Functional Polymer Sponge Market - Forecast(2024 - 2030)
Overview
Functional
Polymer Sponge Market size is forecast to reach $5.5 billion by 2025, after
growing at a CAGR of 3.6% during 2020-2025. The growth of the global functional
polymer sponge market is driven by rise in demand for lightweight material in the aerospace
and automotive industries. These foams help automobile manufacturers address
issues pertaining to the weight, vibration, fuel efficiency, and durability of
automobiles. Growing industrialization, production of automotive and packaging
industries in emerging economies such as India and China are expected to boost
demand for functional polymer sponge over the forecast period. Rising foreign
direct investment is also expected to contribute to investments in these
sectors. However, the high cost associated with functional polymer sponge hampers market growth.
Report Coverage
The report: “Functional Polymer Sponge Market– Forecast
(2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments
of the Functional Polymer Sponge Industry.
Key Takeaways
·
Asia-Pacific dominates the
functional polymer sponge market, owing to the increasing demand for polymer
sponge from the automotive industries. In the automotive industry, functional polymer sponges are used in seating, automotive
trim, filters, acoustic application, and packaging. According to OICA,
the production of light commercial vehicles has increased by 10.2 % in 2018 in
the APAC region.
·
Packaging is necessary for all
kinds of materials for safety and insulation. The demand for packaging is
increasing in the food industry. With the growing awareness about the safety,
quality, and maintenance of a product’s physical properties, the use of polymer
sponges in packaging industry is increasing.
·
However, operations in various
industries such as automotive, and aerospace is being significantly affected due to the
COVID-19 epidemic, as most of countries have issued “stay at home guidance”
i.e., lockdown. And it is expected that the outbreak of COVID-19 will be seen
in the whole year of 2020, and a few months in 2021.
Application - Segment Analysis
Automotive held
the largest share in the functional polymer sponge market in 2019 and is
growing at a CAGR 4.2%, owning to increasing use of polymer sponges in various
automotive components, such as seats, dashboards, suspension bushings, crash
pads, trim, sun visors, instrument
panels, filters, and headliners, vibration dampening, and energy management. Rapid
economic growth and increasing expenditure on luxury vehicles in emerging
economies, such as China, India, South Korea, and Indonesia, are expected to
boost the demand for functional polymer sponge in the automotive industry during
the forecast period.
Geography - Segment Analysis
Asia Pacific region
held the largest share in the global functional polymer sponge market in 2019
up to 30%, owing to growth in automotive and aircraft production in the region.
According to the International Air Transport Association (IATA), Asia is the
fastest growing aerospace industry in the world. The passenger traffic is
increasing on account of the rise in disposable income. The growth in passenger
traffic is driving the construction of aircraft thereby driving the demand for functional
polymer sponge over the forecast period. In 2016, according to Boeing, China is
estimated to require around 6,810 new commercial aircraft, valued at USD 1
trillion, over the next two decades. In 2019, according to International Trade
Administration (ITA), China is the world’s second largest civil aerospace and
aviation services markets and one of the world’s fastest growing. By the end of
2018, China had more than 59 airlines (passenger & cargo) and 3,615 civil
aircraft (an increase of 10% over 2017). According to China’s 13th Five Year
Plan (2016-2020), by 2020, China will have more than 4,500 civil aircraft, and
by 2018, the number of Chinese civil airports had grown to 235. According to
International Trade Administration (ITA), in 2018 the Indian government spent a
total of $645 in the civil aviation sector. In addition, according to Boeing, India’s
rapid aviation growth is expected to drive the demand for 2,300 aircrafts worth
US$320 billion over the next 20 years. Furthermore, according to OICA,
automotive production in countries such as India, Indonesia, and Malaysia has
increased by 8%, 10.3% and 12.2% up to 5,174,645, 1,343,714 and 402,085 from
2017. Therefore, the growth in automotive and aircraft production in the region
is driving functional synthetic polymers, as well as biodegradable polymers sponge
market growth.
Drivers – Functional Polymer Sponge Market
• Growing
demand from automotive and aerospace industry.
The impetus on reducing aircraft weight coupled with rapid
technological advancements is contribute to the increasing demand for these sponge
from the aerospace industry. The fuselage, bulkheads, and wings of the aircraft
are made with light-weight composites, which use polymer sponges as components.
According to Boeing, over 4,000 new airliners are needed in the South East Asia
region in the upcoming decades, owning to rise in passenger traffic, which is
expected to grow at 6.2% annually. As a result, aircraft Original Equipment
Manufacturers (OEMs), such as Honeywell International Inc., Rockwell Collins,
Embraer S.A. and others are establishing their manufacturing site in South East
Asian countries, such as Singapore to meet the growing demand for airliner. According
to the General Aviation Manufacturers Association, there are more than 440,000
general aviation aircraft across the globe as of 2018. According to the
Stockholm International Peace Research Institute (SIPRI), military expenditure
in America is expected to increase from $683 billion in 2016 to $799 billion by
2022, while the military expenditure in Asia Pacific is expected to increase
approximately from $456 billion in 2016 to $609 billion by 2022. Therefore,
this will have a positive impact on the functional polymer sponges market.
Furthermore, according to the China Association of Automobile
Manufacturers, over 27 million vehicles were sold in 2018. In 2017, according
to International Trade Administration (ITA), 1.2 million new passenger cars,
SUVs and commercial vehicles were sold in the Australian market. An
increase of 0.9% from 2016. According to Chinese government the automobile
output in the country is expected to reach 35 million by 2025. Therefore, the
growth in automotive and aerospace industry is driving functional polymer
sponge market growth.
Challenges – Functional Polymer Sponge Market
·
Fluctuating raw
material prices.
Price and availability of raw materials are major factors that
affect the price of the end products. The major challenge for the global functional
polymer market is the oscillating price trends of raw materials, which are
fluctuating due to volatile energy prices. According to BP statistics, in 2018,
average oil price increased to $71/ bbl from $54/bbl in 2017. Therefore, the
fluctuation in energy prices are affecting functional polymer sponge price
which acts as a challenge.
Market Landscape
Technology launches, acquisitions
and R&D activities are key strategies adopted by players in the Functional
Polymer Sponge Market. In 2019, the market of Functional Polymer Sponge Market has
been consolidated by the top five players accounting for xx% of the share. Major
players in the Functional Polymer Sponge market are Argus Ltd., Desmi A/S,
Elastec, Elektronik Lab, Eriez, Faroe Maritime, Friess Gmbh, Parker, Qualitech
Inc., Skimoil Inc., among others.