Semi-Rigid Spray Polyurethane Foam Market Size

Semi-Rigid Spray Polyurethane Foam Market Size

Semi-Rigid Spray Polyurethane Foam Market size was estimated over USD 700 million in 2017 and the industry will grow by a CAGR more than 6.5% through 2024. Steady recovery from economic slowdown coupled with the stable GDP growth will be the chief reason behind the North America’s construction industry growth thus spur the market growth over the forecast time frame.

The product is widely used for resistance, sealing and insulation purpose in roofs and walls of various infrastructures and buildings. Semi-rigid SPF helps to reduce the overall energy requirements for cooling and heating by filling the gaps and cracks in the building. In North America, the U.S. construction industry has been witnessing a steady growth in the last few years. Construction spending has been increasing at a healthy rate owing to a rise in private construction projects across the country.

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The U.S. construction spending increased from USD 787.9 billion in 2010 to USD 1,181.5 billion in 2016 and is likely to witness further gains in coming years. This trend of increasing construction spending will spur construction activities in the country, which will further boost the semi-rigid spray polyurethane foam market demand for use in insulation and sealing.

Oscillation in the raw material prices and health issues related to manufacturing of the product are the key restraining factors which will hamper the semi-rigid spray polyurethane foam market over the forecast period. Basically, the product is manufactured from crude oil derivative products and the continuous changes in the crude oil prices will have significant impact on the prices of the product. Crude oil cost was USD 128.94 per barrel in July 2008. By July 2009, the price fell to USD 63.42 per barrel, a decline of over 50%, followed by a steady rise till the latter half of 2013, post which there was a fall again in 2014

The unpredictable pricing trend has been prevalent in the market and is expected to continue in future. Prices of MDI and TDI have been adversely affected due to high volatility in prices of crude oil. The volatility in these essential raw material prices has led to obscure profitability forecast for investors, thus restraining the semi-rigid spray polyurethane foam market growth.