Foam materials help reduce weight in electric vehicle components by working with blowing agents., this factor drives the growth of the Foam Blowing Agent market.
For instance, in August 2022, according to Acara, The Indian automobile industry is one of the country’s largest and most dynamic industries. It encompasses a wide range of vehicles—including passenger cars, commercial vehicles, two-wheelers, and three-wheelers. The auto industry accounts for 49 percent of India’s manufacturing gross domestic product (GDP) and 7.1 percent of its overall GDP.
Recent Developments
In October 2022, In line with its previously announced plans to develop the supply of fluorinated specialty solution 1233zd, Arkema announces today the successful start-up of the production facility of its partner Aofan in China. Additionally, Arkema has launched the construction phase of the 1233zd line at its Calvert City, United States, manufacturing plant. These two units will increase the global availability of Forane® 1233zd over the next 18 months.
In June 2022, Nouryon introduces Expancel HP92 microspheres, an innovation that is breaking boundaries for thermoplastic microsphere fillers in high-pressure manufacturing processes for the automotive industry. Lightweight materials are in high demand from automotive manufacturers to meet increasingly strict emission regulations and strong consumer interest in fuel-efficient vehicles that do not compromise on performance or passenger comfort.
Restraint
Environment concerns and regulation:
Particularly some fluorinated gases used as foam-blowing agents, have the potential to exacerbate global warming and the greenhouse effect. Restrictions and regulations are being implemented globally by regulatory bodies to curtail the use of blowing agents that have a high potential for global warming. Low-GWP foam blowing agents are preferred to reduce environmental impact. Certain foam-blowing agents have been found to contain substances that deplete the ozone layer, especially those that contain hydrochlorofluorocarbons (HCFCs) and chlorofluorocarbons (CFCs). The production and consumption of ODS are to be phased out through international agreements like the Montreal Protocol, which will affect the availability and use of specific blowing agents. The industry has seen a shift toward the use of greener alternatives, like hydrocarbons and hydrofluoroolefins (HFOs), to address environmental concerns. These alternatives are thought to be more sustainable and fit with regulatory objectives because they have a lower GWP. Products containing foam-blowing agents are frequently subject to regulations requiring them to meet environmental standards and obtain certifications. Market entry and customer trust may depend on labeling requirements being met, such as ENERGY STAR for energy-efficient products. Energy efficiency is a major consideration in the construction of buildings, and building code regulations are emphasizing the use of insulation and other energy-efficient materials more and more. Regulations pertaining to foam blowing agents that are used in the manufacturing of high-performance insulation materials must be followed., this factor hinders the growth of Foam Blowing Agent market.
For instance, in November 2022, Honeywell and Central Glass Co. Ltd. today announced an extension of their long-term partnership to include an agreement for Central Glass to manufacture Solstice Liquid Blowing Agent (LBA) exclusively for Honeywell. The ready-now solution is a non-flammable, ultra-low-global-warming-potential (GWP) foam-blowing agent for use in a wide variety of insulation applications worldwide.
Challenges
Reduced capacity usage as a result of the COVID-19 pandemic.
Because of the COVID-19 disruption, the manufacturing and transportation sectors have stopped, which has resulted in a significant decrease in the demand for blowing agents. Blowing agent demand has also decreased due to a decline in foam products from a variety of industries. As a result, shortly, several blowing agent manufacturers are anticipated to run their plants at a low-capacity utilization rate to maintain supply and demand equilibrium and prevent inventory buildup.
Opportunities
Shifting preference towards environment-friendly blowing agents
Manufacturers and end users are looking for blowing agents that comply with environmental regulations as they become more stringent. Eco-friendly blowing agents can meet regulatory requirements and gain market access because they generally have lower Global Warming Potential (GWP) and less environmental impact. A lot of businesses and sectors have set sustainability targets to lessen their environmental impact. These objectives are supported by a move toward foam-blowing agents with improved environmental profiles, which raises the sustainability standards across the whole value chain, from production to final applications. The demands of consumers are changing, and there is an increasing need for sustainable and eco-friendly products. Consumers who care about the environment are drawn to foam products made with green-blowing agents, which increases market acceptance and creates opportunities for brand differentiation.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 1.57 Billion |
| Market Forecast in 2030 | USD 2.44 Billion |
| Compound Annual Growth Rate (CAGR) | 5.67 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Type, By Foam & By Region |
| By Type |
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| By Foam |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Foam Blowing Agent Market
The Foam Blowing Agent Market is segmented by Type, application, Foam and region.
By Type
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The HC segment held the largest market share in 2022:
By Type is sub-segmented into HC, HFC, HCFC, and others. The HC segment accounted for the highest market share in the global Foam Blowing Agent market for 2022. The low ODP and GWP characteristics of HC blowing agents make it a popular choice for a variety of foam applications. The growing use of oxygenated hydrocarbons in integral skin and polystyrene foam applications, such as methyl formate, is conducive to the growth of HC-blowing agents. The appliance industry's growing need for vacuum panels in conjunction with hydrocarbon-blown foams to boost energy efficiency is driving up the use of HC-blowing agents.
On the other hand, the HFC segment has a significant market share over the forecast period, Because HFCs have little to no ability to destroy ozone, and they have become popular blowing agents. This made them appealing substitutes for hydrochlorofluorocarbons (HCFCs) and chlorofluorocarbons (CFCs), which have a greater potential to deplete the ozone layer. Good blowing agent qualities of HFCs enable the creation of foam insulation materials with superior thermal insulation qualities. HFCs were widely used in the building insulation and construction industries due to their efficacy in producing insulating foams.
By Foam
The Polyurethane Foam segment was the leading segment in 2022:
Foam is divided into polyurethane foam, polystyrene foam, phenolic foam, polyolefin foam, and others. The polyurethane foam segment accounted for the largest share of the global Foam Blowing Agent market in 2022. Worldwide, polyurethane foams are widely used in a variety of applications. It is widely used in home appliances, transportation systems, and buildings as thermal insulation. In addition, it finds application in the computer, dash panel, electronics, footwear, seating, carpet backing, and other areas. Therefore, it is anticipated that the ongoing need for polyurethane foams from various application industries will fuel that demand, which will eventually strengthen the blowing agent market.
The Polyolefin Foam segment is anticipated to register rapid growth in the forecast period, The versatility of polyolefin foams, such as those derived from polyethylene and polypropylene, is well known. They can be utilized for several purposes, including construction materials, insulation, automotive parts, and packaging. Its adaptability adds to its wide market appeal. Because polyolefin foams are lightweight, they can be used in situations where weight is an important factor. The lightweight nature of polyolefin foams is advantageous for fuel efficiency and cost-effective transportation in industries such as automotive and packaging.
Regional Analysis
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Asia Pacific occupied the largest market share in 2022:
Asia Pacific has the largest revenue market share 45% in 2022, Construction, automotive, and packaging are just a few of the industries that rely heavily on Asia Pacific, and China in particular, as a manufacturing hub. The demand for foam blowing agents, which are used in products like insulation, cushions, and packaging materials, is driven by the region's manufacturing activities. The Asia Pacific area has seen a sharp increase in both urbanization and industry. The development of infrastructure, the growth of industries, and an increase in construction activities all contribute to the need for foam blowing agents in insulation materials and other applications. Asia Pacific's construction sector has been expanding rapidly, resulting in a large number of infrastructure, commercial, and residential projects. The demand in the area is driven by the widespread use of foam insulation materials—which use blowing agents—for thermal and acoustic insulation in construction.
On the other hand, North America accounted for a significant share over the forecast period, North America has a strong and steadily expanding construction industry, especially in the United States. To produce the insulation materials used in residential, commercial, and industrial construction, there is a high demand for foam-blowing agents. North America is known for its strict building codes and standards, which prioritize energy efficiency in building practices. The need for foam blowing agents in the area is fueled by the necessity of producing insulation materials that adhere to these codes. In North America, consumers' awareness of and desire for energy-efficient products is rising. Because they can reduce heat loss in buildings, foam insulation materials made with foam blowing agents are preferred.
Segmentation Analysis of the Foam Blowing Agent Market
By Type
- HC
- HFC
- HCFC
- Others
- Polyurethane Foam
- Polystyrene Foams
- Phenolic Foam
- Polyolefin Foam
- Others
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
List of the prominent players in the Foam Blowing Agent Market :
- Arkema S.A.
- Honeywell International Inc.
- Exxon Mobil Corporation
- E.I. du Pont de Nemours & Company
- Haltermann GmbH
- Harp International Ltd.
- Daikin Industries Ltd.
- Sinochem Group
- The Chemours Company
- ZEON Corporation
Impact of the COVID-19 Pandemic on the Foam Blowing Agent Market:
Global supply chains were disrupted, just like in many other industries, including the foam blowing agent market. Production and distribution of raw materials and completed goods were delayed as a result of lockdowns, travel restrictions, and temporary closures of manufacturing facilities. During the pandemic, the construction sector—which uses a lot of foam-blowing agents for insulation—saw a slowdown in business. The postponement or cancellation of construction projects affected the market for foam blowing agents and foam insulation materials. Automotive insulation is one application where foam-blowing agents are utilized in the automotive industry. Foam-blowing agents were in high demand in the automotive industry during the pandemic as a result of production halts, supply chain disruptions, and shifts in consumer spending. Consumer spending fluctuated during the pandemic due to economic uncertainties. Demand patterns changed in industries that produce consumer goods, including those that use foam materials. This had an impact on the demand for foam blowing agents as a whole. Work activity restrictions, supply chain disruptions, and labor shortages caused major delays in infrastructure and construction projects. The number of foam-blowing agents used in applications related to construction was directly impacted by this delay.
