Thermal Interface Materials Market Size, Share, Trends, Growth 2030

Thermal Interface Materials Industry Prospective:

The global thermal interface materials market size was worth around USD 3,880.54 million in 2022 and is predicted to grow to around USD 6,900.21 million by 2030 with a compound annual growth rate (CAGR) of roughly 7.46% between 2023 and 2030.

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Thermal Interface Materials Market: Overview

Thermal interface materials (TIMs) are used for conducting electricity between two or more solid mating units or surfaces. A common example is the TIM product used for thermal transmission between a heat sink and a semiconductor device. Thermal interface materials, in this case, would act as gap fillers between the two surfaces thus assisting and improving heat transfer and enhancing the overall efficiency of the thermal management system. TIMs are considered highly energy-efficient and cost-effective passive thermal management solutions due to their role in maintaining appropriate operating temperatures in components of electronic devices. The largest application of TIMs is mostly witnessed in industrial and consumer electronic systems as they prevent local temperature overloading.

Some of the other industries with high demand for thermal interface materials are gaming, telecommunications, aerospace, automotive, and servers. Although there are several types of TIMs available in the market, the most widely used are thermal tapes, greases, gels, dielectric pads, thermal adhesives, advanced materials, and phase change materials (PCMs). The industry for thermal interface materials is likely to witness a steady growth rate during the forecast period.

Key Insights:

• As per the analysis shared by our research analyst, the global thermal interface materials market is estimated to grow annually at a CAGR of around 7.46% over the forecast period (2023-2030)
• In terms of revenue, the global thermal interface materials market size was valued at around USD 3,880.54 million in 2022 and is projected to reach USD 6,900.21 million, by 2030.
• The thermal interface materials market is projected to grow at a significant rate due to the increasing demand for miniaturized consumer electronic devices
• Based on application segmentation, consumer electronics was predicted to show maximum market share in the year 2022
• Based on chemistry segmentation, silicone was the leading segment in 2022
• On the basis of region, Asia-Pacific was the leading revenue generator in 2022

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Thermal Interface Materials Market: Growth Drivers

Increasing demand for miniaturized consumer electronic devices to drive market growth

The global thermal interface materials market is projected to grow owing to the increasing demand for compact and miniaturized consumer electronic devices including tablets and laptops. TIMs are used extensively in these tools to manage and control heat generated by the several components of portable systems. Furthermore, thermal interface materials are also used extensively in smartphones ensuring the prevention of overheating. In recent times, the consumption levels of smart devices have increased at a rapid rate driven by several factors. For instance, at present times consumers have access to affordable smartphones and laptops with exceptional features.

Additionally, market players have consistently worked on improving product lineup and offering products across price boards thus catering to the needs of a larger group of audience. Revenue in the consumer electronics sector has further increased by the proliferation of online shopping as e-commerce sales penetrate deeper into remote markets thus bringing the consumers closer to the brands selling consumer electronics products. The use of laptops and smartphones is not restricted to only certain segments of the population as the final use of these products has evolved over the years especially impacted by the thriving application of compact devices for learning and education.

Rising research & development toward improved TIM to push market revenue

The companies providing thermal interface materials are investing heavily in research & development aimed toward introducing new and improved TIM solutions in the commercial industry as consumer expectations continue to change. Additionally, the global market players are facing tough internal and external competition thus paving the way for higher innovation.

In May 2023, SEKISUI POLYMATECH announced the launch of MANION-HST. It is a high-performance, record-setting TIM supporting power module application.

Thermal Interface Materials Market: Restraints

Competition from alternate solutions to restrict market growth

The global thermal interface materials industry growth rate is likely to be impacted by the presence and growing demand for alternate solutions that have proven as highly effective in managing heat generation and dissipation in electronic products. Some of the most widely used substitute solutions are graphite foils & sheets, phase-change materials (PCMs), gap pads, and vapor chambers to name a few. In addition to this, the market is also witnessing the growing innovation in thermal adhesive technologies. In October 2023, Bostik, a leading specialist in adhesive solutions, showcased its new range of thermal conductive adhesives in India.

Thermal Interface Materials Market: Opportunities

Surging electric vehicle (EV) sector holds immense growth opportunities

The global thermal interface materials market will come across immense growth opportunities as the world registers high demand for electric vehicles across product types including compact passenger cars to larger public transport systems. Since EVs run on electric batteries, TIMs are used for maintaining the performance efficiency of the employed electric systems. One of the primary reasons for the growing consumption of EVs is the rising prices of non-renewable fuel including diesel, petrol, and gas.

Additionally, traditional power sources are the leading cause of global warming and climate change giving rise to an urgent need for sustainable alternatives. Electric vehicles are expected to greatly reduce the demand and consumption of traditional fuel. The consumers are further encouraged by the rise in subsidies offered by the government to the producers and buyers of electric vehicles. As of 2022, Europe has installed around 0.5 million EV charging points while more investments are projected to follow in the coming years.

High use of industrial machinery to shape the market growth trend

The industry for thermal interface materials is anticipated to deliver better results as the demand for advanced and professional industrial machinery is on the rise. Factors such as increased automation and surging investments in global infrastructure development along with the introduction of powerful machinery to meet the modern requirements are expected to further push demand for TIMs.

Thermal Interface Materials Market: Challenges

High initial investment and dynamic industry-based requirements to challenge market growth

The global thermal interface materials industry will be challenged by the high cost of initial investment required for the manufacturing of TIMs since these materials are required to exhibit superior heat transfer and maintenance capabilities. Additionally, every industry has specific needs thus requiring thermal interface materials to be tailor-made to meet these requirements adding to growth barriers.

Thermal Interface Materials Market: Segmentation

The global thermal interface materials market is segmented based on application, chemistry, and region.

Based on application, the global market is segmented into computer, telecom, consumer electronics, industrial machinery, medical devices, and others. In 2022, the highest growth was registered in the consumer electronics segment driven by the massive revenue generated by the sector as the demand for portable smart devices surged. Rampant modernization and increased access to affordable yet highly functional consumer electronics were the influential factors and assisted the market in reaching a valuation of around USD 1 trillion in 2022.

Based on chemistry, the global thermal interface materials industry is divided into polyimide, epoxy, and silicone. In 2022, the highest revenue-generating segment was silicone. It is projected to follow the same trend during the forecast period. The segment has applications across industries mainly due to the several advantages associated with the use of silicone. Some of the benefits are ease of application and superior thermal conductivity which is around 2.3 W/cm-K for natural silicon.

Thermal Interface Materials Market: Report Scope

Thermal Interface Materials Market: Regional Analysis

Asia Pacific to hold control over the largest part of the market share

The global thermal interface materials market will be dominated by Asia-Pacific during the projection period. In 2022, the region held control over 38.25% of the global revenue. The primary reason for the higher regional growth rate is the presence of an extensive and rapidly changing manufacturing sector in large Asian economies such as India, China, Japan, and South Korea. Furthermore, these countries are registering a change in consumer lifestyle as spending power continues to rise with the aid of supportive government policies that aim to attract more foreign investments.

For instance, China is the world’s leading country in terms of production and consumption of electric vehicles. The country has over 1.7 million EV charging stations and continues to invest more resources for further development. The massive production rate of consumer electronics has always been one of the focal points for growth in Asia-Pacific as the region not only caters to the demands of international brands but also has a strong domestic presence. The rapidly growing urbanization index and infrastructure development projects have fueled demand for heavy industrial machinery leading to higher consumption of thermal interface materials.

Thermal Interface Materials Market: Competitive Analysis

The global thermal interface materials market is led by players like:

• Indium Corporation
• Henkel AG & Co. KGaA
• Parker Hannifin Corporation
• Dow Inc.
• Shin-Etsu Chemical Co. Ltd.
• 3M Company
• Zalman Tech Co. Ltd.
• Laird Performance Materials
• Innovation Cooling
• LORD Corporation
• Momentive Performance Materials Inc.
• Aavid Thermalloy LLC
• Wakefield-Vette Inc.
• The Bergquist Company (A Henkel Company)
• Master Bond Inc.

The global thermal interface materials market is segmented as follows:

By Application

• Computer, Telecom
• Consumer Electronics
• Industrial Machinery
• Medical Devices
• Others

By Chemistry

• Polyimide
• Epoxy
• Silicone

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa