Heat Shrink Terminals and Splices Market Size, Share, Growth, and Industry Analysis, By Type (Heat Shrink Ring Terminals, Heat Shrink Fork Terminals, Heat Shrink Butt Splices, Heat Shrink Disconnect Terminals, and Others), By Application (Automotive Application, Marine Application, Industrial Application, Appliances, and Others), and Regional Forecast By 2031

Updated On: 22 April 2024

Heat Shrink Terminals and Splices Market Report Overview

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The global heat shrink terminals and splices market size was USD 323.9 million in 2021, as per our research, the market is expected to reach USD 524.63 million in 2031, exhibiting a CAGR of 4.9% during the forecast period. 

The global COVID-19 pandemic has been unprecedented and staggering, with the heat shrinks terminals and splices market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

Heat shrinks terminals and splices are electrical connectors designed to create a secure and insulated connection between wires. They are widely used in electrical and electronic applications to ensure reliable and long-lasting connections. Furthermore, they are made of a special polymer material that shrinks when heat is applied. The terminals and splices are initially larger in size and have a cylindrical shape with an open end. When heat is applied, typically using a heat gun or a flameless torch, the polymer material contracts and conforms tightly around the wires, providing a tight seal.

The market is projected to rise with an outstanding CAGR over the forecast period due to the increasing demand for reliable and insulated electrical connections in various industries, and rising focus on safety and durability. Further, the market is bifurcated by type, by application, and by regional expansion of the market. In terms of the type of product, various products are available in the market. Whereas, automotive application, marine application, and industrial application are prevalent application segment in the market to generate higher demand for the product.

COVID-19 Impact: Pandemic Reduced the Demand for heat shrinks Terminals from key Industries.

The COVID-19 pandemic has had a significant impact on the global market across various industries. The market for heat shrink terminals and splices is no exception. The pandemic caused disruptions in the supply chain, leading to manufacturing delays and difficulties in sourcing components for heat shrink terminals and splices. Factory closures, restrictions on movement, and reduced workforce affected production and distribution. Additionally, the market experienced a decline in demand as economic uncertainties and lockdown measures resulted in reduced activity in industries such as automotive, aerospace, and construction, which are key consumers of heat shrink terminals and splices. However, as economies gradually reopened, there was a steady recovery in demand and a resurgence in infrastructure projects, which is expected to positively impact the market in the coming years as well.

Latest Trends

"Trends of Miniaturization and Compact Designs in Electronic Devices Fill the Market Scope"

The market for heat shrinks terminals and splices is anticipated to grow in the coming years due to emerging trends and developments in the industry. For instance, there is a growing demand for smaller and more compact heat shrink terminals and splices to accommodate space-constrained applications. Manufacturers are developing products with reduced dimensions while maintaining the same level of performance and reliability. With the increasing use of high-temperature environments in industries such as automotive, aerospace, and electronics, there is a need for heat shrink terminals and splices that can withstand extreme temperatures. Also, innovations are focused on developing heat shrink products with enhanced heat resistance properties to ensure reliable performance in challenging conditions. Therefore, these ongoing trends are attributed to support the heat shrink terminals and splices market growth throughout the forecast period 2022-2031. 

Heat Shrink Terminals and Splices Market Segmentation

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• By Type Analysis

According to type, the market can be bifurcated into heat shrink ring terminals, heat shrink fork terminals, heat shrink butt splices, heat shrink disconnect terminals, and others.

• By Application Analysis

Based on application, the market can be divided into automotive application, marine application, industrial application, appliances, and others.

Driving Factors

"Increasing Demand for Reliable Electrical Connections Lift the Market Growth" 

The market has been steadily growing in recent years owing to several driving factors, such as increasing demand for reliable electrical connections. The rising demand for reliable and durable electrical connections across various industries is a key driving factor. Heat shrink terminals and splices offer excellent insulation, protection against environmental factors, and strain relief, making them an essential choice for applications where secure and long-lasting electrical connections are required.

"Rising Technological Advancements and Industry Modernization Aid the Market Growth"

The market is also driven by technological advancements and industry innovation. As Technological advancements in electrical and electronic systems create the need for more sophisticated and efficient connection solutions. Thus, heat shrink terminals and splices are continuously evolving to meet the demands of emerging technologies, such as electric vehicles, renewable energy systems, and advanced electronic devices. These driving factors are the major key aspects of the market to push the demand for the equipment. 

Restraining Factors

"Instability in Raw Material Prices Can Limit the Market Evolution"

In spite of the market’s growth, there are certain restraints that may affect the market's progress. Volatility in raw material prices is one of the main restraining factors. Since fluctuations in the prices of raw materials used in the manufacturing of heat shrink terminals and splices can impact the profitability and pricing strategies of manufacturers. Price volatility in materials for instance polymers, metals, and adhesives can pose challenges to market growth.

Heat Shrink Terminals and Splices Market Regional Insights

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"North America Leads the Market with the Presence of Key Manufacturers and Suppliers"

According to a market review, North America has been a significant region in the heat shrink terminals and splices market. The U.S. is the key country in the region which has a strong presence of key manufacturers and suppliers, along with a developed infrastructure and a diverse range of industries that rely on reliable electrical connections. In addition to this, the automotive, aerospace, telecommunications, and energy sectors in North America have driven the demand for heat shrink terminals and splices.

Key Industry Players

"Key Players Offer a Comprehensive Portfolio of Products to Meet Diverse Needs of Customers"

With regard to key players, leading companies are involved in the design, manufacture, and supply of a wide range of heat shrink terminals and splices, catering to various industries and applications. They often offer a comprehensive portfolio of products, including different sizes, types, and materials to meet the diverse requirements of customers. Besides, it's worth noting that the market for heat shrink terminals and splices also includes regional and local players who cater to specific markets or niche applications. The competition among the key players and the evolving market dynamics contribute to innovation, quality, and advancements in technology. Moreover, the top five leading brands held around one-fifth of the heat shrink terminals and splices market shares in 2019.

List of Market Players Profiled

• Molex
• TE Connectivity
• 3M
• Panduit
• ABB (T&B)
• Fuji Terminal
• Shawcor (DSG-Canusa)
• K.S. TERMINALS
• Nichifu
• Hubbell (Burndy)
• NSPA (National Standard Parts Associates)
• Hillsdale Terminal
• FTZ Industries
• Jeesoon Terminals
• UTA Auto Industrial
• Yun Lin Electronic
• Maikasen
• EasyJoint Electric
• AIRIC
• Changhong Plastics Group Imperial Plastics

Report Coverage

This report defines the heat shrink terminals and splices market. It emphasizes the market value, expected CAGR, and USD value over the forecast period, before and after the impact of the COVID-19 pandemic restrictions on the international market, and how the industry is going to turn the corner is also stated in the report. The report provides significant market data with its product type and product applications, end-use details, and an idea of the market growth in the future. This report also provides an understanding of the growing market trends and developments and their effects on the market growth, driving factors along with restraining factors that impact the market dynamics. Along with this, the leading region, key players of the market, and their tactics to beat the market competition, sustainable policies, their collaboration, mergers, companies’ profile, previous years’ revenue, profit & loss, and market position based on their share value in the market, are also explained in the report.