Thermal interface material (TIM) refers to any material that is used to enhance thermal coupling between two components. Most of the applications are associated with heat dissipation, where a thermal interface material is inserted between the heat source (heat producing device) and the heat sink (heat dissipation device). The thermal interface materials are of different types based on the target application such as thermal grease, thermal glue, thermal pad, thermal adhesive, and thermal tapes.
The global thermal interface materials market is expected to witness immense growth over the upcoming years owing to the expansion of the automotive and healthcare industries in developing economies such as India, China, Mexico, South Korea, and Thailand. Moreover, the rising demand for miniaturization of systems and circuit density has resulted in the dissipation of large amounts of heat, thereby increasing the demand for thermal interface materials. The demand for such materials is also fueled by the rising awareness of energy-efficient lighting systems such as LEDs and the increasing need for faster computing systems. This has prompted manufacturers to increase their investments in R&D in order to design and develop efficient, lightweight and highly conductive materials and gain a better market share. Furthermore, advancements in the medical industry will open new growth avenues over the upcoming years.
Now, let’s take a look at some of the significant factors fueling the growth of the global thermal interface material market:
- Electrification of transport: In the automotive sector, heat management plays a crucial role in electric vehicles that have large energy storage systems. Thermal management becomes increasingly important as most of the vehicles incorporate electronic components.
- Greener lighting: The traditional lighting systems are increasingly being replaced by LEDs in various end-use applications. This mainly due to their low energy requirement and higher brightness when compared with conventional lighting systems.
- Demand for high-performance computers: The need for better TIMs in the consumer and industrial computing segment will continue to grow along with the growing need for faster, compact, and portable systems.
- Growing need for better connectivity: Globally, there is a high demand for a more comprehensive wireless network as it offers better connectivity as well as reach. This has, in turn, fueled the requirement for better quality thermal interface material that is used in telecommunication equipment.
The Business Challenge
- The client- A prominent thermal interface material manufacturer
Objective- To identify and evaluate the future attractiveness of the market by analyzing the evolving opportunities, threats, and market trends.
The client, a leading thermal interface material manufacturer, wanted to identify the market opportunities by relating it to the organizations strengths and weaknesses. The client wanted to leverage market 
analysis to establish benchmarks that can be used to measure their progress towards the goal.
Results- The market analysis based solution helped the client in establishing benchmarks to evaluate their progress. Also, it helped them in identifying and dividing the potential consumer base into various segments.
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The Journey
The market analysis experts at Infiniti carried out extensive research comprising of interviews and discussions with leading stakeholders across the thermal interface material market space to help the client improve business efficiency. The market analysis experts at Infiniti further compiled information from a wide array of secondary sources such as paid industry databases, company presentations, and industry forums to help the client understand the competitive scenario.
The Solution and the Business Impact
A detailed market analysis helped the client in identifying the changes that need to be incorporated to meet the market’s need for more profitability. With the help of market analysis, the client was in a better position to understand their company’s reputation and implement changes to improve their overall performance. It also assisted them in identifying the metrics or benchmarks to be used in the future to measure their progress towards goals. Moreover, Infiniti’s market analysis experts also helped the client in examining the products of their direct and indirect competitors, their marketing activities, and brand positioning strategies.
The Future
The growing demand for portable and compact devices increases the need to employ high-density miniature circuits enclosed in airtight enclosures. This along with the improvements in wearable technologies have fueled the growth of the thermal interface material market considerably over the past few years. Though the traditional TIMs have been micro-structured, manufacturers of these components are now increasingly focusing on nano-structuring. It involves the use of nano-materials such as carbon nanotubes.
However, the thermal interface material industry is highly conservative, and change is only considered when the current technology is no more capable of catering to the customer’s needs and preferences. Nevertheless, the growing demand from the end-user segments for compact and portable devices will continue to drive new product innovations leading to rapid of the thermal interface materials market.
A must-read case study for strategy specialists and decision makers looking to develop an understanding of the thermal interface material market.
