THERMAL INTERFACE MATERIALS MARKET ANALYSIS

The global thermal interface materials market size was valued at US$ 2,428.6 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 10.98% from 2023 to 2030. The growing use of electronic consumer products such as smartphones, tablets, and laptops, increasing demand for automation in industries in developing countries, and rising expendable income among middle-class consumers are expected to drive market growth in the coming years. Thermal interface materials find application in a wide range of devices across diverse applications such as computers, telecom, industrial machinery, consumer durables, medical devices, and automotive electronics. They help in transferring excess heat efficiently to the outer layer of the device, which can be then dissipated.

Global Thermal Interface Materials Market: Regional Insights

Based on geography, the global thermal interface materials market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Asia Pacific region is expected to lead the global thermal interface materials market over the forecast period owing to its presence of large electronics goods manufacturers. The rise in economic growth, increase in disposable income, drop in goods and services tax, and health awareness among consumers are boosting the regional market growth.

Europe is another significant market in thermal interface materials. This is primarily due to the technological advancements that have led to the increasing adoption of these products in the region. The emergence of 5G networks and rising consumer affluence in the region have encouraged manufacturers to invest heavily in R&D for new product innovations.

Figure 1. Global Thermal Interface Materials Market, By Region 2022

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Global Thermal Interface Materials Market Drivers:

Growing demand from computer application to foster market growth

The computer application is anticipated to register the highest growth rate owing to the growing demand for computers and laptops in the industrial sector and in the personal computing sector. Increasing use of these products is likely to accelerate the thermal interface materials market, as it is used for filling gaps between semiconductor packages and heat sink surfaces. The market is expected to grow owing to the rise in adoption of electronics, increased usage of smart devices, and increasing reliance on computers and mobile phones by consumers

Increasing automation in manufacturing sector to propel market growth

The market is driven by the rising usage of robotics and automation in manufacturing sector. Moreover, technological advancements, increased adoption of automated processes, and growth in the industrial machinery, and automotive electronics are also expected to fuel market growth over the over the forecast period.

Global Thermal Interface Materials Market Opportunities:

Growing popularity of polymer compounds and microgels (PCMs) is expected to serve major growth opportunities. A recently developed type of TIM, polymer compounds and microgels (PCMs), are phase-changing material that can change from a solid to a viscous liquid at relatively low temperatures. This allows easier handling and processing of these materials in manual assembly processes while maintaining their conformability and wetting properties when operating at higher temperatures.

Growing application in pharmaceutical sector is expected to present a lucrative market opportunities. TIMs are also used in the manufacturing of pharmaceuticals and medical products, which require high levels of temperature control to ensure optimal product performance. Moreover, they are used in various industries to prevent fires and explosions caused by electrical current.

Global Thermal Interface Materials Market Trends:

GAP-filling TIMs are gaining popularity

GAP-filling TIMs are often used in applications that require the filling of small air gaps between mating surfaces. This is especially true in micro-electronics and other small-scale assembly designs, where the distance between a hot chip or transistor and a metal heat sink is often on the micron scale. These gaps can be caused by a number of factors, including rough mating surfaces or uneven holes in the substrates. TIMs can help reduce these resistances by filling the voids and providing increased contact between the mating surfaces.

Emergence of 5G network is acting as a trend for TIM market

5G, a new standard for mobile internet networks, is bringing super-fast speeds and high-quality connections to people all over the world. It is a multi-tier system that uses low-band, mid-band, and mmWave frequencies to get signals from cell towers to wireless devices. These advancements in technology are great for speed and coverage, they also mean a larger need for thermal interface materials. While most thermal interface materials used today have a value below 4 W/m*K, the demands of future 5G devices could push that value into the 5 to 10 W/m*K range.

Global Thermal Interface Materials Market Restraints:

Fluctuating price of oil to hamper market growth

Key raw materials used in the production of thermal interface materials are made by processing and refining natural gas and crude oil. Any single change in oil & gas sector has a direct impact on the supply and cost of the raw materials used for producing TIMs. Hence, volatile price of oil is expected to hinder the market growth.

Challenges associated with the TIM's performance

Some of the disadvantages of thermal interface materials include their brittleness and the need for mechanical attachment hardware to attach them to substrates. This can make them difficult to assemble. Other factors, such as the ability to conform to uneven mating surfaces and the ability to withstand high temperatures are also impacting TIM performance. This factor is expected to restrict their adoption, hence hindering market growth. However, ongoing R &D to develop novel product with improved properties will open new avenue for the market growth.                       

Figure 2. Global Thermal Interface Materials Market, By Product 2022

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Global Thermal Interface Materials Market Segmentation:

The global thermal interface materials market report is segmented into product, application, and region

Based on product, the market is segmented into Tapes & Films, Elastomeric Pads, Greases & Adhesives, Phase Change Materials, Metal, and Others. Out of which, Greases & Adhesives is expected to dominate the global market over the forecast period. This product is widely used to maintain the internal working temperature of the device and provides robust thermal resistance to the devices.

Elastomeric pads segment is also expected to witness significant growth in the near future. Elastomeric pads are predicted to have a considerable market share owing to their superior handling mechanism and low contact resistance.

Based on application, the market is segmented into Telecom, Computers, Medical Devices, Industrial Machinery, Consumer Durables, Automotive Electronics, and Others. Out of which, Computers is expected to dominate the global market over the forecast period and this is attributed to the increasing demand for laptops and computers in the industrial sector and in the personal computing sector.

Industrial Machinery segment is also expected to witness significant growth in the near future and this is owing to the increasing adoption of automated processes across various manufacturing sector.

Global Thermal Interface Materials Market: Key Developments

In January 2021, Shin-Etsu Chemical Co., Ltd. (Head Office: Tokyo, President: Yasuhiko Saito) has developed innovative silicone thermal interface materials for applications in electric vehicles (EV) and hybrid electric vehicles (HEV).

Global Thermal Interface Materials Market: Key Companies Insights

The global thermal interface materials market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global thermal interface materials market are The 3M Company, Dow Corning Corporation, Honeywell International, Inc., Indium Corporation, Henkel AG & Co, KGaA, Parker Chomerics, Laird Technologies, Inc., Momentive Performance Materials, Inc., Fuji Polymer Industries, Co. Ltd., and Shin-Etsu Chemical Co. Ltd.

*Definition: Thermal Interface Materials (TIMs) are important for the efficient movement of heat through heat sinks, fans, and other thermal dissipation methods in electronic devices. TIMs improve the heat transfer between a heat source and a heat sink by filling microscopic gaps and voids that occur between these surfaces during assembly.