Blowing Agents Market is Estimated to Witness High Growth Owing to Increasing Demand from Insulation Industry
The blowing agents market comprises products such as HCFC, HFC, HC, and others. Blowing agents are used as expansion agents for foaming plastics in various industries including construction, packaging, automotive, bedding & furniture. They play a vital role in manufacturing thermoplastics and thermoset plastics owing to their ability to generate lightweight, durable, and thermally efficient foams.
The Global blowing agents market is estimated to be valued at US$ 4.90 Bn in 2024 and is expected to exhibit a CAGR of 6.6% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the blowing agents market include DuPont, Arkema S.A., Honeywell International Inc., Solvay S.A., Foam Supplies, Inc., AkzoNobel NV, Haltermann GmbH, Linde AG, Americhem, and HARP International Ltd.
The market is witnessing high growth opportunities due to increasing demand for blowing agents from the construction and insulation industries. Rising construction of green buildings along with growth of the packaging industry are fueling the demand of blowing agents.
Globally, the Asia Pacific region dominates the blowing agents market and is expected to grow at the highest CAGR during the forecast period. Presence of emerging economies and rapid industrialization in China and India are driving the regional market.
Market drivers
The global blowing agents market is primarily driven by increasing demand from the insulation industry. Blowing agents play a critical role in manufacturing insulating foams that provide energy conservation in buildings. Rapid growth of the global construction industry along with stringent regulations regarding energy efficiency of buildings are propelling the consumption of blowing agents. Moreover, growing demand for polymeric foams from industries such as packaging, automotive and bedding & furniture is expected to strongly support the market growth over the forecast period.
PEST Analysis
Political: Regulations set by REACH and other environmental agencies influence the type of blowing agents used in manufacturing applications. Certain agents have been banned due to environmental concerns.
Economic: Rising prices of petrochemical feedstock and global economic uncertainty impacts the demand for blowing agents from end-use industries like construction and packaging. Prices of raw materials directly affect the cost of blowing agents.
Social: Increasing consumer awareness about environmental protection and sustainability drives the demand for eco-friendly blowing agents with lower global warming and ozone depletion potential. Stringent safety regulations necessitate the use of non-flammable and non-toxic blowing agents.
Technological: Development of innovative process technologies and blowing agent formulations help manufacturers achieve enhanced energy efficiency and insulation properties with reduced environmental footprint. Adoption of green building codes accelerates the replacement of HCFCs with natural agents.
The market for blowing agents is concentrated in Asia Pacific region in terms of value. China accounts for the largest market share globally due to the size of its construction and packaging industries which are major end-users of blowing agents. North America is another prominent geographical region driven by renovation and retrofitting activities in the building sector.
The blowing agents market is growing fastest in Middle East and Africa. Rapid infrastructure development along with industrialization is driving the polyurethane foam demand in the construction as well as automotive industries. Government initiatives to diversify economies and boost manufacturing sectors offer opportunities for blowing agent suppliers in countries like Saudi Arabia, UAE and South Africa.