Thermal Conductor Film Market - Forecast(2024 - 2030)

Thermal Conductor Film Market Overview

Thermal Conductor Film Market size is forecast to reach US$8.5 billion by 2027, after growing at a CAGR of 6.2% during 2022-2027. Thermally conductive film is a type of flexible heat sink that aids in the dissipation of heat produced by an electrical equipment. A thin layer of metal, often aluminium or copper, is bonded to a substrate material such as polyimide or polyester. The metal layer conducts electricity, while the substrate provides mechanical strength and flexibility. Currently, the growing demand for thermally conductive films in the electrical and electronics sector for applications where electronic components must be kept cool, such as laptop computers, LED lights, and power semiconductor devices, is driving the growth of the industry. The employment of silicon, polyimide, acrylic, and other films, in thermal management applications such as automotive engine control units and electric vehicle battery packs is further estimated to drive the market growth.

Impact of Covid-19

In recent times, thermal conductor film production was severely affected due to temporarily shutdown of industries and production facility because of COVID-19 pandemic. As COVID-19 crisis continued, thermal conductor film market declined further in 2021, due to temporarily closure of industries and which impacted the supply and demand chain across various verticals. In 2020 and 2021, companies saw continued supply disruption, cost escalation, and product delivery delays due to the pandemic. Also, the sector was likely hampered by global demand. Furthermore, the automotive and electronics industry is a key consumer of thermal conductor film. However, as a result of a nationwide lockdown across the globe, the automotive and electronics industry declined its production. As a result, the demand for thermal conductor film experienced a sudden decline which affected the market growth.

Report Coverage

The report "Thermal Conductor Film Market Report – Forecast (2022-2027)", by IndustryARC, covers an in-depth analysis of the following segments of the thermal conductor film industry.

Key Takeaways

• Asia-Pacific region dominated the thermal conductor film market with the rapidly rising growth of the electrical & electronics, automotive, and other end-use sectors.
• Increasing investments to promote the consumption of li-ion batteries is also driving the thermal conductor film market growth. For instance, to promote EVs and lithium ion batteries, the Indian government launched the Faster Adoption and Manufacturing of Hybrid and Electric Vehicle (FAME) scheme in 2019 with a Rs.10,000 crore budget. The scheme was set to expire in 2022. To encourage the purchase of 7,090 electric buses, 35,000 four-wheelers, 500,000 three-wheelers, and 1 million two-wheelers, the government planned to offer incentives. The Indian government extended the second phase of the FAME scheme by two years, to March 31, 2024, in June 2021. To encourage the use of lithium ion batteries, the government has authorised FAME subsidies only for lithium ion.
• Rapidly rising demand for thermal conductor films to eliminate air between surfaces with higher conductivity materials, improvise thermal conductivity between joined surfaces, and to withstand harsh environments, has driven the demand for thermal conductor films.

Silicone thermal conductive film segment dominated the thermal conductor film market in 2021. Silicone thermal conductive film is one of the most commonly and widely used thermal gap filling materials. These films are made with silicone oil as raw material and added insulation, temperature resistance, and thermal conductive materials. The silica gel thermal conductive film can effectively transport the heat from the heat source to the shell due to its good filling effect, and it has good compressibility and elasticity, making it suitable for use as a shock-absorbing pad. Also, the silicone thermal conductive film substitutes traditional thermal putty with an insulating sheet and thermal paste installation. It is easy to clean, fast, and reliable to use. Thus, with the driving demand for silicone thermal conductive film the market is estimated to rise.

Thermal Conductor Film Market Segment Analysis – End-Use Industry

Electrical and electronics sector dominated the thermal conductor film market in 2021 and is projected to grow at a CAGR of 6.9% during the forecast period. Increasing usage of silicone, graphene, and polyamide films due to its excellent thermal conductivity, has made it ideal for heat transfer and control of high-intensity electronic integrated components. The graphene-based thermal conductive film has piqued the interest of leading smartphone manufacturers. For instance, Huawei was the first manufacturer to utilize the film in 2018, including this technology into its Mate20 smartphone line. Increasing government investments and rising growth of the electrical and electronics sector is also driving the thermal conductor film market. For instance, as per Invest India, by 2020, the global market for electronic devices stood US$ 2.9 trillion.

Thermal Conductor Film Market Segment Analysis – Geography

Asia-Pacific region dominated the thermal conductor film market in 2021 with more than 45%. Due to the highly developed electronic and automotive industries in China, Japan, India, South Korea, and Vietnam, the market for thermal conductor film has seen gradual rise in recent years. For instance, according to the Japan Electronics and Information Technology Industries Association (JEITA), the electronic components and devices segment increased with 107.6%, in comparison to previous year 2021.Similarly, as per the Ministry of Industry and Information Technology, more than 25 million vehicles were sold in 2020, with 19.99 million being passenger vehicles. Commercial vehicle sales increased by 20% year over year to 5.23 million units. Hence, the continuous growth in the end-use sectors is expected to drive the thermal conductor film market in the Asia-Pacific region over the coming years.

Thermal Conductor Film Market Drivers

Rapidly Rising Demand for Electric Vehicles

Rising growth of electric vehicles is also set to drive the demand for themal conductor film which is generally used in the li-ion battery applications. Thus, the rising production of electric vehicles in emerging economies is anticipated to expand the global themal conductor film market growth. For instance, in July 2021, Nissan Motor, a Japanese automaker, has commissioned a study to localise the production of electric cars (EVs) in India, which will include the construction of a Gigafactory for the mass production of EV batteries in the nation. Similarly, in December 2021, Bajaj Auto Limited announced that it will invest 300 crores (US$ 40 million) in a new electric vehicle plant in Akurdi (Pune). According to the company, this plant will be able to produce 500,000 electric vehicles every year. Bajaj's first Chetak scooter manufacturing is also located in this area (Akurdi, Pune). Furthermore, in December 2021, Toyota expects to sell 3.5 million electric vehicles worldwide by 2030. Toyota has planned to launch its electric car inventory, with 30 new fully electric models expected by 2030.

Thermal Conductor Film Market Challenges

Emerging Constraints for Thermal Management of Electronics will Hamper the Market Growth

Some of the most significant technological and societal advances in contemporary history have resulted from the rapid growth of faster, cheaper, and more powerful computing. However, the physical mechanisms used to improve computing capabilities at the device and die levels have produced a difficult set of conditions for keeping electronic devices cool, which is a vital component in determining their speed, efficiency, and dependability. With advancements in nanoelectronics and the rise of new application areas such as three-dimensional chip stack architectures and flexible electronics, there are more requirements and opportunities for novel materials than ever before. Furthermore, the proliferation of mobile devices and touchscreen applications has prompted additional research and development into technologies and materials that are compatible with transparent and/or flexible substrate design requirements. These exciting technological advancements and developing applications, on the other hand, are posing thermal problems which is limiting the effectiveness and scope of implementation of thermal conductor film market.

Thermal Conductor Film Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the thermal conductor film market. Global thermal conductor film top 10 companies include:

1. DuPont
2. Furukawa
3. 3M
4. Henkel
5. Kaneka Corporation
6. Polymatech
7. Kerafol
8. Alpha Assembly
9. Dexerials Corporation
10. Kunze Folien, and Others.

Recent Developments:

• In April 2019, Kaneka Corporation developed “Pixeo TM SR,” a super heat-resistant polyimide film for high frequency, high-speed 5G. It is launched to be deployed as a flexible print circuit board for 5G enabled smartphones.

Relevant Reports:

Laminating Film Market - Industry Analysis, Market Size, Share, Trends,Application Analysis, Growth And Forecast 2021-2026

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Thermal Insulation Coatings Market - Forecast(2022 - 2027)

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Polyimide Films Market - Forecast(2022 - 2027)

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