Market Statistics
| Study Period | 2019 - 2030 |
| 2024 Market Size | USD 11.3 Billion |
| 2030 Forecast | USD 22.8 Billion |
| Growth Rate (CAGR) | 12.6% |
| Largest Region | Asia-Pacific |
| Fastest Growing Region | Europe |
| Nature of the Market | Fragmented |
Thermal Management Technologies Market Size
Growth Forecast
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Thermal Management Technologies Market Future Prospects
The value of the global thermal management technologies market was USD 11.3 billion in 2024, which is predicted to reach USD 22.8 billion by 2030, advancing at a CAGR of 12.6% between 2024 and 2030. This is mainly attributed to the growing demand for electronic devices in various sectors, such as healthcare, along with the rising need for temperature control solutions in them. Moreover, the increasing demand for miniaturized electronic devices is a key factor driving the adoption of thermal management solutions.
Thermal management is a method that utilizes the principle of heat transfer and thermodynamics to maintain appreciable levels of noise and the temperature in a circuit. In order to minimize failure, improve device reliability, and expel the excess heat from the components to the environment, all electronic devices and circuits need such technologies.
The income of the population is rising, which is allowing it to spend more on its lifestyle, innovative household equipment, and smart communication devices. Similarly, wrist wearables, such as smartwatches and smart bands, are widely popular. The heat generated in these devices due to power consumption may cause circuit malfunctions. In these products, the integration of passive thermal management techniques on to the circuit or motherboard, along with the usage of circuit optimization, is important to protect critical components from overheating. Moreover, the surging investments by the market players in research and development are resulting in new heat dissipation module launches.
Moreover, in recent years, the adoption of artificial intelligence across industries has increased rapidly. Major technology companies have started investing heavily in the AI technology in order to enhance cloud services, search engines, and voice assistants. With the integration of artificial intelligence into the everyday life, the rise in the processing power and bandwidth in use increases the demand for better and more-efficient cooling solutions, with a view to ensuring maximum performance and reliability in these advanced systems.
In the coming years, the use of 5G smartphones will increase by leaps and bounds, which will generate a massive opportunity for thermal management system providers. Such devices contain a greater density of high-power components in smaller spaces. This leads to more energy consumption, which, in turn, results in the generation of more heat. Overheated devices can witness performance degradation or loss, which may result in network problems, outages, and downtimes. Therefore, the deployment of heat dissipation materials between heat sinks and components results in a control on the movement of heat, which prevents the overheating of the devices and, in turn, network failure.
Thermal management interface products are materials that conduct heat between two or more solid surfaces. They are considered an essential element of a thermal management system and mainly used in consumer electronics to ensure efficient internal temperature reduction. Thus, the increasing integration of these interfaces into the automated assembly is expected to increase the demand for efficient temperature control technologies.
Thermal Management Technologies Market Analysis
Adhesive Material Category To Witness Healthy Growth
Based on material type, the adhesive material category is expected to witness healthy growth during the forecast years. The demand for this material is driven by the fact that the ever-shrinking electronic components and systems insider electronics and medical devices generate substantial amounts of heat, which can lead to malfunctioning. These materials are designed to improve the performance, reliability, and longevity of electronic devices, by dissipating heat. When there is a requirement for bonding complex parts, thermal adhesive films are preferred.
Advanced Cooling Devices To Witness Fastest Growth
The advanced cooling devices category generated the highest revenue in 2022, and it is also expected to witness the same trend in the coming years, advancing with the highest CAGR. This is credited to the increasing integration of microchannel cooling, direct-immersion cooling in data centers, and impingement jet cooling in consumer electronics.
Moreover, advanced cooling technologies are used in the healthcare sector. An example is the esophageal cooling device, which is a silicon tube with three lumens placed inside the esophagus. The device is used to regulate the patient’s temperature, while simultaneously maintaining access to the stomach, to allow for gastric decompression and drainage.
Optimization & Post-Sales Support Will Witness Highest CAGR
Based on service, optimization & post-sales support will witness the highest CAGR. An efficient post-sales process will ensure the customer's satisfaction with the product. Additionally, it allows the manufacturer to understand where the product is successful and where it needs improvement. In 2022, according to the article, 1.75 million AC units were sold in India, which will now require repairs and servicing.
Consumer Electronics Category To Witness Fastest Growth
Based on end user, the consumer electronics category will witness the fastest growth, due to the advancement in the electronics industry. With the growing level of miniaturization of the installed components, consumer electronics, such as tablets, smart home products, smartwatches, and smartphones, are becoming more powerful. These devices use processors with millions of semiconductor circuits, displays that offer a high resolution and brightness, batteries with a high energy density, high-performance LEDs, and many more complex components. These components generate a lot of heat, which must be dissipated. To ensure the devices and components work properly, thermal management tools are used.
Moreover, the rising adoption of the internet of things (IoT), which enables communication between ‘things’, or electronic devices and sensors, using the internet, has driven the usage of connected devices in recent years. This is because electronics & semiconductor companies are focusing on developing smart devices and machines equipped with IoT capabilities.
Automotive will be the second-fastest-growing category during the forecast years. This is due to the rising popularity of electric vehicles with zero emissions, itself on account of the surging need to reduce the usage of fossil fuels. Additionally, consumers and governments are more concerned than ever about climate change. Thus, according to the International Energy Agency, around 10.1 million electric cars were sold in 2022 globally.
Temperature is considered one of the major factors that govern the performance and life of batteries. Hence, vehicles that run on an electric or hybrid powertrain require a battery thermal control system. Therefore, the rise in the usage of electric vehicles will likely drive the demand for efficient heat dissipation systems. Moreover, auto component companies are actively investing in making more-efficient battery solutions for upcoming BEVs.
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Geographical Analysis
Geographically, APAC held the largest share, around 35%, in 2022, and it is projected to grow at the highest CAGR. This is due to the rising application of heat dissipation solutions in the healthcare sector, specifically in electronic medical devices. In addition to this, the increasing industrialization and urbanization rates, presence of key market players in the region, and government initiatives for installing EV charging stations are the major factors driving the growth of the market.
Moreover, China holds the leading position in the region as it is the largest producer, consumer, and exporter of consumer electronics in the world. Moreover, in 2022, China started shipping electric vehicles to Europe.
North America accounted for the second-largest revenue share in 2022 because of the adoption of advanced technologies for temperature control in various sectors. In addition, the U.S. is one of the largest EV markets, having experienced a rapid rise in sales in recent years. Moreover, the changing lifestyles of people have resulted in the increasing need for smart electronic devices, which further fuels the expansion of the market.
Europe is also expected to witness significant growth over the forecast period, with the rising demand for electronic gadgets. In addition, the increasing awareness among the regional population regarding the environment is predicted to boost the adoption of eco-friendly heat management solutions across various applications. Moreover, the rising number of advanced electronics R&D facilities in the U.K. and Germany boosts the adoption of these technologies in the region.
Report Breakdown
Based on Material Type
- Adhesive Materials
- Non-Adhesive Materials
Based on Device Type
- Convection Cooling
- Conduction Cooling
- Advanced Cooling
- Hybrid Cooling
Based on Service
- Installation & Calibration
- Optimization & Post-Sale Support
Base on End User
- Automotive
- Data Centers and Servers
- Consumer Electronics
- Healthcare
- Enterprise
- Aerospace and Defense
- Telecom
- Renewable Energy
- Food and Beverages
Geographical Analysis
- North America
- U.S
- Canada
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Asia-Pacific
- Japan
- China
- India
- South Korea
- Australia
- Latin America
- Brazil,
- Mexico
- Middle East and Africa
- Saudi Arabia
- South Africa
- U.A.E
Thermal Management Technologies Market Share
Empowered by the addition of new products to their portfolios and an increasing number of mergers and acquisitions, market players continue to grow.
For instance, in September 2022, Henkel completed the acquisition of the thermal management materials business of Nanoramic Laboratories, marketed under the brand Thermexit. The aim of this acquisition is to strengthen Henkel’s position in the growing market for thermal interface materials (TIM).
Moreover, in July 2022, Honeywell and Reaction Engines Limited entered into a collaboration for the development of thermal management technologies that can reduce carbon emissions from aircraft.
Top Thermal Management Technologies Companies:
- Parker Hannifin Corporation
- Siemens AG
- Boyd Corporation
- Henkel AG & Co. KGaA
- Honeywell International Inc.
- European Thermodynamics Ltd.
- Gentherm Incorporated
- Autoneum Holding AG
- Robert Bosch GmbH
- Laird Thermal Systems
Frequently Asked Questions About This Report
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