The rigid foam market is projected to reach USD 12.3 billion by 2030, growing at a CAGR of 4.32% from 2021 to 2032.
The growth of this market is attributed to the increase in consumption in construction and building sector, as well as increasing demand for rigid foams for packaging applications across various industries due to their high compression resistance and excellent thermal insulation property.
Rigid foam is a type of plastic that is widely used in construction and building industry due to its high compressive strength and excellent thermal insulation property. It is also used in packaging applications due to its ability to protect the packaged product from shock and vibration. Rigid foam is available in various types such as polyurethane, polystyrene, polyethylene, polypropylene, polyvinyl chloride, and others.
Drivers of the Rigid Foam Market
Drivers of the Rigid Foam Market are discussed below:
1)Growing Population and Increasing Consumption of Rigid Foam
The rapidly growing population across the globe is a key driver of the rigid foam market. The increasing population has led to an increased demand for durable goods, thereby boosting the sales of rigid foam products in construction, packaging and electronics industries. Moreover, due to high per capita income, there is an increased demand for comfort goods, which has resulted in increased production of refrigerators and air conditioners that contain rigid foam as their primary raw material. The rapid growth of end-use industries such as construction and packaging will lead to strong demand for rigid foams over the next five years.
2) Stringent Environmental Regulations Impacting Rigid Foam Market Growth
In recent years, government organizations have implemented stringent environmental regulations that prohibit the use of materials such as chlorofluorocarbons (CFCs) in several end-use Industries such as refrigeration and packaging due to their harmful effect on the environment. This has forced manufacturers to develop eco-friendly substitutes for CFCs such as hydrofluorocarbons (HFCs), hydrochlorofluorocarbons (HCFCs) and cyclic fluorocarbon
Advantages of the Rigid Foam Market
Some of the advantages of the Rigid Foam Market include:
• The Rigid foam market is highly efficient as it provides good heat insulation properties and resistance to moisture. This makes the building energy-efficient, thereby reducing the overall energy consumption and carbon footprints.
• It also offers earthquake resistance, making it a safer option for construction purposes.
• Rigid foam is eco-friendly as it is made from recycled materials. It does not emit any toxic fumes and hence, is safe to use.
Market Value and CAGR 2021-2032 of Rigid Foam Market
The market value and CAGR of the Rigid Foam Market is expected to be growing at a CAGR of 4.92% in the forecast period 2021-2032.
Challenges of the Rigid Foam Market
Some of the challenges of the Rigid Foam Market are -
• Market is highly fragmented and diverse as there are several players operating in the market.
• Market is not that much homogenous, due to the presence of a large number of unorganized players who can be a potential threat to the organized players.
• Rigid foam market has low entry barriers which ultimately leads to the entry of new players in the market thus making it more competitive.
Key Players in the Rigid Foam Market
Some of the key players in the Rigid Foam Market are DowDuPont (US), BASF SE (Germany), Huntsman Corporation (US), Araceli International S.A. (Luxembourg), Rectocele Group (Belgium), Owens Corning Inc. (US), Saint-Gobain S.A. (France), PolyOne Corporation (US), Kaneka Corporation (Japan) and Sekisui Chemical Co., Ltd. (Japan).
Due to the rise in demand for rigid foam from this industry, the construction and building applications category is anticipated to develop at the greatest CAGR throughout the forecast period. The development in construction activity around the world, particularly in the Asia-Pacific and Middle East & Africa region, is blamed for this application segment's growth.
Due to the rise in building activity and the demand for rigid foam from packaging applications, the Asia-Pacific region is predicted to develop at the greatest CAGR throughout the projection period. The Asia-Pacific region's market for rigid foam is growing mostly due to China and India.
Impact of Covid-19 on Rigid Foam Market
The novel coronavirus (COVID-19) pandemic has had a significant impact on the rigid foam market. The market is expected to witness a decrease in demand due to the slowdown in construction and packaging activities globally. However, the market is expected to recover from the pandemic in 2021 and return to its pre-pandemic level by 2022.
The COVID-19 pandemic has resulted in a decrease in demand for rigid foam from the construction and packaging industries. The construction industry is one of the major end-users of rigid foam, accounting for over 30% of the total demand. The slump in construction activity globally due to lockdowns and restrictions on movement has led to a decrease in demand for rigid foam from this sector. Similarly, the packaging industry, which accounts for another 20% of the total demand, has also seen a decline in activity due to the slowdown in global trade.
However, despite the decrease in demand from these two key sectors, the overall impact of COVID-19 on the rigid foam market has been relatively muted. This is because the market is supported by strong growth prospects from other sectors such as transportation and electronics. In addition, rigid foam finds application in a wide range of end-use industries such as automotive, appliances, and furniture, among others. Therefore, even though there may be a temporary slowdown in demand from some sectors, it is not expected to have a significant impact on the overall market.
Key developments in Rigid Foam Market 2019-2022
In January, JPX, Japanese Exchange Group and the Moscow Exchange entered a strategic partnership to develop an index-based derivatives market in Japan. The agreement will enable JPX to launch new products in the futures market based on Russian indices including the RTS Standard index
In July, IHS Markit introduced the purchase of Auto Forecast Solutions, which is a provider of supply chain forecasting and planning solutions for suppliers and original equipment manufacturers (OEMs)
In October, Daimler and Greely Holding Group have jointly established Smart Automobile Co Ltd., a new Chinese electric car brand headquartered in Shenzhen, Guangdong Province. This company will jointly work to accelerate the electric vehicle industry development by combining their respective strengths
Rigid Foam Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2030||USD 12.3 billion|
|Growth Rate||CAGR of 4.92 % during 2021-2030|
|Segment Covered||Type, Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||DowDuPont (US), BASF SE (Germany), Huntsman Corporation (US), Araceli International S.A. (Luxembourg), Rectocele Group (Belgium), Owens Corning Inc. (US), Saint-Gobain S.A. (France), PolyOne Corporation (US), Kaneka Corporation (Japan) and Sekisui Chemical Co., Ltd. (Japan).|
Key Segments of the Rigid Foam Market
Type Overview, 2021-2031 (USD Billion)
• Polyurethane (PU)
• Polystyrene (PS)
• Polyethylene (PE)
• Polypropylene (PP)
• Polyvinyl Chloride (PVC)
Application Overview, 2021-2031 (USD Billion)
• Construction & Building
Regional Overview, 2021-2031 (USD Billion)
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America
• Middle East and South Africa