Market Leader – The global foam insulation market is projected to grow at a CAGR of 4.95% from 2016 to 2021, in terms of value. The market is rapidly evolving with the major players contributing towards its development. Kingspan Group Plc. (Republic of Ireland), BASF SE (Germany), and Armacell International S.A. (Luxembourg) are some of the major players that led the market in 2015. Expansion, acquisition, and new product launch were the key strategies adopted by major foam insulation manufacturers in the recent past. These strategies were adopted by the top players to strengthen their position in the market and to enhance their product portfolios.
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Kingspan Group Plc., BASF SE, and Armacell International S.A. accounted for the major share of the foam insulation market. These companies focused on acquisition and expansion strategies to strengthen their position in the foam insulation market. For instance, Kingspan Group Plc. acquired the Building Insulation Division of Pactiv LLC (U.S.) in August 2014. This acquisition helped the company strengthen its insulation business in North America to meet the growing demand for foam insulation products in the region.
BASF SE, a key player in the foam insulation market, focuses on new product launches to cater to the demand from end-use industries. In 2015, the company launched Styrodur 3000CS and Neopor. These products offer 15% and 20% better insulation, respectively, than the conventional insulation panels used in the building & construction end-use industry. The company is also focusing on expansion and acquisition strategies to meet the growing demand for foam insulation products from various end-use industries.
Armacell International S.A., another major market player, focuses on acquisitions and expansions to cater to the growing demand in the market. In October 2016, the company acquired PoliPex Ltda (Brazil), which helped strengthen its product portfolio in Latin America. The company also opened a production facility in Lobnya (Russia) in January 2016. This expansion has helped the company enhance its market position in the European region.
Leading market players have adopted different growth strategies to gain a competitive advantage in the market. The Asia-Pacific region leads the global foam insulation market due to the increasing demand for consumer appliances in the region, accompanied by the growing building & construction industry. Increasing population, urbanization, and the growing middle class with higher income are also factors driving the demand for foam insulation in the region.
Revenue Pockets – The market size for foam insulation is projected to reach USD 22.39 billion by 2021, at a CAGR of 4.95% from 2016 to 2021. The various properties of foam insulation, such as high compressive strength, low weight, high insulation value, good resistance to water, and low cost drive its demand in various end-use applications. The major factors that are driving the foam insulation market include rising concern regarding greenhouse gas emissions, increasing demand for energy efficient appliances, and growth of the end-us industries.
By product type, the polystyrene segment led the foam insulation market in 2016. However, the phenolic segment is estimated to grow at the highest CAGR, in terms of value, during the forecast period. The demand for phenolic foam is growing as it provides excellent insulation efficiency with a minimum thickness of insulation because of its higher R-value. The growing population and rapid industrialization are factors driving the demand for phenolic foam which is used in the building & construction and consumer appliances industries. The polyurethane & polyisocyanurate foam’s very low thermal conductivity and higher structural strength have contributed to its increasing demand in the end-use industries.
The major end-use industries of foam insulation are building & construction, transportation, and consumer appliances. The consumer appliances segment of the foam insulation market is projected to grow at the highest CAGR during the forecast period, in terms of both value and volume. Rapid population growth, accompanied by the massive demand for various consumer appliances, such as freezers, refrigerators, air-conditioners, and water heaters, fuels the growth of the consumer appliances segment.
The Asia-Pacific region accounted for the largest share of the foam insulation market, in terms of volume, in 2016. Population growth and rapid urbanization in key countries, such as China, India, and Indonesia, accompanied by the rising demand for consumer appliances and perishable food items, contribute to the growth of the foam insulation market in this region. Rising disposable income of the middle class is another factor driving the growth of foam insulation in the region. Besides, the increased government spending to boost public infrastructure drives the demand for foam insulation products in the building & construction industry.
