Thermal Interface Materials Market (By Product: Elastomeric Pads, Tapes & Films, Greases & Adhesives, Metal Based, Phase Change Materials, and Others; By Application: Computer, Telecom, Medical Devices, Consumer Durables, Industry Machinery, Automotive Electronics, and Others) - Global Market Size, Trends Analysis, Segment Forecasts, Regional Outlook 2020 - 2027
The global thermal interface materials market was valued at US$ 1.88 billion in 2019 and projected to reach US$ 4.31 billion by 2027, with at a compound annual growth rate (CAGR) of 10.9% during the prediction period 2020 to 2027.
Increasing consumer dependence on electronic items like tablets, smartphones, the advent of advanced electronics for the automotive industry, and rising affluence among the middle-class population expected to prosper significant demand for the product among various manufacturers across the globe.
In addition, the thermal interface materials are known to offer effective heat management solutions that are essential in improving the overall performance of a device, this in turn expected to fuel the growth of the industry over the forecast time period.
Thermal greases & adhesives led the global thermal interface materials market accounting for a value share of more than 35% in the year 2019 because of its significant application in consumer products along with high thermal resistance property of the product. To ensure smooth working of an electronic devices greases & adhesives are largely used to maintain the internal working temperature of the device. This has been encountered that several electronic devices get heated while running for a longer time period such as computers, industry machinery, and automotive electronics, among others.
The elastomeric pads expected to possess significant value share in the market for thermal interface materials on the basis of its easy assembly compared to greases & adhesives. In addition, with the implementation of elastomeric pads, handling mechanism of the device improved as well as there is less chance of degrading interface resistance. Henceforth, the segment anticipated to witness prominent growth over the upcoming years. Besides this, high unit costs coupled with limited application scope of the product projected to hinder the market growth during the estimated timeframe.
On the other hand, phase change product exhibits the fastest growth rate in the thermal interface materials market during the analysis period. This is mainly attributed to the major application of phase changer in construction activity because the demand for temperature maintenance inside residential as well as commercial buildings. The thermal interface materials acts as a heat storage where heat gets absorbed during summer season and the retained heat can be further used during the winter times to manage and control the temperature difference.
The computer application accounted for the maximum market share of more than 24.0% in 2019 because of its increasing utilization in offices. Further, the affordable prices of desktops have impelled the demand as well as supply of the product. Further, rising globalization along with increasing penetration of internet particularly in the developing regions such as India, China, and Korea further expected to propel the demand for the computers worldwide. Moreover, the post-pandemic times did not hamper the market for computers; rather with the rise in the number of people opting working from home, the sales, upgradation, and installation of computers have risen prominently over the past few months.
On the contrary, the telecom application expected to witness remarkable demand during the upcoming time period mainly due to the rising preference for a cashless and digital economy. The banks, utilities, e-commerce, and media are dependent on the telecom sector for its operations and telecom seems to be their lifeline. Hence, the growth in the above-mentioned industries likely to support the growth of telecom sector over the analysis timeframe.
The Asia Pacific led the market with the highest revenue share of more than 37% in 2019 owing to the presence of large manufacturing base for various industries in the region. Apart from the manufacturing base, reduced corporate taxes, increase in household incomes, drop in Goods & Services Tax (GST), health awareness among consumers, favorable government policies, and changing lifestyle has potentially influenced the growth of the thermal interface materials industry in the region.
North America and Europe were the other most promising markets in the thermal interface material; however the sales in the region was deeply impacted with the outbreak of COVID-19 that has declined the share contribution of the region to the market, as most of the parts & components and products for medical devices and automotive industry were imported from China. Besides this, the healthcare sector in the region seems to have a promising future, thereby impel the market growth for the thermal interface materials in the regions.
Key Companies & Market Share Insights
The industry participants in the global thermal interface materials market are trying to exploit the economies of scale as well as expanding its business through merger & acquisition, and joint venture agreements in order to remain competitive in the industry. The aforementioned strategies will assist company in expanding its product portfolio along with improving the product quality.
Certain noticeable players in the thermal interface materials market are:
- Dow Corning Company
- The 3M Company
- Honeywell International, Inc.
- Parker Chomerics
- Indium Corporation
- Henkel AG & Co, KGaA
- Momentive Performance Materials, Inc.
- GrafTech International Ltd.
- Laird Technologies, Inc.
- Fuji Polymer Industries Co., Ltd.
- AIM Specialty Materials
- Shin-Etsu Chemical Co. Ltd.
- Wakefield-Vette, Inc.
- DK Thermal
- AOS Thermal Compounds LLC
Segments Covered in the Report
This research study comprises complete assessment of the market by means of far-reaching qualitative and quantitative perceptions, and predictions regarding the market. This report delivers classification of marketplace into impending and niche sectors. Further, this research study calculates market size and its development drift at global, regional, and country from 2016 to 2027. This report contains market breakdown and its revenue estimation by classifying it on the basis of product, application, and region:
- Elastomeric Pads
- Tapes & Films
- Greases & Adhesives
- Metal Based
- Phase Change Materials
- Medical Devices
- Consumer Durables
- Industry Machinery
- Automotive Electronics
By Regional Outlook
- North America
- Asia Pacific
- South Korea
- Rest of the World
Frequently Asked Questions About This Report
The global thermal interface materials market was valued at US$ 1.88 billion in 2019 and projected to reach US$ 4.31 billion by 2027.
The global thermal interface materials market is growing at a CAGR of 10.9% during the prediction period 2020 to 2027.
Greases & adhesives led the global market accounting for more than 35% value share in 2019 owing to its large application in consumer products along with high thermal resistance property.
The Asia Pacific led the market with the highest revenue share of more than 37% in 2019 owing to the presence of large manufacturing base for various industries in the region.
Some of the key players operating in the market are Dow Corning Company, The 3M Company, Honeywell International, Inc., Parker Chomerics, Indium Corporation, Henkel AG & Co, KGaA, Momentive Performance Materials, Inc., GrafTech International Ltd., Laird Technologies, Inc., Fuji Polymer Industries Co., Ltd., AIM Specialty Materials, Shin-Etsu Chemical Co. Ltd., Wakefield-Vette, Inc., DK Thermal, AOS Thermal Compounds LLC, and SEMIKRON among others.
Presently, rising need for the thermal management system across various verticals significantlyboosts the industry growth. The thermal management system helps in the smooth operation of electronic equipment. Besides this, rising demand from the medical device industry particularly in the North America and the Asia Pacific regions anticipated to propel the market growth over the analysis timeframe. Furthermore, increasing demand for highly sophisticated and faster electronic devices has played an important role in escalating the market growth for thermal interface materials. In addition, requirement for energy efficient lighting solutions is the other prime factor that drives the market globally. Subsequently, rising electrification in the transportation industry is likely to offer immense
The computer application accounted for the maximum market share of more than 24.0% in 2019 because of its increasing utilization in offices.