Future Market Insights says demand for heat-transfer materials in electronics, semiconductors, electric vehicles and data centers will lift the market from $3.8 billion in 2026 at a 5.1% CAGR.
The global thermal interface material market is projected to grow from USD 3.8 billion in 2026 to USD 6.2 billion by 2036, according to Future Market Insights, representing a 5.1% compound annual growth rate. FMI said demand is being driven by the miniaturization of electronic devices, rising semiconductor output, electric vehicle adoption and expanding AI infrastructure and hyperscale data centers, all of which are increasing the need for efficient heat dissipation in compact, high-performance systems. Electronics and semiconductor applications are expected to account for 52.4% of the market in 2026, while thermal pads are projected to lead material demand with a 38.6% share. China is identified as the fastest-growing country market with a 6.8% CAGR through 2036, ahead of South Korea, Japan, the United States and Germany.