Electrical Insulation coatings market size is anticipated to witness lucrative growth over 2021-2027 on account of rapid population and economic growth coupled with increasing need for power generation and electricity. The strong advances in global transmission and distribution have resulted in the rise in the number of infrastructural investments for power transformers in upcoming projects.
The rising focus on protection against electrical leakages in high voltage areas, including electrical panel rooms, substations, and battery rooms will also push the development of the market. Electrical insulation coatings are widely used in the electronics and electrical sector and record higher penetration in vehicle and machinery engineering. Increasing emphasis on energy efficiency and the presence of favorable frameworks will favor market growth.
However, the fluctuating currencies and raw material prices as well as the spiking costs of formulations may pose a major challenge to the industry progression.
Based on type, the market is bifurcated into liquid and powder. The industry revenue from the powdered electrical Insulation coatings will rise with growing penetration in cable insulations for assistance in negating high voltage spikes. Apart from offering faster curing time, these products can emit zero volatile organic compounds. The increasing obligation for high dielectric properties and the robust presence of stringent regulations will add to the segment growth.
With regards to raw materials, the electrical insulation coatings industry size from the epoxy segment will expand with the growing need for higher thermal stability, mechanical strength, heat resistance, moisture resistivity, and adhesion, in several applications. Given their superior dielectric properties, vibration resistance, dimensional stability, and good shock, these materials are employed in a diverse spread of consumer and industrial applications. Increasing adoption in building and construction to produce adhesives, plastics, coatings, paints, primers, and sealers, and flooring among other products will further drive the market forecast.
Asia Pacific is set to emerge as a prominent revenue source for electrical insulation coatings through 2027 owing to the rapidly expanding electrical sector. The ease of access to key raw materials along with robust economic growth has resulted in rising infrastructural investments mainly in countries like China and India. Rapid urbanization, higher need for electrical products, and continuous efforts undertaken by regional product manufacturers will also positively influence the market dynamics.
The electrical insulation coatings market players include Evonik Industries AG (RAG-Stiftung), Thermal Spray Coatings, ELANTAS GmbH (Altana), SK Formulations India PVT. LTD, Fluoro Precision Coatings, AkzoNobel Powder Coatings, Axalta Coating Systems, GLS Coatings Ltd., The Fisher Barton Group, Aremco Products Inc., GfE Group, PPG Industries, Chemetall Group, and 3M Company.
These companies are constantly coming up with marketing and growth-oriented strategies, like mergers, partnerships, and acquisitions, as well as capacity expansions and novel product launches for expanding their portfolio and customer base while acquiring competitive edges.
For instance, in April 2021, AkzoNobel’s Powder Coatings announced its plans of developing advanced technologies to bring significant advancements in the automotive sector into the future. This move helped to take innovation even further for powering up the next generation of e-mobility through the firm’s Resicoat and Interpon brands.
Impact of the COVID-19 crisis on the electrical insulation coatings market forecast
The ongoing COVID-19 pandemic made way for ructions in the global economy whilst drawing significant impacts on numerous industrial verticals worldwide. Although the electrical insulation coatings industry saw declining demand across the aerospace, electrical & electronics, and automotive sectors due to the lack of raw material and workforce, it witnessed significant penetration in the medical sector. This is ascribing to their rising adoption in ventilators and devices that produce N95 facemasks.
For instance, in April 2020, Axalta ramped up the supply of its Voltatex electrical insulating resins in a bid to rapidly manufacture life-saving equipment for its medical device customers to cater to escalating requirements in hospitals.