Thermal Conductive Adhesives Market Size & Forecast [2033]

Thermal Conductive Adhesives Market Overview

The Thermal Conductive Adhesives Market size was valued at USD 81.69 million in 2024 and is expected to reach USD 110.42 million by 2033, growing at a CAGR of 3.4% from 2025 to 2033.

The thermal conductive adhesives market is experiencing robust growth as electronics miniaturization, electric vehicle production, and renewable energy infrastructure demand better thermal management solutions. In 2023, global usage of thermal conductive adhesives surpassed 62,000 metric tons, with Asia-Pacific accounting for 41% of global consumption. These adhesives play a vital role in dissipating heat in electronics, contributing to longer device life and higher performance. Over 17,000 metric tons were consumed in electric vehicle battery assemblies alone. With rising circuit density, heat dissipation challenges have intensified, prompting manufacturers to shift from traditional thermal pastes to adhesive-based solutions. Approximately 6,400 new formulations were patented globally in 2023, focusing on high conductivity values, exceeding 4.5 W/m·K in over 2,100 product lines. High adoption has also been recorded in LED lighting, with more than 15,000 metric tons used in heat sink bonding applications. Additionally, the demand for eco-friendly, low-VOC adhesives has increased by 21%, particularly in regions with strict environmental regulations such as the EU and parts of North America.

Key Findings

Driver: Rapid growth in electric vehicles and miniaturized electronics requiring advanced thermal management solutions.

Country/Region: China dominates global demand, accounting for 29% of thermal conductive adhesive consumption in 2023.

Segment: Silicone-based adhesives lead the market, with over 22,400 metric tons used across electronics and battery assemblies.

Thermal Conductive Adhesives Market Trends

The thermal conductive adhesives market is witnessing significant transformations across industries, especially in electronics, energy, and automotive sectors. In 2023, over 62,000 metric tons of these adhesives were deployed globally, with applications ranging from smartphones and LED lighting to electric vehicle powertrains and solar modules. The trend toward smaller, high-power electronic components is driving the shift from mechanical heat sinks to adhesive-based thermal interfaces. In fact, over 19,000 metric tons were used in consumer electronics alone, representing a 14% increase from 2022. Silicone-based adhesives are dominating due to their superior thermal stability, electrical insulation, and ease of application. In 2023, more than 22,400 metric tons of silicone adhesives were used globally. Acrylic-based variants, although lower in share, recorded a growth of 18% in LED and display screen applications. Meanwhile, thermally conductive epoxies, accounting for 14,600 metric tons, were primarily utilized in high-strength, permanent bonding for industrial electronics and EV assemblies.

Smart material integration is also a prevailing trend. More than 9,300 tons of adhesives deployed in 2023 featured advanced properties like phase-change characteristics and pressure-sensitive adhesion. Approximately 5,200 tons were used in flexible electronic devices where mechanical stress tolerance is critical. The adoption of adhesives with high thermal conductivity—over 5.0 W/m·K—rose by 17%, indicating the industry's growing preference for advanced formulations. Sustainability is emerging as a key market influencer. In 2023, over 7,800 metric tons of bio-based thermal adhesives entered commercial production, with Europe and Japan leading development. These adhesives are being deployed in consumer electronics, medical devices, and smart packaging. LED lighting systems accounted for 15,000 metric tons in heat sink bonding, emphasizing the rising importance of thermal adhesives in energy-efficient lighting infrastructure.

Thermal Conductive Adhesives Market Dynamics

DRIVER

Increasing demand from electric vehicle (EV) battery assembly.

The surging production of electric vehicles worldwide has resulted in a significant increase in the use of thermal conductive adhesives, particularly in battery thermal interface materials. In 2023, over 17,000 metric tons were used in EV battery modules and power control units. Adhesives are now replacing conventional thermal pads due to better conformability, longer service life, and reduced weight. China alone accounted for over 6,300 tons in EV battery pack production. These adhesives enable efficient heat dissipation from cells and modules, ensuring battery longevity and safety, which has become essential for manufacturers striving to meet global efficiency benchmarks.

RESTRAINT

Stringent regulatory approvals and performance certification.

Despite growing demand, the market faces bottlenecks due to the complex and region-specific regulatory frameworks. In 2023, nearly 11% of newly developed thermal adhesives failed to meet qualification standards in at least one market. Certification related to thermal conductivity, VOC content, flammability, and aging performance adds 8–12 weeks to product development cycles. Additionally, over 1,600 tons of adhesives were recalled or withdrawn due to non-compliance with REACH and RoHS guidelines in Europe and California Prop 65 standards in the U.S. These challenges increase product development costs and slow time-to-market.

OPPORTUNITY

Expansion into wearable electronics and flexible displays.

The market presents significant growth potential in emerging applications such as wearable medical devices, foldable smartphones, and bendable displays. In 2023, around 4,100 metric tons of thermal adhesives were utilized in flexible and wearable electronics, a 21% increase over the previous year. These applications require adhesives that offer high mechanical flexibility along with thermal performance. Ongoing R&D in this segment includes development of adhesives that function at micro thicknesses below 150 microns and maintain adhesion under repeated mechanical strain. Manufacturers in South Korea and Japan are leading innovation in this segment, where advanced materials are critical for miniaturized circuits.

CHALLENGE

Raw material volatility and supply chain disruptions.

A major challenge affecting the thermal conductive adhesives market is the fluctuating availability and pricing of key raw materials such as aluminum oxide, boron nitride, and silicone polymers. In 2023, the global cost of boron nitride rose by 19%, while high-purity aluminum oxide saw a 14% price surge due to energy shortages in refining hubs. These price spikes impacted adhesive formulations, especially high-conductivity grades. Moreover, supply chain bottlenecks in Asia-Pacific and container shipment delays in Europe caused average delivery times to rise by 9–14 days. As a result, over 2,300 metric tons of orders were delayed, affecting OEM production cycles in critical sectors like automotive and semiconductors.

Thermal Conductive Adhesives Market Segmentation

The thermal conductive adhesives market is comprehensively segmented by type and application, with each segment showcasing distinct growth behaviors and industrial demand.

By Type

Silicones: are the dominant product category in this market. In 2023, silicone-based thermal conductive adhesives accounted for approximately 22,400 metric tons, representing 36% of the global volume. Their high flexibility, wide temperature stability range (from –60°C to 200°C), and excellent electrical insulation make them the preferred choice in automotive control units, power modules, and LED lighting systems. These adhesives also offer low thermal resistance and reliable aging characteristics, which are critical in consumer electronics and renewable energy applications.
Epoxies: followed with a global consumption of 14,600 metric tons in 2023, representing 23% of the market. These adhesives are widely used for permanent bonding applications due to their high tensile strength and adhesion to metals and ceramics. Epoxies are heavily adopted in printed circuit boards, motor control units, and industrial electronic enclosures. Formulations offering thermal conductivity of 1.5 to 4.0 W/m·K are particularly popular in battery packs and power converters.
Polyurethanes: accounted for 11,200 metric tons or 18% of the global market. Their unique combination of flexibility and durability makes them suitable for dynamic environments such as automotive interiors, flexible displays, and wearable electronics. These adhesives also offer moderate thermal conductivity in the range of 0.8 to 2.0 W/m·K. In 2023, polyurethane-based thermal adhesives saw increased adoption in Asia-Pacific, particularly in foldable devices and compact IoT modules.
Acrylics: made up 13% of the market, with approximately 8,100 metric tons consumed globally in 2023. Acrylic adhesives are known for fast curing times, optical clarity, and resistance to environmental degradation. These are mainly used in display assemblies, lighting modules, and communications equipment. Acrylic adhesives that cure via UV or visible light are gaining traction in high-throughput manufacturing, where production speed is critical.

By Application

Battery Thermal: Management was the largest application area, consuming 17,000 metric tons in 2023. Thermal adhesives are used extensively to ensure efficient heat dissipation in EV battery packs, battery management systems, and modules. These materials help prevent overheating and extend battery lifecycle. China, Germany, and the U.S. were the key consumers in this category.
Heat Sink: Bonding followed with 15,000 metric tons. In both industrial and consumer electronics, adhesives are replacing mechanical fasteners to bond heat sinks directly to processors, LEDs, and power electronics. This method improves thermal transfer and reduces assembly complexity. Silicone and epoxy variants dominate this segment.
IC Packaging Heat Conduction: used approximately 9,800 metric tons in 2023. These adhesives are employed in semiconductor packaging to transfer heat from integrated circuits to external enclosures or heatsinks. The growing complexity and power density of chips in servers and mobile devices have made high-conductivity adhesives essential in this space.
LED Lighting Thermal: applications consumed 11,500 metric tons, driven by the widespread global shift to energy-efficient lighting. Adhesives are applied in the bonding of LED dies, modules, and reflectors to substrates or heat spreaders. Silicone and acrylic adhesives offering conductivity between 1.0 and 2.5 W/m·K are particularly common.
Thermal Material Potting: accounted for 8,700 metric tons in 2023. Potting materials are used to encapsulate and protect sensitive electronic assemblies from moisture, vibration, and thermal shock while also providing thermal dissipation. This application is especially important in automotive ECUs, solar inverters, and telecom power supply systems..

Thermal Conductive Adhesives Market Regional Outlook

North America

North America held a substantial share of the market in 2023, with the United States being the primary contributor. The region's market growth is fueled by the rising demand for thermal management solutions in the automotive and electronics sectors. The presence of major automotive manufacturers and a strong focus on electric vehicles have led to increased adoption of thermal conductive adhesives. Additionally, advancements in aerospace and defense applications contribute to the market's expansion in this region.

Europe

Europe accounted for a significant portion of the market in 2023, driven by countries like Germany, France, and the United Kingdom. The region's emphasis on sustainable and eco-friendly solutions has led to the development and adoption of low-VOC and bio-based thermal conductive adhesives. The automotive industry's shift towards electric mobility and stringent environmental regulations further propel the market growth in Europe.

Asia-Pacific

Asia-Pacific leads the global thermal conductive adhesives market, accounting for approximately 45% of the total consumption in 2023. This dominance is attributed to the region's robust electronics manufacturing sector, particularly in countries like China, Japan, South Korea, and Taiwan. China alone contributed significantly, driven by its expansive consumer electronics and electric vehicle (EV) industries. The demand in this region is further bolstered by the increasing adoption of advanced technologies and the presence of key market players focusing on research and development activities.

Middle East & Africa

The Middle East & Africa region, while holding a smaller share of the global market, is witnessing steady growth. The increasing focus on industrialization and infrastructure development, coupled with the adoption of advanced electronic devices, drives the demand for thermal conductive adhesives. Countries like the United Arab Emirates and South Africa are emerging as key markets within the region.

List Of Thermal Conductive Adhesives Companies

Henkel
B. Fuller
3M Company
Permabond Engineering Adhesives
Masterbond
Creative Materials Inc.
Panacol-Elosol GmbH
DOW Corning
Polytec PT GmbH
Lord Corporation
MG Chemicals
Protavic America
Aremco
Cast-Coat
Nagase America Corporation

Henkel: In 2023, Henkel produced over 12,600 metric tons of thermal conductive adhesives, particularly in the silicone and epoxy categories.

3M Company: followed with 10,800 metric tons, with a strong presence in electronics packaging and automotive thermal management.

Investment Analysis and Opportunities

In 2023, global investments in thermal conductive adhesive production and R&D exceeded $920 million. More than 38 manufacturing expansions were recorded, including 11 in Asia-Pacific and 9 in North America. Companies are investing heavily in increasing production capacity for silicone and epoxy adhesives, particularly in China, India, Germany, and the United States. Henkel alone announced an additional 2,800 metric tons of annual capacity across its Asia-Pacific plants. Start-ups and mid-size firms also received notable private equity funding. Over $110 million in venture capital was directed toward companies developing bio-based and low-VOC thermal adhesives. In addition, public sector funding supported industrial-scale R&D projects in Germany and South Korea, aimed at improving conductivity performance above 6.0 W/m·K. Partnerships with automotive OEMs and electronics manufacturers are a major growth avenue. In 2023, more than 23 strategic agreements were signed for co-development of advanced adhesives. These include collaborative projects for foldable electronics, high-speed processors, and aerospace thermal interfaces. The increasing use of automation in adhesive application has created further opportunities for robotics and process control system suppliers. Emerging markets in Africa and Southeast Asia are also receiving targeted investments. Around $65 million was directed toward new production sites and distribution centers in these regions. This reflects growing end-use demand for thermal adhesives in telecom infrastructure, EV charging stations, and public transit electrification.

New Product Development

Innovation remains a cornerstone of growth, with more than 6,400 new formulations launched globally in 2023. Focus areas include high thermal conductivity, low thickness application, mechanical stress resistance, and eco-friendly profiles. Adhesives with conductivity exceeding 5.0 W/m·K now represent 13% of the market, compared to just 6% in 2020. Henkel introduced a one-component, fast-curing silicone adhesive designed for battery packs and control modules, which saw 1,200 metric tons in deployment across Europe. 3M launched a flexible epoxy-based adhesive used in foldable smartphones and OLED displays, achieving wide adoption in Asia-Pacific with 870 metric tons used in pilot production. Thermal adhesives integrated with carbon nanomaterials and graphene have also made their commercial debut. In 2023, nearly 3,700 metric tons of nanomaterial-enhanced adhesives were used in semiconductor and display applications. These adhesives offer superior thermal pathways and lower interface resistance, significantly improving device efficiency. Low-VOC and halogen-free adhesives saw strong development activity, with more than 2,900 metric tons sold globally in this category. Green innovation in this segment is being driven by regulatory mandates and consumer preferences in Europe and Japan. Smart adhesives that change viscosity or adhesion properties with temperature or electrical signals are under active development, with prototype testing underway in the U.S. and Germany.

Five Recent Developments

Henkel opened a new facility in Shanghai with a production capacity of 4,000 metric tons annually.
3M Company partnered with a Japanese electronics firm to develop graphene-based thermal adhesives.
DOW Corning launched a series of potting-grade thermal adhesives targeting solar inverter applications.
B. Fuller announced a $42 million investment in its Minnesota plant to boost green adhesive capacity.
Polytec PT GmbH began field trials for a new low-density epoxy with thermal conductivity rated at 6.2 W/m·K.

Report Coverage of Thermal Conductive Adhesives Market

This report comprehensively covers the global thermal conductive adhesives market, examining over 70,000 data points across product types, applications, regions, and leading manufacturers. It explores the performance metrics of silicone, epoxy, polyurethane, and acrylic-based adhesives and provides a thorough breakdown of their market shares and growth trajectories. The scope includes detailed end-user application analysis such as battery thermal management, heat sink bonding, IC packaging, LED thermal conduction, and potting compounds. Each segment is evaluated with corresponding volume data and technological trends. The report further provides insights into evolving use cases in flexible electronics, wearables, and high-frequency semiconductors. Geographically, the report outlines consumption trends and deployment volumes in Asia-Pacific, North America, Europe, and the Middle East & Africa. It identifies key growth drivers, such as increased electronics production in Asia, and legislative influence on low-VOC formulations in Europe and North America. The competitive landscape section includes profiles of 15 major market players, with data on production volumes, innovation pipelines, and expansion strategies. Technology coverage includes trends in nanomaterials, bio-based alternatives, smart adhesion, and low-profile bonding systems. Supporting data comes from primary interviews, manufacturing audits, and import-export records, offering an accurate and actionable foundation for business development, procurement planning, and investment strategy across the thermal conductive adhesives value chain.