Increasing Demand And Production Of Automobile To Boost Demand For Polyolefin Foams


(MENAFN- Straits Research) Introduction

Automotive is one of the primary consumers of polyethylene foams specially used as cushioning materials for headliners, door and window trims, trunk mats, and other interior parts. With the growing industrialization and globalization in many developing economies, the market is witnessing growth in the sale of automobiles and production capacity year on year. Ongoing efforts in the automobile industry to make vehicle lightweight and more energy-efficient is likely to fuel the growth of the polyolefin foams market during the forecast period.

COVID-19 to Restrain the Growth of the Polyolefin Market

COVID-19 has severely affected various industries, and the polyolefin foam market is no exception. Polyolefins foam market has been witnessing huge disruption in the whole supply chain as suppliers, vendors, producers, and consumers are severely affected by the pandemic. Some of the production of the polyolefin plants were completely closed or partially operated during the crisis. While various end-use industries of polyolefin foam were also affected by COVID-19, it impacted the overall demand for polyolefin foam, which leads to the restricted growth of the global polyolefin foam market.

Asia-Pacific to Hold Lucrative Opportunities for Polyolefin Foam Market

Burgeoning demand for automobiles is projected to grow in the rural parts of Asia-Pacific, particularly among emerging economies such as India, Indonesia, and China, which is expected to fuel the growth of the polyolefin foam market. The region is turning out to be an auto component manufacturing hub as foreign investors are setting up their facility in these countries, owing to the growing middle-class population and ample supply of low-cost labor.

According to the IBEF, the Indian automobile industry has attracted foreign direct investment (FDI) of more than USD 17 billion from 2000 to 2017. This is primarily attributed to favorable government norms, increasing focus on the implementation of the electric vehicle, and favorable vehicle financing programs. Moreover, primary players in the automotive industry, such as Maruti, Hyundai, Tata Motors, Honda, Ford, and others, are adopting various strategies such as new product launches, capacity addition, marketing, and advertisement to have a strong foothold within the automotive industry. Recently, Kia Motors and MG Motors entered into India to capture the exceptionally growing passenger car market in the world.

Competitive Players

  • SEKISUI CHEMICAL
  • BASF AG
  • Carefoam
  • Toray Plastics
  • Primacel
  • O.K. Company S.A
  • Zotefoams
  • Trocellen
  • Tenaris
  • Sabic
  • Armacell.

    Recent Developments

    • November 2019- Zotefoams PLC business , has set up a sales and service operation in one of India's pharma hubs, Ahmedabad, in response to increase demand and opportunity for the technical insulation range.

    Segmentation

  • By Type
  • Polyethylene
  • Polypropylene
  • Ethylene Vinyl Acetate
  • Others
  • By Application
  • Automotive
  • Building and Construction
  • Cushioning
  • Footwear
  • Furniture and Bedding
  • Packaging
  • Sports
  • Others (Rail, Wind, Marine)

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  • Straits Research

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