Automotive Foam Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth And Forecast 2022-2027

Report Code: CMR 97479 Report Format: PDF + Excel

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:

  1. Johnson Controls
  2. Woodbridge Foam Corporation
  3. Lear Corporation
  4. Bridgestone Corporation
  5. BASF SE
  6. Armacell
  7. Rogers Communications
  8. Vitafoam Nig. Plc
  9. Saint-Gobain
  10. 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.

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1. Automotive Foam Market - Market Overview
    1.1 Definitions and Scope
2. Automotive Foam Market - Executive Summary
    2.1 Key Trends by Type
    2.2 Key Trends by Application
    2.3 Key Trends by End-use
    2.4 Key Trends by Geography
3. Automotive Foam Market – Comparative analysis
    3.1 Market Share Analysis - Major Companies
    3.2 Product Benchmarking - Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis - Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Automotive Foam Market - Startup companies Scenario Premium Premium
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Automotive Foam Market – Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Automotive Foam Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Automotive Foam Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Automotive Foam Market – By Type (Market Size - US$ Million/Billion)
    8.1 Polyurethane
    8.2 Polyolefin
    8.3 Styrenic
    8.4 Polyvinyl Chloride
    8.5 Phenolic
    8.6 Melamine
    8.7 Others
9. Automotive Foam Market – By Application (Market Size - US$ Million/Billion)
    9.1 Car Trunk Systems
    9.2 Dashboard Fillers
    9.3 Seating Elements
    9.4 Door Panels
    9.5 Shock-absorbing Components
    9.6 Car Battery Insulation Systems
    9.7 Gas Tank Pads
    9.8 Cable Sleeves & Wire Wraps
    9.9 Others
10. Automotive Foam Market - By End-use (Market Size - US$ Million/Billion)
    10.1 Passenger Cars
    10.2 Light Commercial Vehicle
        10.2.1 Bus
        10.2.2 Vans
        10.2.3 Coaches
        10.2.4 Two-Wheelers
        10.2.5 Three-Wheelers
        10.2.6 Others
    10.3 Heavy Commercial Vehicles
        10.3.1 Heavy-Duty Trucks
        10.3.2 Construction Vehicles
        10.3.3 Agricultural Vehicles
        10.3.4 Others
11. Automotive Foam Market - By Geography (Market Size - US$ Million/Billion)
    11.1 North America
        11.1.1 USA
        11.1.2 Canada
        11.1.3 Mexico
    11.2 Europe
        11.2.1 UK
        11.2.2 Germany
        11.2.3 France
        11.2.4 Italy
        11.2.5 Netherlands
        11.2.6 Spain
        11.2.7 Denmark
        11.2.8 Belgium
        11.2.9 Rest of Europe
    11.3 Asia-Pacific
        11.3.1 China
        11.3.2 Japan
        11.3.3 India
        11.3.4 South Korea
        11.3.5 Australia and New Zealand
        11.3.6 Indonesia
        11.3.7 Taiwan
        11.3.8 Malaysia
        11.3.9 Rest of APAC
    11.4 South America
        11.4.1 Brazil
        11.4.2 Argentina
        11.4.3 Colombia
        11.4.4 Chile
        11.4.5 Rest of South America
    11.5 Rest of the World
        11.5.1 Middle East
            11.5.1.1 Saudi Arabia
            11.5.1.2 UAE
            11.5.1.3 Israel
            11.5.1.4 Rest of the Middle East
        11.5.2 Africa
            11.5.2.1 South Africa
            11.5.2.2 Nigeria
            11.5.2.3 Rest of Africa
12. Automotive Foam Market – Entropy
    12.1 New Product Launches
    12.2 M&As, Collaborations, JVs and Partnerships
13. Automotive Foam Market – Industry/Segment Competition Landscape Premium
    13.1 Company Benchmarking Matrix – Major Companies
    13.2 Market Share by Key Geography - Major companies
    13.3 Market Share at Country Level - Major companies
    13.4 Market Share by Key Product Form/Product category - Major companies
14. Automotive Foam Market – Key Company List by Country Premium Premium
15. Automotive Foam Market Company Analysis - Business Overview, Product Portfolio, Financials and Developments
    15.1 Company 1
    15.2 Company 2
    15.3 Company 3
    15.4 Company 4
    15.5 Company 5
    15.6 Company 6
    15.7 Company 7
    15.8 Company 8
    15.9 Company 9
    15.10 Company 10
* "Financials would be provided to private companies on best-efforts basis."
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