Electrical Insulation Materials Market Forecasts to 2028 – Global Analysis By Type (Ceramic, Thermoplastics, and Other Types), Voltage (Low Voltage, Medium Voltage and High Voltage), Application and By Geography

Electrical Insulation Materials Market Forecasts to 2028 – Global Analysis By Type (Ceramic, Thermoplastics, and Other Types), Voltage (Low Voltage, Medium Voltage and High Voltage), Application and By Geography

According to Stratistics MRC, the Global Electrical Insulation Materials Market is accounted for $10.6 billion in 2022 and is expected to reach $17.0 billion by 2028 growing at a CAGR of 8.2% during the forecast period. Electrical insulation products are typically made from thermoplastics, thermosets, ceramics, fibreglass, and other materials. These materials shield the electrical equipment from high voltages by not allowing electricity to travel through them. Electrical insulation materials are utilised in a variety of electrical devices, including transformers, shackles, pin insulators, transmissions, and generators.

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.

Market Dynamics:

Driver:

Increasing infrastructure activities in emerging economics

Electrical insulating important materials utilized for the production of various electrical components include thermoplastics, thermosets, ceramics, and porcelain. Power transformers, distribution transformers, electrical motors and generators, wires and cables, switchgear, batteries, circuit breakers, shackles, pin insulators, and other components are made from these materials. These parts are widely employed in infrastructure-related projects like residential, commercial, and industrial building. During the projection period, the market for electrical insulating materials will be driven by the expansion of safety measures and the increased installation of safety components in the construction sector.

Restraint:

Rising number of low-quality grey market products

Organized and unorganized players/sectors coexist in the electric insulator market. While unorganised firms offer less expensive alternatives to build their market presence and break into local markets, organised players primarily target industrial buyers and maintain excellent product quality. Leading market companies are struggling against fierce competition from unorganised players who offer inexpensive, subpar goods. These market participants from the unorganised sector are able to defeat the major firms due to their price parity and ability to maintain local supply networks. As low-quality products are marketed under the brand names of the industry leaders, the growth in sales of electric insulators on the grey market denigrates their reputations.

Opportunity:

HVDC transmission for long distance transmission lines

Renewable energy sources are frequently found far away from inhabited regions. These situations involve the utilisation of HVDC wires. To provide minimal losses and fault protection, these transmission lines require steady and ongoing system monitoring. They are the method for long-distance electrical transmission that is most effective. For HVDC cables, insulation materials may also be employed below ground or on the seafloor. It is anticipated that initiatives like NordLink in Europe will link Germany and southern Norway. A important component of Germany's energiewende (plan for environmentally sustainable energy supply) is the HVDC cable projects.

Threat:

Volatile prices of insulation materials

Materials including thermosets, thermoplastics, ceramics, fibreglass, mica, porcelain, cellulose, and cotton are among those needed for the processing and fabrication of electrical insulation. Since thermosets and thermoplastics are made from crude oil, changes in the price and supply of crude oil will have an adverse effect on the cost of polymers. Pricing is also influenced by a number of outside variables, including tariffs, labour costs, trade costs, and logistics. The market for electric insulation materials has been further disrupted by production and supply chain issues brought on by COVID-19 and the Russia-Ukraine conflict. Thus, these are a few of the issues impeding the expansion of the market for electrical insulating materials throughout the anticipated year.

Covid-19 Impact

Since the COVID-19 viral outbreak in December 2019, the disease has spread to practically every country, causing the World Health Organization to designate it a public health emergency. The coronavirus disease 2019 (COVID-19) is already having an influence on the world, and in 2020, it will have a big impact on the market for electric motor insulating materials. The COVID-19 outbreak has had an impact on numerous things, including flight cancellations, travel bans, and quarantines; restaurants closing down; restrictions on all indoor and outdoor events; over forty countries declaring states of emergency; a significant slowdown in the supply chain; stock market volatility; declining business confidence; growing public panic; and uncertainty about the future.

The thermoplastics segment is expected to be the largest during the forecast period

The thermoplastics segment is estimated to have a lucrative growth. Thermoplastics like PE, PP, and PVC are among the crucial ones. These materials come in crystalline, amorphous, and semi-crystalline varieties. The global demand for thermoplastics is rising as a result of the rising energy consumption of developing economies. Thermoplastics' low cost, simple manufacturing method, and accessibility are other factors contributing to the increase in demand for thermoplastics for electrical insulation. Insulation made of thermoplastics is more resistant to high temperatures than insulation made of thermosets. For electrical insulation, thermosets like silicone rubber, epoxy resin, and polyimide are frequently chosen.

The cables and transmission lines segment is expected to have the highest CAGR during the forecast period

The cables and transmission lines segment is anticipated to witness the fastest CAGR growth during the forecast period. Transmission lines and cables are used to move the electricity produced in plants from one location to another. In order to bring power to rural areas, developing nations are increasing their grid infrastructure. Additional generation capacity expansions are anticipated to meet demand, and these additions are anticipated to call for new transmission and distribution infrastructure. As a result, the market for cables and transmission lines will see an increase in demand for electrical insulation materials.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the significantly improved electricity sectors and the quick industrialization of rising economies like India and China in the energy services industry, the Asia Pacific is anticipated to have considerable growth throughout the forecast period. Growing household earnings and rising power usage across a wide range of applications are driving up the region's need for electricity.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to its highly developed industrial sector, which is responsible for the region's highest energy usage. Additionally, strict laws pertaining to reduced energy usage and Greenhouse Gas (GHG) emissions are anticipated to spur market expansion. The usage of insulation with the goal of lowering energy consumption is anticipated to increase with the growing awareness of environmentally friendly construction techniques. It is projected that increasing industrial building will increase demand for industrial insulation. The scope of environmental legislation presents a significant obstacle in predicting changes in energy demand in the industrial sector.

Key players in the market

Some of the key players profiled in the Electrical Insulation Materials Market include DuPont, Krempel, Pucaro (ABB), Weidmann (WICOR Group), 3M, Elantas Electrical Insulation, Sichuan EM Technology, ISOVOLTA AG, Axalta (The Carlyle Group), Toray, Nitto Denko Corporation, Von Roll, Suzhou Jufeng and Zhejiang Rongtai.

Key Developments:

In May 2022, Krempel announced that Nomex 910, a unique insulating material comprised of high-quality electrical grade cellulose pulp developed by DuPont, would exclusively be produced, and sold through Krempel. This partnership is expected to strengthen Krempel’s market position in the electrical insulation materials market.

In April 2022, Von Roll planned to expand its site in Italy for the growing potting resin business in the automotive and electronic industries. This will expand production and warehouse capacities as well as R&D resources and set up a customer experience centre.

Types Covered:
• Ceramic
• Thermoplastics
• Thermosets
• Other Types

Voltages Covered:
• Low Voltage
• Medium Voltage
• High Voltage

Applications Covered:
• Electronics Systems
• Cables & Transmission Lines
• Domestic Portable Appliances
• Distribution Transformers
• Wires & Cables
• Switchgear
• Batteries
• Power Systems
• Circuit Breakers
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements