Electrical Insulation Materials Market - Forecast(2023 - 2028)

Electrical Insulation Materials Market Overview

Electrical Insulation Materials Market size is forecast to reach US$12.7 billion by 2027, after growing at a CAGR of 4.8% during 2022-2027. Electrical insulation materials are materials generally manufactured from thermoplastics, thermosets, ceramics, fiberglass and others. These materials do not allow electricity to pass through them and protect the electrical equipment from high voltages. Electrical insulation materials are used in different electrical equipment such as generators, electrical rotating machines, shackles, pin insulators, transmissions and transformers among others. The rapid urbanization along with industrialization is one of the major factors driving the market for electrical equipment which is further driving the market for electrical insulation materials. Increased demand of electricity in emerging nations expanding the Electrical Insulation Materials market size during the forecast period. Porcelain in one of the insulation materials used in electrical shackles and pin insulators. However, the fluctuation in raw material prices may hamper the electrical insulation materials industry during the forecast period. The COVID-19 outbreak led to major economic problems and challenges for the electrical insulation materials industry globally. Governments all across the globe announced strict measures to slow the spread of the coronavirus and only the production of essential commodities was allowed, which impacted the non-essential commodity industries, thereby impacting the production of electrical insulation materials.

Electrical Insulation Materials Market Report Coverage

The “Electrical Insulation Materials Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Electrical Insulation Materials industry.

Key Takeaways

• The Asia Pacific region is expected to grow at a high CAGR 0f 5.8% during the forecast period. One of the key drivers driving the market is rapid industrialization and urbanization.
• The growing safety measures among electrical equipment are expanding Electrical Insulation Materials Market size during the forecast period.
• However, fluctuating oil prices and raw material prices are likely to hamper the market growth during the forecast period.
• A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Electrical Insulation Materials Market Report.

Figure: Asia Pacific Electrical Insulation Materials Market Revenue, 2021-2027 (US$ Billion)

For More Details On this report - Request For Sample 

Electrical Insulation Materials Market Segment Analysis – By Material Type

The thermosets segment held the largest share with 28% in the Electrical Insulation Materials industry in 2021 and are anticipated to grow at a significant CAGR during the forecast period 2022-2027. Thermoset insulations are generally made of a material that gains strength when heated. Thermoset insulations offer higher tolerance to high temperatures compared to other materials such as thermoplastics. Thermosets such as silicone rubber, epoxy resin and polyimide are widely preferred for electrical insulation. According to the data published by ANRPC (Association of Natural Rubber Producing Countries), the global production of natural rubber (NR) posted a 13.6% growth, year-on-year, amounting to 941,000 tons in 2021. While the global demand for NR is estimated at a 0.3% growth, year-on-year, to 1.210 million tons in 2021. Hence the growing production and consumption of rubber is driving the market for electrical insulation materials market during the forecast period.

Electrical Insulation Materials Market Segment Analysis - By Application

The wires and cables segment held the largest share of 30% in the Electrical Insulation Materials industry in 2021 and is anticipated to grow at a significant CAGR during the forecast period 2022-2027. Wires and cables are the majorly used electrical companies in the power industry. Different types and ranges of wires and cables are used for residential, commercial and industrial segments. The growing power industry is driving the demand for the wires and cables segment during the forecast period. In July 2021, the US Senate passed a massive US$550 billion clean energy investment bill, a plan dubbed a “once-in-generation investment” by the White House to dramatically improve the US’s clean energy landscape. According to the ACPA, by the end of 2020 the US had nearly 90GW of renewable power infrastructure under development, worth around $120bn in new investment. Hence the growing investment in energy sector is driving the market for electrical insulation materials.

Electrical Insulation Materials Market Segment Analysis – By Geography

The Asia Pacific region dominated the Electrical Insulation Materials industry in terms of revenue with a share of 43% in 2021 and is projected to dominate the market during the forecast period (2022-2027). The presence of key manufacturers including, DuPont Teijin Films, Nitto Denko Corporation and Vitar Insulation Manufacturers Ltd, are driving the market growth for Electrical Insulation Materials in the Asia Pacific region. The presence of abundant raw materials and increasing production of thermosets and thermoplastics in the region is also driving the demand for electrical insulation materials. The growing investments in energy sector along with rapid industrialization in China and India is supporting the regional growth. According to Indian Government, in 2021-22, the manufacturing sector is expected to grow by 12.5%, mining and quarrying by 14.3 percent, construction by 10.7 percent and electricity, gas and water supply by 8.5% in India. Hence the growth in these sectors will drive the demand for electrical insulation materials market during the forecast period.

Electrical Insulation Materials Market Drivers

Increased Demand of Electricity

Electrical is the major energy source used globally for different operations. The growing adoption of electrical equipment in both household and industrial applications is one of the major factors driving the market for electricity which is further driving the market for electrical insulation materials. According to International Energy Agency, global electricity demand is set to grow by close to 5% in 2021 and 4% in 2022. According to ICRA Ltd, India’s electricity demand is expected to grow 8-8.5% in 2022. They also mentioned India electricity demand during the period from April 2021 to September 2021 has increased by 12.7% to 707 billion units (BU). The growing industrialization in India is one of the major factors driving the demand for electricity which is further driving the for electrical insulation materials during the forecast period.

Increasing Infrastructure Activities In Emerging Economics

Electrical Insulation Materials such as thermoplastics, thermosets, ceramics and porcelain are used as important materials in the manufacturing of different electrical components. These materials are used to manufacture different types of components such as power transformers, distribution transformers, electrical motors & generators, wires & cables, switchgear, batteries, circuit breakers, shackle, pin insulators and others. These components are extensively used in the infrastructure activities such as residential construction, commercial and industrial construction. The growing safety measures along with the increasing installation of safety components in the construction industry is driving the market for electrical insulation materials during the forecast period. In November 2021, the Asian Development Bank (ADB) has approved a US$250-million loan to support the development of the National Industrial Corridor Development Programme (NICDP). This is a part of the US$ 500-million loan to build 11 industrial corridors in 17 Indian states. According to the data published by U.S. Council of Foreign Relations, In November 2021, Congress approved a historic investment in U.S. infrastructure that included hundreds of billions of dollars in new spending. These are some of the major factors driving the market for electrical insulation materials market during the forecast period.

Electrical Insulation Materials Market Challenges

Volatile Prices Of Insulation Materials

The materials required for the processing and production of Electrical Insulation include materials including thermosets, thermoplastics, ceramics, fiberglass, mica, porcelain, cellulose and cotton among others. Thermosets and thermoplastics are crude oil-based products hence the fluctuations in pricing and availability of crude oil will hamper the prices of polymers. The pricing also depends on various external factors such as logistics, labor cost, trading cost and tariffs among others. The covid-19 and Russia -Ukraine war have led to production and supply chain problems which have further impacted the electric insulation materials market. Hence these are some of the challenges hampering the market growth for electrical insulation materials during the forecast period.

Electrical Insulation Materials Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Electrical Insulation Materials Market. The top 10 companies in the Electrical Insulation Materials Market include:

1. Nitto Denko Corporation
2. 3M Company
3. E. I. DuPont de Nemours and Company
4. The Dow Chemical Company
5. Showa Denko Materials Co., Ltd. KREMPEL GmbH
6. ITW Formex
7. Elantas GmbH
8. Nikkan Industries Co., Ltd
9. Dr. Dietrich Müller GmbH

Recent Development

• 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.

Relevant Reports

Insulation Materials Market – Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis
Report Code: CMR 11623

Polyethylene Insulation Materials Market – Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis
Report Code: CMR 78483

High Temperature Insulation Materials Market – Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis
Report Code: CMR 52145

 For more Chemicals and Materials Market reports, please click here