Electrotechnical Paper Market By Product (Presspaper, Diamond Dotted Presspaper, Presspaper with Polyester Film, Crepe Paper Aluminum Crepe Paper), By Application (Cables, Transformers, Motors), By Sales Channel, By Region - Global Market Forecast 2020-2030

Electrotechnical Paper Market Overview

Electrotechnical paper is gaining significant traction because of its extensive application across a broad range of applications in transformers, motors, and cables, to name a few. This paper is used for insulation purposes, is broadly employed in electrically conducting materials, and prevents accidental electrical shocks. Moreover, the expansion of the electrotechnical paper market size in primarily driven by power network upgrades to improve access towards energy.

However, concerns over the COVID-19 pandemic have restricted the short-term growth of the market, as several investment activities to set-up grid infrastructure have been halted. Due to the pandemic, key manufacturers are witnessing fluctuation in demand, which mainly changes market trends. In a new study, Fact.MR has estimated that the global electrotechnical paper market will reach a valuation of US$ 1.5 Bn by 2030.

Electrotechnical Paper Market Insights by Application

Electrotechnical paper used in transformers is one of the most prominent applications and is expected to account for 46% of the market share, by reaching a valuation of US$ 434 Mn by the end of 2020. Widespread presence of electricity has surged the need for transformers. Demand for transformers is contingent on the need for electricity, as the modern world extensively relies on electrical grids. This, in turn, is expected to supplement the growth of the electrotechnical paper market, as it serves as insulation of transformers.

In addition, several transmission and distribution projects in developing economies are expected to create demand for transformers, owing to the need for grid reliability and stability. Such projects are expected to propel demand in the electrotechnical paper market space. Further, electrotechnical paper has a replacement cycle of 6-8 months in transformers, which, in turn, is expected to boost the sales of electrotechnical paper during the forecast period.

Electrotechnical Paper Market Insights by Sales Channel

Among the sales channels, the aftermarket (replacement) sales channel is expected to capture around 77% of the market share in 2020. Electrotechnical paper has a high-replacement cycle, which is expected to unlock growth avenues for the electrotechnical paper market during the forecast period. Further, manufacturers in the electrotechnical paper market are focusing on collaborating directly with power and distribution authorities and industry players, which, in turn, is supporting direct sales.

On the other hand, e-Commerce websites have gained significant popularity for electrotechnical paper. North America and Europe are the most affected regions by the COVID-19 pandemic. The outbreak has shifted consumer focus towards e-Commerce platforms. This, in turn, will push manufacturers to offer their products through third-party online sales channels.

Regional Outlook of Electrotechnical Paper Market

North America is expected to dominate the electrotechnical paper market share, followed by Europe, in 2020, and is foreseen to maintain its dominance in terms of value as well as volume over the forecast period. Aging and inadequate transmission and distribution infrastructure in the region is foreseen to drive the sales of electrotechnical paper. The region is estimated to exhibit a CAGR of 5.4% over the forecast period.

As per the US Department of Energy (DOE), nearly 70% of transformers are 25 years old. Therefore, owing to grid congestion and aging transformers, the government is taking measures to expand investments in transmission and distribution infrastructure. An upsurge in government spending is expected to propel demand for T&D, in turn, boosting the electrotechnical paper market.

Electrotechnical Paper Market: Competitive Landscape

The electrotechnical paper market is highly fragmented in nature, with the presence of a large number of local players. Some of the prominent players in the market are Ahlstrom-MunksjöOyj, 3M Co., Hitachi ABB Power Grids, and Weidmann Electrical Technology AG, among others.

These players are focusing on expanding their reach by entering into several agreements with industry players. Through these agreements, companies are emphasizing on strengthening their market presence to gain a competitive advantage over other players.

• For instance, in 2020, Hitachi ABB Power Grid signed a definitive agreement for the acquisition of U.S.-based Pioneer Solutions LLC. Through this, the company will expand its existing Energy Portfolio Management offering to create new value for energy market participants.

COVID-19 Impact on Electrotechnical Paper Market

The effects of COVID-19 have been profound in recent times, which is thereby having significant implications on various sectors. Electrotechnical technical paper is used in transformers and power grids, and owing to high-investment cost to set up new grid infrastructure, investment activities have been suspended.

This, in turn, will have major ramifications on the global electrotechnical paper market in the short term. Moreover, companies operating in the market also engage in export of insulation paper, and the outbreak of COVID-19 has put a hold on the movement of goods.

However, manufacturers are focusing on maintaining strong relationships with customers and suppliers in order to ensure uninterrupted access to products that their customers rely upon.

Moreover, post COVID-19 crisis, manufacturers will focus on increasing their presence in developing countries and will ramp up production to meet industry demand. Thus, in the long run, the electrotechnical paper market is anticipated to regain its original momentum.

The Analyst’s Viewpoint

“The unprecedented impact of COVID-19 will have short-term implications on the electrotechnical paper market. Expansion of the market will rely on the replacement cycle of electrotechnical paper in several applications, which will enable manufacturers to meet demand. Further, increasing demand for reliable power delivery will foster growth of the electrotechnical papers market.”

Key Segments of Electrotechnical Paper Market

Fact.MR’s study on the electrotechnical paper market offers information divided into four key segments— product, application, sales channel, and region. This report offers comprehensive data and information about the important market dynamics and growth parameters associated with these categories.

Product

• Presspaper
• Diamond Dotted Presspaper
• Presspaper with Polyester Film
• Crepe Paper
• Aluminum Crepe Paper

Application

• Cables
• Transformers
• Motors
• Others

Sales Channel

• OEM (First Fit)
• Aftermarket (Replacement)
  • Direct Sales
  • Retail Sales
  • Third-party Online Sales

Region

• North America
• Latin America
• Europe
• East Asia
• South Asia & Oceania
• Middle East & Africa (MEA)