Thermal Interface Material Market

Thermal Interface Material Market Outlook (2024 to 2034)

According to the latest study by Fact.MR, the global thermal interface material market size is projected to reach a valuation of US$ 3.3 billion in 2024 and further expand at a CAGR of 11% to climb to US$ 9.4 billion by the end of 2034.

Thermal interface materials (TIM) are used to slow down the heat transfer from one area or object to another. These heat transfer materials are used to improve energy efficiency, for regulation of temperature, and enhance comfort in appliances and clothing. Within the automotive sector, it finds application in various critical functions, particularly in managing the heat generated by batteries and electric components.

Effective thermal management is vital for electronic devices and energy storage systems such as batteries. With the rapid electrification of the automotive sector, there is a rising need for thermal interface materials. Similarly, advanced heat management materials are essential for safeguarding aircraft interiors, exteriors, and flight components. Aerogels, renowned for their lightweight nature and superior thermal insulation capabilities, are increasingly favored for aerospace applications.

Report Attributes	Details
Thermal Interface Material Market Size (2023A)	US$ 3 Billion
Estimated Market Value (2024E)	US$ 3.3 Billion
Forecasted Market Value (2034F)	US$ 9.4 Billion
Global Market Growth Rate (2024 to 2034)	11% CAGR
China Market Growth Rate (2024 to 2034)	13.9% CAGR
United States Market Growth Rate (2024 to 2034)	12.4% CAGR
Key Companies Profiled	The Dow Chemical Company DuPont 3M Honeywell International Henkel AG & Co Momentive Performance Material Parker Hannifin Corp. ShinEtsu BOYD AOK Technologies Sibelco Other Market Players

Which Thermal Interface Material Market Trends are Manufacturers Leveraging?

“Increasing Electrification of Automotive Industry”

Electronic devices generate heat during operation, which can elevate the device's temperature to undesirable levels. Hence, the application of thermal interface materials becomes imperative to mitigate this issue, which is driving the expansion of the thermal interface material market size. Additionally, reducing the size of electronic devices is essential to prolong their lifespan and minimize electronic waste. In scenarios where there is no space for a fan, heat-sinking elements are utilized to effectively dissipate heat from the overheating component.

• The Electric Vehicles Initiative (EVI) was launched by the International Energy Agency to accelerate the introduction and adoption of EV vehicles worldwide. Under the same initiative, the EV30@30 campaign was launched in 2017. This initiative targets to achieve a minimum of 30% market share for new electric vehicles by 2030.
• According to the International Energy Agency, electric car sales rose from 4% in 2020 to 14% in 2022.

“Thermal Pads Ensuring Longevity of Critical Components in Aerospace and Defense Sectors”

The aerospace and defense sectors necessitate thermal management solutions capable of enduring extreme temperatures, vibrations, and mechanical strains. Innovations in advanced materials for thermal pads offer improved thermal conductivity, excellent compressibility, and resilience in harsh conditions. These pads find extensive use in avionics, satellite systems, radar equipment, and military electronics to efficiently dissipate heat, ensuring the dependable operation of critical systems.

Heavy dependence of the aerospace and defense sectors on sophisticated electronic systems and components across various applications, such as avionics, communication systems, radar systems, satellites, and military equipment necessitate efficient heat management systems. Thermal pads play a significant role in these applications by effectively transferring heat away from crucial components, thus ensuring their reliability and longevity.

• For example, according to GlobalSecurity.org, France earmarked US$ 52.7 billion for its 2023 defense budget, allocating funds for armored vehicles, Griffon armed vehicles, and various other multipurpose vehicles, as well as advanced warships.

What are the Factors Affecting Thermal Interface Material Market Growth?

“Fluctuating Raw Material Prices and Supply Chain Disruptions”

Fluctuating prices of raw materials utilized in thermal pads, such as silicone, ceramics, and polymers, can significantly influence the market dynamics. Additionally, the volatility in raw material prices can disrupt the availability and stability of the thermal pad supply chain.

Abrupt price hikes or material shortages may lead to disruptions in the supply chain, hampering the timely delivery of thermal pads to customers. These price variations can directly affect the manufacturing expenses associated with thermal interface materials, presenting a challenge to market expansion.

Why are Sales of Thermal Interface Materials High in North America?

“Government Initiatives Promoting Electronics Manufacturing”

The market in North America is valued at US$ 688.5 million and is projected to reach US$ 1.79 billion by the end of 2034. In January 2024, the United States announced billion-dollar subsidies to leading semiconductor companies, facilitating the construction of new factories within the country. This government initiative is driving an upward trend in electronics production.

• According to the International Council on Clean Transportation, electrical vehicle sales soared in 2024 by more than 10% from the previous year. In 2023, hybrid and electric vehicles accounted for over 16% of total vehicle sales. The growth of the EV market is projected to lead to a rise in demand for thermal interface materials.

Country-wise Insights

What is the Demand Outlook for Thermal Interface Materials in China?

“Increased Electric Vehicle Production Necessitating Efficient Battery Management”

The market in China is estimated at US$ 600.7 million and is forecasted to climb to US$ 1.93 billion by 2034-end. EVs are the future of modern transportation. As the demand for electric vehicles rises, thermal management becomes crucial as it enables faster charging, extends the lifespan of batteries, and ensures fire safety. The market in China is forecasted to expand in tandem with the EV industry.

• According to the International Energy Agency, China’s demand for vehicle batteries grew by over 70%, while electric car sales increased by 80% in 2022, which is making China a leading TIM market.

Category-wise Insights

Which Type of Thermal Interface Material is Projected to Account for Higher Consumption?

“Thermal Pads Acting as Convenient Alternative to Conventional Thermal Pastes and Greases"

Sales of thermal pads are valued at US$ 2.1 billion and are forecasted to reach US$ 6.1 billion by 2034-end. Thermal pads offer insulation between electronic devices like semiconductors and microprocessors. When conventional thermal pastes and greases are unsuitable due to air gaps or uneven surfaces, conventional thermal plates are employed. Thermal pads come in different categories, including various thicknesses, thermal conductivity levels, and filler materials. Therefore, thermal pads occupy a leading thermal interface material market share.

Compared to other types, thermal pads are easier to handle and are available in various sizes and thicknesses according to customer preferences. Primarily used in CPUs and computers with densely packed PCBs, their usage grows alongside the increasing demand for computers and electronic devices.

Why is Silicone a Widely Preferred Thermal Interface Material?

“Superior Compressibility and High Thermal Conductivity of Silicone”

The silicone-based material segment is projected to expand at 12.6% CAGR through 2034. Silicone-based thermal interfaces are typically manufactured using silicon polymers. Silicone-based thermal interface materials are favored for their efficient heat transfer and flexibility, conforming to uneven surfaces. With excellent electrical insulation properties, they prevent short circuits in electronic devices. Available in various forms like pastes and pads, they are easy to apply and adapt to different assembly processes.

Silicone demonstrates superior compressibility and is predominantly utilized in LED lights, mobile devices, and power systems owing to its high thermal conductivity. The increasing demand for LED lights is projected to drive the adoption of silicone-based thermal interface materials.

Competition Landscape

Leading players in the thermal interface material market are The Dow Chemical Company, DuPont, 3M, Honeywell International, Henkel AG & Co., Momentive Performance Material, Parker Hannifin Corp., and ShinEtsu. The world’s leading manufacturers of thermal interface materials are focusing on increasing their production capacity.

• On 24 August 2022, Honeywell collaborated with Reaction Engines Limited, which is a British aerospace company. The prime motive behind the collaboration was to develop sustainable thermal management technologies.
• In July 2021, DuPont announced the acquisition of Laird Performance Materials, a world leader in high-performance electromagnetic shielding and thermal management solutions. This step was taken to expand its product and solution portfolio and to build expertise in key technologies.

Fact.MR has provided detailed information about the price points of key manufacturers of thermal interface materials positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Thermal Interface Material Market Research

• By Type :

  • Pads
    • Material
      • Silicone-based
      • Non-Silicone-based
    • Property
      • Thermally Conductive
      • Thermally Insulating
  • Foam
    • Material
      • Silicone-based
      • Non-Silicone-based
    • Property
      • Thermally Conductive
      • Thermally Insulating
  • Encapsulants/Gel
    • Material
      • Silicone-based
      • Non-Silicone-based
    • Property
      • Thermally Conductive
      • Thermally Insulating

• By Application :

  • Automotive
    • EV Batteries
    • Others
  • Aerospace & Defense

• By Region :

  • North America
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Western Europe
  • Eastern Europe
  • Middle East & Africa