Thermal Interface Materials Market (2026-2036)

The growth of this market is mainly driven by the rapid rise in power density of AI servers and data center hardware, the growth of electric vehicles and their battery packs, power electronics, and charging infrastructure, the adoption of high-speed optical modules and networking equipment, and the miniaturization of consumer and telecom electronics. In addition, the adoption of silicon carbide and gallium nitride power devices, the development of higher-conductivity gap fillers, gels, and metal-based materials, and the growth of renewable energy and industrial electronics are further supporting the growth of this market.

The Thermal Interface Materials Market, also referred to as the TIM market, thermal management materials market, or thermally conductive materials market, comprises the materials placed between heat-generating components and heat sinks, cold plates, housings, or spreaders to reduce thermal resistance and transfer heat. The market includes thermal gap pads; liquid gap fillers and dispensable gels; thermal greases and pastes; phase change materials; thermally conductive adhesives, potting compounds, and encapsulants; thermal tapes and films; metal-based materials, such as solder, indium, and liquid metal TIMs; and graphite and carbon-based materials. These materials are based on silicone, non-silicone polymers such as acrylic, polyurethane, and epoxy, metals, and graphite and carbon. The market ecosystem extends from raw material suppliers, such as silicone, polymer, and ceramic filler producers, to TIM manufacturers, converters and distributors, and electronics, automotive, telecom, and industrial manufacturers.

Thermal interface materials are essential for the reliability and performance of electronic systems. As chips, power modules, and batteries become more powerful and compact, they generate more heat in smaller areas, and even small air gaps between surfaces can cause large increases in temperature. TIMs fill these gaps and improve heat transfer, allowing devices to operate at higher power without overheating. The performance of a TIM is measured mainly by its thermal conductivity and its thermal resistance at a given bond line thickness.

AI data centers are the fastest-growing source of demand. According to the International Energy Agency (IEA), global data centre electricity demand grew 17% in 2025 to around 485 TWh and is projected to roughly double to around 950 TWh by 2030, while the power density of AI servers rose 11 times between 2020 and 2025 and is set to rise a further fourfold by 2027. The IEA also reports that hyperscaler capital expenditure exceeded USD 400 billion in 2025 and is expected to rise by about 75% in 2026. AI accelerators, CPUs, high-bandwidth memory, power delivery components, and optical transceivers all require high-performance TIMs, and the shift to liquid cooling with cold plates increases the importance of low-thermal-resistance interfaces between chips and cooling hardware.

High-speed networking is creating new requirements for TIMs. In June 2026, Dow launched DOWSIL TC-3120 Thermal Gel with a thermal conductivity of about 12 W/m·K for 800G and 1.6T optical modules, advanced telecommunications, and automotive electronics. Dow designed the gel to reduce oil bleed and outgassing, which can contaminate optical components, and to compress to a 200 µm minimum bond line. These requirements reflect the growing use of TIMs in cleanliness-sensitive optical and high-speed applications.

Electric vehicles are one of the largest applications for TIMs. According to the IEA, global electric car sales exceeded 20 million in 2025, up about 20%, accounting for about one-quarter of new cars sold, and are forecast to reach 23 million, or 28% of car sales, in 2026. Nearly 55% of cars sold in China and 28% in Europe were electric in 2025. Each EV battery pack uses gap fillers or thermally conductive adhesives to transfer heat from cells to cooling plates, and EV power electronics, onboard chargers, motors, and charging stations also require TIMs. As battery pack designs move to cell-to-pack and cell-to-body architectures, TIMs are increasingly used as structural and thermal materials.

Wide-bandgap power semiconductors are raising temperature requirements. Silicon carbide and gallium nitride devices operate at higher temperatures and power densities than silicon devices and are widely used in EVs, charging infrastructure, renewable energy, industrial equipment, and data center power supplies. In July 2026, Qnity Electronics launched the non-silicone Laird Tgrease 3000, rated for operating temperatures up to 200 °C for silicon carbide and gallium nitride devices, and the Laird Tflex CR910 two-part dispensable gap filler with a thermal conductivity of 9.2 W/m·K for AI systems, advanced computing, and automotive electronics.

Suppliers are developing higher-conductivity and dispensable materials. Henkel offers the BERGQUIST LIQUI FORM TLF 10000 liquid gap filler with a thermal conductivity of 10.0 W/m·K for 5G telecom equipment, data center networking hardware and servers, EV infrastructure, industrial automation, and AI and robotics. Dispensable liquid gap fillers and gels are replacing pre-cut pads in many high-volume applications, as they can be applied automatically, conform to complex geometries, and reduce stress on components.

Supplier results reflect mixed end markets. Henkel reported 2025 group sales of EUR 20,495 million, with organic growth of 0.9%, and its Adhesive Technologies business, which includes its electronics and thermal management materials, achieved organic growth of 1.5%, driven by its Mobility & Electronics business. Demand for TIMs in AI data centers and EVs is growing strongly, while demand in some consumer electronics and industrial applications has been more moderate.

Consumer electronics and telecom remain large applications. Smartphones, laptops, tablets, gaming consoles, and wearable devices use thin TIMs, graphite sheets, and phase change materials to manage heat in compact designs, while 5G base stations, small cells, and network equipment use gap fillers and gels to dissipate heat from high-power radio and processing components.

The value of TIMs per device is increasing as power densities rise. A conventional server may use a small amount of thermal grease or a few pads, while an AI server uses high-performance materials on accelerators, memory stacks, voltage regulators, network interface cards, and power supplies, and the rack-level networking and optical modules add further demand. Similarly, an EV uses several kilograms of gap filler in its battery pack, compared with small amounts of TIM in the electronics of a conventional vehicle. As a result, market value is expected to grow faster than the number of devices produced over the forecast period.

The supply side of the market is shaped by large chemical and materials companies with broad silicone and polymer capabilities, such as Dow, Shin-Etsu Chemical, Wacker Chemie, and Momentive, alongside companies focused on electronics and thermal materials, such as Henkel, Parker Hannifin, Qnity, and Honeywell, and specialists in metal-based and graphite-based materials, such as Indium Corporation and Panasonic. Qnity was formed through the separation of the electronics business of DuPont in November 2025 and includes the Laird thermal materials portfolio. Competition is based increasingly on application engineering and the ability to qualify materials with leading AI hardware, EV, and electronics manufacturers.