PET Foam Market Forecast to Reach $185.8 Million by 2026

April 22 15:55 2021
PET Foam Market Forecast to Reach $185.8 Million by 2026

PET Foam Market
With the Flourishing Wind Energy Industry, There Will Be an Upsurge in the Demand for PET Foam Which Will Subsequently Drive the Growth PET Foam Market

PET Foam Market is forecast to reach $185.8 million by 2026, after growing at a CAGR of 7.5% during 2021-2026, owing to the increasing usage of PET foams in various end-use industries such as automotive, aerospace, wind power, and packaging. Globally, the development of efficient and advanced technology, advantages of PET foam, growing wind energy market, and boost in the marine industry are the prime growth drivers of the global PET foam market. In addition, an increase in adoption of PET foam for applications in a newer industry vertical, and emerging economies such as China, India, and others, will create new opportunities for the global PET foam market, which will then substantially drive the PET foam market during the forecast period.

PET Foam Market Segment Analysis – By Grade

The low-density segment held the largest share in the PET foam market in 2020, owing to the increasing demand for low-density materials in the market. The low-density PET foam offers improved performance at low temperatures and improved stiffness for deeply formed materials, owing to which it dominated the PET foam market segment. Thus, these extensive properties of low-density PET foam are the key factor anticipated to boost the demand for low-density PET foam during the forecast period.

PET Foam Market Segment Analysis – By End-Use Industry

The wind energy industry held the largest share in the PET foam market in 2020 and is growing at a CAGR of 8.1%, owing to the increasing usage of PET foams in the wind energy industry. PET foams are widely used in wind energy components due to their properties such as resistance to fire, smoke, toxicity (FST), and ease of processing, excellent fatigue, long-term stability, high strength, and more. Wind energy products that employ polyethylene terephthalate foam include wind turbine blades and nacelles. PET foam is used in shear web, shells, and edge closeouts in wind turbine blades. It is used for covers, platforms, and spinners in nacelles. PET foam is priced much lower than the conventional high-performance materials such as polymethacrylamide and polyetherimide foams, which is driving PET foam demand in the wind energy sector during the forecast period.

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PET Foam Market Segment Analysis – By Geography

Asia Pacific region held the largest share in the PET foam market in 2020 up to 37.1%, owing to the flourishing wind energy sector in the region. As a consequence of the drastic increase in energy demand, the conventional sources of energy are depleting very fast. Hence, the need to expand and utilize renewable energy sources like wind power is growing. The wind power sector is increasing, as the use of renewable energy sources results in less emission of greenhouse and other harmful gases such as SO2. This region is set to witness high growth for wind energy equipment and materials are majorly driven by commitments of the government of India and China towards green energy. The world’s largest offshore wind farm is to be built by a joint venture (including Toshiba, Hitaci, Zosen Corp, and JFE Steel) off the Fukushima coast in Japan, comprising of up to 143 floating turbines. The wind farm is expected to be commissioned after 2025. According to the Ministry of New and Renewable Energy (MNRE), the Indian ministry has set a target of 5.0 GW of offshore wind installations by 2022 and 30 GW by 2030. Thus, it is anticipated that with the flourishing wind energy industry, there will be an upsurge in the demand for PET foam, which will subsequently drive the PET foam market growth during the forecast period.

PET Foam Market Drivers

Increasing Building & Construction Activities

PET foam is extensively employed in window frames, interior architecture, facades, roofs & domes, doors, gates, shower cabin lines, bathtubs, and exterior cladding panels in the building & construction industry. According to the US Census Bureau, in February 2020 total construction was at a seasonally adjusted annual rate of 1,366,697 which is 6.0 percent above the February 2019 rate of 1,288,951. According to the European Commission, the total construction investment in Germany increased by 9.5% over 2008-2015. According to the International Trade Administration (ITA), the Chinese construction industry is forecasted to grow at an annual average of 5% in real terms between 2019 and 2023. Also, the European Construction 2020 Action Plan aimed at stimulating favorable investment conditions. The building and construction activities are also increasing owing to the various government initiatives such as Foreign Direct Investments (FDI). Thus, the rise in construction activities is expected to augment the demand for polyethylene terephthalate foam, which acts as a driver for the PET foam market during the forecast period.

Increasing Automotive Industry

PET foam offers various benefits such as good thermal stability, low water absorption, good electrical properties, and excellent surface properties. As a result, polyethylene terephthalate foams are extensively used in the manufacture of exterior body parts, and the casing and housing of various automotive parts such as wiper arms and their gear housings, engine covers, interior trims, connector housings, and headlamp retainers. In 2018, according to OICA, the automotive production in India, Thailand, Indonesia, and Malaysia has increased up to 5174645, 2167694, 1343714, and 564800, i.e., 8.0%, 9.0%, 10.3%, and 12.2% higher than the previous year due to rising per capita income of the individuals. According to the International Trade Administration (ITA), China is the world’s largest vehicle market and the Chinese government is expecting that automobile production will reach 35 million by 2025. With the increasing automotive industry, the demand for PET foam will also increase. Thus, the increasing automotive industry acts as a driver for the PET foam market during the forecast period.

PET Foam Market Challenges

Environmental Challenges

The technology employed for the manufacture of polyurethane foams is well-established. Therefore, these foams are superior to other forms. However, PET foam faces stiff competition from low-cost core material substitutes such as styrene acrylonitrile (SAN), polyvinyl chloride (PVC), polystyrene (PS), polyurethane (PU), polymethacrylamide (PMI), polyetherimide (PEI), as well as balsa and honeycombs. These materials are costlier than other foam products, which acts as a restrain for the PET foam market. In addition, the PET foam market faces certain drawbacks such as sluggish adoption in new applications. Furthermore, recyclability and reparability issues related to these foams are estimated to hamper the market.

Covid-19 Impact on the PET Foam Market

Numerous building and construction project operations have been halted, owing to the coronavirus pandemic, which is adversely affecting the demand for PET foams in the market. There has been a temporary suspension of building and construction activities in various regions. For instance, the construction output in Great Britain fell by a record 35.0% in Quarter 2 (Apr to June) 2020 compared with Quarter 1 (Jan to Mar) 2020. This value decline was due to the Corona Virus pandemic. In addition, the COVID-19 pandemic outbreak is having a huge impact on the automotive industry. The production of automobiles has been disruptively stopped, contributing to a major loss in the total automotive sectors. According to the European Automobile Manufacturers Association, In June 2020, demand for new commercial vehicles across the EU remained weak (-20.3%). With the decrease in automotive production, the demand for PET foam has significantly fallen, which is having a major impact on the PET foam market.

Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the PET foam market. In 2020, the market of PET foam has been consolidated by the top five players accounting for xx% of the share. Major players in the PET foam market are Armacell International S.A., 3A Composites, Gurit Holding, DIAB Group, BASF SE, Changzhou Tiansheng New Materials Co. Ltd., Sekisui Plastics, Petro Polymer Shargh, and Carbon-Core Corp.

Acquisitions/Technology Launches

In January 2017, Armacell International S.A. acquired the insulation business of Nomaco. This acquisition helped Armacell International S.A. expand its polyurethane insulation foam product portfolio, and increase its customer service levels across North America.

In February 2019, 3A Composites, one of the leading players in the industry, launched the reformulated AIREX T92, structural foam that uses PET bottles as raw material, making it a sustainable product.

Key Takeaways

Asia Pacific dominates the PET foam market, owing to the flourishing wing energy sector in the region. According to DLA Piper, Indonesia is seeking a total installed wind capacity of 970MW by 2025.

Polyethylene terephthalate (PET) foam manufactured using transesterification reaction exhibits excellent fire prevention, anti-virus, smoke-proof, confinement effect, and UV-protection properties. It also offers exceptional mechanical and anti-fatigue properties, stable chemical properties, and low water absorption. Therefore, PET foam is widely used in various end-use industries.

Long glass-fiber-reinforced polymer materials have received increasing attention mainly due to their superior mechanical performances which make them a good substitute for PET foams, which may restrain the market growth.

Due to the Covid-19 pandemic, most of the countries have gone under lockdown, due to which various wind energy, and building & construction projects and operations are disruptively stopped, which is hampering the PET foam market growth.

Related Reports :

A. Polyurethanes Market

B. Aerospace Foam Market

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