The thermal grease market size will reach approximately 1.327 billion yuan in 2026 and 2.184 billion yuan by 2032.

Recently, YH Research released the 2026-2032 Global Thermal Grease Market Development Report. According to the report, the global thermal grease market size stood at about 1.327 billion yuan in 2026, and is projected to grow to 2.184 billion yuan by 2032, representing a compound annual growth rate (CAGR) of 7.4%, maintaining steady market growth.

In terms of market driving factors, electronic devices are trending toward miniaturization and high power output. The rapid development of AI servers, new energy vehicles, data centers, 5G base stations and other sectors has become the core driver boosting demand for thermal grease. Specifically, the continuous rise in heat flux density of AI chips and the upgrading of electronic control and battery thermal management systems for new energy vehicles have directly led to a sharp surge in demand for thermal grease featuring high thermal conductivity, low oil bleeding and long service life.

As one of the world’s largest producers and consumers of thermal grease, China has accelerated the domestic substitution process in recent years. Domestic enterprises have made continuous breakthroughs in technological R&D and product quality, gradually breaking the monopoly of imported brands in the mid-to-high-end market. The report indicates that China’s reliance on imported high thermal conductivity thermal grease has dropped significantly. With outstanding cost-performance advantages, domestic products are steadily capturing market shares and have become a key contributor to the growth of the global thermal grease market.