Thermal Interface Materials Market - Snapshot

Thermal interface materials are usually inserted between two components or surfaces in order to improve the thermal coupling and heat flow between the two surfaces or components. Nowadays, electronic assemblers know the importance of thermal interface materials and use them in almost every application where heat flow is a critical part of operation. These materials are used primarily due to the uneven, rough, and wavy surfaces of machined parts, which lead to few actual points of contact between the two joined components. These rough surfaces form air gaps when joined, resulting in insulation, and act as a thermal barriers for small scale power applications. Thermal interface materials help eliminate air gaps and increase the heat conductance between the joined surfaces. These materials are available in several forms; however, their selection depends on several factors. Thermal conductivity is the primary selection criteria. Besides thermal conductivity, ease of usage during assembly, ability to rework, and long term stability are also important in selecting these materials for high-end applications.

Rise in Production of Electronic Components and Increase in Demand for Smartphones in Developing Countries Likely to Drive Market

The electronics industry, especially in developing countries such as China and India, has been expanding rapidly, primarily due to the high domestic demand for electronic products. This can be ascribed to the growth in middle class population, rise in disposable income, favorable duty structures, and increase in government projects in developing countries. Mobile devices account for significant share of the electronics & semiconductor industry. The mobile devices industry in developing countries is driven by the rise in demand for mobile handsets, reduction in prices of these handsets, and decrease in voice and data tariffs.

thermal-interface-materials-market.jpg

Electrification of transportation vehicles is also an important factor boosting the global thermal interface materials market. Advancements in battery and fuel cell technologies along with power train systems have led to the introduction of highly efficient vehicles in the market. Incorporation of electric and electronic devices in vehicles has been rising consistently. Thus, thermal management has become a prominent feature for vehicle manufacturers. Increase in demand for electric vehicles is also expected to be a key driver of the market. The electric vehicles industry in developed regions such as North America and Europe has been expanding significantly since the last few years. China has the largest electric vehicle industry across all the regions. Electric vehicles are also one of the major users of thermal interface materials. Growth in the electric vehicles industry is estimated to boost the market for thermal interface materials in the near future.

Volatility in Prices of Raw Materials Expected to Restrain Market

Raw materials commonly used in the manufacture of thermal interface materials are polyolefins, epoxies, polyesters, acrylics, polybutadiene, polycarbonate, polypropylene, polyurethane, and acrylics. Volatility in prices of raw materials is a prominent restraint of the global thermal interface materials market. The final price of a product increases substantially owing to the rise in processing and development costs. Furthermore, polymer-based thermal interface materials are not readily bio-degradable. They are hazardous to the environment. Therefore, rise in plastic waste across the globe is also a significant factor estimated to restrain the global thermal interface materials market during the forecast period.

Shift Toward Metal-based Thermal Interface Materials Offers Lucrative Opportunities to Market

Metal-based thermal interface materials have higher conductivity compared to the conventional polymer-based thermal interface materials. Metal-based thermal interface materials offer the advantage of superior thermal conductivity. For this purpose, metals in different forms such as solders, liquid metals, phase change metals, and compressible metals are used. Indium is highly used as a thermal interface material. Its ductility and thermal conductivity make it an ideal compressible thermal interface material. Therefore, rise in usage of metal-based thermal interface materials is anticipated to provide lucrative growth opportunities to the thermal interface materials market in the next few years.

Asia Pacific Held Major Share of Around 32% of Global Thermal Interface Materials Market in 2017

Based on region, the global thermal interface materials market can be segmented into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. Asia Pacific dominated the global thermal interface materials market in 2017. This can be primarily ascribed to the high demand for these materials, especially in computers, automotive electronics, and telecommunication applications, in the region, primarily in China and India. Furthermore, the market in the region is anticipated to expand at a significant pace during the forecast period, primarily due to the rise in demand for thermal interface materials in developing countries in the region, especially China and India. Europe followed the lead of Asia Pacific in terms of market share in 2017.

Large Players Operate in Thermal Interface Materials Market

Key players operating in the global thermal interface materials market include SEMIKRON, Wakefield-Vette, Inc., DK THERMAL METAL CIRCUIT TECHNOLOGY LTD, Indium Corporation, Momentive Performance Materials, Parker Hannifin Corp, Honeywell International Inc., 3M, Henkel AG & Company KGaA, Laird Technologies, and Dow Corning.

Thermal Interface Materials Market - Overview

Thermal interface materials are infused between two parts or surfaces in order to enhance thermal coupling between the two surfaces or parts. Usually, the machined surfaces are uneven, wavy, and rough. As a result, the two surfaces make contact at just a few points. These uneven surfaces create air gaps, which act as insulator for even small scale power applications. In order to avoid such complications, thermal interface materials are used between the two contact surfaces to provide better heat flow.

This report analyzes and forecasts the market for thermal interface materials at the global and regional level. The market has been forecast based on revenue (US$ Mn) from 2018 to 2026, considering 2017 as the base year. The study includes drivers and restraints of the global thermal interface materials market. It also covers impact of these drivers and restraints on the demand for thermal interface materials during the forecast period. The report also highlights opportunities in the thermal interface materials market at the global and regional level.

The report includes detailed value chain analysis, which provides a comprehensive view of the global thermal interface materials market. The Porter’s Five Forces model for the thermal interface materials market has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, wherein materials and applications are benchmarked based on their market size, growth rate, and general attractiveness.

The study provides a decisive view of the global thermal interface materials market by segmenting it in terms of material and application. Based on material, the thermal interface materials market can be classified into adhesives & greases, thermal tapes & films, gap fillers, thermal phase change materials, metal-based thermal interface materials, and others. In terms of application, the thermal interface materials market can be divided into computers, automotive electronics, industrial machinery, telecommunications, consumer durables, medical devices, and others. These segments have been analyzed based on present and future trends. Regional segmentation includes current and forecast demand for thermal interface materials in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

The report provides the actual market size of thermal interface materials for 2017 and estimated market size for 2018 with forecast for the next eight years. The global market for thermal interface materials has been provided in terms of revenue. Market revenue has been defined in US$ Mn. Market numbers have been estimated based on material and application of thermal interface materials. Market size has been provided in terms of global, regional, and country level markets.

The report comprises profiles of major companies operating in the global thermal interface materials market. Key players operating in the global thermal interface materials market include SEMIKRON, Wakefield-Vette, Inc., DK THERMAL METAL CIRCUIT TECHNOLOGY LTD, Indium Corporation, Momentive Performance Materials, Parker Hannifin Corp, Honeywell International Inc., 3M, Henkel AG & Company KGaA, Laird Technologies, and Dow Corning. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, regional presence, and recent developments.

The global thermal interface materials market has been segmented as follows:

Thermal Interface Materials Market, by Material

  • Adhesives & Greases
  • Thermal Tapes & Films
  • Gap Fillers
  • Thermal Phase Change Materials
  • Metal-based Thermal Interface Materials
  • Others

Thermal Interface Materials Market, by Application

  • Computers
  • Automotive Electronics
  • Industrial Machinery
  • Telecommunications
  • Consumer Durables
  • Medical Devices
  • Others

Thermal Interface Materials Market, by Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • Russia & CIS
    • France
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • South Africa
    • Rest of Middle East & Africa

Key Takeaways

  • Extensive analysis of the thermal interface materials market trends and shares from 2017 to 2026 to identify market opportunities and analyze industry developments
  • In terms of application, the automotive electronics segment is anticipated to expand at a significant rate during the forecast period
  • Adhesives & greases is a major material segment of the thermal interface materials market
  • List of key factors responsible for building the upcoming opportunistic roadmap for the thermal interface materials market at global, regional, and country level
  • Insights into market opportunities for various stakeholders in the value chain and a detailed competition landscape for key players dominating the industry to understand competition level
.