Thermal Interface Materials Market - North America, Europe, EMEA, APAC : US, Canada, China, Germany, UK - Forecast 2023-2027

Thermal Interface Materials Market Forecast 2023-2027

The Global Thermal Interface Materials (TIMs) Market size is estimated to grow by USD 1.83 billion between 2022 and 2027  exhibiting a CAGR of 13.42%. The market's expansion hinges on a multitude of factors, prominently featuring heightened demands within computer hardware manufacturing, escalating needs within the realm of automobile electronics, and the steady uptake of industrial automation solutions. These dynamics synergistically propel the market forward, showcasing a symbiotic relationship between technological advancements and consumer preferences. The surge in computer hardware requirements, driven by technological evolution and digital transformation, serves as a robust catalyst. Similarly, the automotive sector's reliance on advanced electronics amplifies market growth, reflecting the industry's evolution toward smart and connected vehicles. Concurrently, the widespread embrace of industrial automation technologies further bolsters market prospects, illustrating a paradigm shift towards efficiency, precision, and modernization in manufacturing processes.

Market Growth and Analysis

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Market Segmentation

This report extensively covers market segmentation by Application (computers, telecom, automotive electronics, medical devices, and others), Type (grease and adhesive, taps and films, phase change materials, and others), and Geography (APAC, North America, Europe, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

Market Dynamics

The market is driven by various factors such as the Global dentures market and dental concerns like root canal caries, gum disease, and cracked teeth, which require efficient heat dissipation solutions. Economic situation influencing Dentures' high price and lack of reimbursement pose challenges. Trends include growing demand from Emerging economies and increased healthcare spending for construction work and infrastructure development. Challenges include addressing High-speed networks and Higher bandwidth requirements in IT activities and consumer electronics, including tablets, necessitating advanced Phase change materials in TIMs for effective thermal management. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. 

Key Market Drivers

Rising demand for automobile electronics is a major driver propelling the market. The global transportation sector's growth fuels the demand for thermal interface materials (TIMs). The increasing demand for automobiles, particularly electric vehicles (EVs), driven by the awareness of harmful emissions, contributes to this trend. Developed economies, with rising per capita income, witness notable sales growth in EVs.

Additionally, global concerns about greenhouse gas emissions and the environment push countries to seek alternatives to fossil fuel-powered transportation, with EVs emerging as a feasible option. Many countries, like France, the UK, and India, have implemented mandates and set targets for EV adoption. The increased usage of electronic components, such as batteries and fuel cells, in EVs drives the demand for automotive electronics and subsequently fuels the demand for TIMs during the forecast period.

Major Market Trends

Increasing usage of PCTIMs is a major TIMs trend. PCTIMs are materials that exist as solids at room temperature and transform into liquid form when subjected to high temperatures. These materials are being used extensively in various applications. PCTIMs are well-suited for applications where convenience plays a key role.

Unlike polymer-based thermal interface materials, these materials provide a close interfacial association between the surface and form thin bond lines. Therefore, they are preferred for use in many commercial thermal management applications. PCTIMs are also increasingly used in fabricating assembly-line electronic components owing to their ease of application.

Significant Market Challenges

Stringent regulations on manufacturing medical devices are a major factor hindering the growth of the market. The regulatory environment for medical devices is becoming stricter and more unpredictable for manufacturers worldwide. In the US, agencies like the FDA closely monitor compliance with extensive obligations, including design and manufacturing practices, adverse event reporting, and labeling. Non-compliance can limit the adoption of medical devices. Devices with potential harm undergo a rigorous process called PMA, which includes costly clinical trials and can take over 450 days.

Moreover, in the EU, the Medical Device Regulation (MDR) EU2017/745 standardizes medical devices and in-vitro diagnostic devices. The new regulations focus on oversight, clinical evidence, and scrutiny of high-risk devices. Manufacturers must demonstrate a favorable risk-benefit ratio and conduct clinical trials for Class III products while ensuring data protection and legal compliance. Thermal interface materials used in various medical devices fall under these stringent regulations, potentially hampering the growth of the global thermal interface materials market.

Market Segmentation by Application, Type, Geography

The market is experiencing notable segmentation driven by various factors. The Global dentures market influences the demand for TIMs, especially in dental applications such as addressing root canal caries, gum disease, cracked teeth, and periodontal disease. However, challenges like Dentures high price and Lack of reimbursement in some regions affect market dynamics. Economic factors such as Disposable incomes and Emerging economies play a crucial role in driving demand for TIMs, particularly in construction work, where TIMs are used in dispensable gels, gap-filling and insulating pads, and adhesive tapes for effective thermal management. Moreover, the Global public health pandemic has highlighted the importance of TIMs in healthcare spending and infrastructure development for medical devices and equipment. The surge in Fast-speed networks and Higher bandwidth demands from IT activities and consumer electronics, including tablets, further drives the need for efficient TIMs to manage heat dissipation and ensure optimal device performance.

Application Analysis 

The market share growth by the computers segment will be significant during the forecast period. Thermal interface materials are used essentially for dissipating excessive heat generated by components such as CPUs, graphic cards, hard disks, and chipsets in devices such as laptops, PCs, tablets, and palmtops.

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The computers segment was valued at USD 329.07 million in 2017 and continued to grow until 2021. Thermal interface materials are crucial for dissipating heat in various devices such as laptops, PCs, tablets, and palmtops. They improve heat flow by reducing resistance and minimizing variance in the thermal interface. These materials fill air gaps, enhancing contact between solid surfaces. They are widely used in computer accessories like microchips, transistors, and diodes. The global computer accessories market is projected to grow at a CAGR of over 6% during 2019-2024, leading to a moderate increase in demand for thermal interface materials. Consequently, the market is expected to witness significant adoption in the forecast period.

Type Analysis

Based on type analysis, the grease and adhesive segment holds the largest market share. Thermal interface materials play a crucial role in effective thermal management systems by transferring heat between solid surfaces. They include various products like phase-change materials, gap fillers, and thermal grease. Grease, a hydrocarbon or silicone oil with fillers, eliminates air pockets but can be challenging to apply due to its high viscosity. Achieving full coverage with an appropriate thin gap during application is difficult. Thermally conductive adhesives offer a strong mechanical bond, reduce system size and weight, and are typically epoxy- or silicone-based with fillers. Grease and adhesives are widely used in retrofitting, reworking, and applications requiring reapplication. They offer benefits such as low thermal resistance, cost-effectiveness, re-workability, and the ability to form thin bond lines. These advantages have made grease and adhesives the largest component segment in the thermal interface materials market in 2022. Their low production cost and competitive features are expected to drive the global thermal interface materials market in the forecast period.

Regional Analysis

APAC is estimated to contribute 69% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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In APAC, the thermal interface materials market is expected to grow, owing to the strong presence of industries such as automobile, electronics, healthcare, and utilities. The market in the region is supported by the growing demand for thermal interface materials from the electronics and healthcare industries. In addition, owing to rising pollution levels and the growing aging population in countries such as India, Japan, and China, the expenditure on healthcare is experiencing strong growth rates in this region. This will encourage enterprises operating in the food and beverage and healthcare industries to open new plants in this region. Thermal interface materials support operators in making timely decisions, thereby helping enterprises maintain regulatory compliance, improve plant performance, and ensure consistent product quality.  

Who are the Major Market Players?

companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.

Bergquist- The company offers thermal interface materials which are very high thermal conductivity.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including: 

• SEMIKRON Elektronik GmbH and Co. KG
• Shin Etsu Chemical Co. Ltd.
• DALEBA ELECTRONICS LTD
• Dow Inc.
• KITAGAWA INDUSTRIES America Inc.
• Wakefield Thermal Inc.
• ZALMAN
• Fuji Polymer Industries Co Ltd
• 3M Co.
• AIM Metals & Alloys LP
• AOS Thermal Compounds LLC
• DuPont de Nemours Inc.
• GrafTech International Ltd.
• Henkel AG and Co. KGaA
• Honeywell International Inc.
• Indium Corp
• Laird Performance Materials
• Momentive Performance Materials Inc.
• PARKER HANNIFIN CORP.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides a market research and growth analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Type Outlook 
  • Grease and adhesive
  • Taps and films
  • Phase change materials
  • Others
• Application Outlook 
  • Computers
  • Telecom
  • Automotive electronics
  • Medical devices
  • Others
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

The market is experiencing a steady rise driven by diverse factors. With the recent outbreak of the pandemic altering global dynamics, there's an increased focus on thermal management solutions across various industries, including medical electronics, consumer durables, and industrial machinery. The surge in demand for medical devices and the need for advanced cockpit functionality in aerospace applications contribute significantly. Additionally, the market benefits from advancements in polymer matrix composites, metal matrix composites, and carbon composite products, which enhance thermal insulation and heat dissipation capabilities.

Moreover, the transition towards a digital and cashless economy has spurred investments in IT activities, consumer electronics, and fast-speed networks. This shift is evident in the increased utilization of smart devices and higher bandwidth requirements, especially for video games and media streaming platforms. The market also sees growth opportunities in e-commerce infrastructure development and the expansion of banking services. Despite challenges such as economic uncertainties, lack of reimbursement in healthcare, and high prices of certain products like dentures, the TIMs market remains resilient. The ongoing upgradation and installation figures in PC markets indicate sustained demand for thermal management solutions, driving innovation and technological advancements in the field.

Furthermore, the market is witnessing significant growth propelled by a multitude of factors. One of the key drivers is the global public health pandemic, which has led to a surge in demand for medical products and healthcare technology, including advancements in dental health and the manufacturing of pharmaceuticals. This growth is particularly notable in dental practice and dental clinics, where innovative TIMs play a crucial role in maintaining medical machinery and ensuring effective dental procedures. Moreover, the increasing geriatric population and prevalence of dental diseases like dry mouth, tooth loss, periodontitis, and cavities contribute to the expansion of the dentures market, further driving the demand for high-quality TIMs. As healthcare spending rises globally and emerging economies invest more in healthcare infrastructure, there's a growing need for efficient thermal management solutions in medical device manufacturing.

Market Scope
Report Coverage	Details
Page number	171
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 13.42%
Market growth 2023-2027	USD 1.83 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	12.54
Regional analysis	APAC, North America, Europe, South America, and the Middle East and Africa
Performing market contribution	APAC at 69%
Key countries	US, China, Japan, Taiwan, and South Korea
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	SEMIKRON Elektronik GmbH and Co. KG, Shin Etsu Chemical Co. Ltd., Bergquist, DALEBA ELECTRONICS LTD, Dow Inc., KITAGAWA INDUSTRIES America Inc., Wakefield Thermal Inc., ZALMAN, Fuji Polymer Industries Co Ltd, 3M Co., AIM Metals & Alloys LP, AOS Thermal Compounds LLC, DuPont de Nemours Inc., GrafTech International Ltd., Henkel AG and Co. KGaA, Honeywell International Inc., Indium Corp, Laird Performance Materials, Momentive Performance Materials Inc., and PARKER HANNIFIN CORP.
Market dynamics	Parent market analysis, Market forecasting, market growth analysis,  Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2023 and 2027
• Precise estimation of the size of the market  size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough market research report analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market growth and forecasting analysis of factors that will challenge the growth of market players

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