Market Trends of Polyethylene Terephthalate (PET) Foam Industry
Increasing Usage in the Automotive Industry
- Due to the increasing consumer demand for fuel-efficient and lightweight vehicles, the demand for lightweight plastics and composite materials increased in recent years. PET foam offers good thermal stability, low water absorption, good electrical properties, and excellent surface properties.
- PET foams are used in various automotive parts such as wipers, arms and gear housings, engine covers, interior trim, connector housings, headlamp retainers, and many more. Substituting heavier materials with foam leads to an overall weight reduction of around 10%, which results in a 3% to 7% improvement in fuel efficiency.
- In 2022, according to the International Organization of Motor Vehicle Manufacturers (OICA), global automobile production increased by 6% compared to the previous year due to increasing global demand for private mobility and other factors. In 2022, the global motor vehicle production was 8,50,16,728.
- In addition, the development of electric vehicles may continue to gain momentum in the upcoming years, especially in Europe, China, and the United States. Many government programs are promoting a move from fossil fuels due to various environmental concerns.
- Due to all these factors, the PET Foams market will likely grow worldwide during the forecast period.
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Asia-Pacific Region to Dominate the Market
- Asia-Pacific region is expected to dominate the market. China is one of the fastest emerging economies and became one of the biggest production houses in the world.
- China is the largest manufacturer of automobiles in the world. The country's automotive sector is shaping up for product evolution, focusing on manufacturing products to ensure fuel economy and minimize emissions (owing to the growing environmental concerns due to mounting pollution in the country). According to OICA, in 2022, China's motor vehicle production was 2,70,20,615.
- According to World Resources Institute (WRI), China is in the middle of a construction mega-boom. The country includes the largest building market in the world, making up 20% of all construction investment globally. The country alone is expected to spend nearly USD 13 trillion on buildings by 2030.
- In India, the production of vehicles stood at 43,99,112 in 2021 and increased to 54,56,857 in 2022, which increased by 24% compared to the previous year.
- Due to all such factors, the region's market for polyethylene terephthalate foam is expected to grow steadily during the forecast period.
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