Electrical Insulation Materials Market Size, Forecast [2031]

Report Description

The Global Electrical Insulation Materials Market size was valued at USD 9.98 Billion in 2022 and is expected to surpass USD 17.15 Billion by 2031, expanding at a CAGR of 6.2% during the forecast period, 2023 – 2031. The growth of the electrical insulation materials market is attributed to the growing demand for electrical insulation products to reduce energy consumption.

Insulation can be referred to as an object or a material, which is used to prevent the transfer of heat, electricity, or sound from one conductor to another. Conductors are called conductors, as they conduct or stream electric current or electrons easily through them. Most metals are good conductors of electric flow. These metals include copper, gold, silver, and aluminum. Copper is a popular metal for conductors as it is inexpensive and streams electricity well. Insulators work the opposite of conductors. These insulation materials do not let electric current flow as easily as conductors.

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Atoms in insulators are tightly connected and cannot be moved easily. Insulation materials have high resistance to electrons than conductors. Non-metal materials are examples of insulators. Electrical insulations are certain materials used to hold conductors in their position, which separates them from one another and the surrounding structures.

Electric insulation materials are used to coat wires, which pass electricity. These materials are used as dielectric in capacitors as well. Dielectric materials are insulation materials, which are polarized in the presence of the electrical field. It assists in reducing the magnitude of an electric field between two charged plates in the capacitors. Some examples of electrical insulation materials are glass, polymer, porcelain, epoxy resin, ceramic, thermoplastic, and others. Air is considered an electrical insulator as well. Air can handle high voltage; therefore, electricity doesn’t jump through the air.

A properly installed insulation system offers several long-term benefits. These materials facilitate the reduction in energy costs, enhance the appearance of wires and cables, and improve the performance of electrical devices. Electrical insulation materials significantly reduce energy costs. A huge amount of energy is lost through hot pipes & surfaces, bare pipes, uninsulated valves, and defective insulation. However, with proper insulation the heat and energy loss is reduced by around 20 times.

Insulation covers exposed wires and cables that give a finished look to the houses, buildings, and others. Properly insulated wires and cables facilitate a reduction in the cost, size, and space required for various types of equipment and devices. Insulating wires and cables reduce noise levels, prevent moisture condensation, and reduce emissions of pollutants. Electrical insulation materials absorb sounds, which improves the work environment. Noises produced by various appliances, pipes, heating systems, radios, and others cause dissatisfaction in workplaces.

Insulation materials are used to enclose the noise-generating sources to reduce noise pollution. These materials are used to keep surfaces above dew points, prevent molds & mildew, and prevent moisture damage. Well-insulated systems aid in greenhouse gas reduction. Insulation materials reduce energy consumption and decrease the amount of polluting gases such as sulfur dioxide, carbon dioxide, and others. Electrical insulation materials are used in wires, cables, and surfaces to protect workers and other people from any harm or injury. These materials reduce the temperature of equipment and devices to increase safety.

Electrical Insulation Materials Market COVID Impact

The COVID-19 pandemic situation affected negatively the global electrical insulation materials market. The pandemic impacted several industries across the globe and affected several businesses, households, financial institutions, and infrastructure companies. The spread of the pandemic across the globe resulted in the lockdown, social distancing, travel ban, and other restrictions worldwide.

Construction activities stopped around the world during the pandemic. This resulted in a decrease in electrical insulation material production and trade, which negatively impacted the revenue of the global electrical insulation materials market. During that time, procurement of raw materials proved to be challenging, due to disruption in logistics. Lack of skilled labor and other government restrictions had an adverse impact on the development of the electrical insulation materials market.

Electrical Insulation Materials Market Dynamics

The global electrical insulation materials market research report presents a complete overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global electrical insulation materials market report has up-to-date insights about recent developments, market dynamics, and market scenarios that can shape the overall market performance and output during the forecast period, 2022 to 2030.

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Electrical Insulation Materials Market Major Trends

Increasing usage of thermoplastic in electrical insulation is one of the key trends

Thermoplastic is considered a cost-effective option for electrical insulation materials. They are more inexpensive than the traditional insulation materials such as ceramics, glass, and others. Thermoplastic is progressively getting adopted in the production of electrical insulation, as the material withstands harsh environmental conditions and provides effective performance. Electrical insulation materials manufacturers are increasingly using thermoplastic in electrical insulation, which is one of the key electrical insulation materials market trends.

Key Drivers

Rapid urbanization and infrastructure growth drive the market growth

Rapid urbanization and growth in infrastructure across the globe are projected to propel the electrical insulation materials market in the coming years. The growing population propels the demand for construction activities everywhere, especially in developing countries. The continuous development in various industries boosts rapid infrastructure growth. These factors boost the global electrical insulation materials market.

Rising need for sustainable electronics boosts the market growth

High-quality electrical insulation facilitates the increased life and improved performance of electronic devices. The electrical insulation materials used in different types of wires, cables, and others assist in conserving energy. Therefore, increasing demand for sustainable electronics is estimated to drive the electrical insulation materials market in the coming years.

Existing Challenges

Unstable material prices restrain the market growth

Prices of materials used in electrical insulation are the key factors determining the whole cost of electrical wires, cables, and others. Technological advancements, availability of materials, government regulations, and others are the major factors contributing to price changes. Fluctuations in the prices of materials are expected to hamper the growth of the global electrical insulation materials market in the coming years.

Emerging Opportunities

Rapid growth in the construction industry offers growth opportunities

The construction industry is expected to witness significant growth in the coming years. The growing population and rapid urbanization have fueled the demand for rapid growth in construction activities across developing countries such as India, China, South Korea, and others. These countries witness an increase in construction activities of commercial and residential buildings. The consistent requirement for modern construction practices to adopt high-quality electrical insulation offer growth opportunities to the key electrical insulation materials market players.

Scope of Electrical Insulation Materials Market Report

The report on the global electrical insulation materials market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Electrical Insulation Materials Market Segment Insights

Polymer segment holds a key market share

In terms of types, the global electrical insulation materials market is divided into glass, polymer, porcelain, epoxy resin, ceramic, thermoplastic, and others.

The polymer segment is expected to expand rapidly during the forecast period, as the polymer is the most widely used electrical insulation material. The polymer has a high resistance to current leakage, which makes it an appropriate choice for electric cables and power lines. It is used in different forms such as extruded sheets and other molded shapes that are fitted around cables and wires.

Polymer is used in cables and wires as a safety measure for workers handling them for repair or installation. These are the key factors, which aid the expansion of the polymer segment in the coming years.

The glass segment is estimated to hold a large market share in the coming years, as this electrical insulation material can be produced in various shapes and thicknesses. Glass as an electrical insulation material is used for various purposes such as automotive parts, and electrical components, building insulation, and others. These factors facilitate segment growth.

The thermoplastic segment is anticipated to register growth in the coming years, due to increasing demand for energy in developing countries such as India, China, and others. The growing investments in technology and development activities and increasing usage of household electrical appliances in developing countries boos the thermoplastic segment.

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High voltage segment holds a large market revenue share

In terms of voltage, the global electrical insulation materials market is segmented into high voltage, medium voltage, and low voltage. The high voltage segment is projected to hold a key market share in the coming years, as electrical insulators such as porcelain, glass, polymer, and others are used for high-voltage power transmission. Increasing usage of electricity across the globe is expected to drive the high voltage segment in the coming years.

Cables & transmission lines segment drives the electrical insulation materials market

Based on applications, the electrical insulation materials market is segregated into cables & transmission lines, domestic portable appliances, transformers & bushings, electronic systems, surge protectors & circuit breakers, rotating machines, power systems, and others. the cables & transmission lines segment is projected to expand during the forecast period, due to the growing demand for electricity in every corner of the world. Growing usage of generators, transformers, and others, where electricity passes through transmission wires and cables to the other devices, is anticipated to fuel the segment growth in the coming years.

The domestic portable appliances segment is anticipated to hold a key market share in the coming years, due to rapid urbanization, increasing population, and rising disposable income among consumers. Increasing demand for innovative portable appliances that facilitate consumers to spend less time doing household chores and continuous developments of such innovative appliances are the key factors boosting the domestic portable appliances segment.

Construction segment registers a rapid growth

In terms of end-users, the global electrical insulation materials market is divided into automotive, construction, energy, and others. The construction segment is expected to hold a significant market share in the coming years, as electrical insulation is mainly used to cover steel and concrete frameworks to prevent electricity from flowing through them. This ensures that workers working around such frames are not harmed.

The automotive segment is estimated to witness rapid growth in the coming years, as high-quality insulated wires are used in vehicles to prevent potential hazards such as short circuits and electrostatic discharges. Using high-quality insulated wires ensures the safety of passengers on board. Electrical insulators protect against low-frequency currents and leakage of electricity. These are the key factors that drive the automotive segment growth.

The energy segment is anticipated to expand in the coming years, as electrical insulation materials are used to reduce excess power consumption to prevent voltage leaks and electric socks. Electrical insulators have qualities of vibration damping, heat insulation, and noise reduction, which increases their demand in the energy industry. These factors aid in the expansion of the energy segment.

Asia Pacific to dominate the global market

Based on regions, the global electrical insulation materials market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.

The electrical insulation materials market in Asia Pacific is expected to register a high CAGR in the coming years, owing to rapid industrialization in countries such as India, China, South Korea, and Japan. The power sector in Asia Pacific is estimated to develop at a significant pace, due to increasing power consumption for various household applications and growing household incomes.

Energy consumption of the region is anticipated to expand by more than 45% in the coming years, with China contributing around 30% of the global energy surge. The growing number of various industries, rising usage of electricity in various industries, increasing population, and rising demand for electronics and electrical products in countries such as India, South Korea, Japan, and China are projected to boost the electrical insulation materials market in Asia Pacific in the coming years.

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