Thermal interface materials are used to fill air gaps between two objects or components to maximize thermal conduction. They are used in various applications such as computers, automobiles, telecommunications, medical devices, consumer goods and more. With rising demand for advanced electronics with compact sizes such as smartphones, laptops, tablets and other handheld electronic devices, thermal interface materials play a vital role in dissipating heat generated from these high-powered electronic components. They help improve the thermal conductivity between components such as central processing unit (CPU), graphics processing unit (GPU), chipsets and heat sinks thereby enhancing the lifespan and overall performance of electronic devices.

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 key trends:

One of the key trends gaining traction in the thermal interface materials market is increasing demand from electric vehicles. With growing environmental concerns and stringent emission regulations, electric vehicles are emerging as a viable alternative to conventional fuel-powered vehicles. Thermal interface materials play a vital role in efficiently dissipating heat from various components in electric vehicles such as batteries, on-board chargers, motors, power electronics modules and more. Their high thermal conductivity properties help optimize the thermal resistance between components. This in turn enhances the performance and lifespan of electric vehicles. Rising sales of electric vehicles worldwide is expected to drive the demand for advanced thermal interface materials during the forecast period.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the thermal interface materials market is moderate. High capital requirements and established suppliers create barriers for new players.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitute products. However, customized requirements from OEMs increase their bargaining power.

Bargaining power of suppliers: The bargaining power of suppliers is high given the specialized raw materials and manufacturing processes required. Suppliers can influence prices.

Threat of new substitutes: New conductive adhesives and phase change materials pose a moderate threat as substitutes for thermal greases and Gap Pads in certain applications.

Competitive rivalry: The market is fragmented with top players competing on performance, quality, and pricing.

Key Takeaways

The Global Thermal Interface Materials Market Demand is expected to witness high growth over the forecast period. 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.

North America region currently dominates the market owing to extensive use in data centers to manage high heat from servers. The Asia Pacific region is expected to grow at the fastest pace during the forecast period on account of increasing industrialization and electronics manufacturing hub in China, Taiwan, and South Korea. Countries like India and Southeast Asian countries are also contributing to the thermal interface materials demand.

Key players: 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. These key players are focusing on new product development and capacity expansion to cater to the growing demand.

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