Electric Vehicle Insulation Market Analysis

Electric Vehicle Insulation Market Analysis

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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.
 

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.
 

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.
 

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.