APAC Electrical Insulation Materials Market Size (2023-2030)

APAC Electrical Insulation Materials Market is estimated to be worth USD 2.65 Billion in 2022 and is projected to reach a value of USD 4.29 Billion by 2030, growing at a fast CAGR of 6.2% during the outlook period 2023-2030.

Electrical insulators are critical in electrical systems for avoiding the flow of undesired current. They provide high resistance and inhibit the passage of electrical current. While no perfect insulator exists, their minimal charge carriers result in negligible leakage current. However, high voltage can cause all insulators to become conductive, leading to insulation breakdown. Effective insulating materials possess high resistivity and dielectric strength to withstand electric stresses. Insulating materials vary based on application, with flexible materials like rubber used for cables and mechanically strong materials like porcelain for overhead power lines. Important properties include resistivity, dielectric strength, relative permittivity, and electrical dissipation factor. Paper, mica, Teflon, rubber, plastic, PVC, glass, ceramic, and porcelain are examples of common materials.

Various types of electrical insulators are used, such as pin, suspension, strain, and shackle insulators for overhead power lines. Post-insulators are used in substations, while glass insulators have been largely replaced by ceramic and porcelain. Polymer insulators offer lighter weight and comparable strength to porcelain. Long rod insulators enhance strength by eliminating metal parts and stay insulators prevent wire falls in case of insulator breakage.

APAC Electrical Insulation Materials Market Drivers:

The increasing demand for nanocomposite materials is fueling the growth of the APAC electrical insulation materials market.

The motor output tends to increase owing to the increasing utilization of nanocomposite materials in electric motor insulation systems. The need for nanocomposite-based insulating materials in electric motors is anticipated to rise owing to its outstanding properties like volume resistivity, better space charge build-up, thermal conductivity, and direct current (DC) breakdown. Micro and nanotechnologies offer the potential to create advanced insulation systems specifically designed for electric motors operating in high-temperature and high-electrical stress conditions. The integration of these technologies has enhanced material performance, promoted energy efficiency procedures, and streamlined cost-effective production methods. Therefore, this factor drives the demand for electrical insulation materials.

The rising adoption of porcelain insulators in electrical infrastructure projects is another factor contributing to the growth of the APAC electrical insulation materials market.

In overhead applications, porcelain insulators composed of aluminum silicate have become common. Despite constraints like low tensile strength and poor shock resistance, porcelain insulators have substantial advantages. The market demand for porcelain insulators is driven by their superior mechanical strength compared to glass insulators, low leakage current, resistance to temperature effects, long lifespan, easy maintenance, flexibility, and reliability. These factors contribute to the growing adoption of porcelain insulators in electrical infrastructure projects.

APAC Electrical Insulation Materials Market Challenges:

The APAC electrical insulation materials market is encountering challenges, primarily in terms of the increasing presence of substandard products in the grey market. The electric insulator market consists of both organized and unorganized sectors. The organized sector primarily caters to industrial buyers and prioritizes high product quality. On the other hand, players in the unorganized sector offer cheaper alternatives to expand their market presence and gain a foothold in local markets. These unorganized players can outperform larger competitors by offering competitive pricing and leveraging their local supply networks. The growth of sales in the grey market, where substandard products are sold under the brand names of reputable companies, tarnishes the reputation of market leaders. Thus, these challenges inhibit the growth of the APAC electrical insulation materials market.

APAC Electrical Insulation Materials Market Opportunities:

The utilization of HVDC technology for transmitting electricity over long distances presents a lucrative opportunity in the APAC electrical insulation materials market. In many instances, renewable energy sources are located distant from populated regions. To address this, HVDC (high-voltage direct current) cables are employed for transmission. These cables necessitate continuous monitoring of the entire system to minimize losses and safeguard against faults, making them highly efficient for long-distance electricity transport. Insulation materials used in HVDC cables can also be deployed underground or under the seabed. Notably, projects like NordLink in Europe aim to connect southern Norway and Germany. HVDC cable initiatives play a crucial role in Germany's energiewende, a comprehensive plan for achieving a sustainable energy supply.

COVID-19 Impact on the APAC Electrical Insulation Materials Market:

The outbreak of the COVID-19 pandemic substantially impacted the APAC electrical insulation materials market. The pandemic caused disruptions in supply chains and distribution of goods and services, which highly affected the production and distribution of electrical insulation materials. Moreover, the demand for electrical insulation materials decreased due to reduced operations of businesses in several industries. These factors negatively impacted the growth of the APAC electrical insulation materials market. Despite these challenges, the APAC electrical insulation materials market is projected to recover and grow in the coming years.

APAC Electrical Insulation Materials Market Recent Developments:

• In May 2023, EDAG, Mitsubishi Chemical Group, and Kreisel Electric collaborated to develop an exceptionally lightweight battery concept for electric vehicle housing. This concept meets all necessary criteria and offers a competitive advantage for customers producing medium quantities of vehicles. The utilization of functional composite materials from Mitsubishi Chemical Group ensures the battery housings meet crash requirements, fire protection, and electromagnetic shielding while maintaining lightweight structures with strength and stiffness.
• In October 2020, Hitachi Chemical Co., Ltd., unveiled the selection of their low transmission loss printed wiring board material, "MCL-LW-900G/910G," for the central processing units (CPU) in the cutting-edge supercomputer "Fugaku." "Fugaku," developed by RIKEN and Fujitsu Limited, aims to achieve enhanced application performance and reduced power consumption contrasted to its predecessor, the "K computer." The supercomputer is anticipated to have a significant impact in fields like COVID-19 research, artificial intelligence (AI), and big data analysis.
• In October 2020, Sumitomo Electric Industries, Ltd. devised a specialized powder magnetic core for axial gap motors, offering benefits in terms of slimness, output, and efficiency. This development meets the demand for lightweight and high-performance motors. Utilizing Powder Metallurgy technology, Sumitomo Electric has optimized the motor's magnetic circuits with a high-quality magnetic core. They have also introduced an insulation coating technology to ensure proper dielectric strength. 

APAC ELECTRICAL INSULATION MATERIALS MARKET REPORT COVERAGE:

APAC Electrical Insulation Materials Market Segmentation:

APAC Electrical Insulation Materials Market Segmentation: By Type

• Ceramics
• Epoxy Resins
• Thermoplastics
• Others

In 2022, the ceramics segment held the highest market share. The growth can be attributed to the ceramic insulator's wide availability, easy accessibility, and affordability. Ceramic insulators provide an array of advantages like remarkable hardness, wear resistance, high dielectric strength, excellent mechanical properties, resistance to corrosion, and efficient thermal conductivity. They find applications in various components like spark plugs, ceramic arc tubes, and protective parts for power lines. Reliable providers of electrical insulation materials offer exceptional products that cater to the needs of wire and cable industries, electronics appliances, power systems, and more.

APAC Electrical Insulation Materials Market Segmentation: By Voltage

• High-Voltage
• Low-Voltage

In 2022, the low-voltage segment held the highest market share. The growth can be attributed to the extensive utilization of low-voltage electrical insulation materials for residential and commercial building purposes. Urbanization and population growth are propelling the need for low-voltage electrical systems in various settings, including housing complexes, commercial complexes, retail spaces, and offices. The increasing electrification across industries, including small businesses and service sectors, also contributes to the demand for low-voltage systems operating below 1000V. The high-volume applications and cost-effectiveness of low-voltage insulation materials further boost their market share, especially in residential and small-scale commercial projects.

APAC Electrical Insulation Materials Market Segmentation: By Application

• Electronic Appliances
• Power Systems
• Wires & Cables
• Others

In 2022, the wires and cables segment held the highest market share. The growth can be attributed to the extensive utilization of electrical insulation materials in wires and cables for residential, commercial, and industrial purposes. Insulation is vital in electrical systems as it prevents electrical leakage, isolates the current in wires from other conductors, and safeguards the wire's structural integrity against water and heat, ensuring its material integrity is preserved. Rubber, vulcanized India rubber, impregnated paper, varnished cambric, and polyvinyl chloride (PVC) are primarily utilized materials for insulation in wires and cables. These materials are chosen for their ability to provide effective insulation properties, ensuring optimal performance of the wires and cables.

APAC Electrical Insulation Materials Market Segmentation: By Country

• China
• India
• Japan
• South Korea
• Rest of Asia-Pacific

Japan held the largest share of the APAC electrical insulation materials market in the year 2022. The increasing power consumption in multiple applications, the presence of a well-established electrical industry, and the increasing investments in research and development activities are some of the factors propelling the country's growth. Additionally, Japan is home to several significant market players, including Mitsui Chemicals, Inc., Hitachi Chemical Co., Ltd., Sumitomo Electric Industries, Ltd., Nitto Denko Corporation, and Teijin DuPont Films.

India is anticipated to expand at the quickest rate over the forecast period owing to the growing safety measures, rising infrastructure development, and strong presence of major market players, including Aditya Birla Insulators, Sahney Kirkwood Pvt. Ltd., and Modern Insulators, Ltd.

APAC Electrical Insulation Materials Market Key Players:

1. Mitsui Chemicals, Inc. (Japan)
2. Hitachi Chemical Co., Ltd. (Japan)
3. Sumitomo Electric Industries, Ltd. (Japan)
4. Vitar Insulation Manufacturers Ltd. (Hong Kong)
5. Nitto Denko Corporation (Japan)
6. Teijin DuPont Films (Japan)
7. Shandong Jinshi High-Temperature Material Co., Ltd. (China)
8. Aditya Birla Insulators (India)
9. Sahney Kirkwood Pvt. Ltd. (India)
10. NGK Insulators, Ltd. (Japan)