Heat Shrinking Tubing Market Size, Trends and Growth Analysis by 2027

The heat shrink tubing market is projected to expand from US$ 2,070.53 million in 2022 to US$ 2,877.64 million by 2028, reflecting a compound annual growth rate (CAGR) of 5.6% during the period from 2022 to 2028.

Heat shrink tubing serves a crucial role in insulating wire conductors and providing protection and sealing for cables. The manual application of heat shrink tubing can be risky and labor-intensive. By automating this process, companies can reduce the risk of operator error, lower long-term production costs, and significantly enhance both the quantity and quality of production outcomes.

An automated heat shrink tubing system typically features a heat chamber integrated with a linear positioning system and heat guns. The design of the chamber ensures that hot air from the heat guns is evenly distributed across the wire harness through radially arranged channels. A control unit continuously monitors and adjusts the actuator's position by tracking the speed and temperature within the chamber. In this automated setup, workpieces are loaded into the machine and are automatically conveyed through a heating tunnel, allowing for precise shrinkage according to specified requirements.

In various applications, such as in the aerospace, automotive, and space industries, extensive bundles of wires can extend several kilometers when fully uncoiled. Utilizing automated heat shrink tubing for these wires can save considerable time, reduce the risk of electrical shorts, standardize processes, and significantly decrease installation times. Additionally, it offers protection against vibrations, abrasions, and moisture, which can adversely affect the integrity of the wiring.

Given these advantages, the automation of heat shrink tubing is becoming a prominent trend within the market.

The heat shrink tubing market is categorized based on voltage, material, and end-user segments. In terms of voltage, the market is divided into three categories: low voltage (less than 5kV), medium voltage (5-35kV), and high voltage (above 35kV). The material segmentation includes polyolefin, polytetrafluoroethylene, fluorinated ethylene propylene, perfluoroalkoxy alkane, polyvinylidene fluoride, and others. The end-user segmentation encompasses various sectors such as energy, utilities, electrical power, infrastructure/building construction, industrial, telecommunication, automotive, aerospace, defense, mass transit and mobility, medical, petrochemical, and mining.

Key players in the heat shrink tubing market include 3M Co, HellermannTyton Ltd, LAS Aerospace Ltd., Shanghai Changyuan Electronic Material Co Ltd, Shawcor Ltd, Shenzhen Woer Heat-Shrinkable Material Co Ltd, Sumitomo Electric Industries Ltd, TE Connectivity Ltd, Techflex Inc, and Zeus Industrial Products Inc. A comprehensive analysis of these and other market participants has been conducted to provide a well-rounded view of the heat shrink tubing market and its ecosystem. The market size report offers in-depth insights that assist key players in formulating their growth strategies.

Impact of COVID-19 Pandemic on the European Heat Shrinking Tubing Market

The COVID-19 pandemic had a profound impact on industries across Europe. Government-imposed lockdowns led to the suspension of numerous sectors, including automotive and energy, resulting in a significant downturn in production levels. According to a report from the European Parliament, the EU automotive sector experienced production losses of approximately 3.6 million vehicles, equating to a financial loss of US$ 105.22 billion in the first half of 2020. Additionally, electricity generation across European nations fell by 9% in April 2020, with fossil fuel generation dropping by 28% and nuclear energy by 14%. These developments adversely affected the demand for heat shrink tubing in both the automotive and energy sectors.

The aerospace industry in Europe also faced challenges, including inefficiencies in airspace management, delays in operations, and a reduction in flight numbers due to the pandemic. Airbus, a major player in the aircraft manufacturing sector, reported a challenging year in 2020, delivering only 566 jets compared to 863 in 2019. The company had to scale back production across several programs and is now aiming to maintain jet output at 40% below pre-pandemic levels for the next two years, with the A320 production rate decreasing from 53 aircraft per month in 2019 to 40 currently. These factors collectively diminished the market for airlines and severely impacted heat shrink tubing suppliers.

As lockdown measures were lifted in 2021, manufacturing operations began to recover, leading to a resurgence in the heat shrink tubing market. The demand for heat shrink tubing is anticipated to rise further in 2022, driven by increased investments in various industries and government support initiatives following the pandemic. For instance, the European Automobile Manufacturers' Association (ACEA) forecasts a 10% increase in vehicle sales in Europe in 2021 compared to 2020. Furthermore, Airbus projects that the global and European aviation sectors will return to pre-COVID levels between 2023 and 2025.

The overall size of the heat shrink tubing market has been determined through a combination of primary and secondary research methods. The analysis process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aimed to provide an overview and forecast of market growth across all segments. Additionally, numerous primary interviews were conducted with industry stakeholders and experts to validate the findings and gain deeper analytical insights. Participants included VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the market.