Spray Foam Market Size, Share, Growth, Trends, and Global Industry Analysis: By Product Type (Open Cell, Closed Cell, and Others), By Density (Low, Medium, and High), By Distribution Channel (Direct Sales and Indirect Sales), By End-User Industry (Building and Construction, Automotive Packaging, Oil and Gas, and Other End Users), and By Region 2020-2031

Spray Foam Market size was valued at US$ 1,780.5 million in 2024 and is expected to reach US$ 2,694.9 million by 2031, growing at a significant CAGR of 6.1% from 2025-2031. Moreover, the U.S. market is projected to grow significantly, reaching an estimated value of US$ 840.8 Million by 2031.

The global market is involved in the production, distribution, and application of spray-applied polymer foams, predominantly spray polyurethane foam (SPF), which are used for thermal insulation, air and moisture sealing, and structural reinforcement across residential, commercial, and industrial sectors. The global market is primarily driven by the rising demand for energy-efficient insulation in both residential and commercial buildings, fueled by stricter energy codes and green building regulations such as the U.S. IECC and the EU’s EPBD. Spray foam’s superior thermal insulation, air-sealing capability, and moisture resistance make it a preferred choice in the push toward net-zero buildings and building retrofits. A prominent trend influencing the market is the shift to low-GWP, HFO-based spray foam systems in response to global climate mandates. Major players are innovating eco-compliant solutions while also integrating digital monitoring and prefabrication-friendly applications.

The market also presents strong opportunities in the development of bio-based, eco-friendly formulations, including soy-based polyols and water-blown foams, as well as growth potential in emerging regions like the Asia-Pacific and niche segments such as marine and cold storage insulation. However, the market faces key restraints, particularly environmental and health concerns related to isocyanates and traditional HFC-based blowing agents. These concerns are leading to rising regulatory scrutiny and increased production costs. Additional challenges include high upfront insulation costs and application difficulties in certain structures. Still, innovation and sustainability are expected to propel long-term growth.

Facts & Figures

• Rising Demand for Energy-Efficient Buildings: The drive for reduced energy consumption in buildings is a top priority across the globe, as heating and cooling account for a significant portion of energy use. Spray foam insulation provides high R-value per inch, making it highly effective for both new constructions and retrofits. For instance, the market is driven by the adoption of energy codes like the U.S. IECC and Europe’s EPBD, which require higher insulation performance in buildings.
• Innovation in Eco-Friendly & Bio-Based Formulations: Growing environmental concerns and consumer awareness have created a strong push for plant-based polyols and water-blown spray foams. These reduce the environmental footprint while maintaining insulation performance. For instance, Honeywell’s Solstice® LBA, an HFO-based blowing agent with a GWP of 1, is gaining significant industry traction. BASF and Dow are also heavily investing in bio-based systems, as noted in their 2024-25 ESG reports and industry publications.
• Government Incentives and Tax Credits: To encourage residential and commercial energy efficiency upgrades, governments are offering rebates and tax credits for the installation of high-performance insulation like spray foam. For instance, under the U.S. Inflation Reduction Act of 2025, homeowners can receive a 30% tax credit (up to $1,200 annually) for qualifying insulation upgrades, including spray foam. This initiative, widely discussed on forums like Reddit r/Insulation, is accelerating consumer adoption in retrofit projects.
• Surge in Global Construction & Retrofitting Projects: Urbanization and infrastructure development, particularly in Asia-Pacific, Latin America, and the Middle East, are increasing the demand for durable and energy-efficient insulation materials like spray foam. Retrofitting older buildings to improve energy performance is also contributing to the market’s growth.

Recent Developments

• In March 2025, TopBuild Corp. announced it would acquire Seal?Rite Insulation (approx. US$?15?million in annual revenue) to strengthen its regional presence in Nebraska and expand its spray foam and fiberglass insulation services.
• In July 2025, TopBuild announced the acquisition of Progressive Roofing (US$?810?million cash deal) to expand into roofing services, complementing its insulation business in energy efficiency projects.
• In October 2024, SEI Group expanded its U.S. footprint by buying Pro Foam (Texas) and Accu?coat (Tennessee/North Carolina), enhancing its residential and light-commercial spray foam service presence across fast-growing regional markets.
• In October 2024,  Holcim acquired the leading U.S. spray foam insulation company SES Foam, which had net sales around US$?200 million, to expand its sustainable insulation offerings and support green retrofitting and new-build projects.          

Spray Foam Market Segmentation

Based on the product type 

• Open Cell
• Closed Cell
• Others

The closed-cell spray foam segment holds the largest market share in the global spray foam insulation market, owing to its superior thermal resistance (higher R-value), moisture barrier properties, and structural rigidity. It is widely used in commercial buildings, industrial facilities, and regions with extreme climates where energy efficiency and durability are critical. Closed-cell foam also provides better air sealing and adds to structural strength, making it the preferred choice for roofing and below-grade applications. In contrast, open-cell foam, while more affordable and effective for soundproofing, holds a smaller share due to lower R-value and limited moisture resistance, making it less suitable for demanding environments.

Based on the density 

• Low
• Medium
• High

Based on density, the medium-density spray foam segment holds the largest market share in the global spray foam insulation market. It offers an optimal balance of thermal insulation, structural strength, and moisture resistance, making it highly versatile for both interior and exterior applications, including walls, roofs, and commercial buildings. Medium-density foam provides a closed-cell structure, delivering superior air sealing and energy efficiency while still being easier to apply than high-density alternatives. In comparison, low-density spray foam, often used for soundproofing and interior wall cavities, holds a smaller share due to its lower R-value and limited resistance to moisture and structural load, restricting its use to less demanding environments.

Based on the distribution channel 

• Direct Sales
• Indirect Sales

The direct sales hold the largest market share in the global spray foam insulation market. This dominance is driven by strong relationships between manufacturers and large-scale contractors, construction firms, and insulation service providers who prefer customized formulations, technical support, and bulk pricing directly from producers. Direct sales channels also offer better quality control and faster delivery schedules, making them ideal for commercial and industrial projects. Manufacturers like BASF, Huntsman, and Carlisle frequently engage in direct B2B transactions. On the other hand, indirect sales, through distributors, retailers, or online platforms, hold a smaller share, mainly serving the DIY segment and small-scale residential users.

Based on the end-user industry 

• Building and Construction
• Automotive Packaging
• Oil and Gas
• Other End Users

The building and construction segment holds the largest market share in the global spray foam insulation market due to the material’s widespread use in residential, commercial, and industrial insulation. Spray foam’s high R-value, air-sealing capabilities, and moisture resistance make it essential for walls, roofs, attics, and foundations, especially in regions with strict energy efficiency regulations. The segment is further boosted by rising green building initiatives, retrofitting of older structures, and government incentives for insulation upgrades. In contrast, automotive packaging and oil and gas sectors contribute smaller shares, with limited but growing usage in vehicle thermal insulation and pipeline protection, primarily in niche or high-performance applications.