Heat Shrink Tubing Market Share & Size Report 2028

The heat shrink tubing market is expected to grow from US$ 2,070.53 million in 2022 to US$ 2,877.64 million by 2028; it is estimated to register a CAGR of 5.6% from 2022 to 2028.

Heat shrink tubing has multiple uses and is widely utilized within telecommunications networking cables. Heat shrink tubes are used to safeguard these cables, connections, conductors, terminals, and joints against environmental damage. Further, the oil & gas industry faces the most challenging environmental conditions and effects. Extreme heat, pressure, corrosion, and other factors impact the equipment used in the oil & gas industry. Heat shrink tubing ensures the equipment delivers reliable and consistent performance. Likewise in a phone or laptop, charging cords have a point of vulnerability at the end of the cord where it attaches the connector; heat shrink tubing is used to seal/protect that point of vulnerability between the cord and the connection. Thus, the demand for heat shrink tubing across telecommunications, oil & gas, electrical and electronics industries provides ample opportunities for the market growth.

Increasing demand from the automotive industry and government initiatives to expand and upgrade transmission and distribution systems are among the factors driving the growth of the heat shrink tubing market. Further, high growth potential from industries such as telecommunications, oil & gas, and electrical & electronics provides lucrative opportunities for the market. Automation of heat shrink tubing process is expected to emerge as a trend in the heat shrink tubing market during 2022–2028. The automotive industry plays a crucial role in a country's economy and helps build macroeconomic growth and stability in both developed and developing countries. Heat shrink tube is widely used in automobiles for insulating engine components. The harsh operating environment in an automobile engine chamber has made it necessary to use an electrical shrink tube for an electrical circuit inside it. In automobiles, heat shrink tube has numerous applications, such as fuel line protection, anti-lock braking systems (ABS) tubing, water drain tubing, power steering return hoses, air conditioning aluminum tubing, automatic transmission fluid (ATF) tubing formulated for automotive engines, water-cooling system tubing, fuel system tubing, and air conditioning hoses.

Strategic Insights

Impact of COVID-19 Pandemic on North America Heat shrink tubing Market Growth

North America is an early adopter of emerging technologies due to favorable government policies to boost innovation and reinforce infrastructure capabilities. The automotive industry in North America has a potential influence on the country’s economy. Unfortunately, the US was one of the worst-affected countries due to the COVID-19 pandemic, and the crisis led to a cascading impact on multiple industries. The operations of the automotive industry were put on hold, which hampered the business dynamics in the first half of 2020. In North America, a total of 43 states had lower auto exports in 2020 than in 2019. In March 2020, American Honda Motor Co., Inc. announced that it had halted North American production, due to which the company saw a production loss of ~40,000 vehicles. Disruption in the supply chain due to travel restrictions was limiting supply and production activities, including heat shrink tubing solutions, during the pandemic.

However, since 2021, the industry has been improving at a faster pace. Factories are churning out, and many manufacturing plants are nearly back to production levels after a temporary shutdown during the pandemic.

Lucrative Regions for Heat Shrink Tubing Market

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Based on geography, the heat shrink tubing market size is primarily segmented into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South & Central America (SAM). APAC accounted for the largest heat shrink tubing market share in 2022, and it is expected to retain its dominance during the forecast period. Further, APAC is expected to witness the highest CAGR in the heat shrink tubing market during the forecast period. According to the US Department of Energy, in 2021, the US wind industry installed 13,413 megawatts (MW) of new wind capacity, the second-highest amount of wind capacity installed after 2020, with a total investment of US$ 20 billion. North America is focusing on the cost and performance improvements of wind power technologies, production tax credit, and wind energy capacity additions, which is supporting the growth of the heat shrink tubing market across the region.

Heat Shrink Tubing Market - Voltage-Based Insights

Based on voltage, the heat shrink tubing market is segmented into low voltage (less than 5kV), medium voltage (5–35kV), and high voltage (above 35kV). The low voltage segment is dominating the market due to increasing demand for the heat shrinking tubes in low voltage connection applications.