Thermal Interface Material Market Expected to Reach $10.8 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Thermal Interface Material Market," The thermal interface material market size was valued at $4.7 billion in 2021, and is estimated to reach $10.8 billion by 2031, growing at a CAGR of 8.8% from 2022 to 2031.

Thermal interface material (TIM) is a group of thermal management materials that are generally used to dissipate heat and enhance heat transfer in electronic devices. Thermal interface materials are generally used between heat generating devices or components such as microprocessors, photonic ICs, and others. Removal or transfer of heat from miniature semiconductors used in electronic devices is utmost important for ensuring reliable operation of the device and improve longevity of the electronic components. Microscopic surface imprecision and non-planarity of integrated circuits or heat spreaders used in electronic devices hamper heat dissipation capacity. In addition, formation of proper thermal contact between surfaces is hampered owing to surface imprecision. All these factors will hamper thermal conductivity, thereby demanding the use of thermal interface materials. Thermal interface materials such as phase change materials and gap fillers are conformable, thus making them the ideal choice for filling these microscopic surface imprecisions.

Medical imaging requires the use of electronic modules and systems. Thermal interface materials are crucial products used in medical electronic modules and systems. Thermal interface materials are cost-effective thermal management products that play a crucial role in determining medical device working life and reliability. Medical electronic devices require thermal interface materials for minimizing thermal barrier between the surface of a microprocessor used in medical electronics. Medical devices use different semiconductors that act as source of heat sinks. For instance, graphics processors, integrated circuits (ICs) for computing, power semiconductors, RF power devices, and others. These semiconductor heat sinks must operate efficiently in order to run medical devices such as surgical lamps, operating theater lighting fixtures, CT scanners, and surgical laser systems.

Diverse portfolio of thermal interface materials is employed in a complex medical electronics system. In addition, thermal design factor plays an important role in medical imaging and surgical devices. Thus, thermal interface materials are embedded within the medical imaging devices, surgical devices, and other CT scanners for allowing proper heat dissipation in the heat sinks that are attached to these medical devices. Gap filling thermal interface materials are used to fill the large voids present on the surface of graphics processors, integrated circuits (ICs), and RF power devices. Technological development, population growth, and increasing consumer trend towards use of advanced technologies for treatment has augmented the need for advanced medical devices and electronic equipment.

Thermal pads, thermal grease, thermal adhesive, and phase change materials are widely used thermal interface materials. However, there are certain limitations associated with the use of thermal interface materials across pre-defined applications. For instance, thermal pads are used to fill the large voids between the heat sink and its components. However, the production process of thermal pads intended to be used across miniature devices is restricted. In addition, high costs associated with use of thermal pad across most demanding applications hamper the market growth.

Gap filler is a type of thermal interface materials that are used to fill large gaps or voids present between heat generating and dissipating surfaces. Silicon characteristics such surface wetting property high thermal stability, and physical inertness make silicone as prime raw material or constituent during production of gap fillers. However, technological advancement and research & development (R&D) by key manufacturers have escalated the demand for non-silicone-based gap filler thermal interface material. Presence of small voids in electronic devices and systems hampers thermal management across the circuit. These small voids tend to minimize thermal conductivity of air bubbles thus creating a thermal barrier to heat transfer is the major thermal interface material market trend.

For instance, in automotive electronic systems, thermal gap filler is used to cover small air pockets or spaces present of hot chassis components and heat sink assembly. This further ensures proper functioning of electronic devices. Heat mitigation in electronic devices is crucial. The presence of miniature air bubbles or void in the circuits, ICs and other electronic components hampers heat mitigation that further results in short circuits in the components. Thus, gap fillers serve as covering to these small voids and eliminates formation of air bubbles thereby ensuring proper heat mitigation. Major applications of gap fillers include advanced driver assistance system (ADAS), automotive lighting, infotainment & powertrain, drones, gaming systems, and others. In addition, gap filler thermal interface material can also be used in portable electronic devices, smart home devices, and wireless infrastructure devices. All these factors are anticipated to offer new growth opportunities. 

The thermal interface material market analysis is segmented on the basis of type, application, and region. By type, the market is divided into greases & adhesives, tapes & films, gap filler metallic TIMs, phase change materials, and others. The phase change material segment is anticipated to grow at the fastest CAGR of 9.3% during the forecast period. Thermal interface phase change materials are used widely across high heat dissipation electronic application across aerospace & military, consumer electronics, automotive, and industrial end use-industries. Phase change materials are used as an alternative over thermal greases. 

The applications covered in the report include computers, telecom, medical devices, industrial machinery, consumer durables, and automotive electronics. The computer application accounted for 25% thermal interface material market share in 2021. Proper thermal exchange between computer processors such as integrated heat spreader (IHS) and the fan-heatsink is crucial to run the computer components effectively. Thermal interface materials allow effective thermal transfer between integrated heat spreader (IHS) and the fan-heatsink in computer systems. Use of processors in computers without any thermal compound or thermal interface material leads to damaged compressors. Computer system efficiency depends on the performance of heat sink. Thermal interface materials such as thermal paste and greases are used to fill the microscopic void present between computer's CPU and heat sink. This in turn allows cooling capability of heat sink that further allows smooth CPU running drives the demand of the global market

By region, the global thermal interface material market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific region showcased the fastest CAGR growth during the forecast period. Development of nanotechnology has further escalated the demand of thermal interface materials across automotive electronics. For instance, carbon-nanotubes (CNTs) and carbon nanofibers (CNFs) are two advanced and promising thermal interface materials used during packaging and production of automotive electronics. Structural, mechanical, and thermal characteristics of CNF and CNT make them viable and the best choice of thermal interface materials in automotive electronics. Inherent thermal conductivity of CNT make is a cost effective and best choice of thermal interface material for use in ECU drives the demand of the thermal interface material market across Asia-Pacific.

Key players of the thermal interface material industry include Laird Technologies Inc., DuPont, Honeywell International Inc. (Honeywell), Henkel Corporation, Zalman, 3M, Indium Corporation, Wakefield Thermal Solutions, Inc., Parker-Hannifin Corporation, and Momentive.

Key Findings of the Study:

• The phase change material segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 9.3% from 2022 to 2031.
• Automotive electronics application is anticipated to register the highest CAGR of 9.2% during the forecast period.
• The Asia-Pacific region is estimated to display the highest growth rate, in terms of revenue and accounted for a major share of 49% in 2021.