The global automotive foams market exhibits a highly cutthroat competition mainly due to the presence of innumerable players, observes Transparency Market Research based on a newly published report. Notable focus is being imparted by the players on implementing key strategies such as improving geographical reach, enhancing product quality, and achieving product differentiation. Substantial focus is being imparted on bringing about extensive innovations in the context of production techniques used to manufacture the automative foams.
Participating in mergers & acquisitions, healthy partnerships, and strategic collaborations, also are prime schemes implemented by major businesses to establish their presence in the global automotive foams market. With new players entering the market on a regular basis, the competition is expected to intensify further intensify in the forthcoming years. The Dow Chemical Co., Adient Plc., Zotefoams Plc., Saint-Gobain SA, Woodbridge Foam Corp., Woodbridge Foam Corp., Caligen Foam, BASF SE, Lear Corp., Recticel, and Bridgestone Corp. are some of the leading companies operating in the global automotive foams market.
According to market experts, this market had gained revenue worth US$22.53 bn in 2017, and which is further expected to grow up to US$35.38 bn by the end of 2025. This growth is projected to occur at an impressive CAGR of 9.40% during the forecast period from 2017 to 2022.
Mushrooming Automobile Industry Stokes Expansion of the Automotive Foams Market
The global automotive foams market is gaining extensive growth owing a rise in automobile manufacturing and associated innovations. This is mainly because the foams witness a high requirement by automobile manufacturing companies owing to their advantageous properties such as low density and less weight. Such a high preference has made it almost mandatory for automobile manufacturers to use these foams in their vehicles. Rising disposable income among the masses to buy cars and other automobiles has also made the global automotive foams market to pick up rampant pace. Moreover, an increasing rate of urbanization has caused the automotive industry to progress rapidly, consequently leading to a positive growth curve depicted by the global automobile foams market. Such growth is expected to continue even during the forthcoming years.
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Rising Environmental Concerns Hamper Market’s Growth
However, production of these foam materials might harm the environment. This is mainly due to improper disposal of the byproducts created while the foams are being manufactured, thereby hindering the automotive foams market. Fluctuating raw material prices, shortage of adequate manpower and lack of expertise in remote and underdeveloped areas are other factors that are posing as obstacles to the production capacity of automotive foams. Nevertheless, several companies are carrying out extensive research and development in the field of automotive foam manufacturing. This is expected to make them introduce eco-friendly and cost-effective foam materials that can be readily used in automobiles and other applications, consequently offsetting the restraints affecting the market.