The Global Thermally Conductive Plastics Market is expected to grow at a high CAGR of 13.2% during the forecasting period (2022-2029).
Thermally conductive plastics are engineered in a way that combines all properties of metals to heat transfer, dissipation, and cooling capabilities with reduced weight and cost compare to other metals. The materials are formulated using selected engineering resins such as polyamide, polycarbonate, polyphenylene sulphide, polybutylene terephthalate, polyetherimide, and the addition of conductive additives to improve thermal conductivity by 50-100 times than conventional plastics. These plastics protect sensitive electronic devices and a component against high-temperature formation.
Thermally conductive plastics are substantially used in end-user industries such as aerospace, automotive applications, building &construction, electrical and electronics, healthcare, etc.
The thermally conductive plastic market is driven by the surge in automotive production and sale, which uses these plastics due to their low cost and high efficiency. Further rising adoption of thermally conductive plastics by the manufacturing facilities of electronics & electrical devices has propelled the demand for this market. The surge in demand for lightweight and cost-effective materials for the healthcare and aerospace industry has propelled the market growth.
Rising demand in the industrial, automotive, and building & construction sector industries due to its good mechanical properties such as stiffness and impact strength
Thermally conductive plastics in automobiles reduce vehicles' weight, increase overall vehicle performance, provide design flexibility, and reduce overall costs. Due to rising disposable income and a surge in consumer spending, the growing sale of cars has propelled the thermally conductive plastic market. For instance, as per the Car Group Organization in 2019, Global light vehicle production reached around 94.5 million due to the increasing global sale of vehicles worldwide. Further increasing demand in the building & construction sector provides thermal insulation due to its lightweight properties, corrosion resistance, low thermal conductivity, waterproof, energy-saving properties.
Growing demand in the aerospace, electronics, and appliances industry with the surge in huge global population demand
Thermally conductive plastics reduce the total cost and weight of the components and devices used in the electronics and aerospace industries as aerospace-grade polymers, including polyetheretherketone (PEEK), polyphenylsulfone (PPSU), polyetherimide (PEI), and polyether ketone (PEKK), provide a reliable and cost-effective way to reduce weight.
As per the American Aerospace Industry Association report in 2018 Aerospace &Defense sector has contributed over US$374 billion to the United State’s GDP. It created a massive demand for thermally conductive plastics in the aerospace and defence, electronics, and industrial sectors to reduce the aircraft's overall cost and weight.
Increasing research and development activities to develop new products by researchers and leading players has created a huge growth opportunity.
Further increasing the launch of new thermally conductive products by adding certain additives may create a huge opportunity to grow the thermally conductive plastics market. For instance, on 10th May 2018, Covestro launched a new thermally conductive (TC) polycarbonate grades materials Makrolon TC polycarbonate portfolio, which provides passive thermal management in luminaries and LED lamps, and other market applications.
Further on 18th Sept 2019, the Massachusetts Institute of Technology’s (MIT)team of researchers has designed ultra-thin plastic films that have the capability of conducting heat. These plastic films have better thermal heat conduction properties than metals and ceramics and are thinner than plastic wraps. It created a lucrative opportunity for the growth of thermally conductive plastic in a wide range of applications.
COVID-19 Impact Analysis
The global thermally conductive plastics market has shown slight declination due to theCovid-19pandemic, as several leading manufacturing industries were closed. Several countries have restricted production activities during the covid-19 pandemic. Further, the textile & appeal growth was also declined due to low demand in June 2020.
However, thermally conductive plastics' demand lightly increased in August 2020, as several leading manufacturers started production. The leading manufacturers of automotive, aerospace and defence, and electronic devices have planned the investment to enhance production due to growing demand.
For instance, Subaru Corp., an automotive corporation, has planned to invest around US$ 158 million to build a transmission assembly shop and service parts such as lights, LED lamps at its Indiana plant. Further increasing demand for medical devices during the covid-19 pandemic created a huge opportunity for the thermally conductive plastics market. Further demand for thermally conductive plastics will increase as soon as pandemics are over.
The global thermally conductive plastics are segmented on resin type, end-user, and region.
Rising demand in the automotive sector with the surge in passenger vehicles' global sales has propelled the polycarbonate segmental market.
In terms of resin type, the global thermally conductive plastics are bifurcated into polyamide, polycarbonate, polyphenylene sulphide, polybutylene terephthalate, polyetherimide, and others. Among these, polycarbonate has the highest market share in 2019, owing to rising demand in the manufacturing facilities of consumer electronics, automotive components, etc.
As per the International Organization of Motor Vehicle Manufacturers, the global passenger vehicles sale reached around 67,149,196 units, which propels the thermally conductive plastics market required to manufacture the automotive electrical components, body panels, and wirings.
Similarly, polyamide, polyphenylene sulphide, polybutylene terephthalate, and polyetherimide segments are also growing faster due to the surge in demand in LED lighting manufacturing to facilitate high performance in residential, automotive, and electronics applications. As per the International Energy Agency (IEA) Organization in 2019, LED light sources, including bulbs, tubes, modules, and luminaires sales, reached more than 10 billion residential and commercial LED deployment units worldwide. It created a massive demand for the above-mentioned thermally conductive materials used in manufacturing these LEDs worldwide.
Increasing sales of electrical & electronics devices with the surge in global population demand has propelled the demand for thermally conductive plastic.
Based on the product, the global thermally conductive plastics market is divided into automotive, electrical and electronics, healthcare, aerospace, industrial, and others. Electrical and electronics have the highest market share due to rising demand in electronics and electrical component manufacturing with the growing sale in developing countries.
For instance, as per the India Brand Equity Foundation Organization in 2019, the consumer electronics and appliances sale reached around US$ 10.93 billion and is projected to reach around US$ 21 billion by 2025 in India. It created a massive demand for the thermally conductive plastics requires to manufacture electronics components.
Asia-Pacific region holds the largest market share global thermally conductive plastics market.
Asia-Pacific region is dominating the global thermally conductive plastics market accounted for the largest market share in 2019. Several manufacturing companies related to automotive, electronics due to growing industrialization and rising investment by the leading players in this region followed North America and Europe.
Further increasing government and private companies' investment in the Asia-Pacific region for several projects have propelled the demand for the thermally conductive plastics market in this region. Also, China leads in the Asia-Pacific region for the manufacturing and sale of electric vehicles.
For instance, as per the International Energy Agency Organization report, in China, around 45% of global electric cars on the road in 2018 that is a total of 2.3 million compared to 39% in 2017. It created a massive demand for the thermally conductive plastics market in this region as thermally conductive plastics are widely used in headlamps and other electric vehicle parts.
Similarly, North America is also growing faster due to advanced technology with growing building & infrastructure development projects. Further demand for this market in the North American region is driven by rising aerospace and defence industry development and spending with the surge in government support for research and development.
For instance, as the American Aerospace Association reported in 2019, the United States Aerospace &Defense industry generated a positive net trade of nearly US$ 90 billion, with total export, amounted to around US$ 151 billion in 2018. It created a massive demand for the thermally conductive plastics used in these industries.
The thermally conductive plastics markets are moderately competitive with the presence of local as well as global companies. Some of the key players which are contributing to the growth of the market include Imerys, BASF SE, Dow, Kaneka Corporation, Celanese Corporation, SABIC, DSM, RTP Company, Ensinger, Toray Industries, Mitsubishi Engineering-Plastics Corporation, Lanxess, HELLA GmbH & Co, Covestro AG and among others.
The major players adopt several growth strategies such as product launches, acquisitions, and collaborations, contributing to the Thermally Conductive Plastics Market's growth globally. For instance, on 19th June 2020, Hella And Month established a new joint venture to meet the increasing demand for radar-transparent covers (radomes) and illuminated logos in China.
Overview: Hella KGaA Hueck & Co. is a German automotive part supplier founded in 1899 and headquartered in Lippstadt, North Rhine-Westphalia. HELLA is one of the leading automotive suppliers specializing in innovative lighting systems and vehicle electronics and partners with the automotive industry and aftermarket. HELLA has several joint ventures, including HBPO GmbH, BHTC GmbH, Changchun FAWAY Automobile Components, Oculii, Faurecia, BAIC, Plastic Omnium, Leoni, Mando, TMD Friction, and InnoSenT GmbH, around the globe.
Product Portfolio: The Company has a product portfolio of thermally conductive plastics includes Thermally conductive plastic used in LED Marker and Signal Lamps. Its product portfolio includes Marker and signal lamps, safety daylights, beam setters, work lamps, emergency lighting, automotive bulbs, fog and driving lamps, headlamps and inserts, and accessories.
CoolPoly Thermally Conductive Plastic: CoolPoly is a thermally conductive lamp housing 30 times more conductive than conventional plastic. Lamps made with thermally conductive plastic are up to 60% lighter as compared to metal-bodied lamps. It reduces the stress on mounting points in high vibration and shock applications.
Features: Coil coating provides beautiful topcoats, durable surfaces, innovative applications, green benefits, and cost savings compared to other substrates and other coating options.
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