The market for electrical insulation material is expected to grow at a CAGR of more than 6% globally during the forecast period. Increasing the need for electricity transmission and distribution to various places in different regions across the world are driving the market growth. The impact of the COVID-19 is expected to hinder the market growth.
Key Market Trends
Growing Demand from Electricals
- Electrical Insulation Materials are the materials that don’t allow electricity to pass through them. Electrical insulation materials majorly find their application in generators, electrical rotating machines, transmissions, and transformers, among others.
- Electricity passes through transmission cables to various places from power generation sectors. Power generation industries include generators, transformers, and rotating machines. Insulation materials help to pass electricity without disturbance or wastage of energy inside the machines.
- Surge protection devices are the components of the electrical installation protection systems that contain insulation materials majorly help from voltage fluctuations. The materials used for surge protection purposes are majorly employed in domestic applications.
- The demand for insulation materials has been increasing steadily due to expansion in power generation sectors and the rise in electricity usage in every region around the world. Regions, such as Africa, have been experiencing a significant rise in the demand for electricity in recent years.
- According to the International Energy Agency, Africa has been witnessing rapid growth in industrialization and population lately.
- The global annual solar power production is estimated to reach 500GW by 2020, from 40.134 GW in 2014, making the solar power market one of the fastest-growing ones with South Africa being in the forefront in terms of power generation capacity growth.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region is expected to dominate the global market owing to the highly developed power sector, and rapid industrialization witnessed in China and India, in the energy services sector recently.
- The demand for electricity in the region is estimated to increase further because of rising household incomes and increase power consumption in various applications.
- Rotating electric machines that convert electrical energy into mechanical energy use insulation materials for better transmission of electricity inside the parts of machines without passing through materials.
- The energy consumption in Asia-Pacific is expected to grow by 48% over the next three decades. According to IEA, China alone is expected to contribute to 30% of the world’s energy increase until 2023.
- According to the International Energy Agency (IEA), Asia-Pacific is the largest region in the consumption of electricity because of the heavy population, plenty of resources, and the abundant number of industries in China, India, South Korea, and Japan.
- Increasing usage of electricity in industries and growing electronics and electricals production are expected to drive the market for electrical insulation material through the years to come in the Asia-Pacific region.
The global electrical insulation material market is fragmented in nature, with many players competing in the market. Some of the major companies are General Electric, Owens Corning, ABB, Siemens, and Huntsman, among others.
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