October 4, 2024

The Global Blowing Agents Market is driven by Increasing Demand for Insulation Foams

The blowing agents market has witnessed significant growth in recent years owing to the growing demand for insulation foams from various end-use industries such as building & construction, packaging, automotive, and electronics. Blowing agents are chemical compounds that are added to plastic or liquid material to reduce the overall density by producing bubbles or cells. They help enhance the insulation and strength properties of finished products. The rising adoption of blowing agents in polyurethane (PU) and polyisocyanurate (PIR) foams is one of the major factors spurring the market growth. PU and PIR foams find extensive applications in construction for insulation of walls, roofs, and pipes due to their high insulation efficiencies. Moreover, blowing agents are widely utilized in packaging industry to manufacture lightweight cushioning materials and protective packaging.

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, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Hydrofluorocarbons (HFCs) are one of the majorly adopted blowing agents across the globe. However, regulations on HFCs owing to their high global warming potential (GWP) are prompting manufacturers to shift towards more environment-friendly alternatives such as hydrofluoroolefins (HFOs). HFOs have low GWP and superior insulation properties as compared to traditional HCFCs and HFCs. Government policies and initiatives towards phasing out of ozone-depleting HCFCs as well as high-GWP HFCs are fueling the demand for eco-friendly blowing agents. Leading players are investing heavily in research & development of innovative bio-based and natural blowing agents to further reduce overall carbon footprint of insulation foams.

Porter’s Analysis

  • Threat of new entrants: The threat is moderate as the blowing agents industry requires significant investments in R&D and manufacturing facilities. However, emerging players can enter the market with novel product developments.
  • Bargaining power of buyers: The bargaining power is high due to the availability of substitute products. Buyers can switch to alternative blowing agents if prices increase.
  • Bargaining power of suppliers: The power is moderate as raw materials are commoditized and major players have integrated operations.
  • Threat of new substitutes: The threat is high as ongoing research is exploring alternate blowing agents with lower global warming potential (GWP).
  • Competitive rivalry: The competition is high among the established players to gain market share through product innovation.

Key Takeaways

The global blowing agents market is expected to witness high growth.

Regional analysis: The blowing agents market in Asia Pacific is expected to witness the fastest growth during the forecast period attributed to increasing construction activities in China, India, and other developing countries. North America currently dominates the global market supported by the well-established construction and automotive industries in the US and Canada.

Key players operating in the blowing agents market are 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 major players are focusing on new product launches and capacity expansions to strengthen their market presence. For instance, in 2023, Honeywell International Inc. plans to commission a new hydrofluorocarbon (HFC) blending and filling facility in Shenzhen, China to cater to the growing demand in Asia Pacific.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

Ravina
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Ravina Pandya, a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. 

Ravina Pandya

Ravina Pandya, a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. 

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