The global thermal interface materials market is expected to grow from USD 2.25 Bn in 2020 to USD 4.47 Bn by 2027, at a CAGR of 10.6%.
Growing demand for the miniaturization of electronic devices is expected to drive the market growth during the forecast period. The demand for reduction of costs of industrial converter systems, and the power density of electronics has risen. Additionally, the emergence of new techniques is expected to bolster the market demand during the forecast period. For instance, the Microchannel liquid cooling technique has become apparent as an efficient thermal management process for microelectronics as the requirement of cooling is expected to increase beyond the limit of the conventional air-cooling technique.
Moreover, the demand for LEDs is anticipated to drive the thermal interface materials market growth in the near future. The use of thermal grease in electrical components is expected to support the materials demand. For instance, COOL-GREASE CGR8550 by AIT technology is used for non-dryable, electrically conductive interface grease in moving components. The lowest thermal resistant non-silicone grease provides long-term stability, an AIT LED provides ultra-low electrical resistance between LED and sub-mount or substrate. Additionally, it also has a superior thermal resistance. High mechanical strength and glass transition temperature that enables fast wiring bonding as high as 275°C.
Based on application, the market has been segmented into computers, medical devices, consumer durables, telecommunications, and others. Telecommunications accounted for the second-largest market share during the forecast period. Thermal interface materials are used in the semi-conductors in the telecommunication sector as they are good heat absorbers with long-term reliability. For instance, Honeywell manufactures semiconductor thermal interface materials. In 2020, the company experienced 29% growth in UOP and 14% growth in advanced materials within performance materials and technologies.
In terms of geography, Asia-Pacific is expected to dominate the thermal interface materials market during the forecast period. China is a major manufacturer of semiconductors and automobiles both. The increasing demand for smartphones has created huge opportunity for thermal interface materials. For instance, almost 1.5 billion cell phones have been produced in China in 2020. China has been one of the leading cell phone manufacturing countries globally and is expected to manufacture smartphones in the near future. In addition to its established status as a manufacturing country for mobiles, China’s domestic mobile phone market has become one of the largest cell phone markets in the world.
Additionally, the increase in construction activities in India is expected to drive the demand for gap filler materials, putty, and others. The upcoming construction projects such as Lodha Belmondo and others are expected to support the market growth. Moreover, the construction industry in India comprises more than 200 sub-sectors with linkages across different industries. The real estate industry in India is expected to reach $1 Tn by 2030 and contributes to 13% of GDP. Under NIP, India has an investment budget of $1.4 Tn on infrastructure 24% on renewable energy, 19% on roads & highways, 16% on urban infrastructure, and 13% on railways.
The key players operating in the thermal interface materials market are: