Electrical Insulation Coatings Market - Forecast(2024 - 2030)
Electrical Insulation Coatings Market Overview
The Electrical Insulation Coatings Market is
forecast to reach US$2.9 billion by 2027, after growing at a CAGR of 3.5% during
the forecast period 2022-2027. The types of coating that are
primarily used for electrical insulation include polytetrafluoroethylene, epoxy,
acrylic, ceramics, acetate, polyolefin, polystyrene, and other materials. It is
used in a wide range of industries such as Electrical & Electronics,
Automotive, Aerospace, Military & Defense, Solar, IT &
Telecommunication, and other end-use industries. In 2019, the Middle East Solar
Industry Association (MESIA) announced that at least US$ 15 billion of solar
power projects is expected to operate in the region in the next five years. The
increasing demand for electrical insulation coatings from the solar and automotive industries act as the major driver for the market. On the other hand, fluctuating
prices of raw materials may act as a major constraint for the market.
COVID-19 Impact
There is no doubt that the COVID-19 lockdown
has significantly reduced construction, and production activities which in
turn, has resulted in the country-wise shutdown of sites, shortage of labor, and the
decline of supply and demand chain all over the world, thus, affecting the
market. Studies show that the outbreak of COVID-19 sharply declined the
production of raw materials in 2020 due to a lack of operations across multiple
countries around the world. However, a slow recovery in the electronic industry has
been witnessed across many countries around the world since 2021. An increase
in work from home and e-learning practices during COVID-19 has significantly
led to high demand for laptops, tablets, and smartphones which have resulted
in the higher production of these electronics. For instance, according to the Retailers Association of India (RAI), consumer electronics net sales increased
by 2 % in September and 8% in October 2020, in comparison to 2019, owing to the
increase for electronic devices for remote practices during COVID-19.
In this way, a slow and steady increase in
electronics production activities will require the use of Electrical Insulation
Coatings like polytetrafluoroethylene, epoxy, acrylic, ceramic, acetate,
polyolefin, and polystyrene for the insulation of electric wires, batteries, and
other electrical components in these gadgets. This will eventually lead to an
increase in demand for electrical insulation coatings which indicates a slow
and steady recovery of the market in the upcoming years.
Report Coverage
The report: “Electrical Insulation Coatings Market – Forecast (2022-2027)”, by
IndustryARC covers an in-depth analysis of the following segments of the Electrical Insulation Coatings Industry.
By Material Type:
Epoxy, Polytetrafluoroethylene
(PTFE), Acrylic, Ceramic, Acetate, Polyolefin, Polystyrene, Polyurethane, PVC
(Polyvinyl chloride), Others.
By Product Type: Liquid, Powder, Others.
By End-Use
Industry:
Electrical & Electronics, Automotive, Aerospace, Military & Defense,
Solar, IT & Telecommunication, Others.
By Geography: North America (USA, Canada, and
Mexico), Europe (the UK, Germany, France, Italy, Netherlands, Spain, Russia,
Belgium, and the Rest of Europe), Asia-Pacific (China, Japan, India, South
Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and the Rest of
Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest
of South America), the Rest of the World (the Middle East, and Africa).
Key Takeaways
- The Electrical & Electronics industry in Electrical Insulation Coatings Market is expected to see the fastest growth, especially during the forecast period, owing to its increasing demand for insulation of electrical and electronic components from the industry.
- Epoxy material in Electrical Insulation Coatings Market is expected to see the fastest growth, especially during the forecast period, owing to its increasing demand and benefits over other types of electrical insulation coatings such as PTFE (polytetrafluoroethylene), ceramics, polystyrene, polyurethane, and other materials.
- Asia-Pacific
dominated the Electrical Insulation Coatings Market in 2021, owing to the
increasing demand for electrical insulation from the electrical & electronics,
and automotive sectors from the region.
Figure: Asia-Pacific Electrical Insulation Coatings Market Revenue, 2021-2027 (US$ Billion)
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Electrical Insulation Coatings Market Segment Analysis – By Material Type
The Epoxy material type held the largest share
in the Electrical Insulation Coatings Market in 2021 and is expected to grow
at a CAGR of 3.7% in the forecast period 2022-2027, owing to the increasing demand for epoxy
material due to the characteristics and benefits it offers over other types of
materials. For instance, it has a wide range of characteristics, easy
processing, corrosion resistance and they are less affected by heat, water, and
other factors as compared to PTFE (polytetrafluoroethylene), ceramics,
polystyrene, polyurethane, and other electrical insulation materials. Moreover,
epoxy resins are easier to process, have high strength, high mechanical
properties, low reduction during cure, good adhesion to all types of fibers, along
with excellent thermal resistance and electrical insulation, which makes it
ideal for use in electrical insulation coatings in comparison to other
materials. Hence, all of these factors are most likely to boost market
growth in the upcoming years.
Electrical Insulation Coatings Market Segment Analysis – By Product Type
The liquid coatings held a significant share
in the Electrical Insulation Coatings Market in 2021, owing to its increasing
demand due to the properties and advantages they offer. Liquid
coatings are beneficial and hold an advantage in humid environments compared to
powder coatings that are less effective in humid environments. The liquid
coatings provide excellent
adhesion properties, good resistance to heat and abrasion, require very little
time to dry, and can be applied to a wide range of surfaces and substrates as
opposed to powder coatings. Furthermore, liquid coatings are also available in low VOC (Volatile
Organic Compound) products, offer a wide range of color variations, and are
more economical and cost-effective in comparison to powder coatings. All
of these factors will eventually increase the demand for liquid coatings for electrical
insulation, thus, boosting the market growth.
Electrical Insulation Coatings Market Segment Analysis – By End-Use Industry
The Electrical & Electronics held the
largest share in the Electrical Insulation Coatings Market in 2021 and is
expected to grow at a CAGR of 3.9% in the forecast period 2022-2027, owing to the
increasing demand from electrical components used in electrical transmission
and distribution projects across the globe. For instance, according to NES
Fircroft, the U.S has invested around US$ 3 billion for its electrical
transmission and distribution project called the Euro-Asia Connector worth US$
4.1 billion in 2022. The project requires electrical insulation coatings for
the insulation of electric wires, cables, and other electronic components used
in the project. The project aims at building a cross-border electricity grid that
will be connected through bi-directional cables in order to provide a steady and
sufficient supply of electricity through national transmission operators.
Similarly, it further states the commencement of another electrical
distribution project called the Euro-Africa Connector worth US$ 4 billion. The
project is expected to begin in 2022 and aims at connecting Egypt, Cyprus, and
Greece through a 2,000MW electricity interconnector by the end of 2022. This, in
turn, will increase the demand for electrical insulation coatings required for the insulation
of electrical wires, cables, batteries, substrates, transformers, along with other
electrical components. This will most likely lead to the growth of the market
in the upcoming years.
Electrical Insulation Coatings Market Segment Analysis – By Geography
The Asia Pacific held the largest share in the
Electrical Insulation Coatings Market in 2021 up to 30%. The consumption of electrical
insulation coatings is particularly high in this region due to the increasing
demand for electrical insulation coatings from the electrical & electronics,
and automotive sectors. Electrical insulation coatings play a vital role in
these sectors since they are primarily used in electrical wires, cables,
batteries, substrates, and other electronic components along with automobile
batteries, switches, and other electrical components of the automobile in order
to prevent electrical leakage, short circuits and for providing good protection
of electrical components against moisture, corrosion, and abrasion. For
instance, recent insights from NES Fircroft states that the State Grid
Corporation of China (SGCC) has started a new power transmission and
distribution project worth US$ 33.7 billion in 2020 in order to meet the
increasing electricity demands in China. The project aims at building 12 electricity
transmission lines capable of connecting the coal production and hydropower
centers to the densely populated parts of the country.
According to a recent study published in the
Economic Times (Telecom) in 2021, electronic manufacturing and production are valued at around US$ 100 billion in India currently. It further states that mobile
manufacturing in India is estimated to surpass INR 90000 crore (US$ 12
trillion) by the end of 2021 as per the statement made by the Indian IT
Minister. Likewise, according to the annual reports published by Samsung during
the fourth quarter of 2020, the total revenue of the consumer electronics
division was valued at KRW 13.6 trillion (US$ 11.3 billion) with an operating
profit of KRW 0.8 trillion ($ 668 million).
A recent study published by the International
Netherlands Group (ING) states that the demand for the production and development
of Electric Vehicles has been increasing since the pandemic. It states that the
global sales of new Electric Vehicles have increased by 50% in 2021, and are
expected to increase by 8% in 2022. It further states that the sales of
Electric Vehicles have increased by 14% in Europe, 9% in China, and 4% in the
US.
Hence, an increase in demand for electricity, electronics devices, and automotive will require the use of electrical insulation coatings in electrical wires, cables, batteries, substrates along with automotive batteries, switches, and other electrical components of the automotive. All of these factors are most likely to lead to the growth of the Electrical Insulation Coatings Market.
Electrical Insulation Coatings Market Drivers
An increase in demand from the solar industry is most likely to increase demand for the product
The demand for electrical insulation coatings has
been increasing rapidly as it is primarily used for insulation
of solar wires and solar panels used during solar PV installations. According
to the Global Outlook for Solar Power Industry published by the Global Solar
Council, a total of 138.2 GW solar PV capacity was installed across the world
during 2020, which indicated an increase of 18% in comparison to 117.6 GW solar
in the year 2019. China was the leading country with 48.2 GW of solar PV
capacity installed in 2020. This is followed by the US with 19.3 GW, Vietnam
with 11.6 GW, Japan with 8.2 GW, and Australia with 5.1 GW of total solar PV
capacity installed by 2020. All of the top five leading countries saw an
increase in their annual growth rate in comparison to 2019.
In this way, an increase in demand for the use and
installation of solar PV capacity will also increase the demand for electrical
insulation coatings required for insulation of solar
wires and solar panels,
thus, leading to market growth in the forecast period.
An increase in demand from the automotive industry is most likely to increase demand for the product
According to a recent study published by the
German Association of Automotive Industry during the fourth quarter of 2020, the
new registration of motor vehicles reached up to 16,763 units in Europe, 37,467
units in Asia, 3080 units in South America, 17,421 units in North America,
12,733 units in Western Europe, and 5180 units in other regions worldwide. Likewise, a recent study published by the International Netherlands Group (ING) states that
the demand for the production and development of Electric Vehicles has been
increasing since the pandemic. It states that the global sales of new Electric
Vehicles have increased by 50% in 2021, and are expected to increase by 8% in
2022. It further states that the sales of Electric Vehicles have increased by
14% in Europe, 9% in China, and 4% in the US.
Hence, an increase in demand and production of
vehicles will also increase the demand for electrical insulation coatings required
for the insulation of automotive batteries and other electrical components of the
vehicle in order to prevent electrical leakage, short circuits and for
providing good protection of electrical components against moisture, corrosion,
and abrasion. This is most likely to drive the growth of the market in the
upcoming years.
Electrical Insulation Coatings Market Challenges
Fluctuating prices of raw materials can cause an obstruction to the market growth
Shortage and lack of availability of key raw
materials along with a significant increase in prices are causing disruption to
the coatings industries in the UK, Europe, and other regions across the world.
For instance, BCF’s monthly raw material prices survey shows a sharp increase
in prices for epoxy during the first quarter of 2021, an increase of 60% in
comparison to the third quarter of 2020. Other raw materials prices are also
expected to increase by 2022. Moreover, processing PTFE (polytetrafluoroethylene)
can be quite difficult and expensive, due to its high melting temperature, and
viscosity. Hence, fluctuating prices of such raw materials may confine the
market growth.
Electrical Insulation Coatings Market Landscape
Technology launches, acquisitions, and R&D
activities are key strategies adopted by players in the Electrical Insulation
Coatings Market. Electrical Insulation Coatings Market top companies are:
- 3M Company
- PPG Industries
- AkzoNobel
- DuPont
- Evonik Industries
- Axalta Coating Systems
- Elantas
- Sherwin-Williams
- Aremco Products
- Chemetall Group
- Fluoro Precision Coatings
Recent Developments
- In September 2021, SolEpoxy, a manufacturer of insulating coating powders, launched a new busbar coating powder for insulation of conductors in Electric Vehicles and its battery packs. This new insulation coating powder is tough, cost-effective, easy to use, and has high resistance to temperature.
Relevant Reports
Thermal
Insulation Coatings Market – Forecast (2021 - 2026)
Report Code: CMR 76397
Insulation
Coating Market – Forecast (2021 - 2026)
Report Code: CMR 0714
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LIST OF TABLES
1.Global Market Categorization 1:Product Estimate Trend Analysis Market 2023-2030 ($M)1.1 Electrical Insulation Coating Market By Product Market 2023-2030 ($M) - Global Industry Research
1.2 Liquid Market 2023-2030 ($M) - Global Industry Research
1.2.1 Market Estimate Forecast Market 2023-2030 ($M)
1.3 Powder Market 2023-2030 ($M) - Global Industry Research
2.Global Market Categorization 2:Raw Material Estimate Trend Analysis Market 2023-2030 ($M)
2.1 Electrical Insulation Coating Market By Raw Material Market 2023-2030 ($M) - Global Industry Research
2.2 Epoxy Market 2023-2030 ($M) - Global Industry Research
2.3 Polytetrafluoroethylene Market 2023-2030 ($M) - Global Industry Research
2.4 Ceramic Market 2023-2030 ($M) - Global Industry Research
3.Global Market Categorization 1:Product Estimate Trend Analysis Market 2023-2030 (Volume/Units)
3.1 Electrical Insulation Coating Market By Product Market 2023-2030 (Volume/Units) - Global Industry Research
3.2 Liquid Market 2023-2030 (Volume/Units) - Global Industry Research
3.2.1 Market Estimate Forecast Market 2023-2030 (Volume/Units)
3.3 Powder Market 2023-2030 (Volume/Units) - Global Industry Research
4.Global Market Categorization 2:Raw Material Estimate Trend Analysis Market 2023-2030 (Volume/Units)
4.1 Electrical Insulation Coating Market By Raw Material Market 2023-2030 (Volume/Units) - Global Industry Research
4.2 Epoxy Market 2023-2030 (Volume/Units) - Global Industry Research
4.3 Polytetrafluoroethylene Market 2023-2030 (Volume/Units) - Global Industry Research
4.4 Ceramic Market 2023-2030 (Volume/Units) - Global Industry Research
5.North America Market Categorization 1:Product Estimate Trend Analysis Market 2023-2030 ($M)
5.1 Electrical Insulation Coating Market By Product Market 2023-2030 ($M) - Regional Industry Research
5.2 Liquid Market 2023-2030 ($M) - Regional Industry Research
5.2.1 Market Estimate Forecast Market 2023-2030 ($M)
5.3 Powder Market 2023-2030 ($M) - Regional Industry Research
6.North America Market Categorization 2:Raw Material Estimate Trend Analysis Market 2023-2030 ($M)
6.1 Electrical Insulation Coating Market By Raw Material Market 2023-2030 ($M) - Regional Industry Research
6.2 Epoxy Market 2023-2030 ($M) - Regional Industry Research
6.3 Polytetrafluoroethylene Market 2023-2030 ($M) - Regional Industry Research
6.4 Ceramic Market 2023-2030 ($M) - Regional Industry Research
7.South America Market Categorization 1:Product Estimate Trend Analysis Market 2023-2030 ($M)
7.1 Electrical Insulation Coating Market By Product Market 2023-2030 ($M) - Regional Industry Research
7.2 Liquid Market 2023-2030 ($M) - Regional Industry Research
7.2.1 Market Estimate Forecast Market 2023-2030 ($M)
7.3 Powder Market 2023-2030 ($M) - Regional Industry Research
8.South America Market Categorization 2:Raw Material Estimate Trend Analysis Market 2023-2030 ($M)
8.1 Electrical Insulation Coating Market By Raw Material Market 2023-2030 ($M) - Regional Industry Research
8.2 Epoxy Market 2023-2030 ($M) - Regional Industry Research
8.3 Polytetrafluoroethylene Market 2023-2030 ($M) - Regional Industry Research
8.4 Ceramic Market 2023-2030 ($M) - Regional Industry Research
9.Europe Market Categorization 1:Product Estimate Trend Analysis Market 2023-2030 ($M)
9.1 Electrical Insulation Coating Market By Product Market 2023-2030 ($M) - Regional Industry Research
9.2 Liquid Market 2023-2030 ($M) - Regional Industry Research
9.2.1 Market Estimate Forecast Market 2023-2030 ($M)
9.3 Powder Market 2023-2030 ($M) - Regional Industry Research
10.Europe Market Categorization 2:Raw Material Estimate Trend Analysis Market 2023-2030 ($M)
10.1 Electrical Insulation Coating Market By Raw Material Market 2023-2030 ($M) - Regional Industry Research
10.2 Epoxy Market 2023-2030 ($M) - Regional Industry Research
10.3 Polytetrafluoroethylene Market 2023-2030 ($M) - Regional Industry Research
10.4 Ceramic Market 2023-2030 ($M) - Regional Industry Research
11.APAC Market Categorization 1:Product Estimate Trend Analysis Market 2023-2030 ($M)
11.1 Electrical Insulation Coating Market By Product Market 2023-2030 ($M) - Regional Industry Research
11.2 Liquid Market 2023-2030 ($M) - Regional Industry Research
11.2.1 Market Estimate Forecast Market 2023-2030 ($M)
11.3 Powder Market 2023-2030 ($M) - Regional Industry Research
12.APAC Market Categorization 2:Raw Material Estimate Trend Analysis Market 2023-2030 ($M)
12.1 Electrical Insulation Coating Market By Raw Material Market 2023-2030 ($M) - Regional Industry Research
12.2 Epoxy Market 2023-2030 ($M) - Regional Industry Research
12.3 Polytetrafluoroethylene Market 2023-2030 ($M) - Regional Industry Research
12.4 Ceramic Market 2023-2030 ($M) - Regional Industry Research
13.MENA Market Categorization 1:Product Estimate Trend Analysis Market 2023-2030 ($M)
13.1 Electrical Insulation Coating Market By Product Market 2023-2030 ($M) - Regional Industry Research
13.2 Liquid Market 2023-2030 ($M) - Regional Industry Research
13.2.1 Market Estimate Forecast Market 2023-2030 ($M)
13.3 Powder Market 2023-2030 ($M) - Regional Industry Research
14.MENA Market Categorization 2:Raw Material Estimate Trend Analysis Market 2023-2030 ($M)
14.1 Electrical Insulation Coating Market By Raw Material Market 2023-2030 ($M) - Regional Industry Research
14.2 Epoxy Market 2023-2030 ($M) - Regional Industry Research
14.3 Polytetrafluoroethylene Market 2023-2030 ($M) - Regional Industry Research
14.4 Ceramic Market 2023-2030 ($M) - Regional Industry Research
LIST OF FIGURES
1.US Electrical Insulation Coatings Market Revenue, 2023-2030 ($M)2.Canada Electrical Insulation Coatings Market Revenue, 2023-2030 ($M)
3.Mexico Electrical Insulation Coatings Market Revenue, 2023-2030 ($M)
4.Brazil Electrical Insulation Coatings Market Revenue, 2023-2030 ($M)
5.Argentina Electrical Insulation Coatings Market Revenue, 2023-2030 ($M)
6.Peru Electrical Insulation Coatings Market Revenue, 2023-2030 ($M)
7.Colombia Electrical Insulation Coatings Market Revenue, 2023-2030 ($M)
8.Chile Electrical Insulation Coatings Market Revenue, 2023-2030 ($M)
9.Rest of South America Electrical Insulation Coatings Market Revenue, 2023-2030 ($M)
10.UK Electrical Insulation Coatings Market Revenue, 2023-2030 ($M)
11.Germany Electrical Insulation Coatings Market Revenue, 2023-2030 ($M)
12.France Electrical Insulation Coatings Market Revenue, 2023-2030 ($M)
13.Italy Electrical Insulation Coatings Market Revenue, 2023-2030 ($M)
14.Spain Electrical Insulation Coatings Market Revenue, 2023-2030 ($M)
15.Rest of Europe Electrical Insulation Coatings Market Revenue, 2023-2030 ($M)
16.China Electrical Insulation Coatings Market Revenue, 2023-2030 ($M)
17.India Electrical Insulation Coatings Market Revenue, 2023-2030 ($M)
18.Japan Electrical Insulation Coatings Market Revenue, 2023-2030 ($M)
19.South Korea Electrical Insulation Coatings Market Revenue, 2023-2030 ($M)
20.South Africa Electrical Insulation Coatings Market Revenue, 2023-2030 ($M)
21.North America Electrical Insulation Coatings By Application
22.South America Electrical Insulation Coatings By Application
23.Europe Electrical Insulation Coatings By Application
24.APAC Electrical Insulation Coatings By Application
25.MENA Electrical Insulation Coatings By Application
26.Evonik Indutries Ag, Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.3M Company, Sales /Revenue, 2015-2018 ($Mn/$Bn)
28.Ppg Industry, Sales /Revenue, 2015-2018 ($Mn/$Bn)
29.Thermal Spray Coating, Sales /Revenue, 2015-2018 ($Mn/$Bn)
30.Gfe Group, Sales /Revenue, 2015-2018 ($Mn/$Bn)
31.Elantas Gmbh, Sales /Revenue, 2015-2018 ($Mn/$Bn)
32.Gls Coating Ltd, Sales /Revenue, 2015-2018 ($Mn/$Bn)
33.Sk Formulation Pvt. Ltd, Sales /Revenue, 2015-2018 ($Mn/$Bn)
34.Fluoro Precision Coating, Sales /Revenue, 2015-2018 ($Mn/$Bn)
35.Axalta Coating System, Sales /Revenue, 2015-2018 ($Mn/$Bn)
36.Akzonobel Powder Coating, Sales /Revenue, 2015-2018 ($Mn/$Bn)