Thermally Conductive Plastic Market - Forecast(2024 - 2030)

Thermally Conductive Plastic Market Overview

Thermally Conductive Plastic Market size is forecast to reach USD 474.1 billion by 2026, after growing at a CAGR of 13.2% during 2021-2026. The growing demand for smart electronic devices is rising the growth of TCPs. Magnetron sputtering technology is widely used in designing many small parts of auto components and Electric appliances. The anti-static plastic sheet is coated with a transparent material that prevents the formation of static electricity on the surface. The higher thermal stability, abrasions resistance, and high impact strength are acting as key driving properties for the growth of the TCPs market. Furthermore, growing application in various end-use industries like automobile and electric & electronic is also driving the market growth for TCP over the forecast period. The Boron Nitride-based TCPs are widely used for heat sinks for LEDs and other heat sources, household electronic devices, heat exchangers, batteries, temperature sensors, and cooling systems in electronic and automobile sectors are helping in the growth of TCPs market during 2021-2026.

COVID-19 Impact

The Coronavirus pandemic has impacted the TCPs Market to a great extent stuttering the manufacturing and electronic industry. Currently, the core industries such as aerospace, automotive, and energy industry are highly impacted. Due to social distancing policy, most of the manufacturing plants of aircraft and automobiles were shut down, which declined the production of TCPs. According to (OICA), global auto production in 2020 was severely hit by the covid-19 pandemic with a 16% drop in world auto production. Also, due to supply chain disruptions such as raw material delays or non-arrival, disrupted financial flows, and rising absenteeism among production line staff has declined the market trend. However, the demand for plastic in the healthcare and medical industry for equipment manufacturing will help to raise market trends during the forecast period.

Report Coverage

The report: “Thermally Conductive Plastic Market – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Thermally Conductive Plastic industry.

By Technology: Extrusion, Injection Molding, Blow Molding, Compress Molding, Others.
By Resin: Polycarbonate, Polybutylene terephthalate, Polyamide, Polyetherimide, Polyphenylene Sulfide(PPS), Polyether ether ketone (PEEK), Polyethylenimine (PEI), Polysulfones, Others.
By Application: Tubing & hoses, Connectors, Electric vehicle batteries, LED lighting, Electric Insulations, Wi-Fi routers, Aerostructure insulation, others.
By End-Use Industry: Transportation: Automotive, Aerospace, Marine, Railways, Building & Construction: Residential Construction, Commercial Construction, Healthcare, Consumer Goods, Electric and Electronics, Food & Beverages, Energy, Lifestyle, Others.
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, Italy, France, Netherlands, Belgium, Spain, Denmark, and Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia, and New Zeeland, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and Rest of the World (the Middle East and Africa).

Key Takeaways

• The Asia Pacific is expected to register a CAGR of 14.6% during the forecast period (2021-2026). The increasing demand for smart electronic goods and lightweight vehicles in Asian countries such as China, India, Japan, and South Korea is driving the market demand for Thermally Conductive Plastic. 
• The increasing demand for LED lights acts as a driver for the increase of thermally conductive plastics in the electric and electronic sectors. The government and non-government originations are taking initiatives for the use of LED light for cost-effective service and better lightning. 
• TCPs have been used in the construction industry for their excellent features. These features are growing the demand not only in Asia pacific but also globally due to higher durability and corrosion-resistant.

Figure: Asia Pacific Thermally Conductive Plastic Market Revenue, 2020-2026 (US$ Billion

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Thermally Conductive Plastic Market Segment Analysis – By Technology

The Injection Molding segment accounted for more than 32% of the market share in 2020 and is estimated to grow significantly during the forecast period. The injection molding technique can be utilized in many end-use industries for the production of auto parts, lightweight vehicles, household appliances, and others. It reduces complexity and cost and enables the creation of non-traditional shapes, uses in-mold processes, and effective joining techniques. The growing demand for medical devices along with the growing electronic packaging sector is driving the market for TCP which is further driving the demand for injection molding techniques. The extrusion segment accounted for a significant share and is also expected to grow significantly during the forecast period. The extrusion process offers hardness, high tenacity and elasticity modulus, and extraordinary thermal stability

Thermally Conductive Plastic Market Segment Analysis – By Resin 

The polyamide segment accounted for more than 16% in 2020 and is expected to grow with a significant CAGR during the forecast period due to its excellent features like heat resistance, abrasion, and resistance in the transportation and construction sector. Polyamides also offer high strain capabilities and impact resistance properties. The polycarbonate segment occupied a significant market share in 2020 and is estimated to grow significantly during the forecast period due to the growing demands in the automotive and electric & electronics sectors. The polycarbonate resin offers high thermal properties and is used in the manufacture of different products like foils, tapes, LED lights, Luminaries. The growing usage of led lights in different end-use industries such as automotive, household appliances, building & construction is driving the demand for polycarbonates.

Thermally Conductive Plastic Market Segment Analysis – By Application 

The LED light segment accounted for the largest market share in 2020 and is estimated to grow significantly during the forecast period due to low weight, less cost, and highly customized solutions. The ban of inefficient lighting is contributing to the growth of LED light segments in the TCPs Market. According to IEA, LED sales reached more than 10 billion units in 2019 including both light sources (bulbs, tubes, and modules) and luminaries in residential and commercial sectors. China is the major manufacturer of LED along with North America and Europe. India’s UJALA program also helped in the growth of LED lighting during the forecast period.

Thermally Conductive Plastic Market Segment Analysis – By End-Use Industry 

The Electric & Electronics sectors hold the largest share of 22% in 2020 and it is expected to increase significantly with a CAGR of 13.4% during the forecast period due to the increasing trend of smart appliances, heat sinks, LED lights, connectors, electric insulations, and cooling systems. The increasing production of electronic goods and components in the Asia Pacific region is driving the market growth during the forecast period. The increasing demand for lightweight electronic goods is also boosting the market growth. The Automotive segment is also the fastest-growing sector across the globe owing to the increase in the demand for lightweight vehicles by replacing metals which TCP. According to Invest India, the automotive industry is expected to reach USD 300 billion by 2026 with the production of 26.36 million vehicles in 2020 giving away the demand of TCP in coming years.

Thermally Conductive Plastic Market Segment Analysis – By Geography 

Asia Pacific region held the largest share in the Thermally Conductive Plastic market in 2020 up to 38%, owing to the growth of end-use industries like appliances, automobile, construction, electric & electronic, and others. The growing infrastructure development in developing countries like India, China, Indonesia, and others is supporting the market growth during the forecast period. China dominated the Asia Pacific region and contribute more than 45% share among all countries in this region. The appliances market in China is expected to grow rapidly due to increased population, rising expendable income, and increased purchasing power of consumers. The electric and electronic industry of Japan accounts for one-third of Japanese economic output and acts as a world leader for the production of computers, mobiles, and other appliances. According to Invest India, the auto component sector has USD 49 billion in 2020 and will reach USD 200 billion by 2026. Thus, with the flourishing automobile industry, there will be an upsurge in the demand for aerospace components, which is anticipated to drive the Thermally Conductive Plastic market in the Asia-Pacific region.

Thermally Conductive Plastic Market Drivers 

Growing consumption of TCP in the transportation industry

Transportation is one of the key industries globally. TCPs products help to develop lightweight, automotive components. The transportation industry includes air, rail, marine, truck, transit, and ground. According to EIA, the transporting sector consumed about 26% of total U.S. energy in 2020. According to European Commission, the transport industry directly employs around 10 million people and accounts for about 5% of GDP in Europe. There were about 10 million electric cars on the world’s roads at the end of 2020, following a decade of rapid growth. Electric car registrations increased by 41% in 2020, despite the pandemic-related worldwide downturn in car sales in which global car sales dropped 16%. Electric bus and truck registrations also expanded in major markets, reaching global stocks of 600 000 and 31 000 respectively. 

Flourishing Construction Sector

The Asia-Pacific construction sector is the largest in the world and is growing due to the rising population. Increasing infrastructure activities and foreign investments from the European Union are supporting the expansion of the construction sector. China’s construction industry developed rapidly in the past years as the central government focused on infrastructure investment for economic growth. The Construction industry of Asia Pacific has been growing constantly due to urbanization and ongoing government projects. The Construction Industry of India is expected to reach USD 1.4 Trillion by 2025 with an investment of 24% in renewable energy, 19% roads & highways, 16% on urban infrastructure, and 13% on railways.

Thermally Conductive Plastic Market Challenges:

Higher Price of Thermally Conductive Plastic

The cost of TCPs is much higher. The reason behind this is its production cost, while producing TCPs resins, the machinery and the equipment which are used are tagged with higher expense, also, these machineries require high maintenance. Owing to this factor, the product of TCPs comes with a higher price as compared to its alternative materials, which tends to constrain the growth of the market. In addition, even if the TCPs provide better results, the customer usually prefers the less cost. Such factors have become the major challenge of TCPs in terms of consumption, which constrains the growth of the market.

Thermally Conductive Plastic Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Thermally Conductive Plastic market. Major players in the Thermally Conductive Plastic market include:

• Arkema Group
• Avient Corporation
• BASF SE
• Celanese Corporation
• Compagnie de Saint-Gobain SA
• Covestro AG
• DuPont de Nemours
• Ensinger Gmbh
• Eurostar Engineering Plastics
• Kaneka Corporation
• Saudi Basic Industries Corporation (SABIC).

Acquisitions/Technology Launches

• In July 2021, ORNL and Techmer PM LLC signed a partnership agreement for the development of 3D printed thermoset plastic molds. These molds are used as alternatives for metal molds and they are less costly compared to metals.

Relevant Reports

Conductive Plastics Market – Forecast (2021 - 2026)
Report Code: CMR 0325

Specialty Plastics Market – Forecast (2021 - 2026)
Report Code: CMR 1099

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