Automotive Foams Market Share Analysis, Demand, Value, Industry, Market Forecast (2024-2031)

Global Automotive Foams Market is segmented By Type (Polyurethane (PU) Foam, Polyolefin (PO) Foam, Others), By Application (Interior, Exterior), By End-user (Passenger Cars, Light Commercial Vehicles (LCV), Heavy Commercial Vehicles (HCV)) and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Report Overview

Global Automotive Foams Market reached US$ 29.98  billion in 2023 and is expected to reach US$ 53.14 billion by 2031, growing with a CAGR of 7.42% during the forecast period 2024-2031.

The expansion of the worldwide automotive sector is expected to be the primary factor propelling the market. Globally, the automobile industry has been experiencing a favorable trend owing to the emergence of affordable vehicles, the flourishing e-commerce sector, and the growing presence of mobility and logistics service operators.

The increasing consumer demand for electric vehicles and the ambitious goals established by the US government to achieve full electrification by 2030 have significantly bolstered the expansion of the automotive industry in the nation. Therefore, this can stimulate the demand for automobile foams, thereby creating a favorable market growth outcome.

The Chinese government's attempts to promote its economy, such as decreased car taxes, have increased the sales of gas-powered automobiles, indicating a favorable market outlook for automotive foams. The current negotiations between the Chinese government and electric car producers to prolong subsidies are anticipated to enhance electric vehicle sales and positively influence automotive foam sales in the country.

Market Scope

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Market Dynamics

Rise in Vehicle Production and EV Sales 

In 2022, global vehicle production increased by 6%, totaling 85.01 million units, according to the International Organization of Motor Vehicle Manufacturers (OICA). This growth signals a positive trend that is expected to drive demand for automotive foams, which play a crucial role in reducing vehicle weight and enhancing efficiency.

Simultaneously, global sales of Battery Electric Vehicles (BEVs) and plug-in Hybrid Electric Vehicles (PHEVs) surged to 10.5 million units, reflecting a remarkable 60% growth compared to the previous year, as reported by EV Volumes. Projections by the International Energy Agency (IEA) indicate that global electric vehicle sales could reach 125 million by 2030, excluding two- and three-wheelers. Overall, the rising vehicle production and EV sales are set to significantly boost the demand for automotive foam, despite challenges posed by raw material price volatility.

Raw Material Price Volatility

Dealing with the fluctuating prices of raw materials poses a significant hurdle for the automobile foam market. Raw ingredients such as polyurethane, polyethylene, and polypropylene are crucial for the production of automotive foam. However, prices of these products can be influenced by factors such as supply and demand, geopolitical unrest, and weather-related events, making them vulnerable to fluctuations in the market. 

Given the unpredictable fluctuations in raw material costs, manufacturers may face challenges in maintaining consistent pricing. This, in turn, can impact their profitability and limit their capacity to expand or invest in innovative technologies. In addition, raw material prices can be influenced by environmental concerns. As an observer of market trends, it's worth noting that the cost of polyurethane, a key ingredient in vehicle foam, has surged due to the recent spike in oil prices triggered by the severe cold weather in Texas. Such a sudden surge in prices can have significant consequences on the supply chain, potentially impacting businesses' ability to fulfill customer orders.

Efficient supply chain management techniques are crucial for manufacturing companies to mitigate the impact of raw material price fluctuations. Exploring ways to reduce dependence on traditional petroleum-based raw materials can include seeking out alternative sources, developing new sources, and researching more sustainable materials.

Market Segment Analysis

The global automotive foams market is segmented based on type, application, end-user and region.

Based On The Application, The Interior Sub-Segment Dominated The Market 

Internally, automotive foams find primary use in dashboards, chassis components, cable sheathing, headrests, steering wheels, gear knobs, seats, bumpers, door trims, and various other uses. Particulate polyurethane foam is the predominant foam utilized globally for these purposes. This foam offers advantages such as insulating attributes, cushioning, window encapsulation, and acoustical characteristics.

The lightweight nature of these foams facilitates a reduction in the overall weight of the vehicle, therefore enhancing fuel efficiency and mitigating emissions. Through the provision of acoustical insulation characteristics, these foams effectively mitigate noise levels within the vehicle, so enhancing the driving experience. Therefore, polyurethane foams have become increasingly popular among manufacturers for a range of interior uses in internal combustion engines (ICEs) and electric vehicles (EVs).

In May 2022, King Long United Automotive (SuZhou) Co., Ltd., a prominent bus manufacturer in China, collaborated with BASF SE to create a water-blown polyurethane insulation spray foam called Elastoflex CE 3651/108. This foam will be utilized for insulating components and the inside of commercial buses.

Market Geographical Share

The Rising Automotive Sector In Asia-Pacific 

Asia-Pacific emerged as the dominant area in the worldwide automotive foams market. The vehicle sector in the region is projected to be driven by the growth in purchasing power, surging consumer demand for personal mobility, and the introduction of cost-effective models by automotive manufacturers. China is widely recognized as the greatest automotive market in terms of both production capacity and yearly sales generated. 

Based on the statistics from the International Trade Administration, it is projected that domestic production will reach 35 million automobiles by 2025. COVID-19. The recurrence of the 19 trends in China in March 2022 has led to a decrease in the projected vehicle sales target for 2022, as reported by the China Association of Automobile Manufacturers.

The economic stimulus measures implemented by the Chinese government, including as the reduction of car tax, have led to a surge in the sales of gasoline-powered vehicles. Furthermore, the current negotiations between the Chinese government and electric vehicle manufacturers to prolong the subsidies for electric vehicles are anticipated to lead to improved sales of electric vehicles and have a favorable effect on the sales of automotive foams in the country.

Market Competitive Landscape

The major global players in the market include Armacell, BASF SE, Woodbridge, Dow, DuPont, Recticel NV, Borealis AG, Johnson Controls, Bridgestone Corporation, Saint Gobain, Paul Bauder GmbH & Co. KG, CT Formpolster GmbH, Vita (Holdings) Limited, GF. Manufacturing Co., Ltd,  and Huntsman International LLC. 

Russia-Ukraine War Impact Analysis

The ongoing conflict between Russia and Ukraine has had a notable influence on various sectors, including the automotive industry and specifically the automotive foam sector. The ongoing pandemic has further compounded the existing supply chain challenges, with the war only exacerbating the situation. There are currently shortages of raw materials, semiconductor chips, and EV batteries. 

Due to the war, export sanctions have been imposed, causing certain OEMs and suppliers to cease trading with Russia. Output cuts from automakers such as Jaguar Land Rover and Honda have been a direct result of the war. According to certain research findings, it is projected that the ongoing war may result in a significant decrease in global vehicle production, potentially reaching up to a million units. 

Given the current situation, it's worth noting that the war has had a significant impact on commodity demand and prices. As a result, there is a possibility that consumer demand could be affected as well. In the wake of the war, the automotive industry has undergone significant changes, as Western manufacturers have exited the market, creating opportunities for Chinese companies to step in and fill the void. As an illustration, light-vehicle sales in Russia experienced a significant decline of 58.8% in 2022 compared to the previous year. However, it is worth noting that Chinese automakers are capitalizing on this situation by ramping up their exports to the country

By Type

• Polyurethane (PU) Foam
• Polyolefin (PO) Foam
• Others

By Application

• Interior
  • Seating
  • Instrument Panels
  • Headliners
  • Door Panels &Water shields
  • Seals, Gaskets & NVH
  • Others
• Exterior
  • Bumper System
  • Others

By End-User

• Passenger Cars
• Light Commercial Vehicles (LCV)
• Heavy Commercial Vehicles (HCV)

By Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In May 2022, King long United Automotive (SuZhou) Co., Ltd., a prominent bus manufacturer in China, partnered with BASF SE to create Elastoflex CE 3651/108, a water-blown polyurethane insulation spray foam. Our foam is perfect for insulating parts and the interior of commercial buses.
• In October 2022, BASF SE unveiled a brand new Polyurethane Application Development Laboratory in Mumbai, India. This state-of-the-art facility aims to assist automotive industry manufacturers in testing molded polyurethane foams for various factors such as comfort, performance, emission reduction, and productivity. It serves as a valuable resource for enhancing the quality and efficiency of these foams.
• In September 2022, Covestro AG unveiled a new line of polyether polyols made from bio-circular feedstock. These polyols are derived from renewable toluene diisocyanate (TDI) and serve as crucial raw materials for producing flexible polyurethane foams commonly found in car seats.

Why Purchase the Report?

• To visualize the global automotive foams market segmentation based on type, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel spreadsheet containing a comprehensive dataset of the automotive foams market, covering all levels of segmentation.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players. 

The global automotive foams market report would provide approximately 71 tables, 54 figures, and 224 pages

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies