A boost in the demand for fuel-efficient vehicles coupled with technological upgradation is driving the growth of the Microcellular Polyurethane Foam Market

The Microcellular Polyurethane Foam Market size is observed to grow at a CAGR of 5.4% during the forecast period 2022-2027 and will reach an estimated revenue of US$9.3 billion by 2027. Microcellular Polyurethane Foam is a thermoset foam, having high resilience, energy dissipation and shock isolation properties owing to which it has ideal usage in major sectors such as automotive, aerospace and electronics in gasketing and sealing applications. The automotive sector is the major end-user of microcellular polyurethane foam as it is highly applied on automotive bumpers, pads, gaskets and sealings. The growing adoption of new technologies in automotive manufacturing has increased the scale of production. For instance, according to the European Automobile Manufacturer’s Association, in 2021, automotive manufacturing in Middle East & Africa increased by 10% in comparison to 2020. With such an increase in automotive manufacturing, the demand and usage of microcellular polyurethane foam have also accelerated, thereby boosting its market growth.

Microcellular Polyurethane Foam Market: Leading Segment is the Automotive

Based on the end-use industry the Microcellular Polyurethane Foam market can be segmented into aerospace, building & construction, automotive, electrical & electronics and sports & leisure sectors. The microcellular polyurethane foam market’s leading segment is evaluated to be automotive and during the forecast period 2022-2027, the automotive segment is expected to grow at a CAGR of 5.9%. This can be attributed to factors such as rapid urbanization, an increase in disposable incomes coupled with the establishment of new manufacturing plants which has increased the global scale of automotive production. According to the European Automobile Manufacturer’s Association, in 2021, global automobile production stood at 79.1 million units, showing a 1.3% increase in production level. Such an increase in production level has boosted the demand and usage of microcellular polyurethane foam in the automotive sector.

Microcellular Polyurethane Foam Market: Leading Segment is the Asia-Pacific

Based on geography the Microcellular Polyurethane Foam market can be segmented into North America, South America, Europe, APAC and the Rest of the World. In 2021, the Asia-Pacific region emerged as the most profitable region in the market and held a 41.3% share of the total revenue earned by the market globally. The demand for microcellular polyurethane foam in the region is increasing owing to the significant increase shown by major Asia-Pacific countries such as India, Japan and China in automotive production. For instance, according to the International Organization of Motor Vehicle Manufacturers, in 2021, India’s automotive production increased by 30% whereas Japan’s production showed a 2% increase. Such an increase has accelerated the market growth of microcellular polyurethane foam.

Microcellular Polyurethane Foam Market: Competitive Landscape

Key companies holding a major share in the Microcellular Polyurethane Foam market are BASF SE, Saint-Gobain, Dow Inc, Huntsman Corporation, General Plastics, Tom Brown Inc, Evonik Industries, INOAC Corporation, Mearthane Product Corporation, Kuraray Co. Ltd.