According to the new research report on "Heat Shrinking Tubing Market Forecast to 2028 - COVID-19 Impact and Global Analysis," published by The Insight Partners, the heat shrinking tubing market is expected to reach US$ 2,877.64 million by 2028, registering a CAGR of 5.6% from 2022 to 2028.
The governments of various economies have come up with several schemes to improve transmission and distribution infrastructure, enhance operational efficiency, and reduce transmission losses. In November 2022, the US Department of Energy (DOE) announced a financing opportunity of US$ 13 billion for the country's electric grid expansion and modernization. In June 2021, the Government of Canada announced a US$ 964 million program launch to support smart renewable energy and grid modernization projects that will lower emissions by investing in clean energy technologies. Heat shrink tubing is widely used in low- and medium-voltage transmission and distribution for insulation protection to protect all the functional parts, components, harnesses, and systems of a transmission and distribution grid.
The global heat shrinking tubing market is segmented into five major regions-North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM). Smart home technologies, including smart light and IoT devices, are being actively adopted by customers across countries such as India, Malaysia, Singapore, and China in APAC. The region over the years has also experienced a rise in urbanization rate. According to the data published by the World Bank, India experienced a rise in urban population by 2.32% in 2021. Moreover, 61% of the total population of China is now living in urban areas. According to the same source, the increasing disposable income and growing technology adoption in China are further expected to boost the demand for various smart home technologies to develop connected homes. This is expected to propel the demand for various wires across the residential sector, thereby contributing to the growth of the heat shrinking tubing market in APAC. Sumitomo Electric Industries Ltd, Shenzhen Woer Heat - Shrinkable Material Co. Ltd., and Shanghai Changyuan Electronic Material Co. Ltd are a few major heat shrinking tubing market players operating in APAC.
Increasing demand from the automotive industry and government initiatives to expand and upgrade transmission and distribution systems are among the factors driving the growth of the heat shrinking tubing market. Further, high growth potential from industries such as telecommunications, oil & gas, and electrical & electronics provides lucrative opportunities for the heat shrinking tubing market. Automation of heat shrink tubing process is expected to emerge as a trend in the heat shrinking tubing market during 2022-2028.
The heat shrinking tubing market is segmented on the basis of voltage, material, and end user. Based on voltage, the heat shrinking tubing market is further categorized into low voltage (less than 5kV), medium voltage (5-35kV), and high voltage (above 35kV). By material, the heat shrinking tubing market is segmented into polyolefin, polytetrafluoroethylene, fluorinated ethylene propylene, perfluoroalkoxy alkane, polyvinylidene fluoride, and others. In terms of end user, the heat shrinking tubing heat shrinking tubing market is divided into energy, utilities, electrical power, infrastructure/building construction, industrial, telecommunication, automotive, aerospace, defense, mass transit & mobility, medical, petrochemical, and mining.
Key Findings of Study:
The demand for electric vehicles has been growing faster from 2021 owing to increasing investment in manufacturing plants, rising demand for low-emission vehicles, and growing supportive regulations for zero-emission vehicles through subsidies and tax rebates. According to the Global Electric Vehicle Outlook, sales of electric cars, including fully electric and plug-in hybrid vehicles, accelerated in 2021 to a new record of 6.6 million units. As per the same report, in China, electric car sales increased significantly in 2021 to reach 3.3 million, accounting for about half of the total global sales. EV sales also grew strongly in Europe by 65%, i.e., 2.3 million units, and the US had doubled to 630,000 units in 2021. With the growing trend of electric vehicles, the increasing need for wired appliances is boosting the heat shrinking tubing market. Heat shrink tube in an electric vehicle is used in many applications for wire shielding from charging socket to electrical components throughout the vehicle dashboard, windscreen wiper system, lighting system, central locking system, acoustic system, air condition system, and so on.
Further, In 2021, with the relaxation of lockdown measures, operations resumed in manufacturing businesses. The market for heat shrinking tubing gained momentum. Further, in 2022, heat shrinking tubing is expected to have higher demand due to the increasing industry investments and national support measures after the COVID-19 crisis. For instance, according to the European Automobile Manufacturers' Association (ACEA), sales of vehicles in Europe will rise by 10% in 2021 when compared to 2020. According to Airbus, the global and European aviation industry is expected to reach pre-COVID levels between 2023 and 2025
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