The electric vehicle insulation market is rapidly evolving as the adoption of electric vehicles (EVs) accelerates worldwide. Valued at USD 9.10 billion in 2025, the market is projected to expand to USD 43.02 billion by 2034, growing at a CAGR of 21.74% during the forecast period. The demand for eco-friendly mobility solutions, coupled with technological innovations in materials science and strong government support for EV adoption, is fueling this growth.
Electric vehicle insulation plays a vital role in enhancing safety, efficiency, and performance. It includes thermal, electrical, and acoustic insulation products manufactured from foamed plastics, ceramics, and advanced nanomaterials. These insulation solutions are applied across EV systems such as batteries, motors, interiors, and under-the-hood components.
Market Highlights
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Asia Pacific held the largest share in 2025, driven by EV adoption in China, India, Japan, and South Korea.
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North America is anticipated to grow at a significant CAGR, led by the U.S. and Canada.
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Foamed plastics dominated by material segment in 2025, while ceramics are projected to grow rapidly.
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Electrical insulation led the product category, with acoustic insulation expected to witness strong growth.
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Under the hood & battery pack applications held the largest share in 2025.
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Hybrid Electric Vehicles (HEVs) led the market, while Battery Electric Vehicles (BEVs) are set to expand at the highest CAGR.
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Growth Trends in 2025
Partnerships
Strategic collaborations are driving innovation. For example, in August 2025, Foli Aerogel partnered with Aerogel Technologies, LLC to develop advanced adhesive tape to improve EV safety.
Business Expansions
Manufacturers are scaling operations to meet growing demand. In May 2025, Belrise announced three new EV component manufacturing facilities in India to enhance production capacity.
Rising EV Sales
According to the International Energy Agency, 2.2 million battery electric vehicles were sold in Europe in 2024, showcasing the surging global consumer demand for cleaner transportation.
Material Insights
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Foamed Plastics: Leading the market due to their role in preventing overheating and thermal runaway. In July 2025, Covestro launched flame-retardant polyurethane foam for EV batteries.
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Ceramics: Gaining momentum for their high thermal stability and insulation properties. In May 2025, QuantumScape collaborated with Murata to develop ceramic films for next-generation batteries.
Product Insights
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Electrical Insulation: Dominated in 2025 due to its critical role in protecting high-voltage EV components.
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Acoustic Insulation: Expected to grow considerably as EV makers integrate sound-dampening materials for quieter rides.
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Application Insights
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Under the Hood & Battery Pack: Largest share in 2025 due to the growing need for high-performance foams in EV batteries.
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Interior Insulation: Projected to grow at a significant CAGR, driven by demand for premium, noise-free EV interiors.
End-Use System Insights
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Hybrid Electric Vehicles (HEVs): Led the market in 2025, supported by investments in hybrid models. Toyota Kirloskar launched the Camry HEV in August 2025 with advanced insulation materials.
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Battery Electric Vehicles (BEVs): Expected to expand fastest, fueled by adoption in China, India, the U.S., and Europe.
Geographical Insights
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Asia Pacific: Dominated in 2025, supported by EV adoption and government-led charging infrastructure expansion. In May 2025, Hyundai Mobis introduced an EV battery fire safety technology in South Korea.
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North America: Growing rapidly with rising hybrid vehicle sales and material innovations. In June 2025, Parker Hannifin Corp launched CoolTherm TC-850 in the U.S. for advanced thermal management.
Top Companies in the Electric Vehicle Insulation Market
Saint-Gobain
About: A French multinational specializing in construction and high-performance materials.
Products: Offers insulation solutions for EV batteries, interiors, and acoustic applications.
Market Cap: Approximately USD 28 billion.
Pyrophobic Systems Ltd
About: A Canada-based company focused on fire-retardant materials for EV batteries.
Products: Manufactures thermal barriers and fire-protection insulation for EVs.
Market Cap: Privately held company.
Morgan Advanced Materials
About: A UK-based leader in ceramics, carbon, and composite materials.
Products: Provides ceramic-based insulation materials for thermal and electrical safety in EVs.
Market Cap: Around USD 1 billion.
Parker Hannifin Corp
About: A U.S.-based company specializing in motion and control technologies.
Products: Provides adhesives, foams, and advanced materials for EV battery insulation.
Market Cap: Approximately USD 60 billion.
Elkem Silicones
About: A Norwegian multinational chemical company.
Products: Produces silicones and polymers for EV insulation and thermal management.
Market Cap: Around USD 4 billion.
3M
About: A U.S.-based global conglomerate with a strong presence in automotive materials.
Products: Manufactures advanced foams, adhesives, and tapes for EV insulation.
Market Cap: Approximately USD 50 billion.
Elmelin Ltd
About: A UK-based company specializing in mica-based insulation solutions.
Products: Supplies high-temperature insulation for EV batteries and components.
Market Cap: Privately held company.
Recent Developments
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June 2025: Alkegen launched a fiber-enhanced aerogel insulation for EV batteries.
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September 2024: Asahi Kasei launched LASTAN, a flame-retardant nonwoven fabric for EV safety.
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June 2024: Oerlikon introduced new safety components for Battery Electric Vehicles (BEVs).
FAQs
Q1. What is driving the growth of the electric vehicle insulation market
The growth is driven by increasing EV adoption, technological advancements in insulation materials, and government initiatives supporting sustainable mobility.
Q2. Which materials are most used in EV insulation
Foamed plastics and ceramics are the most widely used due to their thermal, mechanical, and safety benefits.
Q3. Which region dominates the electric vehicle insulation market
Asia Pacific dominates, led by China, India, Japan, and South Korea. North America is also witnessing significant growth.
Q4. What role do partnerships play in this market
Partnerships enable companies to innovate faster, develop advanced insulation products, and expand their global presence.
Q5. Who are the top companies in the EV insulation market
Key companies include Saint-Gobain, 3M, Parker Hannifin Corp., Elkem Silicones, Morgan Advanced Materials, Pyrophobic Systems Ltd, and Elmelin Ltd.
Source : https://www.towardsautomotive.com/insights/electric-vehicle-insulation-market-sizing
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