New Delhi: The electric vehicle insulation market size is estimated to grow to $4.2 billion by 2024 from $1.3 billion in 2019, at a Compound Annual Growth Rate (CAGR) of 26.7 percent, claims a study by ResearchAndMarkets.
The growing demand for battery electric vehicles (BEV) is expected to drive the growth in the insulation market for green vehicles. The growth is also attributed to the growing demand for thermal management in batteries, with the increasing production of electric vehicles.
The study also says that the insulation system for under the bonnet and battery pack application is to witness the highest CAGRS during the forecast period.
The study forecasts that thermal interface materials in the product type segment are estimated to witness the higher growth rate between 2019 and 2024, which is attributed to the growing demand for thermal management in batteries, with increasing production of electric vehicles.
The thermal insulations solve two types of problems in a vehicle, which are climate control inside a car and heat-related issues under the bonnet. The lithium-ion battery pack in an electric vehicle generates huge amount of heat, which requires to be controlled through the thermal management system, where the usage of insulation is essential.
The electric vehicle insulation market in Asia-Pacific region is projected to grow by 60 percent during the forecast period, while the North American market will see 25 percent growth.
In the North American market, electric vehicle manufacturers like Tesla, General Motors along with key EV insulation makers like DuPont, Unifrax, 3M are driving the growth of the market. Apart from that, the increasing imposition of stringent emission regulations too is helping in the growth of the electric vehicle insulation market growth.