Insulation tapes primarily used for safety reasons play a significant role in the maintenance of electrical infrastructure. The importance of these tapes has increased owing to the modernization of the electricity grids since electrical insulation tapes offer smooth functioning. These tapes are manufactured using high temperature resistance materials such as PVC electrical tapes, glass cloth, PET film, and PTFE tapes.
According to recent reports, the global electrical insulation tapes market size is anticipated to reach USD 15.2 billion by 2027. Since the beginning of 21st century, the energy needs of people have been increasing, rapidly. Furthermore, with the advancements in technology and equipment, not only the modernizations of the existing grid but also supporting the aging electrical infrastructure have become the need of the hour. Therefore, governments across the world are promoting the modernization of the electricity grid. As a consequence, the demand for transformers is increasing in double digits, supporting the demand for smart grids, micro grids and others.
The adhesive tapes
market size is anticipated to reach USD 79.9 billion by 2025, registering a CAGR of 5.7 percent over the forecast period. There is a surge in demand for adhesive tapes in the healthcare, electrical & electronics and automotive industries as the manufacturers are mainly focusing on presenting new varieties of products with improved properties. Also, other factors increasing the demand for adhesive tapes are the utilization of healthcare services, awareness regarding hygiene products, infrastructure development and up gradation of electronic equipment.
Talking about the Industrial tapes’ growth in the Indian market, Jinesh Shah, CEO of Speciality Tapes Industry says, “India has huge potential for Industrial adhesive tapes business. As per IMF data INDIA will achieve 11.5 per cent growth by 2021-22 and will become a 5 trillion dollar economy by 2026-27 as per our Prime Minister Mr. Modi’s vision”.
“Furthermore, since adhesive tapes are widely used in Manufacturing, Pharma, Construction, Automotive / Locomotive as well as Agriculture sectors, this market is anticipated grow at the pace of 20-25 per cent in coming years,” he adds.
The Move towards Eco-Friendliness
Paper based adhesive tapes also known as micropore tapes are available with kraft, crape or any kind of recyclable paper coated with adhesive. These tapes are known as micropore tapes owing to the pores in the backing materials. Paper tapes manufactured using crape paper and rubber adhesive coatings not only have a wide range of applications owing to their eco-friendliness, but they are also available in a wide range of colors.
When compared to PET adhesive tapes, the paper tapes have good holding power, heat insulation, and temperature resistance properties, offering excellent comfort as paper tapes are relatively thin, flexible and also smooth. This makes these tapes suitable for numerous applications such as automobiles and aircraft manufacturing, appliance manufacturing, heating, ventilation and air conditioning and paper and printing application.
Based on the segment, the healthcare segment is anticipated to account for the largest market share over the forecast period. Adhesive tapes in the healthcare industry are used in surgical containers, monitoring electrodes and other medical devices and wound care applications. Since the international hygiene market is expanding with innovative products, adhesive tapes used in this sector turn out to be the component parts within the final consumer products. Therefore, these tapes are driven by the market demand for the consumer products.
Major factors driving the demand for adhesive tapes in the healthcare sector is due to penetration of the products in this sector in emerging nations. This demand is mainly supported by factors such as growth in disposable income, improved healthcare system, and aging global population.
While adhesive tapes are mainly available in two types such as commodity and speciality tapes, they mainly find a wide range of application in automotive, packaging, and healthcare industries. The coating technologies used in adhesive tapes are solvent based, water-based and hot-melt. Based on the application, the global adhesive tapes market is segmented into packaging, consumer products, healthcare, and automotive. Based on the material type, the adhesive tapes are classified into polyvinyl chloride, polypropylene, paper and others.
APAC to be the fastest-growing market
APAC is projected to be the fastest-growing market in the next five years since the region is experiencing strong growth due to the ongoing Research & Development and advancements in electrical & electronics, healthcare and automotive industries.
The rapid growth of end-use industries like packaging, automotive and electronics has resulted in the high surge in demand for adhesive tapes. Furthermore, rise in construction industry is anticipated to bolster the demand for adhesive tapes during the forecast period. However, volatility in raw material prices is predicted to be a major factor restraining the growth of adhesive tapes market. It would be interesting to see how the market evolves going forward.