Why it matters now: Every programmable logic controller (PLC), variable frequency drive (VFD), and IIoT edge gateway added to a factory floor is also a new source of heat. A new forecast projecting demand to 2035 finds that industrial automation and instrumentation now account for roughly 15% of global silicone thermal gap pad demand ā evidence that thermal management has shifted from an afterthought to a design and procurement priority for automation buyers.
The finding, drawn from an IndexBox market forecast, places the industrial automation segment alongside consumer electronics and automotive as a primary driver of demand for silicone thermal gap pads. It also reframes a humble material ā a soft, compressible pad that sits between a heat-generating component and its heat sink ā as a linchpin of factory uptime.
Analyst Insight
A 15% share may sound modest, but it is strategically significant. Combined with the multi-year double-digit growth forecasts for thermal interface materials overall, it signals that automation OEMs are now specifying thermal solutions at the design stage ā not as a failure fix. For PLC and drive procurement teams, this is a leading indicator that thermal components will increasingly appear on the bill of materials.
Silicone Thermal Gap Pads Move From Accessory to Engineering Specification
Historically, thermal pads were treated as commodity accessories. That is changing rapidly as control cabinets pack more electronics into smaller enclosures.
Thermal interface materials (TIMs) are conformable compounds engineered to eliminate the microscopic air gaps between mating surfaces. Air is a poor conductor of heat, so a well-specified pad can dramatically reduce the thermal resistance between a hot component and its heat dissipation path.
Within this category, silicone-based gap pads remain the dominant chemistry because of their compressibility, high dielectric strength, and resistance to thermal cycling ā all qualities that matter in vibration-heavy industrial settings.
Why PLCs, VFDs and Industrial Robots Run Hot
The automation segment named in the forecast is not a single product line. It spans PLC racks, variable frequency drives, industrial robots, and precision measurement instruments ā each with its own thermal profile.
VFDs are especially demanding. A 20 kW drive operating at 97% efficiency still dissipates roughly 600 watts of heat, all of which must be managed within the drive's own enclosure or panel. Without adequate thermal management, elevated temperatures degrade performance, shorten service life, and threaten process reliability.
PLC cabinets face a compounding challenge. CPUs, power supplies, communication modules, and I/O cards generate heat in close proximity, and many installations operate in dusty, humid, or high-ambient-temperature environments where passive cooling is insufficient.
Market Trend
Thermal management is increasingly framed as a reliability investment rather than a cost line. As industrial operators push for continuous high-reliability uptime, the thermal condition of control electronics becomes a measurable driver of maintenance frequency and mean time between failures.
The IIoT Multiplier: More Control Units, More Heat Load
The forecast identifies the primary demand driver clearly: the ongoing adoption of factory automation and the Industrial Internet of Things (IIoT), which steadily increases the number of electronic control units deployed in industrial settings.
This is the crux of the story. Every retrofit, every new machine, and every data-driven upgrade adds more edge devices, sensors, and gateways ā each a small but growing thermal load. Scale that across an entire production network and the cumulative heat management challenge becomes substantial.
The IIoT market itself is expanding at extraordinary rates, with multiple research houses projecting the segment to roughly quintuple between 2024 and 2030. That trajectory directly feeds demand for the materials that keep those connected devices within safe operating temperatures.
Market Data: Thermal Management by the Numbers
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Industrial automation share of silicone thermal gap pad demand: approximately 15%, per the IndexBox forecast to 2035.
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Global thermal gap pad market: valued at roughly USD 1.21 billion in 2025, projected to reach USD 2.57 billion by 2034 ā a CAGR of about 8.7%.
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Silicone-based segment share: approximately 64.5% of the thermal gap pad market, growing at a CAGR near 7.9%.
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Broader TIM market: valued between USD 4 and 5 billion in 2025, with forecasts projecting USD 13.6 billion by 2035 at a CAGR above 11%.
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Data centre TIM market: projected to grow from USD 1.82 billion in 2025 to USD 4.21 billion by 2034.
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Headline demand drivers: electric vehicle battery thermal management, 5G infrastructure, AI data centres, and factory automation.
Regional Dynamics and the Supply Chain Picture
Asia-Pacific holds the largest share of the global TIM market, underpinned by rapid industrialisation, electronics manufacturing capacity, and aggressive EV production. It is also the fastest-growing region for IIoT deployment, which ties directly to automation-driven thermal demand.
North America and Europe remain important for high-mix, high-reliability applications ā defence electronics, power conversion, and process automation ā where conformable gap pads offer thermal stability with reduced assembly complexity.
Supply-side risk is a live concern. Silicone compounds, aluminium oxide fillers, and graphite materials have all experienced procurement disruptions in recent years, affecting production schedules and costing. Buyers would be prudent to treat thermal materials as a critical-path supply item rather than a fungible commodity.
Analyst Insight
The convergence of two trends ā rising control-unit density and tightening supply of specialty fillers ā points to a future where thermal materials are dual-sourced and validated early. OEMs that standardise too narrowly on a single formulation risk bottlenecks precisely when demand peaks.
Frequently Asked Questions
What exactly are silicone thermal gap pads?
They are soft, compressible sheets made from a silicone polymer matrix loaded with thermally conductive fillers. They bridge the microscopic irregularities between a heat-generating electronic component and its heat sink or enclosure, improving heat transfer while providing electrical insulation.
Why are PLCs and VFDs singled out in the forecast?
Because they sit at the centre of the factory automation build-out. PLUC racks, VFDs, industrial robots, and precision instruments all contain dense electronics operating in harsh environments, requiring reliable thermal management to maintain uptime.
How big is the industrial automation slice of this market?
The IndexBox forecast attributes approximately 15% of global silicone thermal gap pad demand to industrial automation and instrumentation ā a segment encompassing PLCs, VFDs, industrial robots, and measurement instruments.
What is the single biggest demand driver?
Factory automation and IIoT adoption. As more electronic control units are installed across industrial settings, aggregate heat loads rise, and effective thermal management becomes essential to reliability.
Is this growth tied to EV and 5G as well?
Yes. The forecast identifies EV battery thermal management and 5G infrastructure as major macro drivers, with industrial automation forming a distinct and steadily growing third pillar.
What to Watch Through 2035
Three developments will shape how this market evolves. First, higher thermal conductivity requirements ā suppliers without gap-filler formulations above 5 W/mK increasingly face exclusion from demanding contracts.
Second, the shift toward hybrid and non-silicone chemistries, driven by applications sensitive to silicone outgassing. Non-silicone pads are the fastest-growing sub-category, even from a smaller base.
Third, the continued densification of automation hardware. As control cabinets and drives push more function into smaller footprints, the thermal margin that gap pads must protect will only get thinner.
For automation professionals, the strategic message is straightforward: thermal management is no longer a passive component decision. It is an uptime decision ā and the forecast to 2035 makes that clearer than ever.
