Market Trends of Foam Tape Industry
This section covers the major market trends shaping the Foam Tape Market according to our research experts:
Automotive Sector Dominated the Market
- Foam tapes are utilized for sound hosing, insulating, gasketing, padding/cushioning, and fixing and are intended to upgrade the appearance and improve the general performance of the designed product.
- Additionally, foam tape can withstand -40°F to 300°F, and it can resist moisture, ultraviolet rays from the sun, and solvents, providing high bonding strength to compensate for different thermal expansions.
- In the automotive industry, foam tapes are used in bonding plastic emblems onto metal substrates, sealing windows, doors, sunroofs, trunks/hatches, etc.
- The automotive industry witnessed a downfall in recent times. According to the OICA, around 77.62 million vehicles were produced globally in 2020 compared to 92.18 million vehicles that were produced in 2019, witnessing a decreasing growth rate of about 15.8%.
- The decline is majorly attributed to the reduced production in the major automotive hubs such as United States, China, Japan, and Germany. In 2020, these countries witnessed a decline of 19%, 2%, 17%, and 24%, respectively, compared to 2019.
- Hence, owing to the above-mentioned factors, the market is expected to witness a decline in growth during the forecast period.
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Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region is expected to dominate the market for foam tape during the forecast period. The rising demand for foam tape from the construction industry with the growing population in developing countries like India and China.
- In 2020, the Chinese construction industry was valued at about USD 1,049.2 billion, and it is estimated to reach about USD 1,117.4 billion by 2021, with a growth rate of about 6.5%.
- Furthermore, the total new construction in Japan was accounted for about 127.55 million square meters in 2019 and reached about 113.74 million square meters in 2020, with a decline rate of about 10.5%.
- Residential and commercial construction in India has been increasing owing to the developing service sector in the country. According to the Ministry of Housing and Urban Affairs of India, the Indian government announced an investment of about USD 27.54 billion construction of 100 cities under the smart cities plan. This plan includes 5,151 different smart city projects, out of which 1,638 projects have been completed as of April 2021.
- According to the OICA, Asia-Pacific dominated global automobile production in recent years. China is the largest producer of automobiles globally, with a production volume of 25.75 million vehicles in 2019 and reached 25.23 million vehicles in 2020, registering a decline rate of about 2%.
- Owing to the above-mentioned factors, the market for foam tape in the Asia-Pacific region is projected to grow significantly post recovery from COIVD-19 during the study period.
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