The global Thermal Interface Materials market size was estimated at around USD 1.9 billion in 2021 and it is projected to hit around USD 4.98 billion by 2030, growing at a CAGR of 11.3% from 2022 to 2030.
The increasing use of electrical equipment and electronic gadgets is expected to boost the market for thermal interface materials during the forecast period.
The rising demand for high-grade specifications in electronic devices due to the increased need in terms of consumer electronics and technology innovation is expected to support the growth of thermal interface materials. Moreover, the growing demand for the latest technological gadgets and specialty electronics for high-end operations is expected to augment the market in the projected time.
Commercial availability and enhanced performance characteristics of the products to reduce the heat transfer are likely to support the demand. Thermal interface materials conduct more heat than air, which it displaces as a substance to fill the imperfection between the physical contact of solid surfaces. These materials can also extract waste heat generated when a semiconductor electronic device is used to its maximum potential. Increased use of electronic devices in various areas such as consumer goods, and automobiles and the use of smart devices in the household, commercial, and industrial operations are expected to augment the growth of thermal interface materials during the forecast period.
The COVID-19 pandemic impacted the increased use of smart devices and electrical appliances by consumers. As a result, production and demand for thermal interface materials have increased. During the pandemic, however, supply chain disruption caused by governmental restrictions had a minor negative impact on the market.
The market is highly competitive for a variety of reasons, including the high level of innovation in terms of product innovation and performance, the remarkable impact of e-commerce on the shopping experience, and product substitutes.
Scope of The Report
|Market Size in 2021||USD 1.9 billion|
|Revenue Forecast by 2030||USD 4.98 billion|
|Growth rate from 2022 to 2030||CAGR of 11.3%|
|Forecast Period||2022 to 2030|
|Segmentation||Product, application, region
|Companies Covered||The 3M Company, Henkel, Indium Corporation, Fujipoly, The Dow Chemical Company, Honeywell International Inc., SIBELCO, Shin-Etsu|
Thermal greases and adhesives led the market with a share of over 34.2% in 2021, owing to their widespread usage in consumer products and high thermal resistance. The elastomeric pads are expected to have a significant share in the market on account of their easy assembly as compared to greases. The handling mechanism is also improved with elastomeric pads as fewer chances of weakening the interface resistance exist.
Compared to other product segments, phase change materials are expected to have a high compounded annual growth rate of 11.8%. As the demand for cooler buildings grows, it finds its most common application in construction. The material acts as a heat storage device, absorbing heat in the summer and storing it for use in the winter to manage temperature differences.
Elastomeric pads are expected to register significant growth during the forecast period, owing to their easy handling and installation techniques used for thermal conductivity in electrical and electronic components. However, limited application scope and high unit cost of the products are expected to hamper the growth in the estimated time frame.
These interface materials are majorly used for applications of indispensable gels, gap filling and insulating pads, adhesive tapes, and greases. These are selected based on their toughness, environmental & chemical resistance, hardness, tensile strength, and thermal conductivity. Moreover, compatibility with electronic and mechanical gadgets is considered.
The computers application segment accounted for a significant share of over 24.5% in 2021 on account of increasing utilization in office end-use. The affordable prices of desktops have revolutionized the demand and supply of the product. As the number of people working from home has increased, the upgrading, sales, and installation figures of the PC market have also risen post-pandemic.
The telecom application segment for product utilization is expected to witness significant demand in the estimated time, owing to the increasing preference for a digital and cashless economy. The banks, e-commerce, utilities, and media are reliant on the telecom industry for their business and are its lifeline. Thus, the telecom application segment is likely to support the industry growth in the projected time.
Higher thermal insulation, dissipation, and conductance are all challenges in medical electronics and other industries, and the products address them. Polymer matrix composites, metal matrix composites, and carbon composites are the three broad categories. Furthermore, technological advancements in the product are expected to boost growth by providing better thermal management solutions.
The material’s other application is found in medical devices, industrial machinery, consumer durables, and automotive electronics, among others. Additionally, the advanced cockpit technology makes the material ideal for aerospace components. The recent advancements in military and aerospace applications have led engineers to address the increased thermal management issues.
Asia Pacific dominated the market in 2021 with over 38.1% of the market share due to a large base of manufacturing zones. Besides the manufacturing base, reduction in corporate tax, GST, rising household incomes, consumer health awareness, changing lifestyles, and government policies are expected to propel the industry growth in this region.
Despite Europe being a major market for the automotive industry and medical device manufacturing, the product is expected to lose revenue. This is due to the recent pandemic outbreak, which has caused manufacturing activities to a halt as supply and demand for vehicles have collapsed.
The sales in the automotive sector could only be made through refurbishment or maintenance of vehicles, as more trucks and vans are used for supplying essentials across the region. However, the government’s continuous focus on the healthcare and automotive industry by encouraging FDI from Asian manufacturers can help revive the business during the forecast period.
The current pandemic situation has acutely affected the medical devices segment in the U.S. since the region imported about USD 24 billion worth of medical goods from China in the first half of 2021. There is a significant fall in production, which is expected to affect U.S. manufacturers and assemblers. However, the healthcare segment remains promising in the U.S. and is expected to drive thermal interface material demand during the forecast period.
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