PUBLISHER: The Insight Partners | PRODUCT CODE: 1843305
PUBLISHER: The Insight Partners | PRODUCT CODE: 1843305
The electronic thermal management materials market in the Middle East and Africa was valued at approximately US$ 100.28 million in 2023 and is projected to grow to US$ 139.22 million by 2031, reflecting a compound annual growth rate (CAGR) of 4.2% during this period.
Impact of 5G Technology on the Market
The expansion of 5G technology is significantly influencing the electronic thermal management materials sector. Devices that utilize 5G, such as smartphones, base stations, and network infrastructure, generate more heat due to their ability to process larger data volumes and operate at higher speeds compared to previous technologies. To ensure optimal performance and prevent overheating, there is a growing need for advanced thermal management materials that can effectively dissipate heat. This demand is particularly evident in the telecommunications industry, which is rapidly evolving with the deployment of 5G networks. According to the GSM Association, it is anticipated that by 2025, 5G networks will cover about one-third of the global population, equating to approximately 1.2 billion people.
As of April 2023, over 92 countries had active 5G networks, with 23 countries conducting pre-commercial trials and 32 nations announcing their rollout plans. This widespread adoption of 5G is driving an increase in demand for consumer electronics, including smartphones. The heat generated by 5G base stations is notably higher due to the increased power and data processing requirements for faster connectivity and reduced latency. These stations often operate continuously, especially in urban settings, necessitating robust thermal solutions to maintain performance and prevent component failures.
High-performance materials, such as synthetic graphite and advanced thermal interface materials (TIMs), are increasingly sought after for their ability to provide high thermal conductivity and reliability under extreme conditions. The global expansion of 5G networks, particularly in regions like North America, Asia Pacific, and Europe, is expected to further accelerate the demand for efficient thermal management solutions. Additionally, 5G devices, which incorporate complex antennas and high-frequency processors, require compact yet effective thermal solutions. Innovations in thermal materials, including flexible graphite sheets and nanocomposites, are emerging to meet these needs, allowing manufacturers to create sleek device designs while ensuring effective heat management.
Overview of the Market in the Middle East and Africa
The electronic thermal management materials market in the Middle East and Africa is also evolving due to the increasing production of passenger vehicles. The demand for locally manufactured vehicles is on the rise, driven by a growing middle class and population. Notably, automotive sales in South Africa and Saudi Arabia are contributing significantly to the demand for electronic thermal management materials. For instance, in September 2022, Renault Group Morocco reported that its factories in Tangier and Casablanca produced 350,000 vehicles in 2022, marking a 15.3% increase from 2021.
Moreover, there is a growing recognition of the importance of electric vehicles (EVs) in reducing greenhouse gas emissions and promoting sustainable transportation. This has led to increased investments in EV infrastructure and manufacturing across the region. In 2023, Saudi Arabia's Public Investment Fund (PIF) partnered with the Saudi Electricity Company (SEC) to establish an electric vehicle infrastructure company, aiming to set up over 1,000 locations and install 5,000 chargers by 2030.
Countries in the Middle East and Africa, particularly those in the Gulf Cooperation Council (GCC), are heavily investing in diversifying their economies, with automotive manufacturing identified as a key growth sector. As automotive production expands, especially with a focus on advanced and electric vehicles, the demand for electronic components and thermal management materials is increasing. These materials are essential for ensuring optimal performance and safety in modern vehicles, where electronics play a crucial role in various systems, from engine management to in-car entertainment and safety features.
Market Segmentation
The Middle East and Africa electronic thermal management materials market is segmented by product type, end-use industry, and country.
Key Players in the Market
Prominent companies in the electronic thermal management materials market include 3M Co, DuPont de Nemours Inc, Electrolube Ltd, European Thermodynamics Ltd, Graco Inc, Henkel AG & Co KGaA, Honeywell International Inc, Marian Inc, Master Bond Inc, Momentive Performance Materials Inc, Parker Hannifin Corp, Robnor ResinLab Ltd, Sur-Seal Corp, Tecman Speciality Materials Ltd, and Wacker Chemie AG.