Thermal Interface Materials Market Trends

Growth Drivers

• Rapid expansion of consumer electronics: This is the primary driving factor for the thermal interface materials market since the proliferation of smartphones, tablets, laptops, wearables, and other smart devices increases heat generation due to the presence of high-performance components.  In September 2025, Apple announced the launch of the iPhone 17 Pro and iPhone 17 Pro Max, which feature the powerful A19 Pro chip and an Apple-designed vapor chamber that are integrated into a thermally conductive aluminum unibody. Besides, this thermal management system dissipates heat from high-performance components, thereby enabling proper performance for gaming, AI tasks, and advanced camera operations. Hence, the evolution of such innovations highlights the heightened demand for thermal interface materials and cooling solutions in consumer electronics, driving growth in the thermal interface materials market.
• Growth of the automotive sector: This, especially in terms of electric vehicles, relies on electronics such as battery packs, power modules, and infotainment systems, wherein effective thermal management is crucial for safety, performance, and battery life, boosting growth in the thermal interface materials market. In June 2024, Marelli announced that it had secured a global contract with a major carmaker to supply its battery thermal plate for future battery electric vehicles, totaling around 5 million units across multiple markets. The BTP features a patented dot dimples design that optimizes heat exchange to stabilize battery cell temperatures, ensuring efficiency and battery life by enabling compact integration within vehicles. It was developed and tested across Marelli’s worldwide R&D centers, and the solution is highly customizable for different battery types and geometries, supporting EVs, hybrids, and internal combustion vehicles.
• High-performance computing and data centers: There has been a rise of AI, cloud computing, and data centers, which is leading to higher heat loads from powerful processors and GPUs, efficiently driving progress in the thermal interface materials market. In this regard, Henkel in October 2025 announced the commercialization of Loctite TCF 14001, which is a high thermal conductivity (14.5 W/m·K) silicone liquid thermal interface material especially designed for 800G and 1.6T AI data center optical transceivers. The firm also notes that this material addresses the increased heat generation of high-power-density chips, thereby enabling reliable thermal management and elevated transceiver performance. Furthermore, with low volatility, minimal outgassing, and strong adhesion, the Loctite TCF 14001 supports automated production while ensuring consistent thermal performance across a range of applications, including telecom, automotive, and industrial automation.

Challenges

• High cost of advanced thermal interface materials: One of the most persistent challenges that has skewed growth in the thermal interface materials market is the high cost associated with the advanced TIMs. The materials that incorporate metal alloys, graphene, carbon nanotubes, or specialty silicones involve complex manufacturing processes and very expensive raw materials. Therefore, this can limit adoption, especially among cost-sensitive consumer electronics and mid-scale industrial applications. In addition, fluctuations in terms of prices of indium, gallium, and specialty polymers also impact production costs, forcing manufacturers to balance performance improvements with affordability by maintaining competitive pricing in a rapidly expanding thermal interface materials market.
• Performance limitations at extreme power densities: Over the recent years, electronic devices have become smaller and more powerful, in which managing extreme heat fluxes poses a significant challenge for manufacturers in the thermal interface materials market. In this context, conventional greases, pads, and phase change materials may find it challenging to maintain thermal conductivity, mechanical stability, and long-term reliability under high temperatures and repeated thermal cycling. Further, to meet the thermal demands of AI processors, data centers, and electric vehicle power electronics require continuous validation of materials that are capable of sustaining performance under even harsh operating conditions.