Thermal Interface Materials Market Size, Share & Trends Analysis Report By Product (Tapes And Films, Elastomeric Pads), By Application (Telecom, Computer, Others), And Segment Forecasts, 2022 - 2030

Report Overview

The global thermal interface materials market size was estimated at USD 1.84 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 11.4% between 2022 to 2030. The increasing use of electronic consumer products such as smartphones and laptops, the use of automation in industries in developing countries, and the rising expendable income of the middle-class population are expected to increase the demand for thermal interface materials during the forecast period. Thermal interface materials are applied between two hard surfaces for conducting heat and finding their usage of greater demand for modern electronic devices. Commercial availability of different thermal interface materials in an array of forms coupled with growing applications in the electronic industry is expected to increase the penetration over the coming years.

The increased use of phones and other smart devices has led to an increased demand for thermal interface materials in developed countries such as the U.S. The need for fast-speed networks, higher bandwidth, and increased system performance due to the boom in the computer industry and increased IT activities is also expected to augment the growth of the market.

The COVID-19 pandemic has changed consumer purchase behavior, which has led to increased use of consumer electronics such as tablets, phones, and video games. Automated applications are also in high demand in applications such as those in the pharmaceutical and medical industries due to the increased demand for drugs and medical equipment following pandemics.

Thermal interfaces are commonly known to provide efficient heat management solutions required for improving the system's overall performance and lifespan. Various products of thermal interfaces available in the market include greases, thermal tapes, elastomeric pads, and solders. The materials selection criteria are based on mechanical factors, electrical insulation, quality, thermal resistance, performance, and material compatibility.

The product is anticipated to witness significant gains owing to its thermal conductivity nature, which helps in strengthening the life and efficiency of the electronic device or the equipment where it finds its application. The product is usually made of conducting materials like silicone, metal oxides, or metals.

Product Insights

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.

Application Insights

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.

Regional Insights

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.

Key Companies & Market Share Insights

The global thermal interface materials market is characterized by the presence of multiple small and large-scale manufacturers. To cater to the value chain aspects of their business, the companies have considered diversifying and integrating their business processes. Companies are attempting to maintain market competitiveness by utilizing economies of scale, expanding through acquisitions and mergers, and forming joint ventures. Acquisitions and mergers allow businesses to broaden their product offerings while also improving product quality.

The industry has been witnessing increasing investments and continuous efforts in R&D to introduce thermal interface materials with enhanced characteristics, thereby increasing their chances of market penetration. The presence of internationally renowned players in the thermal interface material space is likely to experience disruptive competition because of the presence of emerging players in the Asia Pacific region offering the thermal management solution at lower costs. Some prominent players in the global thermal interface materials market include:

• The 3M Company

• Henkel

• Indium Corporation

• Fujipoly

• The Dow Chemical Company

• Honeywell International Inc.

• SIBELCO

• Shin-Etsu

Thermal Interface Materials Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global thermal interface materials market report based on product, application, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Tapes and films

  • Elastomeric Pads

  • Greases and adhesives

  • Phase change materials

  • Metal-Based

  • Others

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Telecom

  • Computer

  • Medical devices

  • Industrial machinery

  • Consumer durables

  • Automotive electronics

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Mexico

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • UAE