Blowing Agent Market

Updated on : August 05, 2024

Blowing Agent Market

Blowing Agent Market is valued at USD 1.8 billion in 2024 and is projected to reach USD 2.3 billion by 2029, growing at 5.5% cagr from 2024 to 2029. Increasing demand in various end-use industries and high growth in the global polymeric foams market driving the market for blowing agent. The Asia Pacific region is one of the largest and fastest-growing markets for blowing agents globally. Rapid industrialization, urbanization, and infrastructure development in countries like China and India are driving the demand for blowing agents, particularly in sectors such as construction, automotive, packaging, and appliances. The construction sector in Asia Pacific is a major consumer of blowing agents, primarily for thermal insulation materials. Rising demand for residential and commercial buildings, as well as infrastructure projects, is fueling the growth of the blowing agent market in this region.

Attractive Opportunities in the Blowing Agent Market

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Blowing Agent Market Dynamics

Driver: High growth in global polymeric foams market

The polymer foam market is driven by increasing demand from the packaging, automotive, building & construction, marine, transportation, appliances, bedding & furniture, and packaging industry. The growth of the polymer foams market further facilitates the use of blowing agents, and hence this directly affects the volume of blowing agents required. Also, continuous expansion, growing awareness of high-quality products and demand of polymeric foam industry, especially in APAC, the Middle East & Africa, and South American regions, would create a huge demand for blowing agent used for foam blowing purposes. The emerging economies, such as India, China, Brazil, Southeast Asia, and Mexico, are expected to be the most lucrative destinations for the polymer foam market in the near future. Thus, the expected increase in the demand for different types of polymeric foam in varied end-use applications will drive the market for blowing agent in the coming years.

Restraint: Frequent changes in the choice of blowing agents due to environmental regulations

The growth of the blowing agents market faces challenges due to shifting preferences in blowing agents driven by environmental regulations. The transition from one blowing agent technology to another poses technical complexities that act as potential barriers. Interconnected technical, commercial, and legislative issues further complicate this shift, adding potential limitations. The regulations and codes governing blowing agent selection present a significant challenge for foam producers aiming to move towards zero-emission solutions. The Montreal Protocol plays a pivotal role in driving major transitions in blowing agents, especially in Article 5 countries, funded through national HCFC Phase-out Management Plans (HPMPs) in response to Decision XIX/6. Initially, HFC-134a replaced chlorofluorocarbons (CFCs) as a blowing agent due to the latter's ozone-depleting effects, leading to a ban under the Montreal Protocol in 1989. Presently, Massachusetts law 310 CMR 7.76 prohibits the sale of XPS foam containing specific hydrofluorocarbons (HFCs) after January 1, 2024, aiming to reduce greenhouse gas emissions from XPS foam, specifically targeting HFC-134a as a prohibited blowing agent. The increasing focus on reducing carbon emissions and the adoption of eco-friendly blowing agents in response to environmental concerns are key drivers of the next generation blowing agents’ market. Additionally, the technical complexity involved in the shift from one blowing agent technology to another is a potential barrier in itself, and the complexity of interrelated technical, commercial, and legislative problems which need to be addressed may create additional limitations.

Opportunity: Innovations in performance advancements and eco-friendly blowing agents

The demand for environmentally friendly blowing agents has rapidly increased in the past few years and is expected to remain the same in the future. The major reason behind this increase in the global demand for eco-friendly blowing agents is owing to the amendments in the rules and regulations concerning this market. The environmental regulations & restrictions such as EU F-Gas Initiatives (GWP<150), Kigali agreement, and Kyoto Protocol (5% reductions in GHG emission) plays an important role in the market development of blowing agent at a global level. The growing demand for environmentally friendly solutions is pushing the development of bio-based blowing agents derived from sources such as vegetable oils, plant starches, and organic acids. These have a lesser environmental effect and promote circular economic ideas. High-performance blowing agents, such as HFC (Hydrofluorocarbon) blowing agents, do not deplete ozone and have a lower Global Warming Potential (GWP) than typical blowing agents, making them more environmentally friendly. Blowing agents are being designed with additional features beyond gas expansion, such as flame retardancy, enhanced thermal insulation, and antibacterial qualities. This adds value to the finished foam product. Incorporating nanoparticles into foam compositions can improve mechanical strength, fire resistance, and other qualities, bringing up new uses in fields including aerospace and transportation. Increasing demand for high-performance foams in areas like medical devices, electronics, and filtration is creating niches for specialized blowing agents with tailored properties.

Challenge: Fluctuation in raw material prices and supply chain disruptions

Price variations and disruptions in the supply chain within the blowing agents market result from diverse factors such as fluctuations in raw material costs, adherence to environmental regulations, and the unpredictability of the global economy. To illustrate, let's examine the scenario of HFO-1234yf, a prevalent hydrofluoroolefin (HFO) blowing agent utilized in polyurethane (PU) foams for insulation and refrigeration purposes. HFO-1234yf is predominantly derived from tetrafluoroethane (R-134a). In 2021, the cost of R-134a surged due to global initiatives aiming to phase out high-GWP refrigerants, leading to heightened demand as a temporary alternative, especially from the air conditioning sector. Hurricane Laura in 2020 briefly halted a major R-134a production facility in the US, exacerbating supply constraints. Consequently, R-134a prices, and subsequently HFO-1234yf, quadrupled in certain regions within a year, significantly impacting polyurethane foam manufacturers. This surge in costs extended to PU foam products like insulation panels and refrigerators, potentially affecting consumer demand. Additionally, trade conflicts and protective trade policies may complicate the sourcing of specific raw materials or finished blowing agents, contributing to price fluctuations and supply shortages. The resulting uncertainty in supply poses challenges for manufacturers in maintaining optimal inventory levels, potentially leading to stockouts or overstocking.

Blowing Agent Market Ecosystem

Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis

"Polyurethane foam is largest foam type in blowing agent market, in terms of value."

Polyurethane foam is indeed one of the most widely used types of foam in various industries due to its versatility, durability, and excellent insulating properties. It's used in applications such as building insulation, furniture cushioning, automotive interiors, and packaging. Polyurethane foam can be formulated to have a wide range of properties, including different densities, hardness, and flexibility, making it suitable for various applications across industries.

"Based on type, hydrocarbons is the largest blowing agent market in 2023, in terms of value."

Hydrocarbons can be used in various foam applications, including insulation for buildings, refrigeration, packaging, and automotive components. Their versatility allows for a wide range of foam densities, properties, and applications. Hydrocarbons exhibit good blowing efficiency, enabling the production of foams with consistent quality and properties. They can effectively expand foam materials to achieve the desired structure and performance characteristics.

“North America accounted the second largest market for blowing agent in 2023, in terms of value."

The blowing agent market in North America has experienced significant growth in recent years, driven by various factors including increasing demand from end-use industries, regulatory changes, and technological advancements. Stringent energy efficiency regulations and building codes in North America have led to a growing demand for high-performance insulation materials. Blowing agents play a crucial role in enhancing the thermal insulation properties of foam materials used in buildings, thereby contributing to energy savings and compliance with regulations such as ENERGY STAR and LEED certification.

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Blowing Agent Market Players

The key players in this market are Honeywell International Inc. (US), Solvay (Belgium), Arkema (France), Exxon Mobil Corporation (US), Linde PLC (UK), Daikin Industries Ltd. (Japan), The Chemours Company (US), BASF SE (Germany), HCS Group (Germany), FSI (US), and Harp International Ltd. (UK). Continuous developments in the market—including new product launches, mergers & acquisitions, agreements, and expansions—are expected to help the market grow.

Read More: Blowing Agents Companies

Blowing Agent Market Report Scope

This report categorizes the global blowing agents market based on type, foam, and region.

Blowing Agent Market based on the type:

• HC
• HFC
• HCFC
• Others

Blowing Agent Market based on the foam:

• Polyurethane Foam
• Polystyrene Foam
• Phenolic Foam
• Polyolefin Foam
• Others

Blowing Agent Market based on the region:

• Asia Pacific
• Europe
• North America
• South America
• Middle East & Africa

Recent Developments

• In December 2023, BASF completed its capacity expansion for key specialty amines manufactured at its Geismar, Louisiana site. As a result, BASF will be able to produce more of its key polyetheramines and amine catalysts marketed under the Baxxodur and Lupragen brands. Blowing agents falls under Lupragen products.
• In November 2023, The Chemours Company announced it is expanding production of Chemours HFC-152a by approximately 20 percent. HFC-152a is a versatile, low GWP, non-VOC, aerosol propellant and foam blowing agent used in a wide range of personal care, household, industrial, and construction applications.

Frequently Asked Questions (FAQ):

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