July 18, 2024

Rising Demand From EV Industry Is Expected To Flourished Thermal Interface Materials Market

Thermal interface materials are gap-filling materials or compounds used for maximizing the heat transfer efficiency between two contacting surfaces. They are mostly used in the form of pads, greases, adhesives, and films. The global thermal interface materials market is primarily driven by their rising usage in the electronics industry for various components such as processors, memory devices, and graphic cards. These materials provide better thermal conductivity between these components and their respective heat sinks, thereby improving heat dissipation. Moreover, the significant growth of the electric vehicle industry worldwide has augmented the consumption of thermal interface materials for battery modules and on-board chargers installation.

The global Thermal Interface Materials Market is estimated to be valued at Us$ 3104.94 Mn in 2024 and is expected to exhibit a CAGR Of 6.4% over the forecast period 2024 To 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Rising Demand from EV Industry: The rapid adoption of electric vehicles across the globe due to stringent emission norms and government subsidies on EV purchases has spurred automakers to invest heavily in this space. Thermal interface materials have emerged as an essential component for battery modules and on-board chargers in electric vehicles. They help dissipate heat efficiently from these components and ensure optimal performance. This increasing production and sales of EVs is expected to drive the demand for thermal interface materials over the coming years.

The increasing EV production driven by the mentioned driver above coupled with the growing electronics industry globally are projected to boost the thermal interface materials market substantially during the forecast period. Strict regulations regarding low vehicle emissions and rising environmental concerns have prompted prominent automakers to invest aggressively in electric vehicles.

 

Segment Analysis

 

The thermal interface materials market can be segmented by type into greases & adhesives, tapes & films, and phase change materials. The greases & adhesives segment dominates the market, accounting for over 40% share in 2021. Grease and adhesive based thermal interface materials have higher thermal conductivity compared to other types, and offer strong bonding between the heat source and the heat sink, making them suitable for extensive heat dissipation applications in computers, automotive, and telecommunication equipment.

PEST Analysis

Political: Thermal management regulations implemented to reduce carbon emissions from vehicles and electronic devices will drive need for improved heat dissipation using thermal interface materials.

Economic: Increasing demand for portable electronics and electric vehicles will boost usage of thermal interface materials to ensure optimum performance of devices at higher power outputs.

Social: Growing consumer preference for slimmer and powerful devices will increase application of thermal interface materials to manage heat generated.

Technological: Advancements in material science have led to development of phase change materials with higher thermal conductivity, potentially replacing traditional grease and adhesive varieties.

Key Takeaways

The Global Thermal Interface Materials Market Demand is expected to witness high growth over the forecast period due to rising demand for compact yet powerful electronic gadgets and electric vehicles. The global thermal interface materials market is estimated to be valued at US$ 3104.94 Mn in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2024 to 2031.

Regional analysis: Asia Pacific dominates the global thermal interface materials market, accounting for over 40% share in 2024. Presence of major electronic and automotive manufacturing bases in China, Taiwan, South Korea and development of domestic EV industry makes Asia Pacific the fastest growing regional market.

Key players operating in the thermal interface materials market are Chanel S.A, Guess Inc., Gianni Versace S.p.A, Alex and Ani, LLC, Hermes International SA, Hennes & Mauritz Ab, ZARA ESPANA SA, and Gucci. Key players are focusing on developing phase change materials with enhanced thermal conductivity to increase heat transfer capabilities of interface materials.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it