China's heat shrinkable material products have been industrialized for nearly 20 years and have basically formed large-scale production so far. On the whole, heat shrinkable material market is still in the growth stage all over world including China. The potential demand of heat shrinkable material products is huge in the future.

As China begins to enter the stage of heavy chemical industry, domestic industrial structure upgrading and international industrial scope transfer. It is expected that high-speed railway, automobile and electric power construction will become the fields with rapid growth rate of heat shrinkable materials in China in the future, which is expected to drive China's heat shrinkable materials industry into a new round of high growth period.

According to the analysis report on market prospect and investment forecast of China's heat shrinkable materials industry published by the prospective industry research institute, the heat shrinkable materials of high-speed railway are mainly used on the high-speed railway Borg plate, which can play the role of insulation protection when the electric signal is transmitted on the track. In addition, the circuit protection of electrified locomotives also use heat shrinkable materials. According to the national 12th Five Year Plan, the construction of high-speed railway will reach 16000 km and 30000 km in 2015 and 2020 respectively. Therefore, it is estimated that the market demand space of high-speed railway heat shrinkable materials will reach 930 million and 1.75 billion in 2015 and 2020 respectively.

It is worth noting that the market share of heat shrinkable materials used in automobile manufacturing is still very low, only about 20% in China, and 80% of the global market share is occupied by Raychem of the United States and Sumitomo of Japan, but as the comprehensive passing of domestic certification in the automobile industry and the cost advantage, the market share of heat shrinkable tubes for automobiles is expected to be further increased.

At present, the price of double wall heat shrinkable tubes for domestic automobiles production is only 20% - 50% of that of Raychem of the United States and Sumitomo of Japan. According to the analysis of the current domestic supply to the automobile industry, if all of them are replaced with heat shrinkable tubes made in China, the average shrinkable tubes using value of each automobile is about 100-200 yuan, while the price of using foreign heat shrinkable tubes is 200-500 yuan. Assuming that the market share of China's heat shrinkable tubes for automobiles is increased to 40% and the global annual output is 70 million sets, the market space of China's heat shrinkable tubes for automobiles will reach about 4.2 billion.

The power heat shrinkable materials are mainly cable accessories, which account for about 1.3% of the power grid investment. Its market capacity is determined by the total investment of the power grid in that year, and has certain volatility. At present, power heat shrinkable materials are mainly used for 35KV or medium and low voltage below 35KV cable accessories, while high voltage cable accessories are mainly prefabricated and cold shrinkable materials. It is estimated that the proportion of medium and low voltage cable accessories in cable accessories is about 40%. According to the calculation, the investment in the national power grid will reach 2.5 trillion in 2015, including 32.5 billion cable accessories and 13 billion medium and low voltage cable accessories.

According to the research group of heat shrinkable materials industry of prospective industry research institute, the investment environment of China's heat shrinkable materials has been greatly improved due to the increase of policy support and the recovery of the heat shrinkable materials market in recent years. A large amount of capital has entered the field of China's heat shrinkable materials, and joint investment by domestic and foreign entities has become the mainstream form of heat shrinkable materials investment. It can be seen that the long-term constraint on the funding of China's heat shrinkable materials field can be fundamentally improved, and the funding source of China's heat shrinkable materials field will be more abundant in the future.