Electrical Insulation Materials Market Size, Share, and Trends 2024 to 2033

Electrical Insulation Materials Market Size and Manufacturers

The global electrical insulation materials market size was valued at USD 11.27 billion in 2023 and is anticipated to reach around USD 21.44 billion by 2033, growing at a CAGR of 6.64% from 2024 to 2033. The expansion of power-producing industries and the rise in global electricity consumption are major growth factors in the electrical insulation materials market.

Key Takeaways

• North America led the market with the biggest market share of 35% in 2023.
• Asia Pacific is expected to show notable growth in the global market during the projected period. 
• By type, in 2023, the thermoplastic segment has contributed more than 34% of market share in 2023.
• By application, the power transformers segment has recorded more than 27% of market share in 2023.
• By application, the electrical motors and generators segment is expected to show notable growth during the projected period.

Electrical Insulation Materials Market Size in U.S. 2024 to 2033

The U.S. electrical insulation materials market size was estimated at USD 2.76 billion in 2023 and is projected to surpass around USD 5.25 billion by 2033 at a CAGR of 6.70% from 2024 to 2033.

Considering North America, the U.S. was estimated to be the largest contributor to the electrical insulation materials market in 2023. The United States is ready to witness growing infrastructure investments, with a focus on innovating its old electrical grids and expanding its energy resources. These will also fuel the demand for advanced electrical insulation materials. Moreover, the rising emphasis on energy efficiency combined with the market's rising focus on environment-friendly insulation solutions can drive market growth.

Asia Pacific is expected to show notable growth in the global market during the projected period. The region's growth is fueled by rapid urban development, rising energy usage, and the expansion of electrical infrastructure. Increased demand for high-voltage equipment, renewable energy initiatives, and advancements in technology are driving market growth. Moreover, strict safety standards and the requirement for dependable power distribution systems are also contributing to the demand for effective electrical insulation materials in the region.

Electrical Insulation Materials Market Overview

Electrical insulation materials are barriers for electric current, stopping it from flowing where it shouldn't and ensuring electrical systems work safely and efficiently. These materials have special qualities like being strong against electricity, not conducting electricity well, and staying stable even at high temperatures. They're important because they keep wires and parts separate, preventing problems like short circuits or leaks. Plus, they can handle changes in temperature, exposure to chemicals or water, and physical stress.

Electrical insulation materials are crucial in many areas, from transmitting power to electronics, cars, and planes, making sure electricity works reliably, and protecting people and equipment from electrical dangers. Surge protection devices are also important, they're guards that shield electrical setups from sudden changes in voltage, and they use insulation materials to do their job. Most of the materials used in these devices are also common in household applications.

Growth Factors

• Rising interest and demand for electric cars by consumers is driving the growth of the electrical insulation materials market.
• Increasing government investment in the building of transformers, towers, electric poles, and others fuels the market growth.
• Manufacturers' rise in safety concerns is also one of the major factors contributing to the growth of the electrical insulation materials market.
• The growing power generation operations in developing countries can create market opportunities in the future.
• The rise in demand for industrial and residential insulation further boosts the growth of the electrical insulation materials market.

Electrical Insulation Materials Market Scope

Electrical Insulation Materials Market Dynamics

Driver: Rising interest in electric cars

Electrical insulation materials play a crucial role in electric vehicles (EVs) by shielding electronic parts and reducing electrical conductivity. The demand for EVs is rising due to the focus on fuel efficiency, emissions targets, and shifting consumer preferences toward sustainability. These materials are essential as they prevent electricity from leaking out of power lines, thereby averting potentially catastrophic electric shocks. This creates a steady demand for the electrical insulation materials market.

Each year, electric shocks cause nearly 1,000 fatalities in the United States alone, leading to severe conditions like brain paralysis and heart muscle failure. Also, increased government investment in electric infrastructure construction, such as poles, towers, switches, and transformers, is driving the growth of the electrical insulation materials market.

• In March 2024, BMW launched the iX xDrive50 in India, priced at Rs 1.39 crore, ex-showroom. The new all-electric iX xDrive50 will be available at all BMW showrooms and sold in India as CBUs. It has a range of 635 km and can be charged in 35 minutes.

Restraint: Stringent government regulations

The growth of the electrical insulation materials market is impeded due to strict environmental regulations and sustainability concerns. Industries are focusing more on adopting environmentally friendly practices and materials as general awareness related to environmental issues intensifies. This shift leads to the limited use of insulation materials, which contain hazardous chemicals and have a negative ecological impact globally during generation, use, or disposal.

Materials used for electrical insulation production include ceramics, mica, cellulose, and others. Some of them are crude oil-based products; hence, their high cost can also affect the manufacturing of electrical insulators, which can hamper the growth of the electrical insulation materials market.

Opportunity: Rapid urbanizations

The electrical insulation materials market is experiencing growth due to rapid urbanization and the expansion of construction industries. North America and Europe are expected to see increased demand for re-insulation, which boosts market growth globally. The expansion of transmission and distribution networks is also driving market growth, as these networks facilitate the smooth flow of electricity through various devices like generators and transformers.

Another significant factor contributing to the growth of the electrical insulation materials market is the rise in production and adoption of protection devices. Moreover, the expansion of power generation sectors and the growing use of electricity worldwide are also fueling demand for electrical insulation materials.

Type Insights

The thermoplastic segment dominated the electrical insulation materials market share in 2023 and is expected to continue this dominance over the forecast period. These materials can be molded into different shapes and extruded into films and fibers. This is because of the physical properties of these materials, such as low melting point, moldable, flexible, strong, recyclable, and durable. Examples of thermoplastic materials are polyesters, polyvinyl chloride, polyamides, polyethylene, and polystyrene.

• In November 2023, Audia Elastomers, a global supplier of innovative elastomer materials, launched its OP line of thermoplastic elastomers (TPEs) based on marine waste plastics. The OP line of elastomer materials includes products with up to 45% marine waste and 70% total recycled material content in a wide range of hardness from 35 Shore A to 95 Shore A.

Application Insights

The power transformers segment dominated the electrical insulation materials market in 2023 and is predicted to grow at a lucrative pace over the forecast period. This is attributed to rising infrastructural spending, increasing investment by market players in the expansion of transmission, and growing electricity demand. Additionally, the increase in focus on renewable electric power generation and the replacement of current old power transformers are some major factors anticipated to fuel segment growth over the forecast period.

• In February 2023, one of the leading players in the manufacturing and supply of power conditioning equipment and power transformers, Servokon, is all set to exhibit its energy prowess by showcasing a power transformer with a massive capacity of 16,000 KVA at Elecrama 2023.
• In May 2022, Krempel GmbH announced that Nomex 910, which DuPont previously developed, will now be produced and sold by Krempel. The product is a unique insulating material comprised of high-quality electrical grade cellulose pulp and web-like binders that can be used as interlayer insulation in liquid-immersed transformers for distribution and small power transformers.

In the electrical insulation materials market, the electrical motors and generators segment is expected to show notable growth during the projected period. The rise in supply and demand for electricity is augmenting the segment's growth. Also, the improved efficiency and inexpensive services provided by electric generators are boosting the segment's growth further during the forecast period.

Recent Developments

• In July 2023, Tesa (Beiersdorf AG) announced the launch of its new high-performance electrical insulation tape, Tesa 61395. The tape is made of a new, high-tech material that provides superior insulation and adhesion. It is also more flexible and durable than traditional electrical insulation tapes.
• In April 2022, Von Roll announced the expansion of its business of potting resins by expanding its production site in Italy, which will help the company in the automotive and electronics industries. Potting resins are essential in developing particularly high-performance batteries for electric cars. 
• In February 2022, Recticel Insulation announced that it had received the Programme for the Endorsement of Forest Certification (PEFC) for its multilayer thermal insulation products. The company claims that it is the first polyisocyanurate (PIR) and polyurethane (PUR) producer to do so.

Electrical Insulation Materials Market Companies

• 3M Company (U.S.)
• Nitto Denko Corporation (Japan)
• Achem Technology Corporation (Taiwan)
• Tesa SE (Germany)
• Intertape Polymer Group Inc. (Canada)
• Scapa Group plc (UK)
• Avery Dennison Corporation (U.S.)
• Shurtape Technologies, LLC (U.S.)
• HellermannTyton Group PLC (UK)
• Teraoka Seisakusho Co., Ltd. (Japan)
• Shanghai Yongguan Adhesive Products Corp., Ltd. (China)
• Coroplast Fritz Müller GmbH & Co. KG (Germany)
• Advance Tapes International Ltd. (UK)
• Shanghai Huaxiang Adhesive Products Co., Ltd. (China)
• Guangzhou Broadya Adhesive Products Co., Ltd. (China)
• PPM Industries S.p.A. (Italy)
• Pro Tapes & Specialties, Inc. (U.S.)

Segments Covered in the Report

By Type

• Thermoplastic
• Thermosets
• Epoxy Resin
• Silicone Rubber
• Polyimide
• Ceramics
• Fiberglass
• Mica
• Others

By Application

• Power Transformers
• Distribution Transformers
• Electrical motors and Generators
• Wires and Cables
• Switchgear
• Batteries
• Circuit Breakers
• Others

By Geography

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