Industrialization to Fuel the Insulator Market

Industry Outlook Team

Insulators – the electrical components used for providing lining between two conductors are also used to offer mechanical support in their area of application. While the chief function of an insulator is to reduce the electrical stress, and the environmental stress, which occurs due to weather changes, they are extremely vital for the power transmission and distribution infrastructure. Therefore, the global market size grows simultaneously with the global power industry ecosystem.

The constantly increasing demand for electricity, bolstered by the rise in population globally and rapid industrialization are some of the crucial factors adding momentum to the global insulator market share.

Furthermore, the surge in demand for reliable electric supply and subsequent investment in the transmission & distribution network has led to grid expansion. Ensuring safe electrical infrastructure is a resulting factor predicted to drive the growth of the global insulator market. According to recent report by Market Research Future, the aforementioned factors are anticipated to bolster the insulator market growth at a Compound Annual Growth Rate of 5.38 percent.

Growing electricity demand
In addition to new demand, the surge in demand for modernization of existing infrastructure in order to meet the technological innovations in the power industry ecosystem will also be seen positively, impacting the insulator market revenue as well. Moreover, the growing electricity demand coupled with growing concern for safe transmission and distribution of electricity and the increasing grid infrastructure will boost the global insulator market size over the forecast timeline.

The insulator industry in the Asia-Pacific region is predicted to grow at a fastest rate over the forecast period (2020 to 2025). Major factors that include rapid industrialization, urbanization, and high-paced economic growth are also expected to create a need for growing electrical infrastructure in the developing economies. And, therefore countries such as India and China are going to drive the insulator market revenues upwards.

According to recent reports, India Electric Insulators market size is anticipated to register a CAGR of 7 percent by 2024. Factors driving this market include the rise in investments towards the modernization of aging grid infrastructure coupled with rapid urbanization. Other factors such as continuous upgrading of power transmission networks for optimized energy consumption along with investment to ensure effective grid infrastructure is further anticipated to boost the industry landscape.

Billionaire Gautam Adani stated that, “India is at a dramatic inflexion point from where its economy will grow to ten times by 2050 with the nation having several trillion dollar companies and cheapest power from renewable energy”. In his talk on “Incredible India and the opportunities ahead for India’ at the TiE Global Summit, Adani said that India’s GDP increasing to USD 28 trillion by 2050 from the current USD 2.8 trillion, stock market valuation swelling to USD 30 trillion and a USD 10 trillion retail market”.

Such development is going to have an immediate impact on the insulator market through the rise of renewable energy ecosystem.