Thermally Conductive Plastics Market: Industry Analysis & Forecast 2023-2029

Thermally Conductive Plastics Market was valued at USD 142.31 Million in 2022, and it is expected to reach USD 407.57 Million by 2029, exhibiting a CAGR of 16.22% during the forecast period (2023-2029)

Thermally conductive polymers are widely utilised in production and everyday life due to their flexibility, light weight, excellent chemical stability, and low cost. For heat-sensitive applications, these polymers can replace metals, traditional plastics, and ceramics. The polymer works as a binding solution that binds to the liner particles. Due to rigorous noise emission control requirements, the consumer is expected to acquire conductive polymers as the importance of electronics equipment with low sound rates grows.

Because thermal conductive polymers offer superior damage resistance, thermal resilience, tensile strengths, and abrasion resistance than other alternative materials such as metals and ceramics, they are lighter and easier to install and mould. Because of the flexibility of heat transfer coupled with heat dissipation required in diverse products, they can be easily applied according to the free space and design required, promoting widespread application in a variety of end-use industries and driving market development of thermal conductive polymer products. However, rising environmental worries over the manufacture and disposal of these items are expected to restrict the sector's growth.To know about the Research Methodology :- Request Free Sample Report
Thermally Conductive Plastics Market Dynamics
Growing Demand for Heat Dissipation in Electronics, Automotive, and Telecommunications Industries

Thermally conductive polymers are good for heat dissipation in high-heat applications like automotive lighting and LED luminaries. Rising microelectronics demand for the development of single multi-functional components necessitates the use of thermally conductive polymers for effective heat dissipation. Thermally conductive plastics producers are seeing an increase in demand for heat sinks, electronic component housings, telecommunication radomes, and cooling cell holders for vehicle batteries. Furthermore, computer-aided component simulations and CAE analysis help in the creation of tailored thermally conductive polymers for high-performance applications.

For example, Lenovo Group, a prominent brand in consumer electronics and media, presented its annual report for the fiscal year that ended in March 2021, stating that the company's total sales reached USD 60,742 million in fiscal year 2020/21, a 20% increase over fiscal year 2019/20. The United States spent around USD 142.2 billion on computers and USD 53 billion on consumer electronics such as mobile phones, televisions, and other related applications. It also adds that China's National IC Fund has committed USD 39 billion through July 2021, with 69.7% of that amount allocated to front-end manufacturing in order to increase China's share in global semiconductor production.

Miniaturization of Electronic Components and Development of Power Electronics

Microelectronics innovation and the growth of smaller electronic components necessitate advanced heat management technologies. Heat dissipation in microelectronics and power electronics is a significant concern that thermally conductive polymers can address. Aluminum, for example, has limited design flexibility, but thermally conductive polymers may be over-molded to generate intricate component designs. Heat concentration in power electronics components such as LEDs can cause performance difficulties or component damage. Thermally conductive polymers are primarily utilised for heat dissipation and as a replacement material for metals and ceramics in electrical and electronics, automotive, and other sectors.

An Increase in Demand from the Automotive Industry to Increase Demand for the Thermally Conductive Plastics

In 2020, the new registration of motor vehicles reached up to 16,763 units in Europe, 37,467 units in Asia, 3080 units in South America, 17,421 units in North America, 12,733 units in Western Europe, and 5180 units in other regions worldwide. Likewise, a recent study published by the International Netherlands Group (ING) states that the demand for the production and development of electric vehicles has been increasing since the pandemic.

It states that the global sales of new electric vehicles have increased by 50% in 2022, and is expected to increase by 8% in 2022. It further states that the sales of electric vehicles have increased by 14% in Europe, 9% in China, and 4% in the US. As a result, increased vehicle demand and manufacturing will raise demand for conductive polymers used in the manufacture of LED lighting, heat removal devices, batteries, and other electrical applications. This is most expected to fuel market growth in the next years.

Fluctuating Crude Oil Prices to Impact Prices of Polymer Resin

Crude oil price volatility due to geopolitical uncertainty, production and storage costs, and high energy costs all have an influence on polymer resin pricing. The raw ingredients for thermally conductive plastics are polymers generated from petroleum fuels, which are subject to commodity price volatility. Oil prices remain unpredictable in the face of the COVID-19 outbreak and Europe's uncertain geopolitical environment. As a result, changes in crude oil prices have an influence on the pricing of polymer resins and thermally conductive polymers.

Lower Thermal Conductivity than Traditional Metals

Plastics with thermal conductivity are less thermally conductive than metals such as aluminium. To improve heat conductivity, certain polymers are treated with thermally conductive fillers and additives. Metals have problems such as corrosion and heat concentration, which leads to the formation of hot spots on the surface, which may be addressed by thermally conductive polymers. Thermally conductive polymers are design-dependent and compatible with a wide range of polymer resins, allowing for complex structures to be manufactured in a variety of patterns, shapes, and sizes. However, the poorer heat conductivity of these polymers than conventional materials limits market growth.
Thermally Conductive Plastics Market Segment Analysis
Polyamide Segment is Estimated to Dominate the Thermally Conductive Plastics Industry Based on Material Segment

The polyamide segment held the largest Conductive Plastics Market share in 2022 and is estimated to grow at a CAGR of 13.7% between 2023 and 2029, thanks to the increasing demand for polyamide because of the characteristics and benefits it offers over other types of Thermally Conductive Plastics materials.

Because of its outstanding features such as high impact strength, insulation, strong heat resistance, high transparency, flame retardancy, and effective recyclability, polycarbonate-based thermally conductive polymers are among the most prominent engineering plastics. Thermally conductive polymers based on polycarbonate have the flexibility, impact resistance, and optical characteristics to replace other engineering plastics used in comparable applications. Furthermore, the growing need for lightweight and transparent materials in automotive, electrical & electronics, and medical applications has increased the use of polycarbonate-based thermally conductive polymers.

In compared to polycarbonate, polyethylene, polypropylene, and other materials, polyamide offers great strength and stiffness even at high temperatures, strong impact strength, good flow, and easy processing, as well as good resistance to wear and abrasion. Furthermore, as compared to polyphenylene sulphide, polycarbonate, polypropylene, and other materials, polyamide offers superior chemical resistance, corrosion resistance, flexibility, and adaptability, making it perfect for usage in electronic equipment and gadgets. As a result, all of these factors are expected to drive Thermally Conductive Plastics industry growth over the forecast period.

Electrical & Electronics Segment is Estimated to Dominate the Thermally Conductive Plastics Industry Based on End-Use Segment

The electrical & electronics industry held the largest Conductive Plastics Market share in 2022 and is estimated to grow at a CAGR of 13.7% during the forecast period, thanks to the worldwide increasing demand for conductive plastics during the production of electronic gadgets. The GDP growth rate of consumer electronics, which includes electronic appliances and gadgets such as televisions, computers, laptops, smartphones, tablets, and refrigerators, is expected to reach 8.1%, 5.7%, 1.4%, and 1.7% by the end of 2022 in countries such as India, China, the United States, and Europe, respectively. The global consumer electronics business had a total sales rise of USD 42.8 billion during the first quarter of 2021, a gain of 18% over the same period in 2020, in September 2021.

This is expected to increase demand for conductive plastics used in the production of electronic components such as displays, solar cells, batteries, OLED, printing electronic circuits, actuators, and other electronic components, resulting in further growth of the Thermally Conductive Plastics industry during the forecast period.

The automotive industry is being pushed by the development of hybrid electric vehicles (HEV) and electric vehicles (EV), which is expected to increase demand for thermally conductive polymers in automotive electronics. The substitution of mechanical components with thermally conductive designed plastics for automotive LED lighting systems is growing demand for thermally conductive polymers due to the design freedom of 3D components, weight reduction, and heat sinks.

The automobile sector is the world's largest consumer of thermally conductive polymers. PC and PBT are widely utilised in this sector because they have strong strength and thermal resistance features, allowing them to be used in a variety of components such as engine mounts, vehicle batteries top covers, and so on. Plastic materials are increasingly being used instead of metal by automotive engineers due to their low density, which decreases vehicle weight without compromising strength. This enables manufacturers to create smaller battery packs with lighter frames while yet providing great performance in difficult environments like as slick roads and off-road driving, where metal parts may not always perform well.
Regional Insights
In 2022, Asia Pacific had the biggest Conductive Plastics Market share of 32.4%. Increasing government and private sector investment in the Asia-Pacific area for a variety of projects has fueled demand for thermally conductive polymers in this region.

In addition, China dominates the Asia-Pacific area in electric car manufacture and sales. For example, in China, around 45% of worldwide electric automobiles on the road in 2018 totalled 2.3 million, up from 39% in 2017. It resulted in a surge in demand for the thermally conductive polymers industry in this region. Thermally conductive polymers are commonly utilised in headlights and other electric vehicle components. Conductive Plastics use is particularly high in this region due to increased demand from the electrical sectors. For example, electronic manufacturing and production in India are now valued at roughly USD 100 billion in 2021. According to the Indian IT Minister, mobile manufacturing in India is expected to exceed INR 90,000 crore (USD 12 trillion) by the end of 2021.

According to yearly statistics released by Samsung during the fourth quarter of 2020, the consumer electronics division's total sales was valued at KRW 13.6 trillion (USD 11.3 billion), with an operating profit of KRW 0.8 trillion (USD 668 million). Furthermore, electronic equipment output and shipments reached up to USD 52.6 billion in the fourth quarter of 2020, and are likely to rise considerably during the forecast year. As a result, increased demand for electronic equipment and gadgets will necessitate the usage of conductive polymers in electronic components such as displays, batteries, OLED, electronic circuits, and more. This is expected to drive the Conductive Plastics Market over the forecast period.

During the forecast period, North America is the second-fastest growing region in the thermally conductive polymers sector. The region's thermally conductive polymers market is being pushed by innovation in the electrical and electronics, automotive, and aerospace industries. The area has a sophisticated manufacturing environment and export-oriented economies, which promote the expansion of the thermally conductive polymers industry. Furthermore, government measures to encourage electric cars and increased investment in the electrical and electronics industries are likely to drive up demand for thermally conductive polymers during the forecast period.

Further demand for thermally conductive polymers in the North American area is being driven by growing aerospace and military sector development and investment, as well as an increase in government financing for R&D. As projected, the United States' Aerospace & Defense business achieved a positive net trade of approximately USD 90 billion in 2018, with total exports totaling around USD 151 billion. It increased demand for thermally conductive polymers used in these industries significantly.

By value, Europe accounted for the third-largest proportion of the thermally conductive polymers market. The existence of several end-use industries, producers, compounders, distributors, and technical service providers for polymer testing and analysis presents the market with growth prospects. Because of the presence of prominent vehicle manufacturers such as Volkswagen, BMW, and Daimler, Europe is considered an automotive powerhouse. The European thermally conductive plastics sector will be driven by advancements in material science, innovation, and significant R&D expenditure for automotive, industrial automation, energy, electronic lighting, and medical devices.
Thermally Conductive Plastics Market Scope: Inquire before buying



Thermally Conductive Plastics Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 142.31 Mn.


Forecast Period 2023 to 2029 CAGR:
16.22%
Market Size in 2029:
US $ 407.57 Mn.


 Segments Covered:
by Material
Polyamide
Polycarbonate
PPS
PBT
PEI
Polysulfones
Others


by End-Use
Electrical & Electronics
Automotive
Industrial
Healthcare
Aerospace
Telecommunications
Others



Global Thermally Conductive Plastics Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Thermally Conductive Plastics MarketKey Players
1. Arkema Group
2. Avient Corporation
3. BASF SE - Celanese Corporation
4. Compagnie de Saint-Gobain SA
5. Covestro AG
6. DuPont de Nemours, Inc
7. Ensinger Gmbh
8. Eurostar Engineering Plastics
9. Exxon Mobil Corporation
10.HELLA GmbH & Co. KGaA
11.Imerys S.A.
12.Kaneka Corporation
13.Kenner Material & System Co. Ltd
14.Lanxess AG
15.Lehmann & Voss & Co
16.Lotte Advanced Materials Co., Ltd
17.Mitsubishi Engineering-Plastics Corp.
18.Nytex Composite Co., Ltd
19.Ovation Polymers Inc.
20.Royal DSM N.V.
21.RTP Company
22.Saudi Basic Industries Corporation (SABIC)- Themix Plastics, Inc
23.Toray Industries, Inc.
24.Ugent Tech Sdn Bhd.

Frequently Asked Questions:

1] Which major companies are dominating the global thermally conductive plastics market?
Ans. The major players operating in the global thermally conductive plastics include Celanese Corporation (US), Mitsubishi Engineering-Plastics Corporation (Japan), DSM (The Netherlands), BASF (Germany), SABIC (Saudi Arabia), DuPont (US), and LANXESS (Germany), among many others.

2] Which countries in Asia Pacific region are expected to dominate the Global Thermally Conductive Plastics Market?
Ans. In Asia Pacific region, China, Japan, India, Singapore and Australia are expected to dominate the Thermally Conductive Plastics Market.

3] Which industry is expected to witness the highest demand for Thermally Conductive Plastics?
Ans. Electrical & Electronics industry, followed by automotive industry, is expected to witness the highest demand for thermally conductive plastics.

4] Which thermally conductive plastic material is mostly preferred in electronic equipment and gadgets?
Ans. Polyamide offers superior chemical resistance, corrosion resistance, flexibility, and adaptability, making it perfect for usage in electronic equipment and gadgets

5] Which factor is expected to cause a restraint on the growth of the Global Thermally Conductive Plastics Market?
Ans. Thermally conductive polymers are design-dependent and compatible with a wide range of polymer resins, allowing for complex structures to be manufactured in a variety of patterns, shapes, and sizes. However, the poorer heat conductivity of these polymers than conventional materials is estimated to create a restraint on the thermally conductive plastics market growth.