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Electric Vehicle Insulation Market Size By Product (Thermal interface materials, Ceramic, Foamed plastics, Others), By Propulsion Type (BEV, FCEV), By Insulation Type (Thermal insulation, Acoustic insulation), By Application (Under the Hood & Battery Pack, Interior, Others), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Landscape & Forecast, 2022 – 2030

  • Report ID: GMI5361
  • Published Date: Sep 2022
  • Report Format: PDF

Industry Statistics

Electric Vehicle Insulation Market size valued at USD 400 million in 2021 and is projected to expand at more than 11.5% CAGR from 2022 to 2030. Rising demand for emission-free transportation to bolster the market revenue.

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Growing concerns about the environment have fostered the adoption of clean energy solutions such as electric vehicles. According to the International Energy Agency (IEA), more than 6.6 million electric cars were sold in 2021. Specifically, China sold over 3.4 million electric cars, while the U.S. sold around half a million EVs in 2021. The steady increase in EV sales figures, in turn, is set to propel the demand for integral vehicle components, including electric vehicle insulation solutions.

The lack of charging infrastructure for electric transportation, along with high initial costs will impede the electric vehicle insulation market growth to some extent. This is due to the expected scarcity of lithium-ion and the lack of global regulations for public charging systems. However, the ecological advantages of optimum sustainable solutions, and the subsequent rise in demand for such components may drive the electric vehicle insulation developments.

Rising product usage for battery management applications to augment TIM adoption

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In terms of the product type, the electric vehicle insulation market from thermal interface materials segment is predicted to surpass USD 300 million by 2030. TIMs are deployed in between surfaces generating heat to help thermal conduction among the materials. These materials provide excellent thermal management of power electronics and batteries, owing to beneficial properties such as low viscosity and high thermal conductivity, with a few others. The surging power density of EV battery packs is also accelerating the usage of TIMs as a viable insulation solution.

Thermal insulation materials to emerge as key solution for improving passenger protection

The thermal insulation segment is poised to observe a growth rate of around 12% through 2030, impelled by the substantial thermal runaway protection offered. Heat spreaders or cooling fins are integrated into the EV battery systems to offer protection from thermal runway incidents. Moreover, thermal insulation prevents the overheating of the passenger compartment during battery malfunctioning, which may contribute to the material production.

Higher EV battery power density to boost use of under the hood & battery pack insulation

In terms of applications, the electric vehicle insulation market revenue from under the hood & battery pack segment will record remuneration of over USD 920 million by 2030. As per the Vehicle Technologies Office of the U.S. Department of Energy (DOE), the volumetric energy density of lithium-ion batteries had increased from 55 watt-hours per liter in 2008 to 450 watt-hours per liter in 2020. This rise in battery energy density has increased the risks of overheating. Improved focus on passenger safety will necessitate the enhanced insulation of the electric motor and the battery pack.

Public support for EV adoption to augment insulation manufacturing in Asia Pacific

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Asia Pacific electric vehicle insulation market size is anticipated to register 11% gains between 2022 and 2030. This growth can be credited to the surging adoption of electric vehicles across emerging Asian economies. The provision of government subsidies is encouraging the general population to own electric vehicles.

For instance, Japanese government arranged close to USD 77 million worth EV subsidies in January 2021. This was meant to cover over 10,000 BEVs, at USD 7,710 per vehicle. The growing administrative support for EV ownership will, in turn, transform regional EV insulation industry growth.

Strategic acquisitions to bolster industry outlook

Some of the key players involved in the electric vehicle insulation market include BASF SE, Saint-Gobain, Autoneum, Zotefoams plc, DuPont, Unifrax, 3M, Morgan Advanced Materials, Alder Pelzer Holding GmbH, Elmelin Ltd., Pyrophobic Systems Ltd., Parker Hannifin Corp. These organizations are acquiring key technologies to upgrade their products and reinforce their market position.

Citing an instance, in November 2021, Saint-Gobain completed the acquisition of Autoneum’s Flexi-Loft fiber-based technology. This included a distinct blend of functional fibers and recycled cotton. The technology reduces product weight and enables precise adaptation to complex shapes. Similar efforts by other key participants to introduce technological enhancements will proliferate the industry demand.

Impact of COVID-19 crisis on the EV insulation market

The COVID-19 pandemic caused an unprecedented drop in electric car sales around the world. However, this was a smaller drop in comparison to the dip experienced by the overall car industry. According to preliminary estimates from the IEA, over 3 million electric cars were sold worldwide in 2020, indicating a growth of 40% from sales figures in 2019. This was mainly observed in the second half of 2020, when lockdown restrictions were relaxed or lifted temporarily, and the automotive sector began to recover.

Furthermore, the perceived risk of COVID-19 from public transportation and changing mobility patterns has caused a resurgence in EV sales. A 2021 EY Mobility Lens Consumer Index estimates that more than 41% of new potential customers considered purchasing an electric vehicle. Optimistic estimates from the EV sector despite the adversities presented by the pandemic will strengthen the market outlook over the forthcoming years.

The electric vehicle insulation market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue in USD million from 2018 to 2030, for the following segments:

Market Insights, By Product

  • Thermal interface materials
  • Ceramic
  • Foamed plastics  
  • Others

Market Insights, By Propulsion Type

  • BEV
  • FCEV

Market Insights, By Insulation Type

  • Thermal insulation
  • Acoustic insulation

Market Insights, By Application

  • Under the Hood & Battery Pack
  • Interior
  • Others

Market Insights, By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Italy
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • Indonesia
    • Malaysia
  • Latin America
    • Brazil
    • Mexico
  • Middle East & Africa
    • GCC
    • South Africa


Authors: Kiran Pulidindi, Hiralkumar Patel

Frequently Asked Questions (FAQ) :

The market size of electric vehicle insulation crossed USD 400 million in 2021 and will depict a CAGR of over 11.5% through 2022-2030, owing to surging investments in zero-emission vehicles and materials that enhance their safety.
The thermal interface materials (TIM) segment is projected to be worth over USD 300 million by 2030, due to robust battery management characteristics.
The Asia Pacific industry will register a CAGR of more than 11% through 2022-2030, on account of government support and financial incentives for EV ownership in the region.
BASF SE, Saint-Gobain, Autoneum, Zotefoams plc, DuPont, Unifrax, 3M, and Morgan Advanced Materials, are some of the companies operating in the electric vehicle insulation industry.

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Premium Report Details

  • Base Year: 2021
  • Companies covered: 13
  • Tables & Figures: 377
  • Countries covered: 17
  • Pages: 350
  • Upcoming Report: Details can be customized to meet your information and data needs. Feel free to share your detailed research requirements via this form.

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