Thermal Interface Materials Market Size, Share & Trends Analysis Report By Product (Tapes And Films, Elastomeric Pads), By Application (Telecom, Computer), By Region, And Segment Forecasts, 2019 - 2025

Industry Insights

The global thermal interface materials market size was estimated at USD 1.62 billion in 2018, growing at a CAGR of 10.8% from 2019 to 2025. Rising demand for thermal interface materials in the automotive industry on account of its rising use in automotive electronics such as music systems and interior automation components is expected to drive growth.

Metal based thermal interface materials are generally used in demanding applications in place of polymers on account of their stable thermal breakdown and low thermal resistance. The use of compressible metal thermal interface materials in power amplifiers is expected to drive the market growth over the next seven years.

In the U.S., greases and adhesives segment emerged as a dominant segment in 2018 and accounted for over 34.6% of the revenue share and is expected to maintain their dominance. The superior properties of TIM greases and adhesives results in the elimination of microscopic air pockets which provides for their increased adoption level.

Thermal interface material (TIM) is manufactured using crude oil as a raw material. The variations in the price of crude oil affect the profitability and production of these materials which is expected to restrain market growth in the projected period. The crude oil based products are the main feedstock for hot-melt adhesives (HMA) which is generally used as a TIM.

Mineral oil, liquid metals, polyethylene, PVC and polypropylene mineral are some of the major raw materials used for manufacturing TIMs. Abundant raw material availability and the presence of a large number of suppliers in the market results in a low supplier power. However, selective product use of raw materials will result in a medium supplier power over the next seven years.

Rising demand for nanodiamonds, a high-performance thermal interface material and electrification of the transportation industry is anticipated to create new opportunities for market development. However, as the material is highly volatile market, it poses a big challenge for manufacturers to strategize any policy for increasing the penetration of HMA in TIMs.

Product Insights

Growing demand for silicone grease in automotive and CPUs as these products offer high lubrication and smooth functioning between two equipment is anticipated to augment the industry growth over the projected period. In addition, ease of application of greases and adhesives onto the desired surfaces is expected to drive the thermal interface materials market growth over the forecast period.

Superior thermal conductivity of the greases makes them a preferable option in the electronics manufacturing industry. The grease is generally silicone or hydrocarbon oils that are impregnated with various fillers. Superior properties of the product such as the elimination of microscopic air pockets are likely to boost segment demand over the projected period.

Elastomeric pads segment accounted for 32.9% of the revenue share in 2018 and is anticipated to witness substantial growth owing to its ease of application. The elastomeric pads can be viewed as the extensions of thermal interface greases. Moreover, it is combined with woven fiberglass that helps in the enhancement of the handling processes.

Phase change materials segment is projected to register notable growth on account of their extensive use in refrigerated transportation in roads and rails. As these materials are effective conductors of heat and they store and release thermal energy during freezing and melting. Increasing demand for the products in the electronics gadgets is expected to boost growth.

Application Insights

Computers segment was the largest application accounting for over 27.3% of the revenue share in 2018. This can be attributed to technological developments pertaining to hardware and software of the computers and its rising use for personal and professional work across the globe. High demand for personal computers in account of the growing IT sector is expected to drive growth.

The demand for thermal interface materials in telecommunication is expected to be driven by the rising use in printed circuit boards in the telecom industry and the presence of extensive telecommunication network in the developed regions such as North America and Europe.

The medical device emerged as the fastest growing application segment of the TIMs market and is expected to grow at a substantial CAGR over the projected period. The major factors driving the segment are technological enhancement such as the incorporation of complex thermal conductors in the medical devices and increasing expenditure on healthcare in North America.

The electronic devices used in the medical industry must stay cool to run unceasingly within their functioning temperature range and need correct thermal management. The effective thermal management allows excess heat to be efficiently spread, dissipated, and moved. High demand for the TIMs in the medical application is expected to drive the market growth.

Regional Insights

Asia Pacific was the largest market, accounting for 37.2% of the market revenue in 2018. The factors such as the developing pharmaceutical sector in countries like China, Indonesia, and India and rising investment by foreign players including British firm GlaxoSmithKline (GSK), Swiss company Novartis, and Germany’s Bayer are expected to drive the market growth.

In 2018, Europe was one of the largest market for medical devices in the world and accounted for over a quarter of the global demand. Germany is one of the prime manufacturing hubs in Europe, with extensive production base for pharmaceutical products and medical devices which is further expected to increase the consumption of TIMs thereby propelling growth.

The North America medical industry is expected to witness considerable growth owing to an increase in the population. In addition, implementation of “Affordable Healthcare Act” in the U.S. is projected to stimulate the construction of more number of health care units and hospitals in the region which is expected to result in a rise in the demand for medical devices, thereby promoting the consumption of TIMs.

Central & South America has been witnessing slow growth in the automotive industry since the past few years. This can be attributed to the economic instabilities in key countries such as Brazil and Colombia. However, rising demand for electronic gadgets in the region is likely to boost industry growth over the forecast period.

Thermal Interface Materials Market Share Insights

Manufacturers are continuously investing in R&D activities for the development of novel products. Some of the adhesives and sealants manufacturers, such as Dow and 3M Company, in the market are integrated, i.e., produce both the raw materials as well as and TIM products. Other suppliers, such as Henkel and Ashland+ Inc., source raw material products from the major petrochemical companies.

The market is highly fragmented and competitive in nature owing to the presence of various small and large manufacturers. Large numbers of thermal material manufacturers are present in North America and Europe. Key players of this market include Henkel, The 3M Company, Fujipoly, Indium Corporation, The Dow Chemical Company, and Honeywell International.

Report Scope

Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global thermal interface materials market on the basis of product, application, and region:

• Product Outlook (Revenue, USD Million; 2014 - 2025)

  • Tapes and Films

  • Elastomeric Pads

  • Greases and Adhesives

  • Phase Change Materials

  • Metal-Based

  • Others

• Application Outlook (Revenue, USD Million; 2014 - 2025)

  • Telecom

  • Computer

  • Medical Devices

  • Industrial Machinery

  • Consumer Durables

  • Automotive Electronics

  • Others

• Region Outlook (Revenue, USD Million; 2014 - 2025)

  • North America

    • U.S.

  • Europe

    • Germany

  • Asia Pacific

    • China

    • India

  • Latin America

    • Brazil

  • Middle East & Africa