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Electrical Insulation Materials Market

Electrical Insulation Materials Market

Electrical Insulation Materials Market

Electrical Insulation Materials Market By Material Type (Thermoplastics, Thermosets, Ceramics, Fiber Glass, Mica, Cellulose, Cotton), Application (Power Transformer, Distribution Transformers, Electrical Motors & Generators, Wires & Cables, Switchgears, Batteries) & Region - Forecast 2021 - 2031

Electrical Insulation Materials Market Outlook- 2021-2031

[205 pages Report] Demand in the electrical insulation materials market is projected to increase at a robust 6.4% CAGR between 2021 and 2031. The market value is expected to top US$ 9.42 Bn in 2021. Global electrical insulation materials market represented nearly 17.3% of the global insulation market as of 2020.

Electrical Insulation Materials Market Base Year Value (2020A)

US$ 8.83 Bn

Electrical Insulation Materials Market Estimated Value (2021E)

US$ 9.42  Bn

Electrical Insulation Materials Market Projected Year Value (2031F)

US$ 17.53 Bn

Value CAGR (2021-2031)

6.4%

Collective Value Share: Top 3 Countries (2020A)

44.1%

Rising demand for thermosets such as epoxy resins for used in power generation for safeguarding the machines and equipment is boosting the market. Besides this, increasing application in wires and cables, and batteries will continue pushing sales in the electrical insulation materials market.

On account of this, the global electrical insulation materials sales are expected to reach a valuation of US$ 17.53 Mn in 2031.

2016-2020 Electrical Insulation Materials Market Outlook Compared to 2021-2031 Forecast

As per Future Market Insights (FMI), sales of electrical insulation materials increased at a 3.2% CAGR between 2016 and 2020, with countries such as the U.S., China, and Japan dominating the global market.

Sales prospects in 2020 were dampened due to the outbreak of COVID-19 pandemic, reducing the demand for electrical insulation materials from several domains for applications of batteries, motors and generators, and wires & cables.

Increasing need for energy conservation and reduction in power losses while operating various electrical equipment is contributing to the growth in global electrical insulation materials market.

Besides this, replacing old & worn-out electrical insulation materials with new insulation materials, is expected to continue pushing sales of electrical insulation materials.

As a result, the electrical insulation materials market is projected to grow at a 6.4% CAGR during the forecast period of 2021 to 2031.

How will Soaring Electric Vehicles Sales Impact Electrical Insulation Materials Market?

Electrical insulation materials play a crucial role in electric vehicles. These materials are extensively used for wires and cables, power generators, batteries, and other electrical parts of the vehicle.

Mica, and thermosets such as silicon rubber and polyimide are rigorously used to protect and safeguard electric vehicles.

In the coming years, electric vehicles are all set to replace conventional fuel-powered automotive vehicles. Surge in production of electric vehicles to meet environmental regulations and changing consumer demand is expected to provide an impetus to the demand for electrical insulation materials.

To capitalize on this existing trend, manufacturers are likely to boost their production and supply of the material. On the back of this, demand for electrical wire insulation and cable insulation materials is expected to surge in electric vehicles.

What is the Impact of COVID-19 on Electrical Insulation Materials Market?

Impact of the COVID-19 pandemic on the materials industry was moderate, opines Future Market Insights. Sales of chemicals and materials plummeted due to disruption in supply chains and transportation restraints.

Several production facilities in many countries were entirely shut down due to the global lockdown, impacting the sales of electrical insulation materials negatively. However, the pandemic led to an intensive load on transformers, generators, and cables that were in continuous use due to the need to supply power to households and residential areas.

Also, as numerous production facilities have reopened, the industry is progressively recuperating from the losses, improving the sales prospects in the electrical insulation materials market.

Subsequently, increasing sales of fibre glass and thermosets for use in the medical sector for medical electronic equipment insulation is expected to boost the demand in the market.

Country-wise Insights

What Is the Demand Outlook for Electrical Insulation Materials in China?

“Production of Insulative Materials in China’s Electronic Industry to Boost Sales”

As per FMI, China is projected to account for nearly 22.8% of the global market share, creating an incremental opportunity of US$ 2.01 Bn in 2031.

China electrical insulation market is expected to remain lucrative in terms of production and demand for these materials across the globe. Electrical insulation materials manufacturers in China are extensively investing in innovation and development of new silicon electrical insulation materials for lithium ion batteries.

This is expected to increase the demand for the same in the coming years. Further, China is considered to be the hub and exporter of the world’s largest electronics industry. This is also expected to conducive environment for the electrical insulation materials market in China.

Why is Demand for Electrical Insulation Materials rising in the U.S.?

“Application in Motor and Transformer Insulation Materials to Propel the Sales in the U.S.”

The U.S. is projected to account for approximately 89% of the North America electrical insulation materials market in 2031. In 2021, the market is expected to grow by 7.0% year-on-year, reaching US$ 1.62 Bn in 2021, finds Future Market Insights.

Presence of prominent manufacturers of transformers, such as General Electric in the U.S., is another factor driving the demand for electrical insulation materials in the U.S.

Moreover, the use of electrical insulation materials in motors and generators for marine, IT, chemical, mining, and healthcare industries is expected to bolster the growth in the U.S. market.

Why is Japan Considered a Lucrative Electrical Insulation Materials Market?

“Development in High Voltage Insulation Materials to Drive the Japan Electrical Insulation Materials Market”

According to the study, Japan is projected to account for 18.4% of the East Asia electrical insulation materials market in 2031.

Increasing research and development and investments for the production of electrical insulation materials, sustaining higher voltages and are more energy efficient is creating the demand in the market.

Japan is also home to some of the top players in the global market for electrical insulation materials. This is expected to favor the growth in electrical insulation materials market over the assessment period. 

Category-wise Insights

Why are Sales of Thermoset Based-Electrical Insulations Materials Increasing?

“Attributes such as Thermal and Heat Resistance to Improve the Thermoset Electrical Insulation Sales”

Sales of thermosets is expected to grow at an impressive 7.0% CAGR over the forecast period of 2021 to 2031, opines FMI.

Thermosetting plastics have the capacity to endure higher temperatures and voltages. They also can sustain well in harsh climatic conditions and in the event of exposure to their surroundings.

Due to these characteristics, thermoset electrical insulation is rapidly gaining popularity, witnessing a steady rise in sales.

Thermosets such as epoxy resins, polyimides, and liquid silicone rubber are finding immense applications in several machines, equipment, and devices. Owing to these factors, sales of thermoset electrical insulation are projected to increase over the forecast period.

Why is Wire and Cable Considered Chief Application in Electrical Insulation Materials Market?

“Demand from Diverse Industries Will Result in High Sales of Wires and Cables”

As per the study, application in wires and cables is projected to create an absolute dollar opportunity of more than US$ 3.41 Bn during the period of 2021 to 2031.

Wires and cables are quite prone to wear and tear whilst providing passage for electric current. Hence, demand for electrical wire insulation materials is increasing across diverse industries worldwide.

Wires and cables are also, many times, exposed to climate conditions which further wear them down. Furthermore, electrical insulation materials are required for re-isolation purposes of wires and cables.

Hence, the ability of these materials to sustain in such condition will continue to provide tailwinds to electrical insulation material sales over the assessment period.

Competitive Landscape

Leading players operating in the electrical insulation materials market are investing in strategic business agreements and are focusing on the expansion of their production capacities. Apart from this, players are increasing their investments in research and development (R&D) to develop advanced flexible electrical insulation materials and launch better insulation products that can minimise power losses.

For instance,

  • In February 2021, DuPont Interconnect Solutions, a unit of DuPont Electronics & Industrial, announced a US$ 220 million expansion project at the Circleville site, which is expected to expand the production of Kapton polyimide films.
  • In March 2018, ITW Formex launched three new products: Formex N3, Formex GL and Formex GS, all of which are electrical insulating materials with varying properties, suiting varying needs.

Scope of Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

US$ Billion for Value and Kilo Tons for Volume

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia & Pacific, and Middle East & Africa

Key Countries Covered

US, Canada, Brazil, Mexico, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, ASEAN, Oceania, GCC Countries, Turkey, Northern Africa, and South Africa

Key Segments Covered

Material Type, Application, and Region

Key Companies Profiled

  • Nitto Denko Corporation
  • 3M Company
  • E. I. DuPont de Nemours and Company
  • The Dow Chemical Company
  • Showa Denko Materials Co., Ltd.
  • KREMPEL GmbH
  • ITW Formex
  • Elantas GmbH
  • Nikkan Industries Co., Ltd
  • Dr. Dietrich Müller GmbH
  • Fralock Innovative Materials Manufacturing & Automation
  • Haysite Reinforced Plastics
  • Miki Tokushu Paper MFG. CO., LTD.
  • Furukawa Electric Power Systems Co., Ltd.
  • Vitar Insulation Manufacturers Ltd.
  • Weidmann Holding AG
  • Sichuan Dongfang Insulating Material Co., Ltd.
  • Dalian Insulator Group Co., Ltd.
  • Suzhou Taihu Electric New Materials Co., Ltd.
  • Coveme SpA

Report Coverage

Market Forecast, Brand Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, Strategic Growth Initiatives

Customization & Pricing

Available upon Request

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Electrical Insulation Materials Markey by Category

By Material Type:

  • Thermoplastics
    • Polyethylene
    • PVC
    • Others
  • Thermosets
    • Epoxy Resin
    • Silicone Rubber
    • Polyimide
    • Others
  • Ceramics
  • Fiber Glass
  • Mica
  • Cellulose
  • Cotton
  • Others

By Application:

  • Power Transformer
  • Distribution Transformers
  • Electrical Motors & Generators
  • Wires & Cables
  • Switchgears
  • Batteries
  • Others

By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia and Pacific
  • Middle East and Africa

Key Questions Answered in the Report

What is the current electrical insulation materials market value?

The electrical insulation materials market reached a valuation of US$ 9.41 Bn in 2021.
The electrical insulation materials market grew at a 3.2% CAGR between 2016 and 2020.
Improvising polyethylene insulations, increasing focus of R&D on energy saving manufacturing process of cellulose insulations, along with innovative product launches are driving the sales of electrical insulation materials.
North America electrical insulation materials market is projected to grow at an impressive 6.3% CAGR during the forecast period.
Electrical insulation materials market in East Asia is anticipated to hold a market share of 30.5% by the end of 2031.
The U.S. is anticipated to hold a market share of 17.1% in the global electrical insulation materials market.

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