2026 China’s High Thermal Conductive Materials Market Hits 420 Billion RMB, Domestic Substitution Accelerates

Recently, an authoritative domestic industry institution released the 2026 China High Thermal Conductive Materials Industry Development White Paper. Data shows that in 2026, the global high thermal conductive materials market will reach approximately 128 billion US dollars, while China’s market size will hit 420 billion RMB, accounting for 46% of the global share and becoming the core growth engine of the global industry.

In terms of demand structure, AI chips, new energy vehicles, data centers, and 5G base stations are the four core sectors driving growth. The AI chip segment alone accounts for 35% of total demand, representing a 62% year-on-year increase. As a key category of thermal interface materials (TIMs), thermal grease is widely adopted across industries due to its excellent thermal conductivity and adaptability, maintaining a growth rate of over 60%.

Notably, China’s reliance on imported high-end thermal conductive materials has dropped significantly—from 65% in 2023 to 38% in 2026—marking deepening domestic substitution. By increasing R&D investment, domestic manufacturers have overcome core technical bottlenecks, achieving breakthroughs in key performance indicators such as high thermal conductivity, low oil bleeding, and long-term reliability. As a result, they are steadily capturing mid-to-high-end market share and driving the high-quality development of China’s advanced thermal materials industry.