Foam Tape Market is forecast to reach $12.2 billion by 2025, after growing at a CAGR of 6.3% during the forecast period from 2020-2025. The prime driver for the growth of foam tape market are increasing usage of foam tape in various industries including transportation, electrical and electronics, and building and construction; increased demand from developing nations of APAC region especially in China and India; and wide applications of acrylic based foam tapes.
- Asia-Pacific dominates the foam tape market owing to increasing demand from applications such as automotive and building & construction industries.
- The growing need to enhance the appearance and improve the overall performance of product design by using foam tapes for sound dampening, insulating, gasketing, cushioning/padding, and sealing, is likely to aid in the market growth of foam tape.
- Increasing demand for automotive vehicles simultaneously rising usage of engineered products will create an opportunity for the foam tape market.
Type of Adhesives- Segment Analysis
Acrylic segment held the largest share in the foam tape market in 2019 due to huge internal strength and good flexibility reducing peeling stress. eco-friendly concept, shock absorption capability, and good anti-aging properties, good anti-vibration properties, long-term holding power, excellent resistance to moistures & solvents, and excellent conformity are some of the factors driving the demand of acrylic foam tape market.
Product Type – Segment Analysis
Double sided foam tapes segment held the largest share in the foam tape market in 2019. Double sided foam tapes are more preferable over single sided due to its excellent properties including high-strength, long-term adhesion for both indoor and outdoor applications, design gap compensation, and excellent dampening properties.
End Use Industry- Segment Analysis
Transportation sector has been the primary market for foam tape market with market share of more than 35% in 2019. Growing automotive vehicle demand especially in APAC region is expected to drive the foam tape demand in automotive sector.
China is APAC’s largest consumer of foamtapes due to widening applications in automotive and building & construction.China has the largest automotive industry in the world and one of the largest civilian aircraft markets. According to OICA, China held 35 percent share in global passenger cars sales in 2018. India also has excellent potential for automotive industry growth in the future. The country’s automotive industry experienced 8% growth in production in 2018,over the previous year. With more than 11 million vehicles traveling on the U.S. roads, which is 11.5% of the total vehicles in the world as reported by the OICA in 2017, there will be tremendous demand for foam tapes in the automotive application.
Geography- Segment Analysis
APAC dominated the foam tapes market with a share of more than 37%, followed by North America and Europe. The economy of APAC is mainly influenced by the economic dynamics of countries such as China and India, but with growing foreign direct investment for economic development of South East Asia, the current scenario is changing.Countries in South East Asia are witnessing high growth in the aviation and automotive industries. According to OICA, APAC automotive sales witnessed a growth of over 6.52% during 2012-2018, with South East Asian countries having huge potential to grow.
Drivers –Foam Tape Market
- Increasing penetration of foam tapes in various industries including automotive, building & construction, and electrical & electronics
Automotive is the major end use industries where foam tapes are using for numerous applications including sound dampening, insulating, gasketing, cushioning/padding, and sealing. Thus, the growth in automotive sector is expected to fuel the demand of foam tapes in coming years. Further, building & construction and electrical & electronic industry offers good growth potential for foam tapes. APAC region is the major market for automotive, building & construction, and electrical & electronics industries; which growing with above average growth and offers plenty of opportunity for foam tape market.
Challenges – Foam Tape Market
- Fluctuation in raw material prices
Prices of the raw material needed to produce foam tapes are volatile in nature and are constantly changing, however impacting its application in various industries.
Technology launches,acquisitions and R&D activities are key strategies adopted by players in the foam tape market. In 2019, the market of foam tapehas been consolidated by the top five players accounting for xx% of the share. Major players in the Foam Tape Market are 3M Company, Nitto Denko Corporation, Tesa SE, Lintec Corporation, Intertape Polymer Group, Inc., Avery Dennison Corporation, HALCO, 3F, and Scapa Group Plc,among others.
- In June 2019, RPM’s Tremco business has acquired Schul International Co., LLC, a manufacturer of joint sealants for commercial construction, and Willseal LLC, a company that markets and sells Schul products. Both companies are headquartered in Hudson, N.H., with annual net sales of about $15 million combined. Schul’s product line consists primarily of pre-compressed, self-expanding foam tapes used for sealing joints in applications including window seals, prefabricated concrete, modular construction, and concrete façade restoration.
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