5G Thermal Interface Material Market - Forecasts from 2023 to 2028

The global 5G Thermal Interface Material (TIM) market is projected to grow at a CAGR of 14.23% to reach US$447.450 million by 2028, from US$201.402 million in 2022.

GROWTH DRIVERS

5G Infrastructure

The most recent type of cellular broadband connection is 5G. It is the most recent and technologically sophisticated data connection. However, high-power elements that use previously unprecedented amounts of energy are necessary to maintain an infrastructure with such tremendous capacities.

The 5G system uses a lot of energy, leading to a considerable of heat being produced, which is potentially unfavorable for the speed, dependability, efficiency, and longevity of such components. Consequently, the long-term success of 5G depends on monitoring, dissipation, and thermal administration of that extra latent heat.

More high-power equipment is packed into smaller spaces in 5G systems, RUs, and active antenna devices. Additional energy must be consumed to produce the same amount of electricity, which increases heat production. Therefore, the 5G TIM market will have significant potential during the projection period because of the expansion of 5G infrastructure, such as AAUs. Subsequently, the global 5G AAU market was valued at US$8.313 billion in 2022.

Acceleration of 5G Deployment

According to CTIA, the rollout of 5G will boost the US economy by approximately $1.7 trillion and add 3.8 to 4.6 million employment over the next ten years. Investments in infrastructure will spur this growth by fostering innovation across all economic sectors. Moreover, in 2022, approximately 35% of the world's population has access to 5G, according to the graph below, and that percentage is expected to reach nearly 8% by 2028.

With increased 5G deployment, it's crucial to guarantee consistent long-term reliability since many telecommunications system parts, like base stations, stationary wireless network equipment, among others, are placed outdoors. Commercial telecom infrastructure components utilize robust electrical interconnects and reliable thermal interface materials for predictable operation, in contrast to data centers where cooling operations are possible.

EMERGING OPPORTUNITIES IN THE 5G THERMAL INTERFACE MATERIAL (TIM) MARKET

mmWave

By band, the market has been divided into sub-6 GHz and mmWave. The antenna structure, technology, and component selections all change when the deployment of 5G shifts to higher bandwidth. As per our analysts, this is expected to affect several variables, including thermal interface materials.

In addition, there has been a remarkable progress in 5G mmWave bands rollout. At MWC 2023 in Barcelona, for instance, Telefónica, Ericsson, and Qualcomm unveiled the first operational mobile 5G mmWave service in Spain. The best option for attaining high speeds and large capacity and providing the greatest 5G experience in busy regions is to employ the 5G mmWave spectrum. The significance of 5G mmWave in the areas of FWA, technological advancement, Industry 4.0, and smart vehicles is particularly intriguing since it offers exceptionally high-performance accessibility and offers an entirely new spectrum of use cases.

Devices are being used to their fullest potential as a result of the 5G infrastructure components' increased data speeds, support for additional high frequency (mmWave), and reduced latency capabilities. We anticipate that since 5G will typically have more processing power, better thermal dissipation will become increasingly important, particularly in outdoor settings where continuous cooling is constrained. As a consequence, the dependable efficiency of 5G is dependent on thermal interface materials.

By Format

Thermal interface materials (TIMs) are available in a variety of forms, such as pads, gels, liquids, and others, to support complicated design requirements, maximize system dependability, and provide compatibility with high-volume production. Gels and pads are anticipated to grow at a high CAGR throughout the forecast period because of their EMI absorbing, extremely conformable, thermally isolating, and low hardness attributes. For resistance to tearing, shearing, and punctures, they can also be strengthened with fiberglass.

Furthermore, electronics need to be protected from external factors such as RF interference, operational stress, moisture, and corrosion for 5G, considering the challenging environments in which different network components are installed. As a result, many players such as Henkel have incorporated extensive 5G materials portfolios, including TIMs that safeguard critical remote radio PCBs from moisture and deterioration, guarantee enclosures, seal sensitive equipment, offer interconnect security for high-power components like large ASICs employed in base stations and antennas, and conformal protective coatings for high-power components.

MAJOR PLAYERS IN THE MARKET

Some of the leading players in the market include Henkel AG & Co. KGaA, Boyd, Parker Chomerics, GLPOLY, and Shin-Etsu Chemical Co. These firms have undertaken various business strategies such as product launches, investments, and partnerships to expand their product offerings. For instance:

• The telecom industry has long benefited from Henkel's award-winning bonding and insulating solutions and BERGQUIST brand temperature control products. Henkel's application experience, formulation competence, and established efficacy of products will now deliver once more for the telecom sector as the industry moves to new 5G-capable designs.
• A one-part, thermally conductive gel designed to disperse large amounts of heat far from delicate electronic parts was released by Dow in July 2020. Due to its superior wetting capacity, DOWSILTM TC-3065 Thermal Gel may quickly fill gaps and substitute manufactured elastomer thermal pads that might be unable to shield devices from the intense heat brought on by 5G's higher power levels.

SEGMENTATION

The global 5G Thermal Interface Material (TIM) has been analyzed through the following segments:

By Infrastructure Deployment

• Antenna
• BBU
• Power Supply

By Format

• Pad
• Gel
• Liquid
• Others

By End-User

• Consumer Electronics
• Telecom

By Band

• Sub-6 GHz
• mmWave

By Geography

• Americas
• United States
• Others
• Europe, Middle East and Africa
• Germany
• UK
• Others
• Asia Pacific
• China
• Japan
• South Korea
• Others