Electrical Insulation Tape Market Size, Share & COVID-19 Impact Analysis, By Material (PVC, Glass cloth, PET, and Others), Application (Electrical & Electronics, Aerospace, Industrial and others), and Regional Forecast, 2020-2027

The global electrical insulation tape market size was valued at USD 12.8 billion in 2019 and is projected to reach USD 15.2 billion by 2027, exhibiting a CAGR of 4.04% during the forecast period.

Electrical insulation tapes play a very crucial role in the maintenance of aging electrical infrastructure in the energy hungry world. Modernization of the electricity grid has also increased the importance of these tapes for smooth functioning. These tapes are made of high temperature resistance materials such as PVC electrical tapes, glass cloth, PET film, and PTFE tapes. Electrical insulation types are a sub-type of Pressure sensitive tapes.

COVID-19: Disruptions in Supply Chain to Hamper Market Growth

The COVID-19 outbreak has disrupted the supply chains throughout the world. The consumption pattern of necessities has also changed in these challenging times. Manufacturers are trying their best to be agile in operations and get the best out of the current scenario. However, the conventional applications have been seriously impacted due to the lockdown restrictions, poor availability of manpower, and various other reasons.

Consequently, there can be a double-digit decline in the sales of electrical insulation tape in 2020. The electricity grid modernization projects in major regions have been halted and there is a possibility of diversion of funds from these projects to those that are important to support the national economy. This is likely to severely affect the business in 2020 or even during the short-term forecast.

However, the COVID-19 pandemic has accelerated the process of localization in key regions such as Europe and North America. The stakeholders in the supply chain are keen on shortening the chains as soon as possible to counter the disruptions and be future-proof. This will certainly impact the electrical insulation tape market growth rate shortly.

LATEST TRENDS

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Race to provide an innovative solution for the E-vehicles

 The adoption of e-vehicles is continuously increasing around the world owing to multiple economic and environmental benefits. E-vehicles manufacturers are approaching insulation tapes manufacturers to seek the desired product by developing it by considering all specific requirements. As vehicle technology gets complex, the role of these insulation tapes will be pivotal that would optimize the overall performance of the vehicle. More and more lawmakers in different countries are betting on e-mobility technology as the future of transportation, which is expected to drive innovation in the electrical insulation tape. Moreover, the advancement in solar technology is also expected to contribute to the development of an innovative electrical type of insulation tape required in battery technologies.

DRIVING FACTORS

Modernization of Electricity Grid is Fostering Demand for Electrical Insulation Tape

The energy needs have been rapidly increasing since the beginning of the 21^st century. With the changes in technology and equipment, modernizations of the existing grid and supporting the aging electrical infrastructure have become the need of the hour. Governments around the world are promoting the modernization of the electricity grid anticipating the growing needs of the increasing population in the coming years. As a result, the demand for transformers is increasing in double digits to support the demand for smart grids, micro grids, and others. Various electrical insulation tapes are required in these transformers to address their optimum performance at operating temperatures.

Increasing Penetration of Consumer Electronics to Bode Well for Growth of Market

Asia-Pacific is the hub for manufacturing consumer electronics in the world owing to the strong presence of semiconductor and other necessary industries in the region. The low wages of workers also healthily support the manufacturing activities in the region. Thus, the abundant amounts of these tapes are consumed in manufacturing consumer electronics, as well as white goods. Moreover, with the increasing disposable income in the emerging countries, the demand for consumer electronics is also surging. E-commerce has further fueled the sales of consumer electronics which indeed is supporting the growth of the market.

RESTRAINING FACTORS

Alternative Technologies Likely to Confine Market Growth

There has been an increasing adoption of insulating adhesive solutions, especially in the manufacturing of gadgets and miniaturized electronic goods. These adhesives are applied on components such as resistors, diodes, transistors, and other heat sensitive components. These adhesives are thixotropic in nature and are epoxy based systems that make them durable and suitable for miniaturized electronics. With the increasing miniaturization, the demand for such adhesives is expected to go up, thus hampering the demand for these tapes in electronics. Moreover, in certain cases where the chances of fires are high, the use of low quality insulation tapes can easily catch fires, thereby damaging the property. Thus, for high temperature applications, alternate technologies are preferred over these tapes.

SEGMENTATION

By Material Analysis

PVC Tapes Segment to Dominate throughout the Forecast Period

On the basis of raw material used for tapes, the market is categorized on the basis of materials. PVC tapes are the most commonly used electrical insulation tape due to their low cost and general availability. They are generally preferable to conduct electricity where it has to be exposed to low temperatures. Moreover, these tapes are resistant to corrosion and abrasion that favors it for outdoor application. Glass cloth tapes are generally preferred for prolonged exposure to high temperatures. These are manufactured from polyester film reinforced with glass fiber strands. These are widely used as heat-stable insulation layers. For instance, glass cloth tapes find common applications in oven controls, motor leads, wrapping coils, furnace power supply systems, and others. Various other types of these tapes include rubber, cambric, polyimide, and PTFE.

By Application Analysis

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Electrical & Electronics Segment to Garner Lion’s Share Stoked by Expansion of Electrical Sector

Electrical & electronics segment accounts for over three-fifth of the global market. The application segment is expected to continue its dominance throughout the forecast period due to the ever increasing demand as a result of the expansion of the electrical sector, as well as the electronics segment across the globe. Modernization of the electricity grid is one of the most prominent factors that is set to contribute to the growth. The demand for tapes for aerospace applications is also likely to increase owing to the rising fleet, especially in Asia-Pacific. Transportation application is the emerging segment and is anticipated to grow rapidly over mid- and long-term forecast period due to the increasing adoption of electric vehicles, as well as electric locomotives, where they play a pivotal role in insulating batteries and other components.

REGIONAL INSIGHTS

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The market size in Asia-Pacific stood at USD 7.10 billion in 2019 on account of countries such as China, Japan, and India. China, however, dominates with over 60% share in the regional consumption. The market in the region is mainly driven by the expansion of the electric grid across the nations. Industrialization and urbanization have significantly increased the consumption of electricity in the region. Consequently, lawmakers are keen on establishing smart grid technologies to optimize the efficiency and performance of power distribution systems.

Moreover, smart city projects such as that of China, where the government is integrating the national power grid with the internet of things technologies will certainly provide a boost to the demand for these tapes. Emerging economies such as India have started the expansion of their electricity grids to every corner of the country. It has indeed favored market growth in the region. The actions taken by the Government of India can be justified by the fact that more than 600,000 villages were connected to the national grid by 2018, making every village in India to get electricity.

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The developed regions such as North America and countries in Western Europe possess relatively mature markets. However, great potential lies in the form of the rising number of electric vehicles and the penetration of electrical technologies in the region. Brazil and Mexico account for major shares in Latin America. Political and economic instability are the major growth hindrance in the region.

Similarly, in the Middle East and Africa, developed countries such as South Africa and Gulf Cooperation Council (GCC) account for the dominant electrical insulation tape market share. Poverty and political instability have hampered the market growth in the region. For instance, Israel-Palestine crisis, Yemen crisis, Libyan crisis, the U.S.-Iran conflict and various others are serious threats for the market stability in the region. Moreover, the outbreak of COVID-19 has further strained the crisis in the region.

KEY INDUSTRY PLAYERS

Effective Distribution Channels and Diversified Product Portfolio are Essential Strategies of Key Players

The market is highly fragmented with the global players accounting for far less than half of the total market share. An effective distribution channel is a must for healthy business in this market. A diversified product portfolio makes it easy for the customer to choose a single vendor for a project involving different applications. This also ensures loyalty towards a certain vendor that further helps in creating long-term associations and business growth.

LIST OF KEY COMPANIES PROFILED:

• tesa (Germany)


• Saint-Gobain (France)


• Nitto-Denko (Japan)


• Avery Dennison Corporation (US)


• Intertape Polymer Group Inc. (Canada)


• The 3M Company (US)


• HellermannTyton (US)


• Teraoka Seisakusho Co., Ltd.  (Japan)


• Shurtape Technologies, LLC (US)


• Pidilite industries ltd (India)

KEY INDUSTRY DEVELOPMENTS:

• May 2020: Saint-Gobain, a global leader in electrical insulation tape business, released its success story with Formula student racing team Elbflorace. The two had collaborated for an effective electrical insulation tape solution for electric racing cars. Polyimide tapes were chosen as an effective solution for electric vehicles. This shows the company’s capability to cater to research solutions as per customer demand and its expertise in tapes solution for electric vehicles.  

REPORT COVERAGE

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The electrical insulation tape market research report provides a tape market analysis in detail and focuses on crucial aspects such as leading companies, market segments like application and materials across various regions. Also, the report offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market, such as market dynamics over recent years. The report provides in-depth market insights for the valuable stakeholders in the industry.

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