Thermal management materials for LEDs and power electronics will be a US$4.8 billion market in 2020, more than doubling from US$1.8 billion in 2013. As manufacturers look for more cost-effective ways to improve heat dissipation, thermally conductive polymers will dramatically increase their market share, from 16% in 2013 to 40% in 2020, according to Lux Research.
"Miniaturization and performance are creating a need for improved thermal management, driving significant market growth and technology shifts," said Pallavi Madakasira, Lux Research analyst. "Thermally conductive polymers offer a cost-effective and efficient alternative to incumbents like aluminum, making them an increasing critical material in this market."
Lux Research analysts sized up the market opportunity for thermal management in LEDs and power electronics, and identified LED lighting will be the main driver. Thermal management for LED lighting will more than double to US$3.8 billion in 2020, led by aggressive growth in the residential and commercial markets, as well as auto LED lighting, which will reach US$730 million in 2020.
The firm also said thermal interface materials will take off in smartphones and tablets. The smartphone and tablet thermal materials market will triple to more than US$300 million in 2020. Given the sensitivity to weight and cost, these two end markets will rely on special thermal interface materials (TIMs), rather than secondary heat sinks.
Lux Research also said solar and electric vehicles will grow most rapidly, but use few polymers. Thermal materials for solar inverters and power modules in hybrid and electric vehicles will boom to US$170 million in 2020. However, performance demands will limit the use of polymers in these applications to just a few million dollars.
