Thermal Paste

Global Thermal Paste Market to Reach US$4.5 Billion by 2030

The global market for Thermal Paste estimated at US$2.6 Billion in the year 2024, is expected to reach US$4.5 Billion by 2030, growing at a CAGR of 9.4% over the analysis period 2024-2030. Silicon-Free Thermal Paste, one of the segments analyzed in the report, is expected to record a 8.0% CAGR and reach US$2.8 Billion by the end of the analysis period. Growth in the Silicon-based Thermal Paste segment is estimated at 12.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$720.8 Million While China is Forecast to Grow at 12.7% CAGR

The Thermal Paste market in the U.S. is estimated at US$720.8 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$909.5 Million by the year 2030 trailing a CAGR of 12.7% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 6.9% and 8.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 7.3% CAGR.

Global "Thermal Paste" Market – Key Trends & Drivers Summarized

Why Is Thermal Paste Becoming Inseparable from Modern Electronics Cooling?

Thermal paste, a vital interface material used between heat-generating components and heat sinks, has transitioned from a niche component to a fundamental element in the thermal architecture of modern electronics. As devices—from personal computers to industrial control systems—become more compact and powerful, they generate higher levels of heat within tighter enclosures. Thermal paste plays a critical role in transferring this heat away from CPUs, GPUs, memory modules, and power ICs by eliminating microscopic air gaps that would otherwise act as thermal insulators. The need for sustained performance, system stability, and reduced thermal throttling has made the use of high-quality thermal paste non-negotiable in computing, gaming, server farms, and edge devices. Beyond consumer electronics, it is now essential in automotive control units, solar inverters, LED lighting, telecommunications infrastructure, and robotic automation systems. With the global shift toward electrification, AI, and IoT, thermal paste is more than just a support component—it is central to ensuring the reliability, efficiency, and lifespan of nearly every thermally sensitive system in modern technology.

How Are New Formulations Pushing Performance Boundaries?

Recent innovations in thermal paste chemistry have led to a new generation of materials that offer better conductivity, durability, and ease of application. Traditional silicone-based pastes with zinc oxide fillers are giving way to advanced formulations using metallic oxides, carbon-based compounds, and liquid metals. High-end products now boast thermal conductivities exceeding 12 W/mK, allowing them to support overclocked systems and high-density electronics with minimal thermal resistance. Non-curing, non-capacitive, and electrically insulating pastes are gaining popularity in industries requiring operational safety and long-term stability. Liquid metal-based pastes, while offering the best performance, are carefully used in niche applications like enthusiast PC builds and aerospace systems due to their electrically conductive nature and potential corrosiveness to aluminum surfaces. Paste longevity is another focus area, with improved resistance to drying, pump-out, and degradation under thermal cycling. Some modern variants are engineered with phase-change materials that solidify or liquefy depending on the device temperature, maintaining optimal contact and heat transfer dynamically. These advancements are enabling electronic engineers to push the limits of speed, miniaturization, and energy efficiency without compromising on thermal safety.

Is Demand for Thermal Paste Rising—and What’s Fueling It?

Thermal paste demand is rapidly rising across key electronics-producing regions and in sectors facing higher thermal load challenges. The Asia-Pacific region, particularly China, South Korea, Japan, and Taiwan, leads both consumption and production, given its dominance in semiconductor manufacturing, mobile electronics, and display technologies. North America and Europe are seeing surges in demand driven by data center expansion, high-performance computing, and electric vehicle production. In EVs, thermal paste is applied not only in power control units and battery modules but also in sensors and infotainment systems that must function flawlessly under variable thermal loads. The healthcare sector is another emerging consumer, with thermal management needs in compact imaging systems, wearable devices, and handheld diagnostic tools. Telecom and 5G infrastructure growth across developed and emerging markets is creating further demand, as active antenna units and base stations require thermal interface solutions to ensure uptime and reliability in outdoor, high-temperature environments. The global gaming and PC-building communities also play a role, consistently seeking premium-grade thermal pastes to enhance performance and longevity in customized, overclocked systems.

The Growth in the Thermal Paste Market Is Driven by Several Factors…

SCOPE OF STUDY:

The report analyzes the Thermal Paste market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Type (Silicon-Free Thermal Paste, Silicon-based Thermal Paste); Application (Water Coolers, Air Based Heat Sinks, Other Applications)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 42 Featured) -

• 3M Company
• Arctic GmbH
• Arctic Silver Inc.
• Caplinq Corporation
• CHT Group
• Cooler Master Technology Inc.
• Corsair Components Inc.
• Dow Inc.
• Electrolube
• Fujipoly America Corporation
• GELID Solutions Ltd.
• Henkel AG & Co. KGaA
• Indium Corporation
• MG Chemicals
• Momentive Performance Materials Inc.
• Noctua GmbH
• Parker Hannifin Corporation
• Shin-Etsu Chemical Co., Ltd.
• Thermal Grizzly
• Thermaltake Technology Co., Ltd.

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

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We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

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APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

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