MARKET OVERVIEW- NORTH AMERICA FOAM INSULATION MARKET
Foam insulators are used to fill in the gaps or cracks to reduce the rate of heat transfer and air filtration in buildings or structures. It is basically a barrier material that is utilized to seal the walls, roofs, floor holes, and regions around plugs, switchboards, and walls where entryways and windows meet. Foam insulation is a more recent and better option for traditional insulating products like fiberglass insulation that come in rolls. Foam insulations vary by their level of thermal insulation, the amount of outside sound they block, and whether they effectively block moisture. Foam offers these characteristics better than traditional insulation products while also being lighter in weight. In the case of spray foams, they expand and have varying degrees of chemical resistance, electrical insulation, chemical resistance, and electrical conductivity. In addition, foam is resistant to weather and ultraviolet light, has a tougher, higher-density integral skin layer against a lower-density core, and does not collapse when subjected to hydrostatic pressure. Increasing modernization, urbanization, and infrastructural development in North America will witness high demand for foam insulation over the forecast period.
MARKET DRIVERS
Increasing demand from the construction industry for various purposes and energy efficacy regulations is primarily driven by a rise in demand for foam insulation in the North American region. In addition, rising expansion of buildings and the construction industry, as well as increasing demand from various end-user industries, are further anticipated to propel the growth of the North American foam insulation market over the forecast period. Foam insulation offers up to 50% more thermal insulation than conventional insulation for the millions of individuals and businesses considering it for their offices or homes. Also, they have a potential wealth of additional benefits in addition to their common use as thermal insulators, such as superior noise reduction in buildings, automobiles, ships, and airplanes. This market is also being driven primarily by rising demand for eco-friendly building insulation, stringent government energy efficiency regulations, and rising building and construction activity.
MARKET OPPORTUNITY
The market is expected to have new opportunities with technological advancements and ongoing R&D activities to develop quality foam insulation products. This is expected to provide ample new growth opportunities in the market during the forecast period. Moreover, the North American government has taken initiatives like the Weatherization Assistance Program (WAP) for the promotion of thermal insulation in low-income households, and it has aimed to provide services to nearly 35,000 homes every year. These kinds of initiatives have provided many market growth opportunities over the forecast period in North America. In addition, the government's focus on lowering emissions of greenhouse gases and stringent regulations in this area will also provide additional growth opportunities for the North America foam insulation market over the forecast period.
MARKET RESTRAINTS
The market for foam insulation is hindered by strict regulations governing the use of certain chemicals and materials and a lack of awareness among low- and middle-class consumers. One of the most significant issues with spray foam insulation is the odour. This is due to the fact that the chemicals in the foam aren't mixed well enough or aren't good enough. If a gap in your attic is missed during foam insulation, the environment may become more susceptible to water intrusions. This can lead to rot, insect infestations, and even the potential for mold to grow in the space. These are the some of the factors that inhibits the growth of the market.
MARKET GROWTH CHALLENGES
A key challenge that may affect the growth of the market is the rise in raw material prices. The growth of the foam insulation market in this region is also severely hampered by the volatile prices of raw materials like crude oil and the high cost of foam insulation in comparison to loose-film insulation. Foam insulation provides a high level of protection for the home, but when the material is placed in an indoor environment, it will begin to release gas into the air. This gaseous odour can cause challenging physical symptoms, including potential breathing difficulties and other adverse health effects. These are the major challenges that can affect the market's growth in the future.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of North America foam insulation market, market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. A rise in demand for foam insulation in various applications is anticipated to stimulate the growth of the market and due to this factor, the market is expected to witness growth at a specific CAGR from 2023-2029.
NORTH AMERICA FOAM INSULATION MARKET SEGMENTAL OVERVIEW
The North America foam insulation market comprises of different market segments like, type, end-users and country.
NORTH AMERICA FOAM INSULATION MARKET BY TYPE
By type, the North America foam insulation market includes key segments like
- Polystyrene
- Polyurethane and Polyisocyanurate
- Polyolefin
- Elastomeric
- Phenolic
- Others
On the basis of type, the North America foam insulation market includes key segments such as polystyrene, polyurethane and polyisocyanurate, polyolefin, elastomeric, phenolic, others. The polyurethane and polyisocyanurate foam segment are expected to hold the largest share in this region. The growth of this segment in this region is due to the environmental benefits. They include reduced project weight and improved energy efficiency. and are expected to register a significant rate during the forecast period. The polystyrene segment is anticipated to witness high growth demand over the foreseen period. This is due to its light weight and low thermal conductivity.
NORTH AMERICA FOAM INSULATION MARKET BY END USER
- The North America foam insulation market finds key end-users like
- Building and Construction
- Transportation
- Consumer Appliances
- Others
On the basis of end users, the North America foam insulation market finds key end users such as building and construction, transportation, consumer appliances, and others. Building and construction segments are anticipated to lead the North American foam insulation market over the foreseen period. The growth of this segment in this region is due to the increased demand from end-user industries and rising modernization, urbanization, and infrastructural development. The transportation segment has experienced significant growth over the foreseen period, due to industrialization, growth in disposable incomes, and the living standards of middle-class families.
NORTH AMERICA FOAM INSULATION MARKET BY COUNTRY
By country, the North America foam insulation market includes key segments like
On the basis of country, the North America foam insulation market includes key segments like the US, Canada, and Mexico. The US segment is estimated to dominate the North America foam insulation market due to rapid urbanization and expansion, increasing investment in industries, and a rising construction sector. Furthermore, modernization of traditional homes and properties and re-insulation also contribute to the market expansion in the forecast period. In addition, people are adopting more energy-efficient insulation systems.
COVID-19 IMPACT ANALYSIS ON NORTH AMERICA FOAM INSULATION MARKET
The COVID-19 pandemic has disrupted the business of several industries. It is anticipated that a number of industries used by end users will suffer as a result of the lockdowns implemented in a number of nations to stop the spread of COVID-19. The exponential rise in positive COVID-19 cases in North America, the shutdown of production facilities for some weeks, and the low production rates of additives have severely impacted the market. Due to the lockdown, no new construction is taking place, preventing the consumption of insulation materials. A survey conducted by the Associated General Contractors of America (AGC) in June found that 68% of contractors had witnessed a project being cancelled as a result of the COVID-19 pandemic. However, this is expected to resume the foam insulation market's growth during the forecast period in North America. This is due to the increasing building and construction activities, stringent government regulations towards energy efficiency, and increasing demand for green building insulation.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of North America foam insulation market is primarily focused on expanding the North America foam insulation industry with new product innovation, business expansion, increasing presence of range of manufacturer operating in foam insulation sector has led the growing demand for the market. Besides, the market offers range of products in different application to fulfil the required demand of consumer which is further contributing healthy growth in the market.
The key players studied in market are
- Lapolla Industries (US)
- Evonik Industries (US)
- BASF SE (Germany)
- Demilec Inc. (US)
- Huntsman International LLC. (US)
- Dow (US)
- Harvest (US)
- Cajun Foam Insulation (US)
- Johns Manville (US)
- Owens Corning (US)
- SAFCO Foam Insulation (US)
- ITW Insulation Systems (US)
- Pittsburgh Spray Foam Professionals (US)
- Berkshire Hathaway Inc (US)
RECENT DEVELOPMENT:
June 2021: BASF and Shanghai Harvest Insulation Engineering Co., Ltd. (Harvest) have signed a Joint Development Agreement (JDA) to develop prefabricated cryogenic pipes made with BASF's polyurethane rigid foam system, Elastopor Cryo. These pipes will be used as insulation in prefabricated pipes.
November 2019: Johns Manville signed an agreement to acquire ITW Insulation Systems, well known in the industrial industry for its premium, low-temperature polyisocyanurate foam insulations and metal jacketing solutions. This agreement represents an important strategic opportunity to offer expanded insulation solutions to the industrial market.
