PE foam market to reach US$2.19 billion

Amid the COVID-19 pandemic, the global polyethylene (PE) foam market registered a year-on-year growth of 5.24% in 2020 and the market is estimated to expand at a CAGR of over 6% during the forecast period 2020-2024 to reach US$2.19 billion, according to a report by Technavio. The report offers a detailed analysis of the impact of the COVID-19 pandemic on the market.

Factors such as the availability of land, cheap labor, low transportation costs, and less stringent government norms are encouraging global automobile manufacturers to shift their manufacturing operations to emerging economies such as Brazil, China, Russia, Turkey, Indonesia, South Korea, Mexico, and India. Besides, changing lifestyles, rising disposable incomes, and rapid increase in industrialisation and economic developments in these countries have significantly boosted the growth of various other industries including construction, transportation, electronics, and packaging industries. The growth of these industries is increasing the demand for PE foams, which is driving the growth of the market.

As per Technavio, the increasing use of PE foam insulation in the construction industry will have a positive impact on the market and contribute to its growth significantly over the forecast period. PE foams are extensively used in the construction industry owing to their high electrical and thermal insulation properties and resistance to chemicals.

Over the years, the proliferation of new chemical factories, rising demand for food processing, petroleum refining, and communication infrastructure have fueled the growth of the construction industry globally. In addition, the increasing number of residential, commercial, and infrastructure projects has significantly increased the demand for insulation materials such as PE foams in the construction industry. Therefore, the growth of the construction industry is expected to positively influence the growth of the polyethylene foam market during the forecast period.

The increase in the demand for PE foams from the automotive industry and the rising demand for energy-efficient buildings will further boost market growth during the forecast period”, says a senior analyst at Technavio.