Thermal Interface Materials Market Size, Share & Trends Analysis Report By Product (Tapes & Films, Adhesives), By Application (Telecom, Computer), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global thermal interface materials market size was estimated at USD 3.36 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 11.2% from 2023 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 in the forecast period. Thermal interface materials are applied between two hard surfaces for conducting heat and find usage at times 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 anticipated to drive the demand over the coming years.

The growing demand for automation in the manufacturing of pharmaceuticals and medical machinery is expected to drive the demand for thermal interface materials over the forecast period. Furthermore, the demand for pharmaceuticals and medical products is growing with the increasing incidences of illnesses and diseases among the population in developed as well as developing economies. This is likely to drive the demand for thermal interface materials across the globe.

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.

Thermal interface materials are widely utilized in consumer electronics for improving performance, sustainability, quality, functionality, and environmental properties. These materials help boost the overall lifespan of consumer electronics on account of their high protection & durability. Moreover, the growing need for thermal conductivity in high-end electronic products is anticipated to support the market over the forecast period.

The pandemic has changed consumer purchase behavior which has led to increased use of consumer electronics such as tablets, phones, and video games. The demand for automation in applications such as pharmaceutical and medical industries has also seen a rise due to increased demands for drugs and medical equipment during and post-pandemic.

The thermal interface is 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 34.6% in 2022 owing to the widespread usage in consumer products and the high thermal resistance of the product. The elastomeric pads are expected to have a significant revenue share based on their easy assembly as compared to greases. Also, with elastomeric pads, the handling mechanism is improved and possesses less chance of degrading interface resistance.

Phase change materials are anticipated to expand at a high CAGR of 11.6% during the forecast period. It finds major application in construction work as demand for cooler buildings is increasing. The material act as heat storage wherein the heat gets absorbed during summer and retained heat can be used in winter times to manage the temperature difference.

Elastomeric pads are expected to register a significant CAGR in the projected period owing to their easy handling and installation techniques used for thermal conductivity in electrical and electronic components. However, the limited application scope and the 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 in dispensable 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 segment accounted for a significant share of over 24.0% in 2022 on account of increasing utilization in office end-use. The affordable prices of desktops have revolutionized the demand and supply of products. The post-pandemic times did not dampen the market, rather with the increase in the number of people working from home, the upgradation, sales, and installation figures of the PC market have increased.

The telecom application segment for product utilization is expected to witness significant demand in the estimated time owing to the increasing preference for digital and cashless economy. The banks, e-commerce, utilities, and media rely on the telecom industry for their businesses and it is seen as their lifeline. Thus, is likely to support the industry’s growth over the projected time.

The products are considered to address the challenge of higher thermal insulation, dissipation, and conductance in medical electronics and other industries. These are broadly classified into polymer matrix composites, metal matrix composites, and carbon composite products. Moreover, technical advancements in the product for providing better thermal management solutions are expected to augment the growth.

The material finds application in medical devices, industrial machinery, consumer durables, and automotive electronics. With the advanced cockpit functionality, the materials are also installed in 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 with a share of over 38.1% in 2022 due to high demand owing to the presence of a large base of manufacturing zone. In addition to the manufacturing base, reduction in corporate tax, GST, rising household incomes, consumer health awareness, changing lifestyle, and government policies have the potential to propel the industry growth in this region.

The product is set to gradually lose out on its revenue gained in Europe despite the region being a major market for the automotive industry and medical device manufacturing. This is attributed to the recent outbreak of the pandemic, which has made manufacturing activities come to a standstill due tocollapsing supply and demand of vehicles.

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, with government’s continuous focus on the healthcare and automotive industry by encouraging FDI from Asian manufacturers can help revive the business in the forecasted 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 the demand for thermal interface material over the forecasted period.

Key Companies & Market Share Insights

The global thermal interface materials market is characterized by the presence of multiple small- and large-scale manufacturers. The companies have considered diversifying and integrating their business processes to cater to the value chain aspect of their enterprise. The companies are trying to remain competitive in the market by exploiting economies of scale and expanding through acquisitions & mergers, and joint ventures. Acquisitions and mergers are facilitating companies to expand their product reach and improve 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 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

Global Thermal Interface Materials Market Report Segmentation

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 2018 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, 2018 - 2030)

  • Tapes And Films

  • Elastomeric Pads

  • Greases And Adhesives

  • Phase Change Materials

  • Metal Based

  • Others

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Telecom

  • Computer

  • Medical Devices

  • Industrial Machinery

  • Consumer Durables

  • Automotive Electronics

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 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