MARKET OVERVIEW- THERMAL INTERFACE MATERIALS (TIMs) MARKET
A thermal interface material is a material that is inserted between two components to enhance the thermal coupling between them. TIM is inserted between an integrated circuit which acts as a heat-producing device and a heat sink that acts as a heat-dissipating device. Thermal interface material devices help to reduce heat dissipation while the operation of devices. Under the continuous overheating and large thermal stress at the interfaces, the electronic performance and device lifetime can degrade dramatically. This problem leads to the need for thermal interface material to minimize the thermal boundary resistance between layers and enhance thermal management performance. Over the last decades, there have been intensive efforts in developing various TIMs. These TIMs comply with low thermal stress between materials of different thermal expansion coefficients, low elastic modulus or viscosity, flexibility, and reusability in various applications. The growth in thermal interface materials is attributed to the increasing demand for electronics, LED, telecom, and medical devices industries. The explosive growth of energy storage in an electric vehicle, or more specifically the lithium-ion battery market in electric vehicles. In the production of a lithium-ion battery, thermal management is a key issue that can be solved with TIMs. Thus, these are some of the factors that drive the growth of the thermal interface material market in the coming period.
MARKET DRIVERS
The main reason for the growth of the Thermal interface materials Market is the increasing demand for electronic devices. Due to the lockdown, the work-from-home solutions implemented by many companies led to more use of teleconferencing, and remote working technologies have shown the development and the growth of the telecom sector. The increasing sale of computers, laptops, video games, and smartphones has increased the growth of the Thermal interface materials Market. During COVID 19, sale of the electronic devices like touch screens and displays, and medical devices have led to the growth of the Thermal interface materials Market size and revenue. The use of a heat exchange medium to increase the operating life span of LED devices required the thermal interface material led to more use of TIM in the LED market. Thus, these are the main driving factors that booming the market growth over the forecast period.
MARKET OPPORTUNITIES
The increasing demand for thermal interface material in electronics and LED industries provides more opportunities. The future demand for electrical vehicles also seeks the use of TIM in the automotive sector. The use of TIM in the medical sector offers potential opportunities. Also, the evolving technologies in TIM are also key factors offering opportunities. The use of TIM in the form of nanodiamonds helps to overcome the heat-dissipating limitation of currently available materials. The thermal interface materials help the semiconductor industry to perform better. For example, an Israeli company, Ray Techniques Ltd has developed nanodiamonds-based TIMs with a very high level of heat dissipation capability while maintaining a low dielectric constant. The company has developed the technology for nanodiamonds manufacturing known as laser ablation. This technology incorporates nanodiamonds to have high purity and homogeneity which allows the nanodiamonds to form covalent bonds with silicon oil molecules. Thus, these technological advancements in Thermal interface material offer potential opportunities over the forecast period.
MARKET RESTRAINTS
The thermal interface materials are used to fill the air gaps that build up between two surfaces to improve the heat transfer across the material but the physical properties of thermal interface materials can sometimes be a problem. Due to the size variation, they may act as a hindrance blocking the heat transfer between two surfaces. Thus, affecting the thermal conductivity and performance of the material. This factor is believed to be constraining the growth of the thermal interface material market.
MARKET GROWTH CHALLENGES
The main challenge associated with the market is cost. The cost of thermal interface materials is directly proportional to their thermal conductivity. The cost of TIMs is affected by factors such as thermal conductivity, phase change, viscosity, pressure, outgassing, surface finish, ease of application, and mechanical properties. The cost of TIMs products is influencing the end-user industry.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the global Thermal interface materials market, market size, and compound annual growth rate (CAGR) for the forecast period of 2022-2028, considering 2021 as the base year. The increasing demand for Thermal interface materials in various LED, electronics, and semiconductor applications lead to the growth in The thermal interface material market at a specific CAGR from 2022-2028.
THERMAL INTERFACE MATERIALS MARKET SEGMENTAL OVERVIEW
The global thermal interface material market comprises different market segments like type, application and geography
THERMAL INTERFACE MATERIALS MARKET BY TYPE
By type, the thermal interface material chemical market includes a key segment of
- Greases & adhesives
- Tapes & Films
- Gap Fillers
- Metal-based materials
- Phase change materials
- Others
Based on type, The Thermal interface material Market is divided into greases & adhesives, tapes & films, gap fillers, metal-based materials, phase change materials, and others. The phase change materials are the fastest growing type owing to their widespread application in personal computers, such as microprocessors, graphics processors, chipsets, memory modules, power modules, and power semiconductors. The phase change material is also used in construction activity because of the demand for temperature maintenance inside residential as well as commercial buildings. The thermal materials act as heat storage where heat gets absorbed during the summer season and the retained heat can be further used during the winter times to manage and control the temperature difference. These properties are possessed by phase materials. Thus, these factors contribute to the phase change materials growing over forecast time. Thermal greases and adhesives have led the market with the highest share in 2021, owing to their use in consumer products and high thermal resistance. These thermal greases and adhesives are used in indispensable gels, gap filling, and insulating pads, adhesive tapes lead to the greases and adhesives segment growing at the highest CAGR over the forecast period.
THERMAL INTERFACE MATERIALS MARKET BY APPLICATION
The thermal interface material markets have different applications such as
- Computers
- Telecom
- Consumer
- Durables
- Medical Devices
The Thermal Interface Material market is divided into computers, telecom, consumer durables, medical devices, and others application. Among these applications, the computer has accounted for the maximum market share in 2019, owing to its increased utilization in offices. Further, rising globalization along with increasing penetration of the internet particularly in the developing regions such as India, China, and Korea expected to propel the demand for computers worldwide. Moreover, the pandemic also did not hinder the market growth even though it leads to more use of computers, rather the rise in the sales, upgradation, and installation of computers have increased over the past few years due to the number of people opting to work from home. In the coming period, telecom and medical application are both growing at the highest CAGR rate due to the rising preference for a cashless and digital economy. In the medical field, electronic devices are used for proper thermal management. The electronic devices in the medical industry have to remain cold to run continuously and efficiently within their operating temperature range. With the help of thermal interface materials. The excess heat is to be efficiently moved, spread, and dissipated. Additionally, the medical application will be the major application in the coming period owing to the growing use of radiation therapy in the diagnosis and treatment of diseases. The increasing demand for portable medical devices and wearable electronics with the adoption of IoT-based smart medical devices driving the growth in the medical sector.
THERMAL INTERFACE MATERIALS MARKET BY GEOGRAPHY
The global thermal interface material Market is studied for the following region
- North America
- Europe
- Asia-Pacific
- Rest of the world (RoW)
The global Thermal interface materials market is studied for the following region North America, Europe, Asia-Pacific, and the Rest of the world (RoW). APAC accounted for the largest market share of the global thermal interface materials market due to the growing population, growing internet user base, rising per-capita income, rapid industrialization, and development of end-use industries. In the Asia Pacific region, there are several growing economies such as China, India, and Japan provide potential opportunities. Also, many operating companies in the TIM market are investing their manufacturing base in the APAC region. In recent times, Asia Pacific has emerged as the largest manufacturing hub in the world. The Asia Pacific is the new hub for transportation, packaging, pharmaceutical, food & beverages, construction, and electronics & telecommunication sectors. Thus, these are the main reason attributing to the growth of Asia Pacific over the forecast period.
North America and Europe are emerging as promising markets for the thermal interface material owing to the development in construction activities and the healthcare sector and increased use of thermal interface material in these industries. Thereby, impelling the market growth for the thermal interface materials in the regions.
COVID-19 IMPACT ANALYSIS ON GLOBAL THERMAL INTERFACE MATERIALS MARKET
Axiom MRC provides a 3600 analysis of micro and macro-economic factors in the global Thermal interface materials market. In addition, complete analysis of changes in the global Thermal interface materials market expenditure, and economic and international policies on the supply and demand side. The report also studies the impact of pandemics on global economies, international trade, business investments, GDP, and marketing strategies of key players present in the market. In 2020, COVID 19 has impacted all the businesses and industries around the world and brought great disaster in terms of revenue and sales. The government has imposed restrictions to stop the spread of virus, this had made an economic loss in many countries. However, as compared to other industries, the Thermal interface materials Market has seen less loss, because during COVID 19 the use of smartphones increased to a certain level. The increasing use of smart devices and electrical appliances by consumers is the main leading reason behind the less impact on the thermal interface material market during COVID. During COVID, work from home imposed by companies has been leading to telecom and computer use. Thus, owing to increasing smartphone and electronic devices has led to the production of these devices. However, during the pandemic, the supply chain got disrupted by governmental restrictions which resulted in disruption in raw material supply and affected the growth of the market.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of the Thermal interface materials market is certainly based range of market players operating in the telecommunication industry market with increasing demand for the production of thermal interface materials. Besides, several market players offered a wide range of products for different applications in various geographic locations. The market has a major competitive analysis based on new product launches as well as other developments.
The key players studied in the market are
- 3M Company (United States)
- Henkel AG & Co. KGAA (Germany),
- Parker Hannifin Corporation (United States),
- DOW Corning Corporation (United States),
- Laird Technologies, Inc. (United States),
- Momentive Performance Materials Inc. (U.S.)
- The Bergquist Company, Inc.(U.S.),
- Indium Corporation (U.S.),
- Wakefield-Vette, Inc. (U.S.)
- Zalman Tech Co., Ltd. (South Korea)
- Honeywell International Inc. (United States)
- Bergquist company (U.S.)
- Semikron (Germany)
- Linseis Messgeräte GmbH (Germany)
Recent Development:
May 2022: Parker Hannifin’s Chomerics Division, an expert in electrically & thermally conductive materials for electronics launched new solutions to protect drones from electromagnetic interference and overheating.
March 2022: Indium Corporation has featured products from its line of proven gallium-based liquid metal thermal solutions at SEMI-THERM. Indium Corporation’s Gallitherm™ portfolio of gallium-based liquid metal solutions is based on the company’s more than 60 years of experience in manufacturing gallium-based liquid metals. Indium Corporation’s liquid metal TIMs are designed to offer superior thermal conductivity for both TIM1 and TIM2 applications.
January 2020: The giant 3M announced to expand its manufacturing facility in Clinton, Tennessee in the next several years, adding about 600 jobs.
June 2020: Henkel announced the launch of its thermal interface material (TIM) innovation, Bergquist Gap Filler TGF 7000 (image). The liquid TIM is a major formulation breakthrough, as it effectively marries high thermal conductivity of 7.0 W/mK with a maximum possible speed tested of 18 grams per second, a unique combination used for automotive ADAS systems, power conversion systems, electric pumps and ECUs.
