The global market for foam insulation is expected to grow at a CAGR of more than 4% during the forecast period. The major factor driving the market studied is a growing demand from the construction industry during the forecast period. On the flip side, unfavorable conditions arising due to the COVID-19 outbreak is hindering the growth of the market.
Building and construction industry is expected to dominate the market studied during the forecast period.
Asia-Pacific is expected to dominate the global foam insulation market and is also forecasted to be the fastest-growing market during the forecast period owing to the increasing consumption for countries such as China and India.
Key Market Trends
Increasing Demand from the Building and Construction Industry
- In the building and construction industry, insulation represents an important, cost-effective, energy-saving building material. It also helps to reduce greenhouse gas emissions and save the environment.
- Insulation keeps a building cooler in the summer season and warmer in the winter season and also reduces noise transmission. Additionally, insulation also helps save energy as it is one of the major cost-efficient ways to reduce energy bills.
- Insulation can be done for walls, roofs, and floors in a building. The demand for energy-efficient buildings across the world is expected to boost the demand for the market studied in the coming years.
- The Asia-Pacific construction sector is the largest in the world and is increasing at a healthy rate, owing to the rising population, increase in middle-class income and urbanization.
- The construction industry in the United States continued to expand in recent times, owing to a strong economy and positive market fundamentals for commercial real estate, along with an increase in federal and state funding for public works and institutional buildings.
- The European construction sector is recovering and is expected to grow steadily, over the next five years, owing to the increased public expenditure on infrastructure. The recovery would significantly support the growth of the foam insulation market, during the forecast period.
- Large infrastructure projects in countries, such as Russia, the Netherlands, Switzerland, and France, are driving the market studied in the region.
- Therefore, the growing construction industry across the globe is expected to boost the demand for foam insulation from building and construction industry in coming years.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region represent the largest market for foam insulation and is expected to grow at the fastest rate over the forecast period.
- The household appliances manufacturing in the Asia-Pacific region is expanding at a significant rate. Additionally, there is upsurge in the residential and commercial construction activities in the Asia-Pacific region.
- The construction industry in the Asia-Pacific region is growing at a significant pace, with China, India, and the Southeast Asian countries being in the hotspot.
- By 2025, Asia-Pacific is expected to be the key region, with more than 80% of middle-class population, and about 1 billion new consumers, globally.
- A total of 300 major construction projects in Beijing have been announced in 2019. These 300 projects included 100 infrastructure projects, 100 projects focusing on the improvement of people's livelihoods, and 100 projects for high-end technological industries. The investment of the projects is expected to reach USD 35 billion.
- Therefore, the end-user industries of the market studied is expected to grow in the coming years in countries in the Asia-Pacific region, which further is expected to drive the demand for foam insulation market over the forecast period
The global foam insulation market is consolidated in nature. The major companies are BASF SE, Covestro AG, Owens Corning, Saint-Gobain, and Dow among others.
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